Sell or Rent 2nd Property

getmore4less

Plug that data in and do some calculations see if you can make it cash flow positive and work out your ROI.

2.4% rate for a 60% LTV is quite high.

Mr_AVB

Thanks, going to do the figures this weekend to calculate ROI. Presumably then I can compare that % against other financial investments provided by Financial Advisers.

For the ROI calculation on Property B do we use the purchase price 235k even though it was originally bought as a residentia in 2015. I think so but wanted to check.

One other thought that crossed my mind is whether its better to sell B and overpay the mortgage on Property C (probably up to 10k a year). Can i use the mortgage rate % as a comparison vs ROI or is it not that simple.

getmore4less

You need to work out what you have currently invested in the property that would be the cash you would release if sold.

You may want to read up on what is involved with a rental business and do a proper business plan.

you have read the G_M guides?

Then you can factor in the value of your time as well.

https://forums.moneysavingexpert.com/discussion/5180214


Often the good question to ask yourself is...
If you did not own the property would you buy it and set up a rental business.