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911 user
Join Date: Sep 2001
Location: East of Eden, West of the Sun
Posts: 2,411
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Property and home investment advice
We're looking for a new home and found our ideal. Only problem is it's double our budget!
We qualify for a mortgage for it that would cost About 5k per month. By selling two rental properties we own plus our deposit we could buy it outright. (kicking out the tenants would be the hard part) The monthly income they generate before costs is 1.5K The property is large enough that we could use a part of it as offices and write off about 1k per month as business expense. (that could be used as a mortgage payment on a small holiday home which could also be rented out) I think it's a no-brainer. The only flaw I can see is that the rental properties are part of our pension fund, however, both have tenants that are painful whiners we could happily live without. Any thoughts?
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Where once the giants walked now Mickey Mouse is king. My other car is also a Porsche. Last edited by Milu; 05-24-2009 at 03:19 AM.. |
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05-24-2009, 03:17 AM
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1980 911 SC
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I think it depends on how much you want to leave the place you are in now. Owning a home outright is nice, and then to supplement spending money with the vacation rental could be the deal. I really don't think we will ever find property prices like this again, understanding they may fluctuate for a year or two but long term it'll all go up.
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Life's a Beach |
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05-24-2009, 07:22 AM
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Proprietoristicly Refined
Join Date: Jul 2001
Location: ~Carefree Highway~
Posts: 5,833
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Do you have a prenup or has your partner contributed equally to the cost of a new home?
Selling your pension (rental homes), a large down payment and close to retirement, it would be a shame to loose what you have if your business slows or stress ends the relationship. I would not count on much revenue from your vacation home. Advertising, managemant fees and turn around costs may dwindle any income. By admitting it is "double your budget!" you have a sense of the answer. My view.... John_AZ |
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05-24-2009, 08:23 AM
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911 user
Join Date: Sep 2001
Location: East of Eden, West of the Sun
Posts: 2,411
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sailchef:
We are desperate to move from our current appartment as it's way to small for us. We've only been together three years. We own it outright and would be renting it out, not selling it. The vacation rental would be fine if it covered all costs, gave us a month on the coast rent and hotel free, and made a small contribution to the mortgage. We do have another holiday home and 30 days p.a.on a timeshare. The place we are looking at is an incredible deal! If the property market was "normal" it would be impossible for us. If business and the economy was like a few years ago we could easily buy it at the present price. John Az No prenup but it's academic as Silvia has paid more than me into our current home anyway. It was only intended to be a pied a terre in town but we got a crazy offer on our main residence (hence the big deposit). We do have other rental properties in the pension fund. We aren't a young couple but we aren't yet able to retire in the style we would like so we have to keep working for a few more years.
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Where once the giants walked now Mickey Mouse is king. My other car is also a Porsche. |
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05-24-2009, 09:58 AM
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Non Compos Mentis
Join Date: May 2001
Location: Off the grid- Almost
Posts: 10,594
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No need to evict tenants to sell a home.
You can sell it as a rental, and let the new owner decide what to do. |
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05-25-2009, 09:44 AM
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911SC
