Buying property ?
I am a few years away from retiring.
I have a large mortgage on my current property.
I have found this one bed room apartment at a reduce cost in a desirable area and I am thinking of renting my current property and buy this apartment without selling my current property.
My question is do think increasing debt before retiring is a wrong move
I desperately trying to have one more chance of investing and hopefully make a right decision
What is your thoughts please
- babyboomer1001Lv 72 months ago
Sorry, I'd have to look at the numbers. Don't count on rental money for your upkeep. Realize that if a renter fails to pay, your debts won't decrease.
- TavyLv 72 months ago
Good idea if the tenants keep paying. What if they default and you have to pay thousands to evict them.
And still pay the mortgage.
- ?Lv 72 months ago
If you will be making at least a little bit on the rental, and at the same time reducing your housing expense by moving from a house to a much smaller place, then it'll probably go ok. I would not expect much (or any) income on the house once you take into account vacancy, maintenance, and tenant repairs; on top of all the current expenses, Nontheless you may get a small income and small savings and you are buying a house while (hopefully) being paid to do it (being paid in that the rent pays all your house expenses plus a bit). It may be a bit risky in that you are incresing debt, but so long as the debt is fixed and you could afford to pay all the debt and expenses one both houses for awhile, if you had to (and you will have to it the rental goes vacant for a few months), then it'll probably be ok.
Best answer - probably a good idea, can be a bit risky, make sure you are making at least a litttle bit of money on the rental and could afford to carry both places for a few months if you had to.