Sell or hold?
Question from Aimee updated on 22nd April 2016:
We own an Auckland rental property with a mortgage of $340,000 on it and receive $435 per week rent. If we sell this rental, we will be mortgage free on our other property, which we live in outside of Auckland. Should we sell and be mortgage free on a $300,000 property or keep the rental and continue paying a mortgage?
Our expert Kris Pedersen responded:
This is a hard question to answer as I would need to know more to really be able to provide some guidance here.
Other relevant points would be:
1. How old you are and/or how long you have to go in your working life?
2. If you sell do you have any other assets or plans to assist in building up a base for retirement?
3. If you sell I am picking you should have improved cashflow as you would no longer have the mortgage to pay on your own property. What are your plans with these additional funds?
Besides this you need to do your own research on what you believe will happen in regards to the property market in Auckland and where your property is in particular. This is to help you assess the pros and cons of whether it is worth selling or not.
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz
