I am selling my property on the coast- contracts exchanged tomorrow- yay! I still owe 20k on the mortgage for that property. Will I have to pay out that mortgage on sale of the home? (I recently refinanced and bought another place). I would prefer not to have to pay out that 20k, as I think in these times, cash is better leverage than being dept-free- as in, if I want to buy my own home or a few more investment properties, I’d prefer the money in hand than not.
Also, I owe 15k on my car. Should I pay this out or let my tenants pay my car off? Again, I feel like it’s better to have the cash in my hand when negotiating new loans. I think the banks would prefer to see the cash in my hands than know I own my own car.
Eagerly awaiting advice
kay henry [:X]
Kay
If the loan is secured against that particular property you will have to pay it off, or arrange to have the loan secured against other property.
As for your car loan, some brokers can advise if this is correct or not (tag team Simon?), but the banks will look at your payments that are to be made on your car as a bit of a negative. It may not be a deal killer, but it is something to be aware of.
Cheers
Mel
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