Advice Discussion (Sell/Rent)

[Wes F.]

Hi all,

Thank you for taking the time to read this.

Info

I purchased a new house, which I will be entering the 9th of July. I now live in a 4-room appartment.

I'm close to renting out my current appartment since the calculations were quite good (7.7 ROI).

The appartment area is wanted and the rental demand is high.

Situation

The selling-market is quite hot aswell, which means I could sell the appartment for 70K profit.

Bought 3 years ago for 141K, now worth 210K/215K.

Calculations

Rental: 

If I rent out the appartment, and all goes well, I will made 70K profit in 9.5 years. 

The 20 years from that moment will be pure profit compared when selling now. So long-term (probably) the better option.

+ Rental income can be used for buying new Real estate.

- Short term costs (5.5K for mortgage transfer and misc. costs).

- When there's a price dip or market stabilisation the break-even point stretcher longer

Selling:

If I sell the appartment for 70K profit, the mortgage on my new home gets cut by 70K, so less mortgage-rent.

When the market stabilizes (whenever that might be), I could refinance the new home, take the cash out/use savings, and buy an appartment rental for probably less than 210K/215K.

+ 70K profit right now, which means paying less mortgage-rent.

Help/Advice Wanted (Sell/Rent)

You can understand my doubts, since both sides have their plusses.

I would love to hear your stories, what you would do in my situation.

Thank you in advance.