Should I sell my mortgaged rental?

[Margarete Rodrigues]

Hi,

I own a rental property that has an equity of 250K and mortgage of 200K with a 2% rate . Price likely to rise as in central London. I haven't been paying any of the capital up to now but considering my age am now in a situation that I should start repaying or selling. If I start repaying I will only break even with the rental income. My own home also have a similar mortgage but at very low rate (0.67%).  Is it financially smart to sell my rental and pay off my home mortgage? If I sell I will incur around 28% Capital gains in 300K. My reason to want to keep it as I see it as good retirement income. It is very well located and is never without a tenant.

I'd appreciate any answers

[Andrew Syrios]

With a 2% interest rate, I have a hard time imagining selling just based on the loan you got!