Help - really struggling to decide what to do with my property

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  • economic
    economic Posts: 3,002 Forumite
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    so I still haven't made my mind up yet however I have put my property on the market.

    with the BTL stamp duty changes and my concerns on London property market being toppy I think I will sell and buy elsewhere.

    do you think maybe I should stay where I am for now and see how the market develops?

    maybe in a couple of years time rents will be higher and prices a lot lower so I can let out my current place and buy somewhere nice to live?
  • slowpoke_rodriguez
    slowpoke_rodriguez Posts: 307 Forumite
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    economic wrote: »
    maybe in a couple of years time rents will be higher and prices a lot lower so I can let out my current place and buy somewhere nice to live?

    You can always dream...
  • Pincher
    Pincher Posts: 6,552 Forumite
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    Mapesbury Conservation Area is nice.


    As you two are not a couple, you can get one property each.
    Rent one out, live in one. Or just take in lodgers, in which case, no capital gains when you sell either property, and you don't have to get BTL mortgages.


    The Thameslink mainline station development near Staples Corner seems to have stalled. I have been waiting to buy something there for decades. They were talking about fast trains non-stop to Kings Cross, in ten minutes!
  • chucknorris
    chucknorris Posts: 10,786 Forumite
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    edited 29 November 2015 at 5:49AM
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    OP as others have said this is quite subjective so only you can decide, but a coouple of things stood out for me:

    1. If the flat could easily be converted into a 3 bed flat, why would you consider sharing it as a 2 bed flat with your brother and not having a lounge, you would presumably be adding value to the flat by converting it. Are you referring to extending (loft or otherwise)? If you really don't want the use of a lounge you could rent it out to a lodger (£7,500 is tax free now in the rent a room scheme).

    2. You have a high percentage of your money in cash (especially for your age), if I was you I would:

    a) transfer my cash ISA's into S&S ISA's.
    b) start paying more into your pension, especially right now when you can get 40% tax relief (which may not be available after the next budget, and also if you go through with your plan to have a lower salary). You may think at 32 that a pension is too far way to think about, but with the new rules it will be available to you in only 26 years, that time will pass quicker than you think. You can open a SIPP and invest in global trackers (you stated a preference above for these) within that SIPP. I personally like vanguard's VHYL ETF, it is very diversified both in sector and geographically and has comparatively low fees (not as low as their ftse 100 ETF, but it has much better diversification).
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • somethingcorporate
    somethingcorporate Posts: 9,449 Forumite
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    100% agree with mr norris here, chuck some more into your pension and make the most of the tax relief whilst it lasts. Your return on cash is very poor and not worth holding so much in it.

    In terms of property you need to be careful, the london market changes frequently and gentrification can mean prices rocket uplike other areas. If it were me I would hold your property in an up and coming area and convert to a 3bed to sqeeuze rental income and buy a more appropriate place in a nicer area. Then you can enjoy the benefits of capital appreciation and reasonable income plus have the property you want in an area you want. The being a landlord bit can be annoying (and I wouldnt do it again) but having a decent property in london could easily change my mind!
    Thinking critically since 1996....
  • economic
    economic Posts: 3,002 Forumite
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    but don't you think prices look really high and set to fall?

    I do agree that this property has both benefits of capital appreciation (being in a gentrification area) and potential for 3 bed for higher rental income. but prices can fall even in London.
  • catoutthebag
    catoutthebag Posts: 2,216 Forumite
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    How do you have so much saved at 60 k a year :eek:
  • economic
    economic Posts: 3,002 Forumite
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    have worked in finance for about 9 years and never had to pay rent as lived with family for most of this time.
  • Sam_J12
    Sam_J12 Posts: 253 Forumite
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    If you really want to move, you could always rent. Rent out your old place and use that income to pay the rent in your new place. Overpay your mortgage as much as you can too, to get rid some of the cash pile.
  • economic
    economic Posts: 3,002 Forumite
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    doesn't make sense if I have to pay rental income tax.
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