Should I sell flat or put on rent?

TonyB67

I bought a second property - a 1 bedroom flat as an investment in 2000, paying £67500. I have spent a lot of money on it over the years ( double glazing, boiler, kitchen, bathroom etc). I decided to sell it last march. As the lease had fallen to 76 years i had to renew it which cost £7000 + fees. Since then - as we all know -property prices have fallen quite dramatically, so i decided i would put the property back on rent. However, this property is becoming a burden, having had to completely renovate and clean it up after the last tenant move out in November. I would still like to sell, but most of my friends are advising me that is a bad time to sell and i should wait. So should i sell and possibly invest elsewhere or put the property back up for rental?

no1gymbunny

I think your friends are right. If you can hold onto it for another couple of years, you'll hopefully get a better return. I have a buy to let (in a garrison town) which I let out through the MOD. It is let out on a 12 month lease rather then 6 month. I had to kit it out from furniture down to crockery and cutlery in the kitchen, but I get a very good rent for it, much more than I would have through a letting agent.

spuds_2

It is a bad time to sell, but if you are finding the flat a lot of hassle you need to do your sums to calculate whether the profit or loss is worth it. What are similar flats selling for? Can you afford to have it empty for say six months until you get a sale?

If you can hold on for a few years it will certainly be a better time to sell. It sounds like a first time buyer property and until the lenders start dishing money out again, ie. not requiring a 20% deposit, then it is unlikely to sell quickly. It sounds like you could do with a nice, long term tenant who won't be much trouble. Good luck whatever you decide.

archie9uk

I am in a similar position to you, although I originally bought my flat as a home, rather than an investment. I bought a house in April and I now have tenants in my flat, but it was empty for six months before I could get anyone in. I am making a loss (even more so since I had to have a full re-wire done last week), but I would make a loss if I sold at the moment, so I'm holding out until things improve. There is very little (if any) equity in the flat because we bought on a 95% mortgage three years ago. It feels like a mill-stone round my neck, but hopefully I will get my money back in the long run if I hang in there.

Gorgeous_George

It may be a bad time to sell but there may never be a better time.

What do you think the market will do? How much are you prepared to bet that you are right? Your friends can gamble with your money without risk.

Do what you think is right.

GG

TonyB67

Having just had the lease renewed, i think i will rent the property out for at least a further year and try and recoup some money back. I can get a good rental income in my area (providing i find a tenant!).

Thanks for all your advice