Should I sell or rent

akmodi

HI,

I Have a 4 bed property worth 300k (East Riding of Yorkshire). I am going to move about 50 miles away.

I have been told that to rent -- take the value of the property and use that as interest only mortagage -- so at 300k x 5% = 15000. The monthly rental comes to £1500 inc fees etc.

Is there a market for such a rental?

Thanks

A K Modi

Barney088

There are loads of property out to rent at all sorts of values. You may be best talking to a local estate agent and see what level of demand there would be in your area (see a few and get a good idea).

The principal is fairly simple and is common.

Do you have any mortgage debt at the moment?

akmodi

HI Barney088,

The answer is NO -- no mortgage -- but it would be useful to use the credit towards reducing my next mortgage.

Thanks

A K Modi

mystic_trev

There used to be an expression that "renting is dead money" but not at the moment. In most areas it is cheaper to rent than buy, and from that poiNt of view it's not worth buying until the process reverses. I sold my house back in November and my current rent is 3.5% of the value the Landlord paid for the property i.e. the return is less than the Landlord could get if the money was in the Bank! A lot of BTL'S are hoping for a continued increase in the already ludicrous House prices! Me.....I'm waiting for the "drop" IMHO