to rent out or sell

pjoh

Advice needed please?
We have just finished off paying our mortgage, and we would like to buy a new build, should we sell our property or let it out.
If we sell it we would need a mortgage of about 100k if we let it out we will need a mortgage of about 220k.
We would like to move to another town and we don't like the idea of waiting. We are thinking of letting out our house and renting in the new town while a house is built. Then we can settle into the new town as a family.

Is there more hassle in selling or renting!

If we do rent and buy again what should we mortgage new build or rental! Or a bit of both?
Thanks

anotherpaul_2

Personally (and it is just my opinion - other's are sure to disagree) I would sell - now is not the time to have two depreciating assets rather than one.

However, selling may prove problematic at the moment.

Remember that developer's are pretty desparate to sell at the moment, so bargin hard on the new place!

Robert_Sterling_3

I agree with Anotherpaul. You do not want to go from one depreciating asset to two of them.

pinkshoes

It really depends on which area you live in, and what your local market is like.

Are you familiar with this new town you want to move to? i.e. do you know the good streets vs the bad streets?

I would either rent out your current home, then rent in this new town to see if you like it (and also keep an eye out for any houses that come onto the market that you like), or put your current home on the market, and stay put until it sells. Why do you want a new build? I would be very wary about buying anything that isn't at least nearing completion (on ALL the properties on the development) or already complete. If this new build will be on a large development, also check the location and quantity of social housing, and get this in writing.

anotherpaul_2

pinkshoes wrote: »

Why do you want a new build? I would be very wary about buying anything that isn't at least nearing completion (on ALL the properties on the development) or already complete. If this new build will be on a large development, also check the location and quantity of social housing, and get this in writing.

Yeah, I've seen a lot of people complaining that their new build is on an estate that was never finished because the developer went bust. This seems to results in uncomplete / unadopted roads or utilies wanting to charge the home-owner lots of money for connection of services. I don't know how common a problem this is though.

benood

Depends on your overall financial position - but in the absence of that I'll say sell - god only knows what interest rates will do over the next 10 years.