should i sell or continue to rent out

clare-iom

First of all i hope this all makes sense!! Due to personal circumstances i rent a 3 bed house to live in & i've been renting out my own 2 bed apt for the last 12 months. My rental income from the apt doesnt cover the mortgage & expenses - i pay approx £110 extra a month just to keep it going.

Due to my current situation i cant see things changing for a long time yet as i need a 3 bed property to live in. My tenant has offered to buy my apt - i will make approx £20k profit. My concerns are that I could sell now but risk not getting back on the property ladder again (i cant afford 3 beds which are currently on the market as they are over £200'000 were i live). Should i take the risk & sell up or keep renting out my property? Any suggestions?

BitterAndTwisted

You're paying £110 a month towards a mortgage for a property that you can't live in. What happens if you lose your tenant: can you afford to pay the mortgage and the rent?

LilacPixie

I would sell up. you will make 20k and have £110 a month to save that you would of been using to subsidise the mortgage.

clare-iom

nope i cant afford to pay the extra if no tennant.

I think i'm just so afraid of falling off that property ladder - i'm 40 & a single parent & just cant see me getting back onto it once i'm off. i only wanted a property as some form of security/inheritance for my son.

wonderman

clare-iom wrote: »

nope i cant afford to pay the extra if no tennant.

I think i'm just so afraid of falling off that property ladder - i'm 40 & a single parent & just cant see me getting back onto it once i'm off. i only wanted a property as some form of security/inheritance for my son.

Sell up save the money and you will find you will be able to buy in 2 years time when prices have fallen 20 or 30%.

clare-iom

Do you really think i'd get another mortgage at my age & alone? Thats what concerns me. Also at the moment prices have not altered where i live - isle of man. I wish i had a crystal ball to see into the future

BitterAndTwisted

Don't we all!

Anyway, a mortgage is a huge liability as well as an asset. And there is no "property ladder', it's a snake at the moment.

Having to pay rent and not being able to afford the mortgage if you don't have a tenant is a huge risk.

Sell!

IveSeenTheLight

Just a query, you are a single parent, so why the need for a 3 bed property?
Could you rent somewhere smaller if your property is not in the ideal location.

I don't know the rental demand in the Isle of Man, however I would be concerned if it is not strong as you have already stated you could not afford to keep up the payments and it would appear that your tenant is in a position and is looking to buy.
If you do not accept his offer then there is the chance he could buy elsewhere and leave your property.

IveSeenTheLight

BitterAndTwisted wrote: »

Anyway, a mortgage is a huge liability as well as an asset. And there is no "property ladder', it's a snake at the moment.

Having to pay rent and

Ach, don't be so bitter and twisted.
The OP has already said the market in her area has not altered.
Therefore it's not a snake

brit1234

Sell now before your tennat realises prices are going down. Put the money towards a deposit and keep saving for a couple of years.

As the poster said above its a property snake at the moment even though a lot of people are blind to this like your tennant.

Prices are cheaper in the isle of man so you should be able to get a good deal in 2010-2011.

IveSeenTheLight

brit1234 wrote: »

Sell now before your tennat realises prices are going down. Put the money towards a deposit and keep saving for a couple of years.

As the poster said above its a property snake at the moment even though a lot of people are blind to this like your tennant.

Prices are cheaper in the isle of man so you should be able to get a good deal in 2010-2011.

You just make things up don't you.
It's not responsible to give such poor advice.
If you believe your facts are true, please back them up