should i sell or continue to rent out

LizzieS_2

It comes down to affordability and costs v benefits.

If you can afford to wait, property will go up in price, but you need to see the expenses side too.

You pay £110pm (that could go up or down depending on your current mortgage & assuming you always have a tenant).

You can get 20K cash now.

Up to you to decide the alternative selling date and guess the price then - either way, there is no guarantee you will be able to afford a new mortgage on the type of property you want.

Surbybird

clare-iom wrote: »

Do you really think i'd get another mortgage at my age & alone?

Why not? I've just got a mortgage on my own at 44 so I'm not sure why you wouldn't be able to do the same in a few years.

Good luck.

clare-iom

thanks for all the replies. couple of answers below:

the market on the isle of man is different to that of the uk. its hasn't really changed over the last few months/year - it has only slowed down slightly if anything. They are not cheaper than the uk thats for sure!

my current tennant does have another property they are interested in - exactly the same style apt 2 doors away on the market for 165'000 - though they tell me open to negotiation. however i know that to save the hassle they would prefer to stay put. i'm feeling a little pressured by them to be honest.

the rental market is quite healthy. i dont think i'd have a problem renting the place out again - but thats at this time - who knows if that will change!

i need 3 beds (long story) but i cant opt for anything smaller.

i think from what people are suggesting i should sell. i've got estate agents on valuations this week. i'm going to speak to the bank tomorrow. I so didn't want to sell but just weighing it all up it seems the best option at the moment

IveSeenTheLight

clare-iom wrote: »

thanks for all the replies. couple of answers below:

the market on the isle of man is different to that of the uk. its hasn't really changed over the last few months/year - it has only slowed down slightly if anything. They are not cheaper than the uk thats for sure!

my current tennant does have another property they are interested in - exactly the same style apt 2 doors away on the market for 165'000 - though they tell me open to negotiation. however i know that to save the hassle they would prefer to stay put. i'm feeling a little pressured by them to be honest.

the rental market is quite healthy. i dont think i'd have a problem renting the place out again - but thats at this time - who knows if that will change!

i need 3 beds (long story) but i cant opt for anything smaller.

i think from what people are suggesting i should sell. i've got estate agents on valuations this week. i'm going to speak to the bank tomorrow. I so didn't want to sell but just weighing it all up it seems the best option at the moment

It really is a decision down to you.
The only negative aspect is that you are subsidising the mortgage.
The rental market appears strong (Is your rent set correct for the market?) and the house prices have not changed.
There is a strong possibility that the house prices will rise although nobody knows when and by how much.

You could look at changing the mortgage product you have.
As an example, you could increase the amortization period, hence lowering the monthly mortgage cost.
This will cost more for the mortgage product in the long run but could end up that you are no longer subsidising the mortgage.

Also make sure you fill in your tax returns.
Mortgage interest, advertising, solicitor fees etc are all deductable from the income you receive and if you make a loss, you can carry these forward to profit years and or possibly get a tax rebate.

Good luck

penguine

IveSeenTheLight wrote: »

There is a strong possibility that the house prices will rise although nobody knows when and by how much.

Your local employment market is probably the best sign of whether house prices are going to go up in your area or not. Do you know whether unemployment is increasing markedly, or are there any major employers who seem to be in financial trouble?

If so, this could affect house prices, your ability to sell your property at all, and your ability to find a tenant.

Personally, since the property is unsuitable for you, you're getting less than the mortgage in rent, and you have an interested buyer (plus no EA fees if you sell to them) I think your most sensible option seems to be to sell.

mlz1413

I think if you can get the price you want then sell this place it is after all costing you £1320 per year to keep, you don't have to pay EA fees and it will be hassle free as in you get rent right up until you sell.

If you are really worried about 'staying on the ladder' then look at buying something cheaper than you are about to sell so that it will fund itself. I would try not to worry about your son's inheritance as yet, being financially secure will ultimately bring more happiness than a promise of a flat after you die which will hopefully be in over 30 years time!

Essex_Maid

Is your flat managed by an Agent? There is often a clause to say that if the tenant buys the property then a fee will be payable.

clare-iom

thanks to all for your replies - it is a great help - i cant deny i'm getting a little stressed about making the decision - though i am swaying more in the direction of selling!!

i've an appt with the bank i have the mortgage with tomorrow.

re employment on the island, it seems ok right now though it is mainly financial sector employment, however unemployment is very low.

it's a private rental agreement so no hidden agents fees. Though i have to take into account the fees for cancelling my mortgage - i'll check that out tomorrow.

thanks to "i've seen the light" - re the tax info too. You may not believe it but the tax office - well the guy who deals with me - has been fab. He is fully aware of my situation & has been really helpful. I never thought i'd say that about a tax man!!!

EmRayMarRhys

I'd sell, save the £20k in a high interest account and then put the £110 per month into the account as well.
Would give you a hefty deposit when you do decide to buy, much more favourable to lenders....

clare-iom

Well today my tenant tells me they no longer want to buy my place even though i accepted their offer. She's buying 2 doors away!

I'm concerned now because if i dont sell (or rent) before she moves out I've gotta cover both my mortgage & rent. All the joy of selling!