Do I sell or rent it out

Eeyores_friend

Hi
I have just inherited my mothers house with my brother and he wants to rent it out and sell in about year when property prices go up but the house does need some upgrading, I want to sell it for slightly less than the current market rather than worry about it, particularly as he lives in South Africa and I am here in England and would be mainly 'on tap' so to speak. Can anyone help us to decide what the implications would be or our best option. Thank you for any help. :question:

DVardysShadow

Eeyores_friend wrote: »

Hi
I have just inherited my mothers house with my brother and he wants to rent it out and sell in about year when property prices go up but the house does need some upgrading, I want to sell it for slightly less than the current market rather than worry about it, particularly as he lives in South Africa and I am here in England and would be mainly 'on tap' so to speak. Can anyone help us to decide what the implications would be or our best option. Thank you for any help. :question:

when -> if

Scare him off with the prospect of sterling collapsing.

Milliewilly

Maintaining a rental property takes time, money and effort. I personally would sell as you cannot be certain prices will go up next year - they may go down.

I don't know your personal circumstances but if you have your own mortgage / loans etc paying these off would be my priority with the proceeds.

The upgrading is not important as it will be relative to the sale price now or in the future. You may have to do some works on the house to get it to an acceptable standard to rent out anyway - Gas checks etc do you have the money to do that between you?

The problem is as I think you know, your brother being in South Africa he is not going to have any of the headaches of being a landlord.

Any rental income minus expenditure and tax then divided by the two of you is really not going to be a great deal.

LandyAndy

I would sell now. Prices are, I suspect, in a false dawn. Being a landlord is not just collecting the money each month and this country has far too many reluctant, 'accidental' landlords who are a nightmare for tenants (through their ignorance rather than malice) and hate the position they have been left in.

Eeyores_friend

Thanks for your reply you have given me I have now got some more useful info that I can use but trying to get it across to my brother is not going to be easy but I will certainly try before he flies back on Monday.

Eeyores_friend

Thank you all the replies are very good and I have noted all the implication down. Fingers crossed.

Wobblydeb

I would prepare the sums to include complete management costs - you don't have to do anything, but pay a management company to do it all. i.e. Arranging tradesmen for the initial decoration, electrics and boiler certification, advertising, finding tenants, getting references, documenting inventory, creating contracts, then ongoing repairs, maintenance and decoration.

I think he'll find the cost prohibitive when he isn't getting your labour for free....

Mini_Bear

Also the Rand is strengthening massively against sterling. i believe this is partly to do with the world cup next yr. if you brother waits another year wats to say the rand makes it to 10 to £1. unless he plans to keep the £ as sterlin i would get it sold asap!!

BTman

Can't your Brother buy your half "for slightly less than the current market", then rent it out and sell when he feels is the right time?