Should I sell my property???

may1

I would love some advise plse. I have a property that i bought at max price and due to recession droped about 20,000. I have rented property out due to my partner job we relocated and are renting down south. Not sure if we should sell property now or just keep renting so we can build equity back up?

poppysarah

Does rent cover mortgage? Does rent cover mortgage and repairs?

may1

Yes rent covers morgate we are lucky we have a traker base mortgage.

poppysarah

Are the tenants good? Building in good state of repair?

If it adds up on paper to keep it - then keep it. If the figures don't stack up or you're worried about having to sort a new mortgage out and having to put money in to keep the mortgage lender happy then sell.

may1

Yes the tennants are good. I think its just me rushing into wanting my own house again! Property is so much more expensive down south as you dont get much for your money!!!! and as the propertys start going back up its good for us when we sell ours but not when we are buying.
Thank you for your advise

mbga9pgf

Be careful. There is lots of evidence to suggest prices may indeed slide further rather than go up... especially once the election is over and tax goes up. There seems to be a definite change in attitude to property looking from where I sit, a lot of the shine has gone since prices have started falling again. You also need to bear in mind, that interest rates will go up at some stage, some say sooner rather than later and you dont want to be stuck in a situation where you cant afford your rent in the south and be paying a mortgage for someone else to rent.

If you do decide to sell, price it right to start with, otherwise you may end up chasing down a falling market. Not a good thing apparently having spoke to a number of couples that did this in the 1990s.

poppysarah

That's a good point actually.

At what interest rate does the mortgage not get covered by the rent?

missile

If and when properties do rise, do you think your dream house down south will increase faster than your old home?

brit1234

missile wrote: »

If and when properties do rise, do you think your dream house down south will increase faster than your old home?

That could be in a decades time it takes to recover to 2007 values. If you are going to sell, sell now and fast. Reduce the price below the competition and get the photos perfect. You hold out longer and people will realise the crash is on fall steam and you will get these money.

may1

When the interest rate goes back upto 5.99 percent? the rent will not cover the mortgage. I think i would prefer to sell the house so we can get our family home again as renting down south is expensive too! I just dont want to make a rush decision as the last buy was very rushed and not right but we hope to have learned from this!!!!!