Rent or sell?

pennyh47

Hi all
I am 63 and I have 4 grown up daughters, of whom the youngest (nearly 23) still lives with me. My partner also lives with me and is renting his house out till next June when we want to live there (much nicer area) and I can retire from my full time job in London.
We are doing up my house and I have 2 options.
1. Rent my house out and continue paying the mortgage, about 10 years to run. Advantage is I keep this asset and can sell at a later date if the market improves. Disadvantage is may be a hassle renting and would need regular tenants to pay the mortgage. I would give my daughter plenty of notice. She is not great with money but it could make her and her boyfriend became independent
2. Sell my house and give each daughter some money and have about £50K to invest. I would have the interest paid monthly to supplement my pensions. Advantages are no renting hassle and girls benefit and I have more income. Disadvantages are I would lose this asset and may not get a good price.
I intend to seek part time work but, at my age, could be a problem. Also my partner will make a will giving me the right to stay in his house until we both die when it would then go to his 2 grown up children. My partner is nearly 58 and is happy to work till he is 65.
May seem a silly question but exactly how do you calculate monthly interest on savings and any advice on where to invest also appreciated.
Sorry for long thread and any help would be great
Thanks

joerugby

Personally I would not want a big debt funding a property that I do not need, which will require expenditure on maintenance and repairs, which may experience rental voids and (worst of all) may not be worth any more in 10 years than it is today.

I would sell now, pay off the debt, reduce my monthly outgoings and invest the remaining proceeds in a mix of cash (say one third) and equity income funds (two thirds). Depending on your attitude to risk you may prefer all cash but you are quite young and inflation will eat away at it quite quickly.

By the way, monthy interest is simply annual interest divided by 365 (i.e. interest per day) multiplied by the number of days in the month.

Please note this is not advice, simply my thoughts on what I would do.

pennyh47

Hi

thanks for responding and saying I am quite young, cetainly don't feel my age! Your thoughts are interesting. I know some people say hang on to my house as it is my bit of independence but I really don't need that security as whatever happens I will have a roof over my head. We will also get married at some stage and I completely trust my partner. I do like the idea of helping my daughters now when they probably could do with the money, 1 getting married next year and another in 2 years or so and moving to Oz, 1 married and wanting to start a family and also wouldn't feel so guilty about chucking the youngest out of her home. Also, as you say. no hassle with renting, maintenance etc.
Also thanks on telling me about calculating the interest, simple when you know how
Appreciate your time and thoughts