Should i sell or rent? Opinions please

spluff

spluff wrote:

thanks for your advice everyone. It does seem everyone is in aggreance here.

I guess the money made on the actually monthly rental isnt too much, but the mortgage I have is an repayment mortgage so every year that someone else is paying to live in the house, the money is coming off that mortgage and when I do sell I will get the money back, plus over a period of time house prices will increase (looking at 5 to 10years)

A friend mentioned maybe changing the mortgage to interest only which would mean I would get more a month (around 300 - 450).

What do you think?

is the new comments still just looking at my original post? I just wondered on my extra thoughts...... thanks

liz545

spluff wrote:

thanks for your advice everyone. It does seem everyone is in aggreance here.

I guess the money made on the actually monthly rental isnt too much, but the mortgage I have is an repayment mortgage so every year that someone else is paying to live in the house, the money is coming off that mortgage and when I do sell I will get the money back, plus over a period of time house prices will increase (looking at 5 to 10years)

A friend mentioned maybe changing the mortgage to interest only which would mean I would get more a month (around 300 - 450).

What do you think?

But you don't have any guarantee that prices will increase over the next of 5-10 years, or that interest rates will stay the same. Have you considered the practicalities of being a landlord? Do you have a full-time job at the moment, or would you be employing someone to manage the property? You probably won't want to be woken at 2am by a tenant with a broken boiler, or have them stop paying their rent because they've had no hot water. Do you have a contingency fund to cover the cost of getting the property up to spec and making any necessary repairs or improvements? As Clutton will tell you, being a landlord is often a time consuming, expensive business, rather than the cash cow that a lot of BTL's think! I think in the long term you'd do better to sell the property and have a smaller mortgage on your new place.