Wait for sale or rent out?

xtcc

giffen wrote: »

@xtcc It's a frustrating situation isn't it? How are you finding renting it out, has it been straightforward? What are your plans for putting it back on the market - are you waiting for the go-ahead from your estate agents? Part of my reluctance to rent it out is the 'indefinite' nature of it.

So far so good renting it out. Not waiting for the go ahead from estate agent, we'll start asking other agents for advise around June.In an ideal world we'd like to start advertising the property again in June.The tenant a has contract until August but it states that we can advertise the property 2 months before it ends, ideally we'd like her to go on a rolling contract until it's sold.

lol but what are the changes of that happening :rotfl::rotfl::rotfl:

DannyboyMidlands

@xtcc

Offer her some money off the rent if she'll go on a rolling contract. She'd be a fool to say no.

franklee

xtcc wrote: »

It was on the market for 11 months dropped the price by £10,000 to the minimum we could take, and still no luck. So had to reluctatly rent it out in February.

xtcc wrote: »

So far so good renting it out. Not waiting for the go ahead from estate agent, we'll start asking other agents for advise around June.In an ideal world we'd like to start advertising the property again in June.The tenant a has contract until August but it states that we can advertise the property 2 months before it ends, ideally we'd like her to go on a rolling contract until it's sold.

lol but what are the changes of that happening :rotfl::rotfl::rotfl:

It depends on if you told the tenant upfront that it was to be a short let. Often times tenants are looking for a home not a six months and then get moved on job, especially as moving house is expensive (agent's fees, removal fees, overlapping rent and utilities) and time consuming not to mention hard work. Your posts illustrate why I'd avoid renting anywhere that had been recently up for sale. OTOH if you told the tenant before they committed and offer a competitive rent you may get a tenant who doesn't mind viewers traipsing through their home.

VJ_

DannyboyMidlands wrote: »

@VJ

Possibly if you buy at the right time. On the other hand you could just be increasing your exposure to price falls. I wouldn't want to hold one asset that was falling in value let alone hundreds. A 10% fall on one property might be manageable but 10% on lots is squeaky bum time.

Leverage is only clever when prices are rising.

You're forgetting the income - as long as you can rent the property for more than the cost of the mortgage, the value of the properties isn't a big problem.
Living in a City with two large universities, I can safely say that the demand in rental market has been entirely unaffected by the general fall in house prices.
Besides, the supposed fall in house prices seems to have missed us on the south coast anyway - annoyingly (for me, a FTB), we're still paying silly money for the smallest of properties.

Thrugelmir wrote: »

The era has passed of leveraged speculation. Building any business including a property empire requires a lot more thought and planning than on the basis of "it will probably eventually go up again; the market is down at the moment". That's gambling and for the majority taking a real risk with their entire finances including their home. As you should only gamble with what you can afford to lose.

They were two separate, unrelated points. 1) was a good property in the right area will probably go up again 2) was you could use it as leverage to buy more properties. I deliberately tried not to conflate the two.

xtcc

DannyboyMidlands wrote: »

@xtcc

Offer her some money off the rent if she'll go on a rolling contract. She'd be a fool to say no.

She knew that the house had been for sale for a while. She's a 21 year old girl with a 1 year old.

She on housing benefit so reducing the rent wouldn't benefit her. Then I'd imaging finding somewhere else might be difficult for her.

xtcc

franklee wrote: »

It depends on if you told the tenant upfront that it was to be a short let. Often times tenants are looking for a home not a six months and then get moved on job, especially as moving house is expensive (agent's fees, removal fees, overlapping rent and utilities) and time consuming not to mention hard work. Your posts illustrate why I'd avoid renting anywhere that had been recently up for sale. OTOH if you told the tenant before they committed and offer a competitive rent you may get a tenant who doesn't mind viewers traipsing through their home.

Were tenants ourselves so i do know what your talking about and couldn't agree more.

This was the girls first home with parents as guarantor. She did know that we wanted to sell it, so it won't come as a shock to her.

rilou81

Just wanted to add my bit in. I agree with most of the above, if you are not willing to let your house for a substantial amount of time then I would reduce until it sells (if you can)

We are mid re-location and are in the process of letting our house after it being to sale for 7 months. Its no longer an option to sell for us and we have decided to let it long term, either for many years or until the mortage is paid off. We are going into rented but are going to start saving for another deposit to buy again and keep our current house as a pension or if by any chance there is another boom we may cash it in!

If this is not an option then selling is best for you. Good luck.