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To Rent or Sell
johngc
Posts: 100 Forumite
We are thinking of dabbling in the world of property development and would like some advice please.
We have a house that we renovated (our first home) worth about £110,000 and are just in the process of remortgaging (£99,000 for another 2 years fixed).
We have debts of about £19,000 (split between loans and a 0% CC) and savings of about £2200 (Premium bonds that are paid into each month and will clear the CC at the end of the 0%). Our gross salaries are £28k and £27k.
The plan is to renovate another house of a similar size and try to make a profit with a view to clearing our debt quickly. I am pretty handy and managed to do most of the work myself on the current house (kitchen, bathroom etc etc) and we are not planning on buying a wreck, just something that needs a bit of cosmetic work.
The thing is, we don't know whether to:
a) Sell ths house, move into the next while renovating.
b) Rent this and again move into the next while renovating.
c) Live in this and renovate the next then sell it quick.
They way I see it, there are pro's and con's to both. If we sell, then we should have some money for a deposit and rennovation but don't clear the debts at the moment. If we rent, we end up owning two houses but run the risk of not findin tennants and sorting out the buy to let mortgage. And if we buy the second while staying here, we again have two houses and can pocket the profit quickly but have to pay two mortgages.
We are in no rush and happy to wait for the right house to come along.
Any property developers out there with advice?
We have a house that we renovated (our first home) worth about £110,000 and are just in the process of remortgaging (£99,000 for another 2 years fixed).
We have debts of about £19,000 (split between loans and a 0% CC) and savings of about £2200 (Premium bonds that are paid into each month and will clear the CC at the end of the 0%). Our gross salaries are £28k and £27k.
The plan is to renovate another house of a similar size and try to make a profit with a view to clearing our debt quickly. I am pretty handy and managed to do most of the work myself on the current house (kitchen, bathroom etc etc) and we are not planning on buying a wreck, just something that needs a bit of cosmetic work.
The thing is, we don't know whether to:
a) Sell ths house, move into the next while renovating.
b) Rent this and again move into the next while renovating.
c) Live in this and renovate the next then sell it quick.
They way I see it, there are pro's and con's to both. If we sell, then we should have some money for a deposit and rennovation but don't clear the debts at the moment. If we rent, we end up owning two houses but run the risk of not findin tennants and sorting out the buy to let mortgage. And if we buy the second while staying here, we again have two houses and can pocket the profit quickly but have to pay two mortgages.
We are in no rush and happy to wait for the right house to come along.
Any property developers out there with advice?
'Proud To Be Dealing With My Debts'
Official DFW Nerd Club - Membership Number 485
Official DFW Nerd Club - Membership Number 485
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