Making a loss just to get rid of my house

Oog

If I rent it has been suggested I could get £450 p.m.

I would probably have to redecorate as it is just all white/magnolia inside. I'm not sure what standard is required nowadays for the rental market.

Taking off mortgage, landlord insurance, gas certificates, lettings agent fee and assuming an agreed consent to let which would not increase my interest rate, would mean I would probably break even or make a loss. It's a possibility I might make £50 more but obviously the taxman would be interested in that.

Or, I could sell at an overall loss but be keeping hold of about £400 a month...
So, I am not sure it's worth renting and I worry about arranging lettings during my first month of mat leave.
Oog

AMO

Renting really depends on what type of person you are. My partner and I are not suited to the hassles and diplomacy of renting. Also, the banks are targetting this area with high mortgage arrangement fees and clamping down on interest only mortgages.

However, if you have the frame of mind and the financial muscle, renting, at least until an upturn in the market, makes sense.

Personally, I would say that whilst < £75K is a bit low, the value of that property can't be that high as, no disrespect, but the upstairs rooms in that house are very small and will put people off.

As for decorating for renting, a neutral magnolia is the right way to go, so if that saves you painting, then that's a good thing. You might need to see if you need to touch up though and get a friend round to give an unbiased view of the problems they see if they were to rent the place (although that friend might not be honest enough).

geoffky

One has just sold near me that i know it has been on the market at least 5 years and maybe more..it was only a little terrace for about 80k as well..

PasturesNew

Auction finished a few hours ago, page's gone.

the_root_of_all_evil

https://forums.moneysavingexpert.com/discussion/comment/52714507#Comment_52714507

conditional auctions , stay away!!!

franklee

Oog wrote: »

If I rent it has been suggested I could get £450 p.m.

I would probably have to redecorate as it is just all white/magnolia inside. I'm not sure what standard is required nowadays for the rental market.

Taking off mortgage, landlord insurance, gas certificates, lettings agent fee and assuming an agreed consent to let which would not increase my interest rate, would mean I would probably break even or make a loss. It's a possibility I might make £50 more but obviously the taxman would be interested in that.

Or, I could sell at an overall loss but be keeping hold of about £400 a month...
So, I am not sure it's worth renting and I worry about arranging lettings during my first month of mat leave.

Yes, plus the following costs as well.

Voids (time when the property is empty between tenants), repairs and maintenance (e.g. boiler breakdown, tiles off roof), legal fees should you need to evict, risk of bad tenants (which worst case could cause a lot of damage, not pay rent and take a while to evict).

Also for letting you need an exit strategy, that is at what point (if any) do you sell? How do you manage that with a tenant in-situ.

Not forgetting what money the sale proceeds could be earning for you if invested elsewhere, put in a simple savings account or used to pay down any other debts you have or may have soon.

allthingsmustpass

It is worth what someone is prepared to pay. Is this 'loss' from what you guessed (or some estate agent guessed) it was worth or an actual loss of real money you have paid out?

The market has spoken. My opinion - take what it is worth or don't sell it. It is not worth more than you have been offered.

Thrugelmir

the_root_of_all_evil wrote: »

https://forums.moneysavingexpert.com/discussion/comment/52714507#Comment_52714507

conditional auctions , stay away!!!

Too many amateur property developers around these days. Who have little to no understanding of being in business actually means.