Stick or sell?

Valleyjack

Hi,

House is under offer due to be completing in 3 weeks, the buyer still does not have a mortgage in place although keeps promising it's coming.....

The thing playing on my mind is if I should sell the house at all and keep it to possibly rent out?

If the sale goes through I would have approx £220k to put into a savings account as I'm going overseas for 3yrs looking at rates that could make me approx £18k over 3yrs.

A local letting company says I could expect a rent income of £1500 -£1750 PCM after their management costs circa £200PCM at the lower rent would just cover the current mortgage - £1265

I have never rented out before so have a little trepardation

Any advice on what would I be best doing stick or sell?

dimbo61

1 You are going overseas so will need a full management service from the letting agent ( cost)
2 You have a large mortgage and so you will make little if any profit on your home in rental over the next 3 years ( add all the costs of being a Landlord, Gas Safety Certificate, insurance, repairs and replacement costs, void periods, deposit costs, finding tenants and letting agents fees, getting the property ready to let)
3 All your money is tied up in a property miles from where you now live and property prices may or may not go up in the next 3 years

Gonzo33

Having just been through exactly the same thing as you I can categorically say if I had my time again I would sell.

Fire_Fox

Sell: being a landlord is a lot of work, there is a lot of legislation to comply with. Having an overseas landlord is a nightmare because they are difficult to contact and find it difficult to organise trades. Paying for true full management - when they organise all repairs and maintenance - is pricey and you cannot delegate your legal responsibilities. It will be a nightmare if you decode to sell, you can't easily do that when out of the country.

Valleyjack

Thanks for the advice! it's unanimous then!