sell or rent out - the future?

mylastpound

Hi all



I need some 'adult advice' so I want to put this out to an open forum andsee what advice I get for in order to make my next move.



I’ve been lucky to have been paid £7k of missold PPI from the help of thisforum - so very thankful for that



I bought a house 7 years ago on a intrest only basis with the guarantee ofmy step dad .

The property is a new build in a quiet cul de sac. 3 bed semi, a firsttime buyer house but quite a big house. unfortunately the house also boardersonto a council estate so it does have its negatives as its classed as aregeneration project in the area.



I’ve been toying with the idea of selling, but due to house prices falling I got consent to let last year( again from the advice from this forum) and rented it out - in this time that’s when I got the 7k PPI .



The house is now empty and ive recently put the property up for sale again, butin 4 weeks it’s only had 1 viewing from a BTL lady.

but when I rented the property out. 4surrounding properties sold for the price I have mine up for...... the agenthas said we will review the price in 3 weeks time, but to be honest I cantreally go any lower due to agent fees, the fine to leave the CTL before 2015and my balance of intrest only, plus ive saved the 7k ppi money to drop theprice.



sorry for the long version on this



Im currently paying for a mortgage for a house that is empty and is on themarket and I live with my boyfriend.



To also add into the mix, I have cc debt of £7k



I don’t know if to leave the house on the market and stick to my price anduse the 7k to plough into the sale and get rid and once it sells then start topay off my CC debt as I won’t have the mortgage repayment.



Or should I rent the house out and use the CTL until 2015 to my advantageand use my 7k saving to pay off my CC debt

So then, I can save up to £1000 amonth as I won’t have CC Debt or mortgages repayments

I could then save £12k comfortably a year

Then in 2 yr time – 2015 I could re-mortgage the property into my nameonly and keep it or I could sell and have 24K to play with and still have myfoot on the market.



I want the security that I havemy own place in hind sight, I don’t want to get to 35, be single renting a flatand have no means to a deposit to buy a FT buyers house and find out I cant buya suitable house due to lack of deposit or salary. All because I walked awayfrom this one when I had the chance that my step dad gave me the first timeround.



So I really need your help once more. What should I do? Please be honestas I know some of you are lol



I have 7k to play with, what should I honestly do?

jamie11

Pay off your most expensive debts first. Get a new tenant into the house. Do proper credit checks.

Mobeer

Certainly pay off the highest interest debts first.

Could you and your boyfriend move into the house - it sounds as if you are renting a flat at present?

If not, then if you are happy being a landlord then rent the house out again, at least until the consent to let early exit fee has passed.

If not happy to be a landlord to 1 property, then sell. If you have only had 1 viewing in four weeks then something seems wrong. You could post a link on here to rightmove or similar for comments; expect them to be rather critical but possibly helpful. Otherwise the price is an issue.

mylastpound

anyone else got any advice? or thoughts?

mylastpound

Mobeer wrote: »

Certainly pay off the highest interest debts first.

Could you and your boyfriend move into the house - it sounds as if you are renting a flat at present?

If not, then if you are happy being a landlord then rent the house out again, at least until the consent to let early exit fee has passed.

If not happy to be a landlord to 1 property, then sell. If you have only had 1 viewing in four weeks then something seems wrong. You could post a link on here to rightmove or similar for comments; expect them to be rather critical but possibly helpful. Otherwise the price is an issue.

I live with my bf in his house - he own his house, so I don't pay rent

I rented it out using a letting company but there were rubbish but I did have a good tenant, so that's the plus, I don't mind renting it out but it can b hassel, but if its worth it so I can save and have more equity id be happy to do this

my house is up for 105 o.n.o but im happy to drop to 98k - in the boom there were selling for 130k

mylastpound

mylastpound wrote: »

I live with my bf in his house - he own his house, so I don't pay rent

I rented it out using a letting company but there were rubbish but I did have a good tenant, so that's the plus, I don't mind renting it out but it can b hassel, but if its worth it so I can save and have more equity id be happy to do this

my house is up for 105 o.n.o but im happy to drop to 98k - in the boom there were selling for 130k

to also add when the tenant moved out all rooms where freshly painted, everywhere was glossed , new carpets and the gardens done nicely, so I really don't know why we have no intrest

BitterAndTwisted

You have had no interest in it because the property isn't worth the £105k you are asking for it. There can be no other reason.

In my opinion, hanging onto a property with an interest-only mortgage is not "keeping a foot on this alleged property-ladder" it's just renting the money from the bank. For a property you have no plan to pay off the principal of the debt on and aren't even living in, is not sensible.

Drop the price by that £7k if you have to but get rid of it! If you're not paying rent to your b/f you should have plenty of spare cash to throw at your debts without that PPI pay-out.

hcb42

pay off the debts, it must be costing you a fair amount in interest every month. Then get saving, and if you don't want the house, drop the price and sell it.

Being on an interest only mortgage, and then renting it out is a total waste of time and energy, totally pointless in this market, as the previous poster also stated.

The other thing might be to change it to repayment and let it out if you want to actually get a foot on the property ladder.

G_M

mylastpound wrote: »

Hi all



I need some 'adult advice' so I want to put this out to an open forum andsee what advice I get for in order to make my next move.

Not sure the forum rules allow 'adult advice' .....

mylastpound

BitterAndTwisted wrote: »

You have had no interest in it because the property isn't worth the £105k you are asking for it. There can be no other reason.

In my opinion, hanging onto a property with an interest-only mortgage is not "keeping a foot on this alleged property-ladder" it's just renting the money from the bank. For a property you have no plan to pay off the principal of the debt on and aren't even living in, is not sensible.

Drop the price by that £7k if you have to but get rid of it! If you're not paying rent to your b/f you should have plenty of spare cash to throw at your debts without that PPI pay-out.

if I sell the house for 98 I have to pay CTL fee and agents ect so 98 is my lowest hence me putting it up 105 o.n.o so if they knock me down to 98 the buyer might feel they won ect

my other option is to pay off my cc debt with the 7k and rent the house out until 2015 in that time I might have save 20 - 30k with that, I can do a remortgage and plough that 20-30 into the property on to repayment and im on the property ladder officaly with a 70-80k repayment mortgage

mylastpound

hcb42 wrote: »

pay off the debts, it must be costing you a fair amount in interest every month. Then get saving, and if you don't want the house, drop the price and sell it.

Being on an interest only mortgage, and then renting it out is a total waste of time and energy, totally pointless in this market, as the previous poster also stated.

The other thing might be to change it to repayment and let it out if you want to actually get a foot on the property ladder.

I know its waste being on intrest only and renting, but as just previously status if I rent it out and save I can then remortgage it and plough the saving in and make it a repayment or sell and buy a house in a nicer area from it all

could that be an option