debt v property

sha11

hi can someone advise me on my dilemma i have a property worth 50,000 paid off and its not rented out yet although the rent will be 400 per month from dec onwards.

over this year my financial situation has got reallly bad that debts are around 50,000 as well, and repayments to all creditors is probably higher should i sell the property to pay off debts or wait till the value of the property increases? said to increase by athird after dec.

Crown

Hi, Is there any gaurantee that you will receive £400 a month on a regular basis? I had a tenant in my flat who just stopped paying there rent and in the end did a runner. Unless you are 100% confident that you will receive it through a council scheme id seriously consider selling up and starting a new.

Have you had any problems meeting your monthly repayments, any Deault notices or CCJs? If not then you may be able to walk away and save your credit rating and then get involved again with property once your situation improves.

If you already have defaults have you tried contacting the creditors and letting them know that you are expecting Income to start in December and trying to work out a reduced repayment plan until then?

If you wish to post up more details of your incomings/Outgoings or post a full SOA then we will be able to offer you more advice

HairyHandofDartmoor

I wouldn't sell it if it was me because properties are still going up in value. Selling it is a quick fix, but you may find it difficult to buy another property in the future as the prices continue to go up.

lynzpower

depends where you are hairyhand. they are not going up by me, they are falling if anything.

Whats happening in december? this sounds like an awful long time ( what another 5 months) to keep paying the mortgage?

My advice- IF YOU ARE IN A HOLE STOP DIGGING. in other words stop borrowing to pay off other debts.

HairyHandofDartmoor

I'm thinking more long term Lynz. If Sha11 really can't pay off the debts any other way, then sellling would be the best option, but if by reducing outgoings or getting a better job they could manage to pay off the debts, then their future would be more stable because they would own a property as well.

It is a very personal decision, obviously, and depends upon a person's individual circumstances, but I am just saying what I would do if it was me.