Help - really struggling to decide what to do with my property

Pincher

economic wrote: »

doesn't make sense if I have to pay rental income tax.

£7,500 Ren-a-Room Relief from April 2016.


It's quite good to have somebody minding the house when you go on holiday, to keep the burglars away.

economic

too much hassle getting individual lodgers. plus rental income for the 3 beds is 2k a month so will pass the relief within 4 months anyway.

better to let it out on an AST.

it comes down to what will happen to London property prices in the long term. I can stomache a 20% drop but anymore and over a long period of time not rising back up again will mean buying another was a very big mistake.

chucknorris

economic wrote: »

but don't you think prices look really high and set to fall?

I do agree that this property has both benefits of capital appreciation (being in a gentrification area) and potential for 3 bed for higher rental income. but prices can fall even in London.

I think they are on the high side, we have 8 London properties, I'm probably going to sell a few in 2-4 years, but I'll be in my early 60's then, and it was always part of my plan to start selling at about that age. If I was your age, I wouldn't be concerned, especially if you only have one property.

chucknorris

economic wrote: »

too much hassle getting individual lodgers. plus rental income for the 3 beds is 2k a month so will pass the relief within 4 months anyway.

better to let it out on an AST.

You couldn't let it to lodgers in all 3 bedrooms, they wouldn't be lodgers, they would be tenants.

economic

no you had a good run given your age as during your time prices had risen a lot in London. it may not happen the same way for me over the next 5, 10, 20, 30 years.

I think I have decided I will sell up and buy elsewhere.

chucknorris

economic wrote: »

no you had a good run given your age as during your time prices had risen a lot in London. it may not happen the same way for me over the next 5, 10, 20, 30 years.

I think I have decided I will sell up and buy elsewhere.

Its your home more than an investment, so its more to do with where you want to live. I moved out of London 10 years ago, nothing to do with the property market, I just wanted to live somewhere more rural in Surrey.

economic

but you also own 8 london properties...

think it is bad advice telling someone to keep it and buy another especially when you also say prices are on the high side.

you have had a run with luck buying how many you have and with prices rising a lot in London.

doesn't mean it will continue to go up even in the long term...

chucknorris

economic wrote: »

but you also own 8 london properties...

think it is bad advice telling someone to keep it and buy another especially when you also say prices are on the high side.

you have had a run with luck buying how many you have and with prices rising a lot in London.

doesn't mean it will continue to go up even in the long term...

You will learn eventually that you make your own luck in life. I'm a chartered surveyor, I invested when others were posting their keys back through estate doors in the early 90's, not many people were buying, the market was terribly gloomy. One of the reasons that I moved to London in 1990 was to buy property there.

I'm not telling you to keep anything, I am merely telling you that only you can decide, in fact, I think it is a bit childish of you to ask on the internet for other people's opinions, and then retort that they are giving bad advice (especially when I am not even saying that). Prices are IMO on the high side at the moment, they will fall and rise again. In 2008 our property portfolio fell by over £1m, currently it is over £2m higher than that low point. Property is a long term investment, and you are only 32 years old, I am almost 58, that is why I will be selling some property soon, but you have a lot more time on your side. Previously I could see that there was a significant chance that a correction was coming, but I had no intention of selling, I was confident that prices would recover and I was happy with my rental profits (I still am). But I don't have the time that you do, I need to sell at a high point and reinvest in a more liquid investment that allows me to start spending the equity (we don't have children), it will take decades to spend it, so I need to start soon.

economic

you do make your own luck but luck can be bad or good.

I think my capital is better invested elsewhere for the time being. I will sell and buy a place for me to live long term. but also keeping existing is just too much risk for me.

chucknorris

economic wrote: »

you do make your own luck but luck can be bad or good.

I think my capital is better invested elsewhere for the time being. I will sell and buy a place for me to live long term. but also keeping existing is just too much risk for me.

The saying 'you make your own luck' in reality implies that it wasn't luck. Similar to what Gary Player said 'the more I practice, the luckier I get'.