Emotional ties and renting

gillybean129

I inherited the family home over 18 months ago, I was unsure what to do so rented. It's been OK but I found the responsibility a bit daunting at times. Now they have left I am finding being there still upsets me so it's made me evaluate that perhaps I should sell. But the sensible part of me says hang on where else could you invest and get £750 per month (before tax of course) and still have the capital. Then another side of me wants to follow an ambition to develop and make profit that way, move on without the trials and tribulations of being a landlord. I am so torn what to do. Or should I just cut ties and invest the lot with help of a IFA? We are talking about £200K, nice situation to be in but I want to do right by the legacy my mum and dad worked hard for.

quotememiserable

Why not getting a letting agent to deal with tennants for you and keep the hassle out of it. They'll take some money, but you'll lose the worry. Or you could sell and it put into a peer to peer lending thing (thincats etc) and you should gross about 7 to 8% and maintain capital.

gillybean129

Is peer to peer lending risky?

Pixie5740

It's perfectly possible to earn £750 gross on a £200k investment without that investment being BTL. You're getting a gross return of <5% at the moment.

Yes, like all investments P2P has some risk just the same as letting property.

Cakeguts

I think in this situation you would do well to sell this house so that you can move on with your life and not continue to be upset by it. When you have the money you can then decide what you want to do. It is better to not have any emotional ties to a house that is let because they if there is any damage you just get on and repair it without getting upset about it. I am not sure how you would feel if there was a fire and the house got damaged?

ViolaLass

All that work, hassle and risk for 4.5% doesn't seem worth it to me.

Do you own your own house? Do you have a mortgage? A pension? Want to upgrade your skills?

gillybean129

Thank you for your replies, yes we own our own house. Almost paid off.
Yes it holds so many memories, good and bad but I still got upset when things were damaged albeit slightly.
I just feel that Mum and dad worked really hard for it and I wanted to keep the capital but also a bit of income. If I sell that capital probably won't grow unless I either lock it away or take risks which I can't bring myself to do.
I know I wouldn't have any problems selling but each time I go I feel horrible inside and it's just raking it up as it's my childhood home, also my dad's ashes are there

teddysmum

Once it's sold and the new owners have stamped their mark ,it will become less personal.


My childhood home is unrecognisable with different windows and door and my late father's bungalow, likewise , with the front door bricked up and a loft extension added.

brodawel

Perhaps rent it out again and use a reputable letting agent to reduce any hassle. You can have another think about it when your next tennant moves on. To me, you don't seem ready to sell.

AdrianC

gillybean129 wrote: »

But the sensible part of me says hang on where else could you invest and get £750 per month (before tax of course) and still have the capital.

We are talking about £200K

4.5%. Before fees, maintenance, insurance, repairs, voids, non-paying tenants.

That's really not THAT great a return, in the grand scheme of things. Sure, you've still got the potential for a capital gain at the end of it. Taxed, of course. But you've also got the risk of a tenant trashing the place before doing a runner leaving rent unpaid - and, given your emotional involvement, that's going to be more than just a financial pain, right...?

ViolaLass

gillybean129 wrote: »

If I sell that capital probably won't grow unless I either lock it away or take risks which I can't bring myself to do.

At the moment it is both locked away and you're taking a risk with it.