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To be a landlord or an investor? Or something else?
Zoey
Posts: 1 Newbie
Looking for a bit of advice..
I have a mortgage of 89,000 on a one-bed flat which I could sell for (I think) between 125,000 and 140, 000. I currently rent this out to tenants (breaking just about even on an interest only mortgage, slightly subsidising due to repairs etc).
I kept the flat on as an investment when my partner and I bought a place together. However, being a landlord is a bit of a commitment and can be stressful at times. In order to avoid Capital Gains Tax I am planning to sell in a maximum of 2.5 years time.
My question is - sell now or in 2 years? It is time to tranfer to a new mortgage so I need to make a plan. If I was to sell I would want to use some of the money to pay off debts and to do work on our new property (up to 8,000 depending on what we decide to do), but I could be left with 20 - 35,000 to invest after fees etc. Is it better to start investing ths now or keep it in property for 2 years first? I suppose my preference is to sell unless it is a really bad idea. If I was to sell, what would be the best use of funds?
Thanks for any thoughts/advice.
Zoey
I have a mortgage of 89,000 on a one-bed flat which I could sell for (I think) between 125,000 and 140, 000. I currently rent this out to tenants (breaking just about even on an interest only mortgage, slightly subsidising due to repairs etc).
I kept the flat on as an investment when my partner and I bought a place together. However, being a landlord is a bit of a commitment and can be stressful at times. In order to avoid Capital Gains Tax I am planning to sell in a maximum of 2.5 years time.
My question is - sell now or in 2 years? It is time to tranfer to a new mortgage so I need to make a plan. If I was to sell I would want to use some of the money to pay off debts and to do work on our new property (up to 8,000 depending on what we decide to do), but I could be left with 20 - 35,000 to invest after fees etc. Is it better to start investing ths now or keep it in property for 2 years first? I suppose my preference is to sell unless it is a really bad idea. If I was to sell, what would be the best use of funds?
Thanks for any thoughts/advice.
Zoey
0
Comments
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Well, if you think the US troubles are coming here you should sell up now. If you dont, then you should keep. No-one is going to know the answer of when its best to sell until time passed and you can look back.
That said, many professional landlords have already sold up from the UK or are being a damned site more picky on the properties they keep or buy.
Do you want to realise a gain now or do you want to keep it at risk of further potential gain but also further potential loss?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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