3 Houses worth in total nearly £2 million sell or rent???

Snowatlast

I need some advice please. I have 3 house's in London. They are all near the new Elizabeth line so will increase in price the ''estate agent'' said. The house I live in is worth nearly £900k. I have 2 on rent at the moment. The 2nd house is worth around £500-600k. The third house is worth £300k.
I spoke to the estate agent and he said the price in London will go up because of the new investment, train line and high street improvement. If I put the 1st houses on rent I should expect a return of £3000 a month and the second house £2000 in a high rent area and third I get £1500 if I push I can get more. That a yearly income of nearly £90k before tax. If I sell now I could get around 1.8m but if I rent for 10 years I could get nearly £1m. I want to move to the united states. The 2m would be around 3m USA dollars. If I rent I get around £120 k USA dollars a year. What would you do in my situations. I am 26 years old. My relatives have told me to stop working but I don't want to . They don't like the fact I might buy a forth house. They where telling me to give one house to my nephew hence the reason they don't want me to be successfulI ,want to work and buy more houses and develop. Please help

Snowatlast

Sorry 4 block I did have paragraph before I submitted.

agrinnall

If there's any truth at all to this, speak to your accountant.

How do you intend to get a visa to work in the USA?

Snowatlast

In 1st houses I have outbuilding I can put on rent for £800 and second houses has private garage behind houses with a gated alleyway. I have included it in the rent but I could charge £300 a month for it. It's gated and separate from the house so could rent it out as car space. Thanks.

Snowatlast

I can travel on my British passport for 90days. I can then apply for citizenship and then a work visa.

SuboJvR

Snowatlast wrote: »

I can travel on my British passport for 90days. I can then apply for citizenship and then a work visa.

Isn't it the other way around?

Certainly in this country, you need to secure a longterm visa for a number of years before you are eligible for citizenship.

AdrianC

Snowatlast wrote: »

I need some advice please. I have 3 house's in London. They are all near the new Elizabeth line so will increase in price the ''estate agent'' said.

Yes, I bet he did.

The house I live in is worth nearly £900k. I have 2 on rent at the moment. The 2nd house is worth around £500-600k. The third house is worth £300k.
I spoke to the estate agent and he said the price in London will go up because of the new investment, train line and high street improvement. If I put the 1st houses on rent I should expect a return of £3000 a month and the second house £2000 in a high rent area and third I get £1500 if I push I can get more. That a yearly income of nearly £90k before tax.

Or, to look at it in a more sensible way, a yield of 5.1%. Not just before tax, but before ANY expenditure, voids, damages, agent fees, mortgage interest, etc etc.

The £900k property is a yield of 4%, the £550k property is a yield of 4.3% and the £300k property is a yield of 5.4%. Knock roughly a third off those returns to be realistic - probably more on the high-end place to reflect the demands of that market. Who'd really expect a return of not much over 2% from nearly a million quid invested - even before we take account of the risk of that much with zero diversity. Doesn't look quite so impressive now, does it?

If I sell now I could get around 1.8m but if I rent for 10 years I could get nearly £1m.

Maybe - if you really think that 57% growth in a decade is possible, on top of current prices. Ignoring inflation.

I want to move to the united states.

Others have covered the realities of that. But forget even trying to enter on a tourist visa/waiver then convert it.

The 2m would be around 3m USA dollars.

At current exchange rates, your £1.75m would be $2.34m. But aren't you forgetting that you need to pay back the lending against those? Or do you own them all outright, no mortgages?

What would you do in my situations. I am 26 years old.

I'd reflect on why I felt the need to come up with such implausible fantasies in a vain attempt to impress people I don't even know.

Snowatlast

Mortgages free. These where bought by grandparets in 1950s.

Norman_Castle

Oh dear, look at the snow. I'm not going out in this. I think I’ll make a story up.

AdrianC

So you've inherited 100% ownership of them?

Snowatlast

Yes I have full ownership. I am just looking for advice.