Property rental or investment

flopsy1973

Hi
Have jointly inherited family home worth about 10k do I buy my brothers share out and rent property out for about 600 per month or invest my share. Would I get the same returns?
I already have one property rental and was going to sell my parents house, but a friend advised against it saying never sell a house rent it out.
I have no need for the income right now but it would give me more options in future
Do I sell and invest or rent?

Albermarle

Have jointly inherited family home worth about 10k

Cheap house!

AnotherJoe

flopsy1973 wrote: »

Hi
Have jointly inherited family home worth about 10k do I buy my brothers share out and rent property out for about 600 per month or invest my share. Would I get the same returns?
I already have one property rental and was going to sell my parents house, but a friend advised against it saying never sell a house rent it out.
I have no need for the income right now but it would give me more options in future
Do I sell and invest or rent?

Have a slap up meal

Keep_pedalling

A £10k house (if such a thing exists) returning £7.2k a year rent would be a fantastic return.

steampowered

I think we would need a bit more information to sensibly answer your question - such as whether you already own your home; whether you plan to move in the future; whether you already have investments and a good pension; whether you are a higher rate tax payer.

Letting out property has tax implications - higher rate SDLT implications possibly, income tax, capital gains tax and so on.

For a lot of people you'd be better off putting the money into a pension to get the tax relief, especially if you are a higher rate tax payer. Or into a stocks & shares ISA.

Difficult to comment without more info though. How much higher rate SDLT, income tax etc. are a problem does depend on your circumstances.

flopsy1973

Sorry house value about 180k half of that my brothers
Living with fianc!e in her house but may wish to move in future
300k invested in stock market
85k in pension pot
Have no mortgage on my old house which I let
Lower rate tax payer
Why would sdlt affect me on this house I'm not buying it?

solidpro

What's the equity in your 'old house' that you let? That's the key value we're missing.

Personally, I'm keen on keeping 33% of wealth split between cash, investments (of which I include pension) and property.

Seems like you might want to put some stuff into low-return, safe spaces for a buffer. NS&I is crap but safe and you could win. We have a few bank accounts which make between 1.5% up to 20K and 5% (drip drip savings accounts with annual reset).

cheers

flopsy1973

Have about 90k equity in my old home I rent out
I have all the usual monthly savers , nationwide etc it has to be something else or stockmarket ?

solidpro

Ok well I think the reason nobody is responding is because you need to be clear about where your money is if you want anyone to suggest what 'we' would do. If you have millions in 'the usual' savings accounts then include that as your existing assets.

You own a house for 90k and have 300k invested in the stockmarket? Sounds a bit weird. How have you 'invested in the stockmarket'?

AnotherJoe

flopsy1973 wrote: »

Sorry house value about 180k half of that my brothers

Why would sdlt affect me on this house I'm not buying it?

You said you might buy your brothers share? SDLT will be payable on that transaction

BananaRepublic

Surely only you can answer the question.You could co-own the property and let it out. Personally I find letting a pain, and prefer a nice easy stock market wrapper investment, but that’s just my preference. We are overdue a crash, so keeping the house till the crash, or sell, bank the money then invest post crash. I think you can drip feed money into a S&S ISA but keep it as cash until you are ready to commit. Savings accounts are pants these days.