Property rental or investment

fifeken

flopsy1973 wrote: »

I reckon on about 5200 net allowed 700 for costs as I will manage and do maintenance. Does that sound right?
It does not sound a lot of income when you see it like that so what is the verdict?
Is it worth buying my brothers share out?

You can't look at it like that. You need a longer term view which will include replacing white goods, repainting entire house, updating central heating, new bathroom suite, new floor coverings, new roof, void periods, non payment of rent.

Who will deal with things while you are on holiday?

Like most of the previous answers, get rid of it. Very few people want to be in the letting game nowadays.

flopsy1973

fifeken wrote: »

You can't look at it like that. You need a longer term view which will include replacing white goods, repainting entire house, updating central heating, new bathroom suite, new floor coverings, new roof, void periods, non payment of rent.

Who will deal with things while you are on holiday?

Like most of the previous answers, get rid of it. Very few people want to be in the letting game nowadays.

Yes ok I take your point it is more hassle and things will need doing to it in future. If I sell where am I going to get a similar income this is my concern will I get that invested elsewhere

Sailtheworld

flopsy1973 wrote: »

I reckon on about 5200 net allowed 700 for costs as I will manage and do maintenance. Does that sound right?
It does not sound a lot of income when you see it like that so what is the verdict?
Is it worth buying my brothers share out?

Your plan is to cost your time at zero and rent out the place at close to cost once you account for the interest lost if you just stuck it in the bank.

Unless there are sentimental or purely altruistic reasons for doing this the only reason I can see for doing this is if you expect house prices to rise somewhat. I'd want paying more than 3% (minus tax?) during the wait but ultimately it's your call.

Malthusian

flopsy1973 wrote: »

Yes ok I take your point it is more hassle and things will need doing to it in future. If I sell where am I going to get a similar income this is my concern will I get that invested elsewhere

Nothing is guaranteed (as with the property) but 2.9% yield plus some capital growth is not overoptimistic for stockmarket investments. Especially as you said in your opening post that you are investing for capital growth rather than income.

If a properly diversified stockmarket portfolio returns less than that, then your property will almost certainly underperform your expectations as well, because people won't have enough money to pay increasing rents and house prices.

Thrugelmir

flopsy1973 wrote: »

Yes ok I take your point it is more hassle and things will need doing to it in future. If I sell where am I going to get a similar income this is my concern will I get that invested elsewhere

Investing via a pension wrapper at least provides tax benefits.

DonnaElmore

I’m a bit confused with your concern, but from the way I look at it, I guess that’s a matter of personal preference, need, and decision. While seeking opinions from friends is not bad, the final decision is still up to you. If you find no need for it, then sell it. But if you’re concerned about what you can get from it in the future, then you might want to consider keeping it for now. I’m in that kind of situation before wherein I start a property investment UK with the help of a firm. At first, my dad wanted me to find a different investment type as he’s not quite comfortable with the real estate sector, while my mum was pushing me to continue with real estate since I already got a property to invest in anyway. I did consider both their opinions, but in the end, I knew that I'd be able to have a higher chance of success in real estate as it is also a great interest of mine. I mean I don’t want to enter into something that I’m not even passionate to work on. Also, I don’t want the property to just sit there when I could make money out of it.