Better to sell house or keep it a few years?

ShadyCharacter · 4 November 2019 at 4:38PM

Hi all,

I own a house in Wales which ideally I'd really like to sell & get off my hands (unoccupied), but I'm unsure what the best thing to do is to preserve the value in the current climate? I really don't know much about the property & financial markets, or about Brexit & what that means for money/property, so was wondering if somebody out there has any advice on whether it would be best to hold onto the property to sell it in a few years, or sell it now & just keep the money in my bank account? Is it safer to have money tied up in something that will always have value like property (as they say, 'brick & mortar') as opposed to actual currency, the value of which can change drastically depending on the financial climate/government/banks etc?

Or perhaps I should sell the house & invest the money in gold, to preserve the value? Does anybody have any advice on whether gold is actually a good investment or not? Although I think I read somewhere before that gold is kind of at its most expensive at the moment.

The house does have a few issues, e.g. rising damp, perhaps a bit of woodrot, condensation upstairs, needs an updated bathroom, etc, which is why I was eager to 'get it off my hands' so to speak as I don't know if the condition of the property will deteriorate over the period of a few years if I leave it as it is & nobody is living in it. What do you think I should do?

Vestra · 4 November 2019 at 5:07PM

No one can tell you, if you don’t want it or have the time to sort out it’s problems, sell it and be done with the hassle.

scottishblondie · 4 November 2019 at 5:17PM

If you leave it empty and don’t address the issues it currently has I think you’ll find it worth significantly less in years to come as it’s condition deteriorates. Plus you’ll be paying out for council tax, insurance etc. I’d sell.

Ozzuk · 4 November 2019 at 5:24PM

Damp can cause serious issues if left. The rate of deterioration is impossible to predict, as it depends on luck (what issues come up), construction of house, current issues for instance but they can get into disrepair extremely quickly. especially if not inspecting frequently as issues won't be picked up quickly (leaks, guttering damage, tiles missing etc).

In general properties will increase in value but it isn't guaranteed and any increase could be wiped out if a lot of remediation work required. Also it increases the risk the property could become unmortageable which decreases your market (and therefore price) even further.

I'd either do a basic refresh and get tennants in, or do up and sell, or send to auction as-is. Keeping the property festering would be last on the list.

also, do check the terms of your insurance, some will void if property empty for extended periods.

steampowered · 4 November 2019 at 8:54PM

How old are you and what are your financial objectives?

If you are looking to invest for the long term (i.e. 10 years plus), the best returns over the long term are likely to be achieved by investing in stocks and shares.

The best way to do that is through a tracker fund which spreads across lots of different shares. A single company might go belly up, but not the entire economy.

If you invest through a stocks & shares ISA your profits will be tax free, or through a pension you get an instant free top-up from the tax man.

Gold is a bad idea for an investment. The price could easily drop. It is a non-productive asset: if you invest in companies you are getting paid dividends which over time makes up for price changes; gold just sits there - a bit like having an empty property.

Davesnave · 4 November 2019 at 11:25PM

A house might be bricks & mortar and a very solid looking investment, but it needs maintenance and bills paid, even when empty. Uninhabited it'll deteriorate quickly.

It's also not a very liquid investment compared with funds, which may be accessed in small amounts if you suddenly need money.

phoebe1989seb · 5 November 2019 at 11:59AM

I'm of the 'sell it' camp.

We purchased a detached old stone cottage in Wales twenty months ago. It had been lived in by the eventual repossessees for six years, then tenanted for three after which it was left empty for two. By the time it was repossessed/advertised for sale it bore little resemblance to the property originally listed for sale (at the same time as letting it out in 2012). Galloping damp reigned supreme and everything needed attention/gutting including replacement of a whole extension roof. There appeared to have been little or no maintenance for years.

By the time we purchased it the value had dropped by more than £125k, mostly due to the condition.

Moreover, in the Wiltshire village where we used to own a house, a neighbour (whose main home was in London) once left his cottage empty for over a year. It took very little time for it to become infested with rats, everywhere was damp and - due to the additional issue of burst pipes - two bathrooms/areas of four hundred year old ceilings needed replacing......

I'd definitely sell, OP

RelievedSheff · 5 November 2019 at 2:03PM

Another vote for sell it here.

I wouldn't even update it. Sell it as is to someone who can fix it up and put their own style too it.

There is a shortage of housing in the UK so it is a shame to leave properties empty and deteriorating in condition.

AnotherJoe · 5 November 2019 at 3:55PM

Another vote to sell. No one knows what the housing market will do but I can say with certainty that a house that isn't maintained heated or lived in will deteriorate. Do you want the hassle ?

Skiddaw1 · 5 November 2019 at 4:11PM

I agree. Sell and quickly.

cloo · 5 November 2019 at 5:42PM

Yes, sell. Too expensive and troublesome to fix and rent out (especially with demands on LLs now) and it'll only get harder to sell if you leave it. If the market does fall, it will take a loooong time to pick back up, especially if it's not somewhere with much demand, so I would price it fairly and take what you can get for it.