Not sure whether to sell or rent

Tete_du_Pain

Hi there,
We're in a pretty specific situation and we're just not sure what to do. My W recently got promoted at work to a position in Germany, so we have moved there as a family and rent an apartment. I work remotely from there, only coming back here for the odd meeting. Originally we'd decided to keep our UK house as a ready-made home office / base for the occasions when we come home, but given how rarely we're coming back, it feels like that makes no sense any more. We can either rent it out, or sell it. We have approx £300k equity in it at the moment. Normally I feel it would be a straightforward decision to keep the house because everything is relative - if you sell high, you buy high so the market is negated, but in this instance, we don't need to move to another house in the UK. We're likely to be away for approx 5-6 years. Should we sell, based on the fact we may be in a bubble? Or would no one in their right mind sell in this situation and should I just see if we can rent it for a few years?

Any insight appreciated!

TdP

Woolsery

Have you begun in the proper place by researching what it means to be a landlord?

If not, you could start here:

https://forums.moneysavingexpert.com/discussion/5180214/tenancies-in-eng-wales-guides-for-landlords-and-tenants/p1

I'm not sure if this is the very latest info as we lost GM, who was one of the most useful and knowlegeable posters, but it's a great way to begin.

Stubod

..if you sold the house what would you do with the money??...

Subject to the above I would consider renting, but you need to read up about being a landlord and consider the possible risks associated with renting. Also consider what your rental income v costs are likely to be. Being abroad you will obviously need a good agent. They normally charhe around 10% for a fully managed service.

MEM62

The rules governing being a landlord and taxation of the income are already onerous and they are going to be more so in the future.  Think very carefully before becoming a landlord. 

Stubod said:

..if you sold the house what would you do with the money??...

Invest it in equities.  It will give just as good a return in the long terms without downsides of being a landlord.  

Stubod said:

Being abroad you will obviously need a good agent. They normally charhe around 10% for a fully managed service.

Those days are long gone.  It will cost north of £1,000 for an agent to setup a tenancy (expensive if you have a new tenant every couple of years) and somewhat more than 10% for a fully managed service.   
  

thegreenone

Sell the house and buy a 'lock up and leave' flat with the 300k. 

Save the mortgage payments and when you do return, you will have a roof over your heads and money in the bank to look at buying a house again.  I don't think anyone has a crystal ball to tell us what the markets will be doing in 5-6 years time.  Sadly.

movilogo

If your house in an area where it is easy to get tenant, then I'd suggest you let it out. So if every you decide Germany is not for you, you can come back to UK and have own space for living. 

If you sell now, you may discover later that you can no longer afford same house in future (due to the way house price rising in UK).

dimbo61

Really a decision only you can make.
Without knowing the type of property you own and it's suitability as a rental.
Local market, Tax rates, finances, long term plans we are all guessing !
More problems for Landlords from a very stupid government coming down the line.

Zerforax

If you did return in 5-6 years, would you want to return to that house? Does your family consider it a forever home or would you have always looked for a new/bigger house in a few years?

Slithery

movilogo said:

If your house in an area where it is easy to get tenant, then I'd suggest you let it out. So if every you decide Germany is not for you, you can come back to UK and have own space for living. 

With the government looking to abolish S21's there's a fairly good chance they may never be able to evict the tenant and live in the property themselves when they return.

markin

If you can afford the councils empty home rate leave it empty and just see what way the market moves.  

Woolsery

dimbo61 said:

More problems for Landlords from a very stupid government coming down the line.

Are they stupid or just making things easier for the mega-company landlords of the future?

"Oh dear, we see you have been unable to meet your payments Mr Bloggs. Well, never mind, we shall take posession and rent your house back to you under the following conditions...."