Sell or Rent out second property

Albermarle

saajan_12 said:

popzilla said:

I have seen other posts on this subject but invariably including the consequences of the mortgage on the second property.  I am in the fortunate position of owning outright. Moved back into this property (previously let)while renovating new home. So do I re-let or sell and find alternative investment for 200.000pounds (pounds key not working!)  Rental income after agent fees etc around 750pounds, fifty year old ground floor maisonette in a small block (no maintenance fees, low ground rent) that should sell or let quite easily.
Don't much care for being a landlord and fifty year old building makes me a little nervous of big unforeseen expenses down the line. On the other hand, steady income and hopefully increasing in value over time, although that looks less certain in the current climate.

Assuming a 5% void if say the average tenant stays for 2-3 years and then it takes a month to relet. 

750 x 12 months / 200k value x 95% occupancy = 4.275% return per year, not counting any capital increase. 

Currently, many high yield bank accounts pay that much interest without the faff, but they may not always and of course you don't have any capital increase. 

So the question really becomes what do you think the return will be on other investments, eg a stock portfolio. On 200k, those would also provide a comparable or higher income on average. 

I do not disagree with what you say, but probably worth pointing out that to many people the words 'stock portfolio' are scary. Or they see it as gambling and could 'lose the lot' . Neither is true, but that is many peoples conception of stock market investing ( probably more so after this week ) so would not be an option for many.