Financial Advice

DRS1

I would go along with the sell it now camp but one question is How easy will it be to sell it? Some people end up becoming landlords by default because they cannot sell the property or it is taking too long to sell it.

FlorayG

I know I've been lucky with my tenants but I invested my inheritance in two properties to rent out and I have a nice income from them, pays all my direct debits every month and also building up a nest egg in case one of them needs work.

Yes I will pay CGT when I eventually sell them but people don't take into account how much income they got while they owned them.

I would say though, ABSOLUTELY look carefully into the rights and responsibilities of a landlord before deciding on that option

eskbanker

https://forums.moneysavingexpert.com/discussion/comment/82170583#Comment_82170583

Seems an odd generalisation to assert that "people don't take into account how much income they got while they owned them" - personally I'd have thought that pretty much anyone running a BTL recognises the income (and the tax on it) when evaluating the financial position?

Bostonerimus1

https://forums.moneysavingexpert.com/discussion/comment/82170604#Comment_82170604

I have a paid off rental that's worked out well for me. My current tenant has been living there for a decade now and she is thoughtful and always on time with the rent. She pays slightly below the market rate as I don't like to increase her rent with inflation. The rent is nice retirement income but maybe a quarter goes to pay for maintenance, taxes and water rates.

I paid $120k for the apartment 30 years ago and now it's worth $400k which is a 4% annual capital gain. Initially the rent was $1200/ month giving a gross rental return of 12%…net probably closer to 8% or 9%. The current market rent is $2400/month giving a gross rental return at todays prices of 7% so not as good and I'm not sure I would spend $400k on the rental today.