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Sell or rent 2018

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HelenFlowers
HelenFlowers Posts: 17 Forumite
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in House buying, renting & selling
Looking for some advice and ideas from people who know more than me !
My siblings and I have our inherited 3 bed house on the market in London(I know, we are very lucky) , very little is selling and prices are falling.
Do we take it off the market, rent it, and wait and see if the market recovers next year.
Or drop the price.
?

I know this is a complex question, so thanks for any thoughts, links to articles, or pointing at sources of advice.

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  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    IMO its not just a question of finance for things like this but what each of your priorities is ie one sibling might plan to move in 6mths and needs the money etc etc.


    For me the easiest route is sell it and split the money, no repercussions, no bad feelings and renting is not an easy option as there is a lot to being a landlord.
  • Marvel1
    Marvel1 Posts: 7,172 Forumite
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    edited 18 April 2018 at 7:17PM
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    What does each person want to do?

    What happens if one wants the money all of a sudden?

    Do you know the obligations involved in being a landlord and the others?
  • hazyjo
    hazyjo Posts: 15,470 Forumite
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    Sell IMO!

    No idea how many siblings there are - can you imagine the tenant needing a new boiler or roof or if there's a leak?

    One of you will probably resentfully end up dealing with it all, or it will cause grief or arguments. Are you all likely to have lots of spare cash if something does need doing? Are you all likely to pay immediately? I know what a nightmare it is chasing people for money when you book something - they always forget. Will it cause friction between you if that's the case? What if one's skint? What if the tenant doesn't pay for six months and/or trashes it?

    If it was just two of you - maybe. Any more than that is likely to cause issues IMO.

    It will of course make money again at some point in the future (some may debate that - but in 10-20 years, I'll put money on it being worth more than it is now) - but then so will something you each buy/own if you decided to use that money to move/buy or pay off a chunk of a mortgage.
    2023 wins: *must start comping again!*
  • need_an_answer
    need_an_answer Posts: 2,812 Forumite
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    Do you all want to become landlords and take on all that entails regarding renting?

    personally I would look to sell the property and all get a modest inheritance rather than take on a business venture that will cost you all money in the long run.
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  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    Try to sell now, before interest rates start rising.
  • buggy_boy
    buggy_boy Posts: 657 Forumite
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    Not all properties make good rentals, I would suggest selling... What sort of condition is it in?

    Today I viewed a property that was a complete state, I mean no gas central heating, the original 35yr old kitchen, it was a deceased estate, they were obviously a smoker as it stunk and everything was yellow, needed repointing everywhere, new windows, new gas heating system, new electrics, new conservatory... Basically it needed gutting, its going on at the same price as another one round the corner that was pretty much all up together...

    My point is you have to take this into account, especially in a larger property, it is a buyers market at the moment, ignore similar properties that are for sale in the area, look at sold prices on rightmove, price it to sell, remember you have to pay rates and and standing charges for elecy and gas so the longer you hold on the more it will cost...

    Estate agents just want the work so sometimes come up with some crazy prices just to get the work. Are you getting viewings? What is the feedback?
  • buggy_boy
    buggy_boy Posts: 657 Forumite
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    Crashy_Time wrote: »
    Try to sell now, before interest rates start rising.

    Carney is already back pedalling on interest rate rises, he now says expect a few interest rate rises over the next few years. And as I had predicted Brexit is being used as a reason to delay rises.

    Basically the outcome is yes rates will rise but they will be slow and long...

    Sorry Crashy but once again you are wrong and the interest rate crash you have been hailing for so long is not looking likely any time soon...
  • PhilE
    PhilE Posts: 566 Forumite
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    What part of London are you in? Im in London myself and the prices are rising in my area.

    There are many factors in the price of property rising, but generally speaking you have a property in an area of the UK that is prone to massive growth.

    Brexit may temporarily slow it, politicians who promise to cancel student debt and then admit to not knowing how much the student debt was may promise to turn the country into a low income renters paradise, but unless a few million people move out of London, you've got a good investment there.

    Maybe it could all crash, a war could start. No one knows. But unless there's an obvious reason your house isn't an attractive prospect I wouldn't be quick to sell it.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
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    buggy_boy wrote: »
    Carney is already back pedalling on interest rate rises, he now says expect a few interest rate rises over the next few years. And as I had predicted Brexit is being used as a reason to delay rises.

    Basically the outcome is yes rates will rise but they will be slow and long...

    Sorry Crashy but once again you are wrong and the interest rate crash you have been hailing for so long is not looking likely any time soon...


    Transactions are crashing without rate rises...Carney will eventually have to react, and of course he knows this but just spins the narrative along to keep folks like you borrowing ;)
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