Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • flopsy1973
    • By flopsy1973 6th Sep 19, 5:15 PM
    • 317Posts
    • 35Thanks
    flopsy1973
    Sell house or rent dilemma
    • #1
    • 6th Sep 19, 5:15 PM
    Sell house or rent dilemma 6th Sep 19 at 5:15 PM
    Hi
    Me and my brother are in process of putting my parents old house on the market the house is valued at around 180-200.k . After speaking to a friend who has 2 rental properties, he thinks I should buy my brothers share out and rent the property out. I would probably get around 600 per month gross for the house
    I currently rent out my old home on same street and can buy my brothers share of my parents property without finance. Is it that much more hassle to have 2 properties or would it be better to sell and invest my share of it? What income could I make from my share say 100k invested elsewhere
    Any other people been in this situation before?
Page 1
    • G_M
    • By G_M 6th Sep 19, 5:24 PM
    • 49,654 Posts
    • 61,656 Thanks
    G_M
    • #2
    • 6th Sep 19, 5:24 PM
    • #2
    • 6th Sep 19, 5:24 PM
    Well I doubt if two properties is twice the trouble of one. You already have experience and (presumably) knowledge of what's involved.


    Having said that, if this were not an inheritance, is it the sort of property you would choose to buy and rent out? Is it the right size /condition for the local market?


    Selling and investing the money gives access to market returns without the hassle of being a LL, and means your money is much more accesible too.


    Assuming property value is £200,000 and rent at £600 pm, that's a rental yield of 3.6%. Assuming of course you achieve £600 each and every month....
    Last edited by G_M; 06-09-2019 at 5:29 PM.
    • tacpot12
    • By tacpot12 6th Sep 19, 7:13 PM
    • 2,900 Posts
    • 2,625 Thanks
    tacpot12
    • #3
    • 6th Sep 19, 7:13 PM
    • #3
    • 6th Sep 19, 7:13 PM
    Sell!

    If Corbyn ever gets into power you are likely to lose upto 35% of the value of the property - see https://www.independent.co.uk/news/uk/politics/labour-right-buy-scheme-houses-landlords-tenants-john-mcdonnell-corbyn-a9088211.html
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always check official information sources before relying on my posts.
    • flopsy1973
    • By flopsy1973 7th Sep 19, 1:36 PM
    • 317 Posts
    • 35 Thanks
    flopsy1973
    • #4
    • 7th Sep 19, 1:36 PM
    • #4
    • 7th Sep 19, 1:36 PM
    It's not quite the property I would buy for letting but it's my old family home so I know what has been done to it over the years.
    Corby will never get to power so not too concerned about that, will I get equivalent return on my money outside of property
    • ethank
    • By ethank 7th Sep 19, 2:04 PM
    • 2,080 Posts
    • 1,092 Thanks
    ethank
    • #5
    • 7th Sep 19, 2:04 PM
    • #5
    • 7th Sep 19, 2:04 PM
    If you have an emotional connection to the property, then think carefully before buying it for a rental. I have seen other cases where landlords get really upset over minor things because of the emotional connection to their parents old home.
    • G_M
    • By G_M 7th Sep 19, 4:44 PM
    • 49,654 Posts
    • 61,656 Thanks
    G_M
    • #6
    • 7th Sep 19, 4:44 PM
    • #6
    • 7th Sep 19, 4:44 PM
    ...
    Corby will never get to power so not too concerned about that, will I get equivalent return on my money outside of property
    Originally posted by flopsy1973
    I hesitate to spiral off into a political debate but......

    The Tory Party is currently tearing itself apart, pretty literally - potentially decimating its support.

    Depending what happens, the Brexit Party could put candidats up against the Tories, eating into their vote.
    Trust in Johnston is fading...

    Labour could easily benefit whatever the electorate think of Corbyn.
    • ethank
    • By ethank 7th Sep 19, 4:53 PM
    • 2,080 Posts
    • 1,092 Thanks
    ethank
    • #7
    • 7th Sep 19, 4:53 PM
    • #7
    • 7th Sep 19, 4:53 PM
    I hesitate to spiral off into a political debate but......

    The Tory Party is currently tearing itself apart, pretty literally - potentially decimating its support.

    Depending what happens, the Brexit Party could put candidats up against the Tories, eating into their vote.
    Trust in Johnston is fading...

    Labour could easily benefit whatever the electorate think of Corbyn.
    Originally posted by G_M
    Agreed, if the 21 rebels are not let back in and stand against their old party and thus splitting the vote, it could hand a whole load of seats to Corbyn
    • flopsy1973
    • By flopsy1973 8th Sep 19, 5:41 PM
    • 317 Posts
    • 35 Thanks
    flopsy1973
    • #8
    • 8th Sep 19, 5:41 PM
    • #8
    • 8th Sep 19, 5:41 PM
    Ok that aside I really can't see it happening with corby in power and yes even it being family home it will be done purely for financial reasons or would I get return invested elsewhere
    • flopsy1973
    • By flopsy1973 10th Sep 19, 10:37 AM
    • 317 Posts
    • 35 Thanks
    flopsy1973
    • #9
    • 10th Sep 19, 10:37 AM
    • #9
    • 10th Sep 19, 10:37 AM
    Any further advice here?
    • flopsy1973
    • By flopsy1973 17th Sep 19, 10:38 AM
    • 317 Posts
    • 35 Thanks
    flopsy1973
    Any further advice before phoning agent
    • foxy-stoat
    • By foxy-stoat 17th Sep 19, 11:54 AM
    • 5,114 Posts
    • 3,067 Thanks
    foxy-stoat
    Removing all the political references, you have one for selling and another for thinking carefully about letting.

    You have already said that this wont be a place you would buy for letting and the fact that you know what has been done to it isn't enough for me to rent it out.

    I would sell it and put the money into your current rental to reduce the monthly mortgage payments.
    • flopsy1973
    • By flopsy1973 17th Sep 19, 8:31 PM
    • 317 Posts
    • 35 Thanks
    flopsy1973
    Yes i did say above its not a typical place i would buy to let out but i know its history well so thete should be no surprises. My current rental has small mortgage so was looking to invest this if I sold question is where and would I get the same income.?
    • Diocletian II
    • By Diocletian II 17th Sep 19, 8:36 PM
    • 442 Posts
    • 117 Thanks
    Diocletian II
    Landlords are in the sights of both Labour and Conservatives. Sell.
    • Diocletian II
    • By Diocletian II 17th Sep 19, 8:39 PM
    • 442 Posts
    • 117 Thanks
    Diocletian II
    If I sold question is where and would I get the same income.?
    Originally posted by flopsy1973
    I bought some house builder PLC shares Taylor Wimpey and Galliford Try. About 8% dividends. Probably a silly investment, but the dividends are too good to turn down. And Galliford Try is now being bought out by Bovis, so a good profit.
    Last edited by Diocletian II; 17-09-2019 at 8:43 PM.
    • Murphybear
    • By Murphybear 18th Sep 19, 7:36 AM
    • 4,897 Posts
    • 9,277 Thanks
    Murphybear
    Yes i did say above its not a typical place i would buy to let out but i know its history well so thete should be no surprises. My current rental has small mortgage so was looking to invest this if I sold question is where and would I get the same income.?
    Originally posted by flopsy1973
    What about the property makes you say that?

    If you want to buy a property to let have you thought about asking experienced tenants what they want from a rental, what they’d grab with open arms and what they’d not touch with a barge pole. There’s lots of tenants on here.

    In some parts of the country, usually outside London and other big cities, tenants can have a lot of choice.

    Bearing in mind my experience is in the South West, a cute cottage with fabulous views of Dartmoor may seem like a dream but wait until it snows - heavily. Seen that

    Don’t forget there’s lot of older people renting now. They (ie me) can be fussy but have the reputation of looking after the property and are likely to stay longer.

    Ask letting agents. There’s plenty of good ones around, look for ARLA signs, they have pass exams for that
    • PasturesNew
    • By PasturesNew 18th Sep 19, 7:44 AM
    • 67,252 Posts
    • 394,191 Thanks
    PasturesNew
    As you've already one in the street, it's just a matter of deciding as you do know whether it'll rent, who to and at what price. Two in one street is less than 2x the effort to manage.

    But - do you really want to do that to your family home, about which you'll have emotions?
    • seven-day-weekend
    • By seven-day-weekend 18th Sep 19, 7:58 AM
    • 33,636 Posts
    • 67,572 Thanks
    seven-day-weekend
    If my tenant gives her notice in, I will sell, due to the 'Corbyn Factor'.

    However if you are not worried about that, and can rent out your family home without emotional ties, then I doubt whether you would get the same return for your money elsewhere.
    Member #10 of £2 savers club
    Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton
    • Diocletian II
    • By Diocletian II 18th Sep 19, 10:31 AM
    • 442 Posts
    • 117 Thanks
    Diocletian II
    8% dividend yield and potential capital growth with PLC house builder shares, that do not need managing, seems like a much easier way to invest in property.
    • flopsy1973
    • By flopsy1973 18th Sep 19, 10:38 AM
    • 317 Posts
    • 35 Thanks
    flopsy1973
    Also if I did this rental would give me 2.9% yield from what iv worked out
    • Comms69
    • By Comms69 18th Sep 19, 10:42 AM
    • 9,939 Posts
    • 11,956 Thanks
    Comms69
    Also if I did this rental would give me 2.9% yield from what iv worked out
    Originally posted by flopsy1973


    Ofcourse there's tax, repairs, sinking fund, regular payments (e.g. gas safety) and voids to consider.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,158Posts Today

5,825Users online

Martin's Twitter