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Is it worth being a landlord for a short timeframe?

a_silver_lining
a_silver_lining Posts: 535 Forumite
First Post First Anniversary Combo Breaker Debt-free and Proud!
in House buying, renting & selling
So, I have been on these forums for long enough to know that the advice I am likely to get is to steer clear. However, I feel it is worth asking the question in case there is something I have missed.

I own a flat with a 92k mortgage, currently paying £370pm mortgage.

My partner and I are moving to Southern Ireland and will be looking to buy together in 1.5 or 2.5 years depending on her job (we should know in the next few weeks).

She has a 20k deposit and will be able to save over 1k a month soon hopefully.

All my money is tied into the flat as I overpaid the mortgage. I currently save 500-750pm and may be able to up this towards a deposit.

I have been debating whether to try to sell now, or to rent out the flat and sell when hopefully the market has recovered slightly. I have just had valuations ranging between 190-215. I imagine with the market it's the lower end of that, but would mean around 100k deposit.

Either way my plan would be to hold the money in savings accounts in £ and wait to transfer to see if the £ improves in the future.

I have been told by agents, and checked myself, that the property could get between 900-950pm rental. It is a solid build, but I have an old rebuts boiler and know I run the risk of that going in the future and 2.5-3k Bill. I could change it if I knew it was a longer rental and my calculations are that with a BTL mortgage, insurance, agent fees etc I should break even and pay the boiler back.

Selling give me peace of mind and larger deposit to buy a house with my partner in Ireland. Renting gives me possibly a better sale price, or the ability to release equity and keep a flat which is solid and will remain a good rental.

I know no one is a mind reader, and the economy could go anyway, but...

Thoughts? :)
19/12/14: Spent 10 years of savings!!
:heart2: ..... to buy my first home. :heart2:
11K OP 31.03.19

Current goal: €151,000 deposit Ireland and counting, to buy Spring 2022 we hope!

Comments

  • csgohan4
    csgohan4 Posts: 10,587 Forumite
    First Anniversary First Post Name Dropper Photogenic
    No

    Letting is a long term investment

    Are you aware of the tax and legal implications

    What if your tenants don't leave when you want them to? Eviction costs and lengthy time to evict is not to be underestimated
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • Cakeguts
    Cakeguts Posts: 7,627 Forumite
    First Anniversary Name Dropper First Post
    No. It isn't fair on your tenants. You would be wanting them to move out quite soon.
  • Peter_Williams
    Peter_Williams Posts: 179 Forumite
    edited 17 August 2019 at 4:49PM
    You don't know what will happen to the pound or your local property market.

    Sell the flat and put the money in a well diversified cautious / defensive type fund.
    I'd probably include: short duration corporate bonds (Euro / USD and GBP denom), some short duration US Treasuries, some silver/gold, some cash, some REITs and some equities.

    Keeping all your money in GBP is crazy.
  • comedyseeker123
    comedyseeker123 Posts: 182 Forumite
    Up to you. Unless you think the relationship may fair or you won’t love Ireland?

    I personally would keep the house. Better to have a stable place to come back to.
  • a_silver_lining
    a_silver_lining Posts: 535 Forumite
    First Post First Anniversary Combo Breaker Debt-free and Proud!
    comedyseeker123 wrote: »
    Up to you. Unless you think the relationship may fair or you won’t love Ireland?

    I personally would keep the house. Better to have a stable place to come back to.

    This is part of the reason I may hold onto the flat, less so the relationship, but with difficulties already job hunting there and the stresses of relocating I wonder if the safest thing is to have a safety net.

    That said I appreciate that I would then need to wait out the tenancy of the occupants, and the potential for difficulties.

    My father's partner and my boss at work are both landlords to multiple properties so I think I will talk with them.

    I guess I can't get out of my head that simplicity says I should sell, but I'd be marketing before Oct 31st.

    Thank you to the other posters, I'll speak with people more about letting, and if I do sell I will get some paid financial advise.
    19/12/14: Spent 10 years of savings!!
    :heart2: ..... to buy my first home. :heart2:
    11K OP 31.03.19

    Current goal: €151,000 deposit Ireland and counting, to buy Spring 2022 we hope!
  • comedyseeker123
    comedyseeker123 Posts: 182 Forumite
    I think it’s more difficult to sell. What if the Ireland job falls through, what if you split up, what if, what it, what if.

    Personally I would rather have property, epically if I’m moving to an area I don’t know. Even moving to a new city - you don’t know what you will like.

    Being a landlord is relatively easy, especially if you have family members in the area. Go through an agent if you wish.

    With regarding to Brexit, I’m not sure why people are so concerned about one date. Five years ago you wouldn’t have a clue either. So just do whats best for you now.
  • Peter_Williams
    Peter_Williams Posts: 179 Forumite
    comedyseeker123 wrote: »
    I think it’s more difficult to sell. What if the Ireland job falls through, what if you split up, what if, what it, what if.

    Personally I would rather have property, epically if I’m moving to an area I don’t know. Even moving to a new city - you don’t know what you will like.

    Being a landlord is relatively easy, especially if you have family members in the area. Go through an agent if you wish.

    With regarding to Brexit, I’m not sure why people are so concerned about one date. Five years ago you wouldn’t have a clue either. So just do whats best for you now.

    Sometimes it is. Sometimes it isn't.
    The OP doesn't seem the type of person well suited to dealing with potential problems.
  • Sammypooler
    Sammypooler Posts: 70 Forumite
    ^based on what?
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    First Anniversary Name Dropper First Post Photogenic
    I would sell. Letting is expensive and risky plus its a load of hassle to deal with as you try and settle into a new job, house , country. Make a clean break.
    House prices arent going anywhere so just stash the money in the bank and if things dont work out in Ireland and you come back you can buy.
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