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Results: Should we

Sell up, cut our losses and get outta there

88.89% • 8 votes

Rent and hold out for the long term

11.11% • 1 votes

You may not vote on this poll

9 votes in total.

  • FIRST POST
    • HAMMYLIV
    • By HAMMYLIV 10th Feb 18, 9:19 AM
    • 28Posts
    • 9Thanks
    HAMMYLIV
    Sell or rent?
    • #1
    • 10th Feb 18, 9:19 AM
    Sell or rent? 10th Feb 18 at 9:19 AM
    I bought a property in 2014 with my other half. We live in an area of the country where house prices have fallen. The value of ours has fallen despite us investing in improving the property.

    We are now moving for work and want to weigh up our options. Although the value of the house has fallen we still have some equity in the property (about 10%). We don’t think we will be in a position to buy another property for at least 12 months, and certainly wouldn’t get the mortgage we have now (one of us was made redundant and has gone back into study to retrain as that job doesn’t exist anymore, but would certainly earn less when they return to work the other works on a good salary but it is fixed term contracts)

    We are trying to weigh up our options but are struggling to understand our position with the new rules on tax for properties that are let out. The rent we would get on the property would be about the same / just less than mortgage payments. Currently 1 of us is in the higher tax band, the other has no income and we are based in Scotland where some rules differ.

    Our mortgage provider do let people let out their property in these circumstances. Many of our friends are in the same position and have done this.

    Would it be better for us to:

    1. Sell up, take the money and get a mortgage again when we are able? The risk here is that other properties on our street have been on the market for 2+ years and not sold. We would lose all of our investment and wouldn’t be able to buy somewhere else for 4/5 years.

    2. Rent out the property, probably at a loss but it might be less of a loss than having an empty property on the market? This is the bit I am struggling to calculate. Long term we would have the potential to recoup some of our investment if property stabilises/ rises a bit over a 4-5 year period. But if the property is empty and we are renting elsewhere that would be very challenging financially.

    Luckily we are moving far enough to qualify for some relocation support and we don’t have to move until our property has been rented or sold as the new job is commutable (just) from where we are.
Page 1
    • 00ec25
    • By 00ec25 10th Feb 18, 9:22 AM
    • 6,269 Posts
    • 5,786 Thanks
    00ec25
    • #2
    • 10th Feb 18, 9:22 AM
    • #2
    • 10th Feb 18, 9:22 AM
    no one can answer your questions without seeing the full details of your financial situation and knowing the rental property market in your area

    anything else is pointless speculation, particularly as you state
    if the property is empty and we are renting elsewhere that would be very challenging financially.
    • ProDave
    • By ProDave 10th Feb 18, 9:39 AM
    • 801 Posts
    • 867 Thanks
    ProDave
    • #3
    • 10th Feb 18, 9:39 AM
    • #3
    • 10th Feb 18, 9:39 AM
    Watch out for 200% council tax if it is empty for 2 years or more.


    You might be able to ease the higher rate tax issue by the lower earner transferring part of their tax allowance to the other?

    The stuck housing market in Scotland is a !!!!!!. We gave up after 2 1/2 years n the market and are now renting our old house. Not seeing any sign of a turn around, and don't thing there will be until the SNP are history I am afraid.
    • HAMMYLIV
    • By HAMMYLIV 10th Feb 18, 9:43 AM
    • 28 Posts
    • 9 Thanks
    HAMMYLIV
    • #4
    • 10th Feb 18, 9:43 AM
    • #4
    • 10th Feb 18, 9:43 AM
    no one can answer your questions without seeing the full details of your financial situation and knowing the rental property market in your area

    anything else is pointless speculation, particularly as you state
    Originally posted by 00ec25
    The easy answer is, there’s 100s of properties on to rent and sell. Either way people lose out, but which is the best option long term !!!129300;
    • HAMMYLIV
    • By HAMMYLIV 10th Feb 18, 9:44 AM
    • 28 Posts
    • 9 Thanks
    HAMMYLIV
    • #5
    • 10th Feb 18, 9:44 AM
    • #5
    • 10th Feb 18, 9:44 AM
    Watch out for 200% council tax if it is empty for 2 years or more.


    You might be able to ease the higher rate tax issue by the lower earner transferring part of their tax allowance to the other?

    The stuck housing market in Scotland is a !!!!!!. We gave up after 2 1/2 years n the market and are now renting our old house. Not seeing any sign of a turn around, and don't thing there will be until the SNP are history I am afraid.
    Originally posted by ProDave
    Is the 200% council tax automatic? How have you found renting? We might not have this choice in the end but I want to weigh up or preferred option so we can prioritise it at this point.
    • PokerPlayer111
    • By PokerPlayer111 10th Feb 18, 11:01 AM
    • 243 Posts
    • 85 Thanks
    PokerPlayer111
    • #6
    • 10th Feb 18, 11:01 AM
    • #6
    • 10th Feb 18, 11:01 AM
    Dont become a landlord unless you want to become a landlord IMO. So sell.
    • ProDave
    • By ProDave 10th Feb 18, 11:05 AM
    • 801 Posts
    • 867 Thanks
    ProDave
    • #7
    • 10th Feb 18, 11:05 AM
    • #7
    • 10th Feb 18, 11:05 AM
    Is the 200% council tax automatic? How have you found renting? We might not have this choice in the end but I want to weigh up or preferred option so we can prioritise it at this point.
    Originally posted by HAMMYLIV
    I believe so.

    I know someone that sold their house at auction when the 200% CT kicked in.

    We are in a slightly strange position that we are renting to a couple that want to buy our house, but both being self employed need 2 years of accounts to get a mortgage. So the hope is they will rent it for 2 years then buy it. If it turns out after a reasonable time that they can't buy it then it will go back to market in the hope the market may have refreshed. At least we will have had 2 years rent from it to sweeten the bitter pill of possibly having to drop the price to eventually sell it. We don't have a mortgage.
    • cjdavies
    • By cjdavies 10th Feb 18, 12:17 PM
    • 3,236 Posts
    • 3,452 Thanks
    cjdavies
    • #8
    • 10th Feb 18, 12:17 PM
    • #8
    • 10th Feb 18, 12:17 PM
    Do know what laws a landlord must follow? Tenent rights?
    • 00ec25
    • By 00ec25 10th Feb 18, 4:50 PM
    • 6,269 Posts
    • 5,786 Thanks
    00ec25
    • #9
    • 10th Feb 18, 4:50 PM
    • #9
    • 10th Feb 18, 4:50 PM
    The easy answer is, there’s 100s of properties on to rent and sell. Either way people lose out, but which is the best option long term !!!129300;
    Originally posted by HAMMYLIV
    so you want to play guessing games from the perspective of us knowing nothing about your area, its rental potential or what you can achieve as profit?

    so, my answer: go ahead and lose
    • Crashy Time
    • By Crashy Time 11th Feb 18, 1:50 PM
    • 5,919 Posts
    • 2,332 Thanks
    Crashy Time
    Watch out for 200% council tax if it is empty for 2 years or more.


    You might be able to ease the higher rate tax issue by the lower earner transferring part of their tax allowance to the other?

    The stuck housing market in Scotland is a !!!!!!. We gave up after 2 1/2 years n the market and are now renting our old house. Not seeing any sign of a turn around, and don't thing there will be until the SNP are history I am afraid.
    Originally posted by ProDave

    There is a poster from a Glasgow suburb on here though that says houses are flying off the shelves! Is that not happening everywhere?
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