To sell or not to sell - that is the question

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  • To sell or not to sell - that is the question

    Good Afternoon
    I would just like to garner opinion on the following please

    House -3 bed detached in mk
    Value 250k
    If sell i will net around 220 as have to pay cgt as was gifted to me as a youngster
    Current deposit rate 1.7 pc (too old n ill to take risks)-say 3.7k

    Rental value approx 7k a year
    Roughly 2k for contingency/voids etc? Leaves 5k
    Yield is therefore about 2per cent?

    So not much in it if these figures are correct.
    The value in keeping is it was a family home and been in family since built 60 years ago and I ,ay want to move back to it one day
    The value in selling is because its caused anguish letting it and seeing deterioration has exaccerbated my illness somewhat
    The value in selling Now-and not having one more go at letting is because house price has shot up from 210 to 250 in last 3 years and may go back down again

    Any views please?


  • #2
    You haven't allowed for inflation. Real deposit returns are about -1% as inflation is about 2.7%. Therefore, I think you should keep the house.


    • #3
      Oh yes- i hadnt factored inflation in at all.


      • #4
        How much do you want available to spend next year?
        5k or 220k?


        • #5
          I need income rather than capital but am frightened that keeping the house will cost me more in the long run if things go wrong.
          Basically i'm terrified of either option!


          • #6
            You should not be terrified with Selling.

            As you will have no repairs to do, no boilers to replace, no refurbishment every 5 or 10 years, no tenants not paying rent for 6 months, no destruction of property, no exacerbating your illness.

            I hear you can get up to 3% from savings accounts, so that's £ 4000 per year for doing nothing !

            Get up to £ 220,000 for house, and that will give you 44 years of £ 5000 per annum taken from your savings account.
            As the house gets older your income may drop to £ 4000 per year, for extra repairs, which if
            £ 220,000 is in the bank, you can draw out £ 4000 per yer for 55 years.

            What do you want ?
            A stressed life with no money in the bank
            or a stress free life with £ 200,000 in the bank.

            NO contest, SELL.

            At present, I have no money in the bank.
            I have borrowed up to a limit I can afford to pay back, but I am still looking at houses to buy. The houses are not in this country, so I can't remortgage.
            I am suing overseas builders for bad workmanship, have borrowed more money to put the work right, I have lost 12 months rent because of this.
            I may have to sell the odd classic high price car to fund this, after suing chromers for bad workmanship as well.. . . . . THAT IS STRESS ! ( all above )

            But I can cope and bad people feel the might of my wrath, with hours of writing litigation reports for my overseas Solicitors, getting on planes for 5000 mile trips to sort them all out ( borrow more money - but will get it back under litigation ).

            YOUR health is more important than the worry of a house.

            Not everyone can cope with RUNNING A BUSINESS, as that is what you are doing; running a business.
            If you don't like the business or it causes you stress, then GET OUT.

            I have been in a position of having only 1 hour to live - twice in 10 years, but I can bounce back, so all my trials and setbacks don't bother me, and the "chase",is what I thrive on.
            YOU cannot afford your health to be compromised. ( I can ) so sell up.

            O.K. ?
            YOU too could be in my position. and be thankful that you will NEVER be in that position if you sell your house.


            • #7
              Wow Ram, i thank you for your detailed and very heartfelt opinion on this. I intend to read and keep reading this as it seems you have a lot of life experience and practical views to offer. Loads of good points in that which i hadnt considered. Appreciated.


              • #8
                My pleasure.
                I AM outspoken sometimes, go against the grain sometimes on legal matters, but reality checks often help.
                Look after yourself, as no one can do that for you.



                • #9
                  I agree with RAM - Sell the 60 years old house and reinvest the proceeds after tax elsewhere .

                  If you are left after paying capital gains tax with £200K, you could re-invest £100K into 20 high dividend shares and get 5+% overall return.



                  • #10
                    Perhaps the problem here is that a house worth £250.000 should bring in more than £7000 a year.


                    • #11
                      Originally posted by Never what it seems View Post
                      Perhaps the problem here is that a house worth £250.000 ( 250 - comma ) should bring in more than £7000 a year.
                      If you are talking rental income, then that is the problem.
                      Read the posts and understand the "exacerbated my illness" phrase.

                      No mortgage, but problems with tenants, mold etc. New landlord, probably accidental landlord by design.
                      This venture does not suit everyone.
                      I don't buy property to gain an income. I get an income ( or did ) by running a real business with 2600 customers every 6 months, ( from my back bedroom ) and not ONE customer every 6 months via rental properties.

                      I buy detached foreclosed property for $ 5000 to $ 12,000 in up and coming areas, spend $ 15,000 on renovation ( + roof if occasionally needed ). The rent pays off my investment within 5 years, then I sell for double, then move on to next one. ( let me know if you want any before refurbishment )
                      I leave the hassle to good agents.
                      Any problems can see the tenants given 30 days to leave. YES 30 days. + bailiffs of 20 days.
                      I don't have the hassle here in U.K.
                      I don't want the hassle here in the U.K. nor the overpriced houses ( by factor of 3 ) here in the U.K.

                      Cavan does not want the hassle. I have assured him and hope he takes mine and Gordon999's advice.


                      • #12
                        You don't say where the house is - but in parts of the country prices are falling and I can see the price of some types of property declining all over the country. Inflation is not the only factor as with inflation share returns or ordinary interest rates will eventually rise. however earnings may not and that affects house prices.

                        I've been looking to buy for my child but am thinking of holding off for the next 2 years as the risk of price falls now seems to me higher than the chance of price increases.


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