Hello
I am looking for some advice.
I am in my early 40s. I own a home that I let out that is affected by defective concrete blocks. The home is in a very good condition now, but it will deteriorate over time and worst case scenario , it might need rebuilding. Hopefully it will take up to 10-20 years to get to that stage, but no one knows really.
I don't have a mortgage for this home.
My tenant recently asked to buy the house at a below market value price. They have full knowledge of the issues that could develop over time.
Should I sell? Would I be crazy to hold on to a defective home for the "passive" rental income it produces?
A few items I'm trying to take into consideration:
It would take me 20 years of rent income (after tax) to make the amount I could sell the house for.
I don't need the money right now and I already have a house of my own also mortgage free.
The housing market is crazy. If I changed my mind, I would not be able to buy another house at this price, especially since my county is riddled with defective homes and most building efforts over the next years will be focused on fixing these homes.
The government is offering a repair scheme for defective blocks homes. This scheme is not workable at the minute but there is hope of improvement in the future.
Insurance wise, because these houses are not fully insurable, I am currently liable if anything was to happen that can be linked to the defective blocks, including a fire.
I am hoping someone can offer some wisdom on what I should do.
Thank you!
I am looking for some advice.
I am in my early 40s. I own a home that I let out that is affected by defective concrete blocks. The home is in a very good condition now, but it will deteriorate over time and worst case scenario , it might need rebuilding. Hopefully it will take up to 10-20 years to get to that stage, but no one knows really.
I don't have a mortgage for this home.
My tenant recently asked to buy the house at a below market value price. They have full knowledge of the issues that could develop over time.
Should I sell? Would I be crazy to hold on to a defective home for the "passive" rental income it produces?
A few items I'm trying to take into consideration:
It would take me 20 years of rent income (after tax) to make the amount I could sell the house for.
I don't need the money right now and I already have a house of my own also mortgage free.
The housing market is crazy. If I changed my mind, I would not be able to buy another house at this price, especially since my county is riddled with defective homes and most building efforts over the next years will be focused on fixing these homes.
The government is offering a repair scheme for defective blocks homes. This scheme is not workable at the minute but there is hope of improvement in the future.
Insurance wise, because these houses are not fully insurable, I am currently liable if anything was to happen that can be linked to the defective blocks, including a fire.
I am hoping someone can offer some wisdom on what I should do.
Thank you!