What makes you think you can live in it when you retire? Tenancies of indefinite duration. SF want to prevent you evicting someone.I'm not selling. Seriously considered it earlier in the year and the reason is largely because of the good advice here for which I am very grateful. https://www.askaboutmoney.com/threa...sition-should-we-sell-rental-property.227038/
It's definitely been a hard decision, but as you say what you have you hold, it's a great little house, in a nice small development, we may live in it ourselves when retired, and there's a tracker mortgage on it so we've decided to keep going and just hope we continue to get good tenants as we have so far.
Part of what I was agonising over earlier in the year was increasing the rent - it was rented since 2019 at a very modest rent (800 for a 3 bed detached really nice warm house with a home office / second sitting room.). It's not in an RPZ but we know that's only a stroke of a pen so the stupid rules had me in a position where my preference would have been to leave the rent as is for my excellent tenants but if I did that it would be to my detriment as I couldn't increase it for others if they moved and RPZ landed. So I decided in the end to increase it just to 1,000 but now the tenants have bought their own place so I will give it to a letting agent and probably look for 1,200 and insulate myself a bit from RPZ landing and God knows what other changes. Similiar are asking 1,400-1,500.
My main concern now with tenancies of indefinite duration is getting good tenants. I thought that would be a simple call to the letting agent but turns out not! She said because there's such demand they find it difficult to even advertise a place because there's a deluge and how do you sort through so many people or what way do you do it. Sounds a bit to me like she doesn't want the job (weird? when she very successfully looks after another property for me which belongs to my deceased brother's estate). I might try another agent but thought it was an interesting point I hadn't thought of. I want to go with a letting agent because I just think tenants would not be as quick to mess around / leave the rent late etc. when there's a professional in the middle.
I’d have thought those on HAP are most exposed to job losses in hospitality etc, and once the HAP tenant cannot pay the Council stop too. What’s your thinking on it?Also 4 of my 6 rentals have HAP tenants living in them. With a possible recession on the way and potential job losses on the horizon that gives me some peace of mind in terms of secure rent.
I have two sets of tenants on HAP and two sets of tenants on Homeless HAP.I’d have thought those on HAP are most exposed to job losses in hospitality etc, and once the HAP tenant cannot pay the Council stop too. What’s your thinking on it?
We are saving for a second one (to purchase outright, not BTL via mortgage) now too.
some money in shares
It also increases returnI also don't believe in borrowing to invest as it increases risk.
Clearly I would disagree with your strategy of having such an undiversified portfolio - all your eggs depending on the future of house prices, rents and the whims of government policy.
I also don't believe in borrowing to invest as it increases risk.
But in your situation, where you have decided to buy a third property, I don't know why you don't sell your shares, add the proceeds to your savings and buy a property now? You will have the loan paid off soon enough at the rate you are going.
Brendan
Hi Coyote
That was the point I was trying to make. Borrowing might be appropriate in his case as he has a substantial amount of money.
Brendan
has my daughter living in it but no one else (despite being 3 bed) as I can't get the rent a room tax relief
In theory yes, but in practice?Your daughter can claim rent-a-room however.
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