Sell or rent out?

A

Alice2011

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Hello all, have used this website years ago when buying our home but haven't been very active since.
Just looking for a bit of advice. Both my parents have passed away now and as an only child, the family home has been left to me. Am beginning to wonder what should I do with it. My instinct was to sell but my other half reckons we could get a nice rental income from it? And sell in the future. Excluding my emotions I'm wondering what is the best thing to do? I hear so often of people giving out about being a landlord and how hard it is. I know nothing about tax etc. We own our own home with a small mortgage on it and don't really have much debt bar a small car loan. Just trying to give a better overall picutre. Would love to hear some opinions and advice would be greatly appreciated. The house in question is in Cork City so finding tenants would be no problem. Was thinking that an agency would be nest rather than dealing with it ourselves.
Thank you for reading.
 
Hard to answer without all the relevant information.

Key Post - Basic information required for the "Money Makeover" forum

It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...
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But you have hit the key point. Do you really want the headache of being a landlord?

Let's say the house is worth €300k now.

If you had €300k cash and no house would you invest in this this house? Probably not. You would pay off your loan and mortgage. You would maximise your pension contributions. And you would invest the balance in a portfolio of shares.
 
Thank you for the reply Brendan. Appreciate it. No, if I had 300k I probably wouldn't buy the house. My husband maintains that we're better off renting it out rather than have the money from the sale just sitting in our account. Looking at the market (on daft.ie) it looks like we could get 2k a month in rent from it. Obviously tax and expenses must come off that.
My initial feeling was sell. It's just that a few people have suggested renting it and then we still have it in a few years when we have kids in college etc.
You suggested shares....am totally clueless with all that! Would a financial advisor recommend what to invest in?
Feel very nervous about all this, it's probably the one time in my life when I'll come into a lump sum/property and I dint want to mess it up!
 
"My husband maintains that we're better off renting it out rather than have the money from the sale just sitting in our account."

That may be the case but unless you're luckier than most, the net difference will probably be minuscule once you discount appropriately for risk, work and associated stress.
 
Alice2011 said:
You suggested shares....am totally clueless with all that! Would a financial advisor recommend what to invest in?
Click to expand...
For what it's worth...

What to do with a million euros?

Personal details Your age: 49 Your spouse's age: 54 Number and age of children: 2 aged 9 and 14 Income and expenditure Annual gross income from employment or profession: €30,000 (state job) Annual gross income of spouse/partner: €60000 (state job) Pension: have maxed AVC’s (should I also...
www.askaboutmoney.com
 
Alice2011 said:
My husband maintains that we're better off renting it out rather than have the money from the sale just sitting in our account.
Click to expand...

Your husband is quite correct.

It would be better off keeping the house than selling it and leave the money sitting in an account.

But it would be better again to sell it and invest the proceeds in shares directly or if you don't want the hassle some sort of equity fund.
 
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