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We have no idea what the best course of action is. All the talk in the media regarding property price fall / crash has us wondering if investing the profit from its sale would be a sounder option.
Help please!!!
B. Your 2nd home may be subject to CGT, but in the bigger picture it has such a low outstanding mortgage that you could fix an interest only loan for a few years and the rent should cover these and other costs. This would allow you ride any "crash" for a few years make some income on it in the meanwhile and perhaps sell in a number of years. If the price falls you just hang on for a few years for a recivery. Selling or renting B depends on whether you can afford to hold on for a while if the value does dramatically drop. Or if you would rather money now to put in a bank etc...
Myself and my partner both have property. We are getting married next year but are moving in together in the near future. We don't know whether to rent out the other property or sell it.
The main home we'll be living in has no mortage on it. The house for rent or sale has a mortage of 125k on a 20 year mortage and is valued at 460k-500k approx.
We have no idea what the best course of action is. All the talk in the media regarding property price fall / crash has us wondering if investing the profit from its sale would be a sounder option.
Help please!!!
rents are rising so look at it as a long term investment.
Be aware that this could be temporary, rents are still much lower than 2002 levels. If there is a downturn in construction and many of our new arrivals depart there will be a huge increase in the amount of vacant properties (to add to the amount already present)
Doomsayers really can be amusing...if rents were falling would you advise someone to be aware they could rise?
The OP has to weigh up all of the factors, the most important being their own personal circumstances. As Clubman said stamp duty could be a factor. Rents are rising but your yield at the moment still would not be great.
If it was me, I'd hang onto the house.
Yes I would, rental values are based on demand. I was just pointing out that if a large portion of the recently arrived immigrants (many of whom are employed in construction) leave there will be a overhang on the market.
I assume by your remarks that you believe that rents will continue their upward trajectory for the forseeable future.
Doomsayers really can be amusing...
Sir,
While I concur wholeheartedly with your suggestion that the housing market is running out of steam (Smart Money Is Getting Out, Guardian 20th April, 2007) I must protest at the use of the words 'doom-mongers' and pessimists' to describe those who look forward to a correction in house prices as an opportunity for many to get onto, and indeed move up, the fabled 'ladder.'
Those who want an end to inflation, in whatever guise, are in fact optimists who see a better life without the scourge of runaway prices and the social consequences that follow.
The real doom-mongers are those that predict rising house prices forever, denying home ownership to an entire generation.
It's about time the media stopped this lazy labelling of people who are anything but pessimistic & doom-mongering and turn their attention instead to the causes of this house price bubble where they'll find many more cynical, devious and negative forces at work.
Thanks for all your advice everyone, it really is a difficult decision. One of the reasons why we were thinking of selling and investing the money is because if house prices did drop we would be in a good podition to buy a site in order to build. We have been advised that we could make a decent income on the interest from the lump sum.
We are also aware that if rent did drop, we would still be able to cover our monthly mortage of 800 euros. At the moment we can get 1200 a month in rent for it.
Still not sure what to do!!
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