Shared accommodation/ individual tenancy — can vacant room go to market rent?

Thanks for all the input and not to labour it but..
1.If the mortgage was paid off, this would appear as a better investment than , and while its certainly not as fruitful as a more professionally rented (2k+ per month) property, it could appear "worth it" once you accepted the tenant risks associated. Those tenant risks being subjective.
When I say "worth it", I mean in comparison to a 3% gov bond or similar or to maintain diversification outside the markets!

If the above is true then what's the time horizon where waiting for that to be the reality is acceptable. 5 years seem reasonable, 10 too much.

Granted, maybe no one can answer that specifically. I'm just wondering if the position changes when I dont owe anything on it.
(I could consider paying all or part of it off!)
 
Capital appreciation improves the overall picture; but you need to sort out the rent issue & that may involve some sarcrifice to keep it.

Either by moving in for 2 years or paying the full mortgage & leaving it empty for 2 years.
 
ifyouhavetoask said:
.If the mortgage was paid off, this would appear as a better investment than
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Let's look at it in a different way.

- If you had the money would you purchase that property with the current rent.
- If you had the money would you purchase that property with Market Rent
- If the property has significantly increased in value is now the time to sell and realise the gain
- If the property has significantly increased in value and you don't think that there can be much more or any capital appreciation is mow the time to sell
- Are you happy enough to keep it ticking over given it's current return because you don't think you can do better with the money from selling it
- Are you happy enough to keep it ticking over with Market rent, because you don't think you can do better with the money from selling
 
Bronte said:
but you cannot have 2 PPR's if you are married.
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I think you are misunderstanding.

My suggestion is the OP (inc spouse) move into rental property & make that their PPR for 2 years. Renting out one room will cover the lion's share of the mortgage.

Strategic separation would be another option.
 
Yet another option is to do rent-a-room in your current PPR & use that money towards the mortgage on the rental while its empty.
 
ifyouhavetoask said:
If the mortgage was paid off, this would appear as a better investment than
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If your mortgage was paid, it would basically mean that your 310K would give you a return of 11k before tax (might be less depending on your expenses). This is a yield of 3.5 gross or about 1.7 net (if you are taxed at the higher rate). That's very low. If today you had 310K, would you really decide to invest in a property to get that return?
 
Bronte said:
Let's look at it in a different way.

- If you had the money would you purchase that property with the current rent.
- If you had the money would you purchase that property with Market Rent
- If the property has significantly increased in value is now the time to sell and realise the gain
- If the property has significantly increased in value and you don't think that there can be much more or any capital appreciation is mow the time to sell
- Are you happy enough to keep it ticking over given it's current return because you don't think you can do better with the money from selling it
- Are you happy enough to keep it ticking over with Market rent, because you don't think you can do better with the money from selling
Click to expand...
- No
- Yes
- slightly recovered above purchase price
- No idea where house prices are going beyond the next 5 years tbh
- Basically I have multiples of the equity already sitting in cash/savings accounts, doing very little.
- I feel that I'll just add it to existing savings as I don't feel comfortable going to the market with it. This is the core of the issue, I suppose.

(PRSA is sufficiently funded)
 
The most important question to ask yourself is, are you confident you will be able to sell the house to realize your gains in a few years? Personally i wouldnt be confident of that at all.
 
ifyouhavetoask said:
- No
- Yes
- slightly recovered above purchase price
- No idea where house prices are going beyond the next 5 years tbh
- Basically I have multiples of the equity already sitting in cash/savings accounts, doing very little.
- I feel that I'll just add it to existing savings as I don't feel comfortable going to the market with it. This is the core of the issue, I suppose.

(PRSA is sufficiently funded)
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Would you be able to sell it and purchase something that gives you a better return.

I think you ought to speak to someone with a financial background is you have a lot of money hanging around. Someone on here like Steven Barrett etc. (no connection)
 
JamieB_ said:
The most important question to ask yourself is, are you confident you will be able to sell the house to realize your gains in a few years? Personally i wouldnt be confident of that at all.
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That is a key point. Your 2011 tenant is going nowhere at this stage. Left to himself, he'll be there for the rest of his life. Will you be happy to rent to him forever at the current rent? Will you be happy to rent out the second room at the current rent into the future.

We could easily end up with yet another change to the rules which make it impossible to evict a long standing tenant or a 'temporary' eviction ban on pre-March tenancies.
 
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