Tenants in my investment property have approached me to buy and seem keen.

E

eimearnid

Guest
Tenants in my investment property have approached me to buy and seem keen.

The offer on the table from them would see me with about a 50k profit after fees/mortgages paid off.

What I'm wondering is should I sell? I don't need to sell it but would like an opinion on whether it would be prudent to cash in now - I was originally hoping to keep it as a pension of sorts as I am self employed - I'm 35 yrs of age.

Any comments greatly appreciated.
 
Re: Should I sell?

None of us know what way prices are going to go.

I think it depends on when you might need the money. If they is for your retirement in 30 years time then ride out the current problems.

If you need the money in the next 2 years then I would cash in now to be safe.
 
Re: Should I sell?

Thanks for that. I would have been happy to hang on only that they approached me and I know it would be quite difficult to shift otherwise and difficult for God knows how long .... the only reservation about keeping it is that its in a rural part of the country not close to any of the main cities so part of me thinks what will this part of the country be like in 30 yrs if I do hang on...
Thanks again for your post. I know its nothing compared the plight of some people's posts but everyone has their own situation...
 
Re: Should I sell?

You are making a guaranteed profit of 50k on a property when the majority of people are struggling even to get viewers for theirs.

You are getting a potential rock from around your neck, as the property market in Ireland could possibly get even worse than it is now.

I appreciate the interest rates on savings for your 50k aren't great, but I say sell, sell, sell.
 
Re: Should I sell?

If you have concerns about the location of the property then I would suggest selling. Nobody knows for certain what the postion will be like in 10 to 20 years. If you really wanted to keep the investment for the future perhaps you could use the oppotunity to move to a "better" location and increase your chances of riding the wave in a more positive position.
 
Re: Should I sell?

RMCF said:
You are getting a potential rock from around your neck, as the property market in Ireland could possibly get even worse than it is now.
Click to expand...

+1. I think we are just starting a race to the bottom in terms of people being forced to sell their houses due to financial strain. If I were the OP, I would take the profit and sell. If prices continue downwards, easy to buy back in for retirement investment. If prices go up, 50k in the bank earning interest.
 
Re: Should I sell?

what they are also telling you is that they 'want to buy a house now' . so if you dont sell you may be looking for tenant's in the not to distant future. how much is going to cost to renovate etc. the €50k is looking good from where im sitting
 
Re: Should I sell?

Hard to know without knowing your other circumstances.
Do you have other savings? Do you have any dependents? Do you have a big mortgage on your other house.
How would it impact you financially to have your house empty for a year or more?
If you have no savings and no income protection (even if your business continues to suceed, what happens if for example you get a back injury that prevents you physically from working for 3 years?) then you need savings to protect yourself.
If all these what ifs are covered by other savings/insurance policies then you'd be safe enough keeping the house.
 
Re: Should I sell?

Hi Sadie,

Yes all those things are relevant. Both my husband and I are self employed. If the house was empty for a year or more it would not be a good situation as we tend to live from month to month. We have some savings but not much. We also have 3 kids. Even though our own home's mortgage is relatively small if work dried up there's no question we'd be in trouble as we do put money with the rent to pay the mortgage on our investment property.
I think we have decided to sell..... thx everyone.
 
Re: Should I sell?

Are you sure that these folks would get a mortgage ok to buy your property?
 
Re: Should I sell?

So they tell us anyway - they've given us a figure of how much the bank is willing to lend. They are both teachers so prob a safe bet with the bank. Hopefully anyway
 
Re: Should I sell?

Thats good to hear, well for you anyway. Might make your decision easier.
 
Re: Should I sell?

Thanks everyone. much appreciated. I think we will probably sell but i think it's important to invest the profit in something. Next plan is to look into how/what to invest in!
 
Re: Should I sell?

eimearnid said:
If the house was empty for a year or more it would not be a good situation
we do put money with the rent to pay the mortgage on our investment property.
.
Click to expand...

Rural location, rent not covering mortgage, profit - sell.

With prices the way they are not you might find a town or city property to purchase where the rent covers the mortgage and expenses, ensure you have good yield and a good location if you go down this route.
 
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