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[Closed] Rental property - to sell or not to sell?

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How much is left on the mortgage?

Ok. I'll bare everything - maths was never my strong point!

House bought 2007 at £110k. Deposit of £11k. Currently attempting to sell at £95k. Mortgage is £88.5K. Rent is £500pcm, mortgage is £460pcm, mortgage interest is approx £340pcm. Insurance costs £35 a month.

?


 
Posted : 12/07/2016 3:21 pm
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How easy is it to rent out? Yield isn't too bad really and capital left is low so I think it could be worth keeping - but keep it rented out!

Oh - what's the mortgage interest rate and how long left to pay off?


 
Posted : 12/07/2016 3:45 pm
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Oh - what's the mortgage interest rate and how long left to pay off?

Not sure on int rate at the moment - dont have it to hand, but its on standard variable - tracks something like 1% over the base rate. 31 years to pay


 
Posted : 12/07/2016 3:51 pm
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Hmm not sure that's right as doesn't match up with the payment levels I think.

My mortgage calculator:

https://docs.google.com/spreadsheets/d/1cLH5NU8s4ghbiB7wlc_a1obAcjXdY59TZuW5jhStqjc/edit?usp=sharing


 
Posted : 12/07/2016 4:04 pm
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That's a 6% yield so Deffo a keeper in my books. You would be lucky to get 4% in the London area, and that would be a flat with service charges.

Where are houses selling at pre 2007 levels?


 
Posted : 12/07/2016 4:51 pm
 Chew
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Based on what you've said above your interest rate is ~4.5%-4.75% which isnt surprising based on your LTV.

And you're only going to pay £1500 off the capital over the next 12 months.

Unless you have the cash to significantly increase the capital and to get on a better rate, any tinkering with Tenants/manageing it yourself is just pointless.

At best you make £2k this year, but this could easily be wiped out by any maintenance/further house price reductions


 
Posted : 12/07/2016 5:03 pm
 Olly
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I've been a landlord for 20 years and on the whole I've had very few issues with tenants, ...., another died in one property and wasn't found for a few days ....

What a complete sh*t. Tenants really are scumbag aren't they. Makes you wonder why anyone bothers.


 
Posted : 12/07/2016 8:05 pm
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I'd say keep it. Get agency to find tenants, manage money, you manage trades so agency doesn't charge you for this. In the long run you'll make money. It may be a bit of hassle but so is any investment.


 
Posted : 12/07/2016 8:12 pm
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Don't some agents do a guaranteed income deal?
May not be the best rate but overall could be a good offer v's stress


 
Posted : 12/07/2016 8:41 pm
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TheDTs - Member
Don't some agents do a guaranteed income deal?
May not be the best rate but overall could be a good offer v's stress

Like Northwood mentioned several times 🙄
Legally binding contract, they are the tenant, etc.
You get money in the bank with no surprise bills.


 
Posted : 12/07/2016 8:49 pm
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How much equity does it hold. And where is it ?

TheDTs - Member
Don't some agents do a guaranteed income deal?
May not be the best rate but overall could be a good offer v's stress

Yes we have one.


 
Posted : 13/07/2016 1:08 am
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What a complete sh*t. Tenants really are scumbag aren't they. Makes you wonder why anyone bothers.

I know, very rude. However his deposit covered my costs - you can't just get out of a tenancy agreement by dying.


 
Posted : 13/07/2016 9:06 am
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