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Our family home that we moved into 3 years ago has turned out for various personal reasons not to be the fairy tale story I hoped it would be. However in the 3 years we have owned it, we have spent a lot of money, time, thought and effort doing it up. So much so that if we sold it, we would not make any money, and perhaps even lose a little.
It is worth £1m and would rent out for £2600pcm. There is no borrowing on it and the advice I am wanting from my esteemed fellow property tribers is whether to keep it or not?
Is there any scenrio out there where you would keep a property that yields (with potential finance of 60% LTV ) only 1.8%?
The thought of selling it after all the hard work I have put into it is heartbreaking, and so I am hoping that someone out there might be able to offer an expert opinion as to why it might be something good to hang onto? Doesn't the old adage go something like...Never Sell Property?
But equally if the resounding opinion of fellow members is to get out then I will of course listen to those opinions very seriously.
On the plus side, it is in a good location where there are very few family homes available for rent and all that might go wrong has already been upgraded ( boiler, mains supply, re-pointing....the agonising list goes on.)
I think i'd ask you to consider how you'd feel about renting out your beloved family home to a family of tenants who *may* or *may not* look after it as well as you?
You could get lucky and they'd look after it as you would, but how would you feel about letting your home to people who may also slightly trash it, and only get a 1.8% yield?
I wouldn't sell it. I would turn it into a BTL property, release the equity, and use that as a deposit on another residence. Using residence as stepping stone to BTL Selling now might take months, if not years. It's a stagnant market combined with school holidays. I read recently that the average time for a sale to complete is now 7 months.By turning it into a BTL, you keep your options open. You can always sell it later if it does not work out as a BTL, but my instinct would be to keep hold of it and not incur all the costs - let alone heartache and hassle - of selling a property.The other option would be to see if it might yield higher as a short term let.Finally, .... When facing an emotional decision, always allow a bit of time and space for the Universe to give you the answer, rather than rushing in to something.
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Thanks for your thoughts. I had not considered short term lets - is there a good resource / book out there that gives the ins and outs of this approach?
Naturellement! Guide to sourcing & setting up a holiday let
Disclaimer: I have no legal expertise nor am I a qualified advisor on any subject. A humble landlord using an open forum to exchange ideas and experiences.
Hi Mike and welcome to the tribe. Good shout about cleaner being able to check property in-between guests. Will definitely give peace of mind if there is any form of emotional attachment.
Whilst I can't personally comment on the yield question, I can confirm that it's possible to raise finance against this property to allow you to purchase your next family home if necessary, with buy to let financing based on the rental expected.
Please let me know if you do decide to keep the property and need our help in this regard.
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