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  • Property-a-holics

    Sell or let dilemma

    I’d really love to hear some opinions on this as I’m weighing up the pros and cons! I have a 2 bed ex council house in Beaconsfield - that’s had great growth now stagnant for 2 years. I am just completing on house near Halifax and planning to move up north.

    Original goal was to sell the Beaconsfield house and use 200k equity to flip properties up north. But hearing noises that this is getting harder and not many deals. I also feel my house in Beaconsfield is undervalued at 400k when there is nothing on the market under 550 in this area. My son is 4 and starting school in sept so idea was to have more flexibility on working hours! So options are: 

    1. Sell now, cash in and flip properties for a living 

    2. Sell now, use money to fund 4x 3 bed house in midlands/north

    3. Rent 12 months on consent to let and see what Brexit does - but need a job to cover 2 mortgages (I’m a contractor) 

    4. Rent on 5 year personal btl that releases 40k equity but 10k redemption penalty and cgt if I sell

    Love to hear what you would do and why! Thank you 
    Emma 
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    Hi Emma,

    I would be very reluctant to sell your property in Beaconsfield.  It gives you a foothold in the South East and sounds like a viable property.

    There may be other ways to extract some equity - such as a further advance or second charge - and you could also bridge against the equity in the Beaconsfield house to assist your other property activities.

    So it's a great asset to you all round imho and I wouldn't sell it, but use it to help you move forwards.

    A call to the team at Property Tribes Financial Services on 01206 654444 would assist you in clarifying how you can use/access/leverage your current equity without selling this property.

    Hope that assists and good luck?

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    Hi Emma,

    If you decide to keep your property in Beaconsfield, you will need to consider the affordability of your plans.

    If you purchase another property, you will have to pay the additional rate of Stamp Duty, plus the ongoing costs of 2 mortgages. If you decide to flip properties, do you have the trade skills to do the work yourself, or will you need to employ tradesmen? My DIY skills are appalling, so I call my father-in-law to do any work needed in our house. However, there is a world of difference between buying the in-laws a bottle of wine for doing work and becoming a professional developer.

    If you would like to discuss the options available, please feel free to contact me and we can talk through the scenarios and likely costs.

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    John Baker

    Property Tribes Financial Services

    You can contact me via Direct Message, or 07979 365467 or call the team on 01206 654444 for a personalised quote and advice

    <!--EndFragment-->


    Hi Emma,

    Wonderful to see that you have a property and have already thought of the different options for yourself now your circumstances have changed. Are any of these options best for you and you new circumstances? As while one may get you better return, it may not be the easiest option for you. Would you want to go into flipping properties, or have more properties overall? Or would you rather keep the current one you own? I hope these questions help and I can’t wait to hear what you decide to do!

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    Transparency notice: OneandOnlyPro is a commercial partner of Property Tribes.

    The property in Beaconsfield will always be a better bet than buying up north. Your house may be valued at 440k but are those around actually selling for 550k- I think not. Also expect a discount as its ex council property. 2

    yrs stagnant  growth is nothing expect that to last for the next 5 years at least. I would sell and keep cash as the economy is about to tank, and as a contractor you never know whats round the corner.

    Taking on more debt and property with job uncertainly and property prices going down is one way to problems.

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    Big thank you to everyone who posted - really appreciate the detailed, thoughtful considered replies. You have nailed the dilemma - Beaconsfield is a good long term bet but my growth will by stymied in the next few years and I’m high risk at the moment! 

    Great observation on the market - I have concerns it will stagnate or tank rather than being a mid cycle wobble. Then I’d regret not cashing in! True about house too - the 500-550k houses slow to sell now, I’d need to build a 50k plus extension to compete in today’s market so still up to 50k profit in that and I have planning granted - but adds nothing if market tanks ! All comes down to long term goals! - leaning towards option 1 at the minute!
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    Option 1 (Sell now, cash in and flip properties for a living Wink seems pretty dangerous in a potentially tanking (or visibly teetering) market, don't you think..?

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    Option 3 and 4

    If you are looking at letting as any of your options the rental income should make you cash positive, so no need to fund both mortgages yourself apart from voids.
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    Yes potentially risky to do option 1 - but figure taking equity out before market ranks, then flipping properties I could keep as viable rental in limited co if market tanks ...still debating ...I could get a job on the brexit team at this level of procrastination! ?
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