Old house, Sell or Sell or Let?

[Wonko The Sane]

Bit of back story here,

I was left a house in a bit of a run down state, it's been done up, although the back garden is still a work in progress, it is now in a state that someone could happily move in.

I've had it at a lettings agency since late Dec but they've not found a tenant yet, in Feb we dropped the rent price by £25 and have had a number of viewings, but still no bites beyond one guy who's failed to actually come in to the office to apply to rent it, always having some reason that he can't make it.
£150 agents fees to cover to stop marketing it through them.

TL:DL - house done up and sat empty, no one renting it. £150 to go elsewhere.

Our house, which we bought in August has a kitchen that's falling apart, has a hole through into the mucky old chimney breast, the dining room is full of our stuff still not unpacked, as are two bedrooms, our room and the lounge are the only finished rooms. My wife is currently pregnant and the baby is due in October. We've not got enough money to finish our house without the rent coming in from the other (and me getting a job, that's a side issue I'm working on, in the meantime I spend my time doing the work on the house) It was always the plan to do the kitchen later, until part of it got taken out when having the house re-plumbed and re-wired. Would be nice to have the house sorted before baby arrives.

TL:DL Our house is a half finished project, spogg going to arrive in october, need money to finish house.


So, the other house could be sold for more than it would cost to sort our house, should I put it up for sale and just get the money although it could be a couple of months before I see the money, or should I put it up with a different agent that can do sale or rent, that way if no one wants to buy it, still a chance of getting some cash flow from it sooner rather than later?

TL:DL t'other house, sell it to get lump sum to finish our house with but risk waiting for money to come through or sell/rent as hitting two options could cause cashflow sooner than going one single route?

what would BCF do?
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[P.addy]

Where is house, what is rent.

[The Artist]

This sort of question is pointless as your situation is unique and it depends how you look at it.

If you can, rent it out because you will gain cash + you still own the house. If you don't have the time to manage the property then sell it. Simples.

[Wonko The Sane]

House is 2 bedroom semi-detatched in a large village north of Barnsley
Large gardens + garage, current rent price £450pcm

estate agents value £110,000 for quick sale £115,000 on a good day.

for letting it out, would be going fully managed as I live the other side of the pennines!

Reason for thinking of selling it is the cashflow from it I'll probably see just under £300ish per month so not a significant amount when having a room re-plastered in my house costs more than that and a kitchen is going to cost a few grand.
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[fatpies]

If nobody is renting is, then the rent is too high for the area, don't trust agencies or any job title that has agent in it. Or trust what others are already renting for. Like insurance some people are lazy and just swallow rent increases like insurance increases. Or can't move because of children in schools.

There are some 'executive' apartments near me for rent, they are £1050 PCM. In the 'shopped photos with fish eye lense to make it look bigger. It looks OK. Except its in the middle of a junkie town and an RLD. Surprise surprise they are empty.

OTOH if you sell it you're going to be paying a bucket load of tax on the sale, lest you can change the probate valuation in the will and sell it for less than the probate valuation.
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"It's easy to attack and destroy an act of creation. It's a lot more difficult to perform one"

[Wonko The Sane]

[Polarbear]

I would go for sell.

My reasoning is that if you rely on the income to survive you have to get as much as you can (obvious me ) . If it was local to you and you could look after it that's one thing. If it's miles away and managed that's another. Once all the management fees are paid, how much is left?

Also, what if something goes wrong you have to pay out for. That could be a large sum in itself.

Then there's letting insurance etc.etc. All the fees/taxes YOU have to pay while it's empty.

Even so, I would keep it if it wasn't for 2 things. Your house needs a large investment to complete and you have a kid coming. The last thing your missus needs at this time is stress and you will have stress with your house not completed.
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Triumph Trophy Launch Edition

[yambabe]

I agree with Polarbear.

Letting can be a nightmare - what will happen if you get a tenant who trashes the place? Do you have the spare cash to be able to fix it up for the next one? Doesn't sound like it.

Get rid, pay off your existing mortgage if you have one or a large chunk off it if you don't, then at least you have the security of a roof over your head.

If you sell, unfortunately you will need to factor in capital gains tax when working out what you have left.

This will be sale value less probate value less annual allowance times current cgt rate, so if for example you get £100000 for it (whatever the estate agent says, knock at least 10% off realistically, it's a buyers market at the moment) and the probate value was £50000 you will have to pay cgt on £39400 once you take off the allowance. The rate will depend on your income, if your total income for the tax year in which the sale takes place is under the higher rate level it's 18%, if over it goes up to 28%. So if it sells for £100k you are looking at a potential tax bill of minimum £7092 and maximum £11032 on whatever you make from the sale.
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Sod falling in love, I wanna fall in chocolate.

[fatpies]

[Wonko The Sane]

[yambabe]

[daemonoid]

[P.addy]

I would rent that, if it was a hundred miles south

[Wonko The Sane]

[angryjonny]

[Groove]

I hate these threads with a passion.

Mostly because I'm paying over 500 for a 1 bed flat...
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[P.addy]

[Wonko The Sane]

[Polarbear]

[iooi]

[Wonko The Sane]

Fuck's sake,

apparently the bloke who was going to have it has changed his mind.

Selling it, although the lettings agent are insisting on continuing marketing it until I actually collect the keys (Guess they're still hoping to let it)
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[angryjonny]

[fatpies]

[Wonko The Sane]

[Pigeon]

Depends on the location in the country. Down here (Guildford) a 1 bed flat rents out at £700 - £800 pcm and I wouldn't dream of selling.

If there is no mortgage, and it's close enough to visit every 3 months. Get 1.5-2mths rent as deposit. Do a credit check on your proposed tenants. Interview them your self.

The system has been rigged so pretty much only energy, food, transport and housing generate income. If you own one of those things, would seem odd to sell it if you don't have too.

But again, location is everything. If the demand isn't there at a price that makes sense...