sell or rent?

[madeleine458]

I am moving to the house next door, we have bought it and are renovating it. Should we sell this house or rent it out?

[KarolinaD]

What amount you are getting to rent a house and what amount you are getting to sell a house. lets do it with an example to better clarify. Suppose you are getting a rent of 1000 per month and you can sell your house for 400000. Now the whole calculation is based on the amount you get by selling your house. you have to make a portfolio of your investment if you can fetch more then 1000 per month then you must sell you house or vice-verse.

[rabbitygirl]

This question would be fine a year or so ago. Right now the question cannot just be answered as above. If you are in no rush and fancy trying selling, fine. If you want some immediate income then rent it. More and more building societies are pulling all their mortgages and the housing market is worsening because of this, not lack of buyers.

Also be aware, that in some areas, like mine, a further +/-100 houses each week are coming on the rental market.

Something else to bear in mind is how extensive are the renovations? Winter's coming. Does it have heating? Are you taking walls down? Plumbing being ripped out? If so you will need a bolt hole during the worst of it. Putting your current home on the market should at least enable you to live in it for a few months.

Suggest you hedge your bets. Put a sign up offering it as both a let and a sale.

[madeleine458]

The house is for sale at c �700000, and we could get around �2200 pcm rental if we rent it out. We cannot move in next door yet, probabaly not unitl March, so we dont want to move before Xmas, but would if a good buyer came along.