what should I do with house I've inherited?

[valerian11]

I've jointly inherited my parents house which is currently on the market. However the only offer I've had is approx 15% lower than what similar properties sold for 6 months ago. Should I buy my brother out and rent the house out or sell for a poor price? What kind of mortgage should I look for with a view to selling when the market picks up? House is worth approx �140000 in the current market and my brother just wants to sell up but is happy to sell to me. Cheers in advance P.S. Rent for similar houses is �600 pcm

[bednobs]

i think yu have to lower your sights. You say its worth 1400 00 but is that realistic seeing as house prices have dropped 20% in the last few months?

[Peter Pedant]

is the full value 140 000
and you're being offered 15% less

or is 140 the discounted value ?

I think this means that you were offered 120 000.

600 pcm is 7200 pa and is a return of 5% on the capital sum. which is not bad, considering interest rates are below that at present

If your brother will receive �70 000, you can make a go of it

Your mortgage should be a standard variablerate
and you may have to show that you can pay the mortgage without the rent.


You get tax relief on the mortgage interest part only


On the figures you have given
you can certainly make thisget up and go

[eastern]

Renting is great if you have it rented out 365 days a year, and also have a very good tennant. remember if you go through a good agent they may take up to 15% of that income and charge upwards of �250 to set up the tennant so your are down almost �1000 straight away. Then you have to pay that Darling man some tax so thats a bit more gone! My opinon is sell it cash is king especially in this current economic climate, plus you could probably buy two flats with your equity, but then you still have same issues as above.