Should i sell up buy to let?

[haynes]

We moved house last year and ended up keeping our previous property and letting it out, as it was quickest way to faciliate our move.

Property is worth £175,000, and we have £40,000 equity, theres £200pm between rent income and mortage payments. However we ut in some new windows, new shower, some lino and what with gas servicing, insurance etc we are not seeing any profit. We now have a few more repairs to do and as its an older property, and like an old car these will only increase.

So should we sell up now? What are we missing - probably spending too much on repairs?

Or should we hold out for property prices ro keep as a long term (but seemingly costly) investment?

[megaphone]

Well at the moment it is costing you the £40K in equity, that could pay a chunk off your second mortgage or be invested, so you need to do some sums. It's also costing you the time and aggro and worry, how much is this worth?

Is it on a repayment mortgage ? If so someone else is buying the property for you, long term but you will eventually own it, if you can squeeze a income along the way all the better.

[BoRED S2upid]

Repairs are adding value are they not? the way I see rental properties you pay for the upkeep and improvements and in 20 years time someone else will have paid off your mortgage for you. Win win.

[zcacogp]

The boom years of property going up hugely in value are over, but there is profit yet to be made.

The question is whether you need the money for something else (sounds unlikely), and whether it would do any better invested anywhere else?


Oli.

[Eric Mc]

BoRED S2upid said:

Repairs are adding value are they not? the way I see rental properties you pay for the upkeep and improvements and in 20 years time someone else will have paid off your mortgage for you. Win win.

In theory, pure repairs are not. They are deferring a reduction in value - which is not quite the same.