Yes I have a viewing for rental today, if no go I will reduce it down to get someone in, even if I sell I need a tenant in. Okay the last time i lived there was 2009 so I should be safe...Thanks for the advice
The rules might have changed but it used to be that if you have not lived there for five years or more, you are liable for CGT. I would check on www.hmrc.gov.uk.
It sounds quite simple unless I'm missing something - reduce the rent and get a tenant in even if you only a break even or make a small loss. If you sell, you will also need to factor in estate agent fees of about 1.5% and several hundred pounds in legal fees.
The amount of profit you would make sounds small scale and you'd have to find an impressive investment that would give you such a good return. Inflation alone is 2.6%.
Check you won't have to pay capital gains tax. It's 40% so it rarely makes sense to sell a BTL. Check with the council or local housing charities as they are often looking for rental properties. It would be interesting to know where you live because I can't think of anywhere where there is such a surplus of rented accommodation that a competitively priced flat can stand empty for three months.
As you don't have a tenant living in your flat at the moment and if it's in good nick and if you are based in a university town, have you thought of renting it out to students if they have to find somewhere else other than the halls of residence ? Or some parents are now buying somewhere for their children to stay whilst studying then it becomes an investment property for when their children don't need it .
I'm now on the third month with no tenant and its seriously stretching the family finances, I'm not actually sure what will will do if we go another month without renting it out. unfortunately the city is flooded with cheap rents so it is very competitive. I wont be going back to work full time for another 3 years as I have a young dd so I have another 3 years of worry ahead of me !
Really, the question is should I sell ?
dp doesnt want me to because he is very cautious, however due to the maintence fees i am making only £40 a month on the rent .
I think if I sell I could make £19,000, if I pay off my debt I would be left with 15,000 to reinvest, would this be better than holding onto the property till i'm 50 and the mortgage then is paid off and I will benefit from either an income from the rent or selling it ?
I reallly dont know what to do and I would appreciate any help ?