Advanced search

Advice from wise people on property investment wanted

(21 Posts)
Threesoundslikealot Wed 16-Nov-16 18:46:28

We are temporarily living overseas because of work, and renting a house, while renting out our house in a naice-ish bit of London. We have good tenants who are happy to stay for years, and may be interested in buying the house too.

Our mortgage is big, although covered by the rent, and we have personal debt too after a house repairs disaster. Servicing the debt leaves us tight for cash.

I commute to London weekly for work for half the week and so far, six months in, have stayed with various friends, who have been very welcoming but I still feel as if I'm imposing. I can't afford hotels.

We may well come back to London, and our house is in the catchment of the fabulous primary school I'd like my children to go (back) to if we returned. But it's not certain.

So... Do we sell our house and buy a London flat for me to use and some housing outside London to rent out? We'd need a mortgage but a smaller one. We would have to find a magic place where we could buy a house for around £200,000 and rent it out for £1,000 though, and I'm not sure that exists. Also, a flat surely won't go up in value as much as a house, so are we closing off any chance of returning to London to a house? We could pay off debt which would leave us with more money each month which we could save, so perhaps that would help.

Advice very welcome. The default is the status quo of course.

birdladyfromhomealone Wed 16-Nov-16 19:17:18

If it were me I would NOT sell a house in London to buy a flat.
Land is at a premium and houses are being converted into flats, builders buy land and go up - rather than build one house on a plot they will build 6 flats.
In years to come a house in London will far outrun in £££££ than a flat.
You will never get the return on a flat vs a house.
Rent on airb&B for as little as £20 per night if you feel you are imposing on your friends.

Ilikedogs Wed 16-Nov-16 20:01:47

I agree with the pp. I would not sell your house. Particularly as you like the location etc (and it's a house!) and may return.
You might be able to find an air b&b that you can use on a regular basis.
If you can manage the debt now I would do that as by buying a flat if you ever move back to London you could end up saddled with huge debt all over again in order to stay in London if you return.
Also I think the housing market is a bit weird atm.

Parietal Wed 16-Nov-16 20:05:47

Agree. Never sell a house in London if you can hold onto it.

FourToTheFloor Wed 16-Nov-16 20:20:23

Yes agree, don't sell! Especially if you're thinking of coming back. Find another plan to pay off your debt.

YelloDraw Wed 16-Nov-16 21:14:20

AS above, I would not sell the house.

Why are work not paying for your accommodation? You moved abroad because of work, now you are required to be in london for 1/2 the week...?

Threesoundslikealot Wed 16-Nov-16 21:52:52

Thanks, all. Nice to have some agreement!

We moved abroad for my husband's job. I come back to the UK to do mine. My decision. I will look at Air B&B. Don't know why it hadn't occurred before.

Threesoundslikealot Wed 16-Nov-16 22:00:30

Ah, even Air B&B is beyond me. Friends it is.

YelloDraw Wed 16-Nov-16 22:09:54

You seriously stay half the week with friends, every week...?

Have you looked at Mon-Fri lodging? Usually much cheaper than Airbnb £80 - £100 / week and nicer as you're always staying in the same place.

anotherbloodycyclist Wed 16-Nov-16 22:15:53

Don't sell. You will regret it. Look on spare room and get a Monday to Friday let. We have a large house in London and let an ensuite room, works out at about £35p/night for our lodger.

Threesoundslikealot Thu 17-Nov-16 09:41:34

It's only two nights a week normally, and different people each time. I can't afford £400 a month on accommodation on top of flights and childcare. I'm in that phase of life when working is far more of an investment in my future than offering me much reward right now. I'm working to build my career. It's a pain but childcare eases a bit next year so there might be possibilities then.

Coughingchildren5 Fri 18-Nov-16 08:39:31

Keep the house.

If you have to impose on friends because you can't afford your own accommodation then you could offer your friends what you can afford.

Flightofthecondor Sat 19-Nov-16 21:33:53

Agree, keep the London house for sure, as nice-ish will become just nice and you could loose out on any price increase. Rent is also competitive in London.
Depending where you travel from could traveling overnight save on one nights accommodation?

Threesoundslikealot Mon 21-Nov-16 18:14:53

Sadly not. My flight is only 45 minutes! I arrive early on day one, stay two nights, and leave late on day three.

I have though been promised a pay rise in the last two days, which might be enough to cover something. I have a colleague who does similar to me but usually on different days so we might be able to box and cox for the most part and share costs. We're both very respectable, clean living types.

Threesoundslikealot Mon 21-Nov-16 18:15:50

And judging by threads on here, we're already into nice. I just need to adjust my thinking a bit as it was pound shop heaven when I moved there in 2000!

Threesoundslikealot Mon 21-Nov-16 18:16:32

I buy wine/takeaways/meals out for friends, and also offer free babysitting, so I pay my way a bit.

anotherdayanothersquabble Mon 21-Nov-16 20:34:42

I assume when you say you can't afford the local accomodation costs on top of flights and childcare that you are indeed factoring your husbands salary into this as it is his move that necessitates the flights and accomodation, not yours!!!!

YelloDraw Mon 21-Nov-16 21:19:38

Yeah it does seem a really strange choice to move abroad for your husbands work when his pay isn't enough to maintain 2x homes. Might have been better for you to have stayed in London and DH gone abroad in the week M-F for work and returned home at the weekend.

MadMadDonna Mon 21-Nov-16 21:21:56

Don't sell your London house now. Can you work from home? Not stay over?

£200k with £1k income sounds unrealistic

YelloDraw Mon 21-Nov-16 21:28:36

£200k with £1k income sounds unrealistic


Threesoundslikealot Mon 21-Nov-16 23:57:37

£200k with £1k income sounds unrealistic I know. I think it is.

None of this was planned which is why it's all a bit ad-hoc, but he has to be resident abroad for his job and the original plan was for me not to work, which didn't work out for various reasons. And going back to my old job was the best option available.

Anyway, this thread was to ask about the property investment options. MN being what it is, I expected it to drift, but I don't want to have to defend our work choices, especially as it's all quite outing.

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now