AIBU to not know whether to sell or rent out? Opinions please!

[readywithwellies]

House been up for sale for a while, currently empty as I have moved in with dp.

Had two viewings, no offers.

House on at a reasonable price but I could afford to reduce it.

Mortgage is about £600 a month. I could rent it out (before costs) for £600.

If I sell it at current price, this would be ideal as I would release the equity.

Given that it isn't selling, I don't know what to do!

If I rent, I will cover most of the costs but I could end up with more problems (non payment, damage etc). If I sold at a much cheaper price, I could end up losing a large chunk of money!

I can't make a decision.

It worked for me in the sense that the price of the property went up, which was a stroke of pure luck. It would have been better for me to have left it empty. Things are different now. I think there is a subsection of mn on this somewhere devoted to this stuff.. Ask around the locality for the most reputable letting agents. I have been stung twice. Be careful and read all the small print.

why do you need to inform your mortgage company if you want to rent it out? Id just do it without telling them-it is your house!

Not a good idea, Nordic!

It isn't 'your' house if the mortgage isn't fully paid.

I am a landlord and its more hassle than it may appear; legislation, legalities, difficult tenants. Re: your mortgage. The £600, is that repayment or interest only? If you are going to rent it out you would probably be better off as interest only as this will not only reduce the amount you pay each month but you can only put the interest part of the mortgage against your tax bill. If the £600 is interest only and you expect to get rent of £600 then I wouldn't rent it out as the figures wont stack up. There are many hidden costs to renting such as; agency fees, gas certs, decorating, replacing furniture and insurance. To give you an idea we charge 1200 for our property (London), pay £420 in interest only mortgage and this years tax bill is still negligible due to various costs such as two sets of agency fees, a month where the flat wasn't rented, redecorating and rewiring (admittedly not something you would have to do often).

Also there maybe tax implications if you sell a property that you rent out. It may also be more difficult to sell with tenants in it.

Agree that if you end up renting long term you need to be aware of the tax implications if you later sell. You may have to pay capital gains tax on some of any gain (not all, look at the HMRC website, it depends how long you lived in it relative to having it rented).

If you lived in the property prior to letting it, I think there are CGT exemptions... Not sure but that is what I heard once.

If you buy, let it out and then sell it, then you definitely pay CGT

go talk to the CAB, have a chat with your lender.

Longer term property rates will rise, so you could rent it out for a year and have it cover it's costs and then sell it when the market rises.

A bird in the hand and all that....

Fortheverylasttime, can you message me with the fleecers too please, so I can avoid as well.

Feeling sensitive - its 600 repayment, but locked in.

Would anyone rich like to do me a massive favour and buy it please?