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AIBU?

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Original poster

So confused re property urgent

70 replies

user1461609321 · 10/06/2021 07:29

Hi everyone

I can't sleep due to having to urgently make a decision re whether to accept an offer for my flat that has just been made

It's a 2 bed top floor maisonette, I have 2 kids. Flat is on lovely road, nice neighbours (except the one that lives downstairs who I believe has MH issues eg banging during the night and generally just hostile since we moved in 2 years ago)

If we sell now, will have made about 40k in profit and can look to hopefully purchase a house with 3 bedrooms as oldest now 10 and may soon like own room though same gender as sibling

My husband however wants us to keep the flat and take as much equity out plus savings to purchase another flat that we will rent out as an investment

If we do it my way we may get a better quality of life in better property, if we do it my husband's way, we will have 2 properties (with one being rented out)

So...... what would you do?

OP posts:
Ikeameatballs · 10/06/2021 07:31

Your way.

Beeeeeeeeeeeeeep · 10/06/2021 07:31

Your way 100%
Being a landlord is a lot of stress and responsibility and unless you've got a LOT of equity it's a big financial risk. It's not a way to make easy money.

Peace43 · 10/06/2021 07:32

Sell and buy a property more suited to family life.

mayblossominapril · 10/06/2021 07:33

I would sell and move to a house. COVID doesn’t seem to have been great for landlords and if you couldn’t afford the mortgages if the tennant didn’t pay it would cause you financial difficulties.
I’m not against letting houses out, I think it needs a lot of thought and planning not a rush decision

Didicat · 10/06/2021 07:33

I don’t ever want to be a landlord so I would upgrade and move to a 3 bed house.

2 properties to maintain would be a pain in the arse, do you have enough cash to cover when tenants don’t pay, boiler breaks, etc etc

HintofVintagePink · 10/06/2021 07:34

If you buy a new home without selling this one then much of that £40k profit will be eaten up by the SDLT surcharge. That doesn’t leave you with much equity and agree it’s a lot of stress and a big risk.
Agree with you OP!

Ticklemycarpets · 10/06/2021 07:34

Your way.

Disfordarkchocolate · 10/06/2021 07:38

Your way. Being a landlord is not some sort of easy cash cow.

Peridot1 · 10/06/2021 07:39

Your way. You need a home for a family. An investment property is great in theory but I would want a decent family home first.

And yes I’m sure your DCs would like their own rooms as they get older. Same sex or not. I know it’s not essential and plenty of people share but I would be prioritising a family home with more space and a garden over a risky investment property.

I’ve known of a couple of friends with investment properties that were trashed by tenants and it cost them a fortune to fix. Along with the stress and hassle.

KateTheEighth · 10/06/2021 07:40

Your way

It's your home, that trumps an investment particularly if buying the second flat means your home isn't as good/big/etc as it could be

BoomChicka · 10/06/2021 07:42

I would sell. It seems demand for flats is going down since covid, so if you can sell and make a little on top then I would do it!

oknowimscared · 10/06/2021 07:43

Your way. I was a landlord for a while (reluctantly - unable to sell property). It was stressful and expensive. I lost money every month.

FrankButchersDickieBow · 10/06/2021 07:47

Your way!!! No doubt about it. Why would you live in such a way that hinders family life, for more stress and hassle.

It sounds like your husband is being a bit greedy, putting money over quality of life .

JeepersCreeping · 10/06/2021 07:47

Your way. Ex accidental landlord here. Super stressful and not as lucrative as you'd think when you factor in legalities like safety certificates, taxes, self assessment tax every year, repairs, tenants who don't pay, etc.. agency fees too if you do that, landlord insurance, etc.

I would never do what your DH suggests unless you could live for a while with non paying tenants AND he did all the legwork & administration.
I work full-time and some tenants felt like a part time job I couldn't get rid of!

Best day ever when I sold.

Newkitchen123 · 10/06/2021 07:50

Is this not a discussion that should have been had before you put it on the market?

LittleMG · 10/06/2021 07:53

Your way

2tired2bewitty · 10/06/2021 07:54

We have a property that we rent out because we live in accommodation that comes with a job but will need somewhere to live when we retire. We make about £100 a month and we’ve already had to spend £500 on fixing then replacing the oven. It’s worth it for us because of circumstances, but it’s not going to make us rich.

MilduraS · 10/06/2021 07:55

Absolutely do it your way. Being a landlord isn't as lucrative as it seems. Even with a letting agent, it can be stressful dealing with problem tenants and property maintenance. What happens if your tenant stops paying, can you afford the second mortgage while dealing with an eviction? Can you afford the solicitors fees for an eviction? If they trash the property can you afford to repair and renovate? Lots of landlords get lucky with great tenants who stick around for years but it's not guaranteed so you'll be taking a big leap of faith.

bravefox · 10/06/2021 07:55

Has your DH considered the massive stamp duty levy on second property purchases too?

Bythemillpond · 10/06/2021 07:57

Your way. You need more space and extra rooms now.
A rental property is something that can be got at a later date.

Eviethyme · 10/06/2021 07:59

And if tenants damage your second home who pays for that? My friend is a landlord and just had tenants cause 12k worth of damages when they left. He's not sure he wants to rent out anymore

bigbaggyeyes · 10/06/2021 07:59

Has your dh looked into if he can actually do this? Mortgage companies now insist on you getting a certain % over and above your monthly payments on a buy to let mortgage. So if you've taken out most of the equity, your rental income needs to be good.

It's not as easy as 'we'll simply take the equity, rent it out and use the equity to buy another house'

Original poster
user1461609321 · 10/06/2021 08:01

Wow so many amazing replies which have buttressed exactly my thoughts and helped me to clarify my thinking more clearly

OP posts:
Sleeplessem · 10/06/2021 08:02

Personally your way to use the equity. Maybe DH doesn’t realise that if you were going to let the property you wouldn’t be able to continue with a residential mortgage. For the first year you maybe able to get something called a ‘consent to let’ but then you’d need to get a BTL mortgage and the rates aren’t as favourable as residential mortgages and the rent you charge needs to be profitable from a bank pov. So it might not be as lucrative as he thinks, esp when you factor in landlords insurance and estate agent and any letting fees xx

Quitelikeacatslife · 10/06/2021 08:09

Think how much time you all spend on your home, I'd make sure that was comfortable first with no downstairs neighbours to worry about. Then you can make long term savings plans

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