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Should let to buy?

1 reply

FrettyBetty · 23/04/2011 21:34

Hello all. My husband and I are buying our first family home. We are very blessed to own a central London flat outright. We have lived in it for a very long time, but is not big enough for an expanding family. At a stretch (and I mean a stretch) we could manage to keep this property, release some equity and buy another house. It would be financially a lot less stressful to just sell this place and buy another one. At the moment we can both sell our flat for good amount, as well as rent it out for a decent rent. We have done our calculations, and you are not actually that better off 25 years down the line if we keep this flat, as opposed to investing the extra mortgage money we'd have to put into two properties, into a different investment instead. The only scenario in which this really pays off is if central London properties shoot up like crazy once again. How likely is that? Our flat is already worth a lot, and surely there must be a limit to how much you can get for a small place?

Any advice much appreciated.

OP posts:
Lizcat · 28/04/2011 13:56

No one can really predict how property prices are going to change. Have you factored in paying income tax on your rent? Also the hassle that you will have from tenants - there is always some.

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