Should I sell inherited property or keep it as an investment?

[TeamCooper]

My twin sister and I recently inherited a shop with a 2 bed apartment above. The shop is currently being let for £590 month. However, the tenant in the flat above moved out last week but they were paying £550 month. The property is freehold and valued at £210,000. My sister wishes to sell the property but I’m wondering whether it could make a good investment. Should I buy her out with savings I have for £102,500. Are there any property investment gurus out there with any advice?

If you buy her out that is a 10% approx yield on your investment.

You will need to set aside tax each month if this puts you into tax bracket, and set aside 10% for ongoing maintenance.

You'll also need to factor in your mortgage repayments on the amount if you are borrowing. This is no longer tax deductible so it's not as appealing.

Also factor is the shop letting, and how affected other similar businesses have been. Would this business rent from you longer term? Are they established? Could you rent the shop out readily if they folded?

Lots to consider, buy to let is still viable and if you can calculate the above costs and risks you could still end up with a decent yield on your investment.

There may be better ways of investing your half should you decide to sell but the % you'll get on your investment is still decent in these turbulent times.

Would the OP have to pay stamp duty on the half she buys from her sister? Just curious how it works

i'd sell and invest in something else. either a property you really want or another investment.

Think about it this way - if you had £200K in cash, would you invest it in this particular property? Or would you do something else? Like shares or premium bonds that have more liquidity and less risk.