Sell rentals and invest elsewhere?

[KevinsSignatureShortdeads]

I’m a private landlord with 2 rental properties that I own outright. If I were to sell both now, they would be collectively worth £700k. Can anyone advise if I would be best off selling these and investing the funds with an investment company, or best to just keep them? They bring in £2600 per month between them in rent (not taking into account any associated costs / tax etc). With the new rental laws coming in, I’m not sure what is for the best.

I'd say you need to do a bit more number crunching.

You say they're 'worth £700k'. How much would you end up with in the bank of you sold them, once you take into account Capital Gains Tax and selling costs ?
Then you'd know how much you'd have available to potentially invest elsewhere.

And you can't just exclude income tax, maintenance etc, insurance , allowing for potential voids etc when calculating how much they bring in - you need an accurate figure in order to be able to compare it with the potential income you could make from other investments.

Only then can you work out which is going to provide the best income for the least effort.

Thank you for your reply; I should have stipulated that the £700k figure is after capital gains has been deducted.

I’ll speak to a wealth management company and go from there. It just feels scary to take away what feels like a solid and stable investment (we’ve been very lucky with tenants thus far), and invest it in something that feels far beyond my control, but I’m starting to get the impression that the money tied up in the properties could do more elsewhere.

Maybe worth having a look on YouTube at Revel Finance.

If the £2,600 doesn’t include tax nor any other costs, are you even making 3%?

You would be better off just putting it in the bank without any risk.

You could certainly make a much higher long term return investing. Plus, if you can manage tax on your investment by feeding funds through ISAs, you can’t put a house in an ISA and you can also not sell bits of a house every year to reduce tax.

House values have also been flat or even fallen in some areas.

I had two rental flats, I sold one and kept the other. I make more money on the from the sold flat.

You dont need a wealth management company. They'll just take a high %.
Look at Rebel Finance.
Max out the savings streams with a good tax wrapper first so ISA and SIPP then look at general investing.
We're selling our rentals as we will get more return.