rent out or sell up?

[MauveCat]

In a few months we're going to move abroad for a year with DH's job, and can't decide whether we'd be better renting out our flat whilst we're away, or just selling up.

We have a fairly sizeable mortgage, and wouldn't be able to cover it with the rent to the tune of about £400 per month. For various reasons, but mainly me being pregnant with DC3, we'll need a bigger place by the time we get back from abroad.

So, should we:

1. Rent out the flat, having to contribute more than usual whilst we're away and have the stress of being landlords. When we get back we could either rent somewhere bigger ourselves, keeping the flat on as landlords, or sell and buy somewhere else.

OR 2. Sell before we go, stick the money into savings and buy somewhere else when we get back.

To complicate matters, DH's job contract is up about 6 months after our return to UK, so we might not know for sure whether we can stay in this region longterm (depends if he gets another job here) or whether we'll need to move somewhere else in the UK.

Am so confused with all the options! Does anyone have any idea which would be the most financially sensible?

t would depend on where in the UK you live and the probable direction of property prices. if they are predicted to remain static or fall then you may as well as sell and buy something larger when you return as the differential will not be so great - in order words your money will go further.

if on the other hand prices are predicted to rise as they are in much of london as the south east then you are better of to rent your flat out. most estate agents will also manage property for you but you can negotiate their percentage

Don't forget that if you do rent you have to pay tax on your income on the property.

only tax after expenses and interest on your mortgage

Constraints are the market at the moment.

If you are renting it out you will need to pay a agent to manage it then you will have all repairs to factor in . So not only will you top up the mortgage with your own money but you have the other costs too. Can you afford to do it?

Selling, you might have to sell cheap depending on where you are. Do you have any equity in it If you sold it?

You don't need to necessarily pay an agent to manage it, our last rental our landlord managed from Miami, no probs