Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Flip

Original poster

What would you do in my position?

7 replies

Sweetchocolatecandy · 01/04/2022 17:03

Would you keep a rental property on which brings in approximately 2-3k profit a year after tax and other deductions, or sell it and make approximately 5-10k in profit now?

We rented the property out in 2019 after we couldn’t sell it and currently have a reliable tenant, however I don’t know whether to take advantage of the current property boom as I’m worried about the market slowing down.

This is not a bragging post as I appreciate we are very lucky but would like some advice/opinions.

OP posts:

chisanunian · 01/04/2022 17:09

Maybe you need to speak to a tax accountant who can look at your whole financial position and help you decide on what course of action would be most tax-efficient.

OnlyFoolsnMothers · 01/04/2022 17:10

Is 10k profit where the house is good? Also not a bragging post, just a London home owner here and that’s not considered great.

popcorndiva · 01/04/2022 17:20

It really depends if you need the money. Guessing it's mortgaged at that low profit. If you can afford to keep it I would as your profit should rise as your mortgage increases. I could sell one of my rentals now and make a quick 50k but I am using it as a long term investment as I don't need cash so would need to reinvest anyway

popcorndiva · 01/04/2022 17:21

I meant mortgage decreases, as you can look at better deals

Gladioli23 · 01/04/2022 17:24

Well if you only have 10k of equity in the property then you're making a 33% ROI which sounds pretty good?

LeroyJenkinssss · 01/04/2022 17:31

Genuinely 5-10k profit? Because in three years you’d be worse off. I certainly wouldn’t do it in those circumstances unless I desperately needed that amount now.

caringcarer · 01/04/2022 17:32

Think long term, if it brings in 2-3k each year after tax and you have a reliable tenant unless you need money now, why would you sell it? In 4 years you will have got your £10k. Don't forget you will pay capital gains tax on rise in house price when you sell. £10k is a very small increase. Have you only had it a year? My btl houses have gone up a lot more. I bought 1 in December 2018 for £120 and it is now worth £165k. I would advise keep as investment for when you get old. I was able to retire at 56 as have 7 btl properties and pension at 60.

Flip