sell or let?

[sungirltan]

ok, since dd was born and a few other things our council tax has become unmanageable.

our mortgage payments are small as we have interest only.

our options are to just sell and move somewhere cheaper but risk making less on the apartment OR letting it out (i reckon we would make 50% profit which would pay the rent elsewhere) and renting somewhere for a year until the market improves.

has anyone done this? is it more hassle than its worth or did it make things easier?

i am worried we will end up in a rental property more than a year and that the apartment will become a millstone. would it be better to sell now?

any thoughts/advice gratefully recieved. getting apt valued tomorrow.

The worse thing you could do now is to sell and then rent without buying elsewhere. If you sell and buy now you will be market forces neutral. If you rent out be aware your mortgage company may put the interest rate you pay up and you will be subject to tax. However a friend has kept her small house in an expensive area and rented it out covering the mortgage and then took the money she would have normally paid each month and moved into a much bigger house in a cheaper area and she is v happy.

thanks jules

You might be wise to let your flat and rent cheaper elsewhere. Property prices will probably increase over time. Could you see if it is possible to change your mortgage to a down payment one, so your tenants will increase YOUR equity in your own home? Or are you thinking that your flat will wholly subsidise your rental elsewhere? If so, dont forget to put money aside in case you have periods with no tenants.

You will also need a landlords insurance for the building, as the tenants will only have a contents insurance for their own belongings.