What to do with house
Discussion
Was going to put this in the rental thread but thought it may get more views here.
Having some debate with the OH on what to do with her house. She moved in with me almost 10 months ago now and since then her house has sat empty.
She's murmuring about selling it which I think is a bad idea as it is an appreciating asset. She thinks the whole renting it out aspect is a pain in the arse and would just rather get rid of the faff, Also renting it out changes a lot of things like CGT and we have no idea what Labour are going to do with the renting laws.
I know she could sell it and max out isas and other investments/pension but I still think she should keep it not least because she's quite a bit younger than me and experience tells me keeping it might be a good idea.
Is selling it the better option these days or is it still worth going down the rental route.
Having some debate with the OH on what to do with her house. She moved in with me almost 10 months ago now and since then her house has sat empty.
She's murmuring about selling it which I think is a bad idea as it is an appreciating asset. She thinks the whole renting it out aspect is a pain in the arse and would just rather get rid of the faff, Also renting it out changes a lot of things like CGT and we have no idea what Labour are going to do with the renting laws.
I know she could sell it and max out isas and other investments/pension but I still think she should keep it not least because she's quite a bit younger than me and experience tells me keeping it might be a good idea.
Is selling it the better option these days or is it still worth going down the rental route.
We had 2 houses for a while and it was 3 hours travel each way.
It was a real ball ache going back every 2 weeks to keep an eye and to do the garden.
Worries about security and damage after the more frequent storms and winds that we seem to get these days.
Different authorities have different council tax rules but some change a premium for empty properties.
Insurance can be a problem as insurers don't cover if the property is unoccupied.
It was a real ball ache going back every 2 weeks to keep an eye and to do the garden.
Worries about security and damage after the more frequent storms and winds that we seem to get these days.
Different authorities have different council tax rules but some change a premium for empty properties.
Insurance can be a problem as insurers don't cover if the property is unoccupied.
Given the experience of 2 people we know who rented out in similar situations, then I would be inclined to sell now.
They thought they had good tenants although in one instance after a period of time, stopped paying rent and ignoring contact from agent for visits. Had to involve court process to remove and the place was in a right mess.
In the other one, tenant left the property in an appalling state which involved a fair bit of expense to put right before they decided to sell as the hassle was not worth it.
They thought they had good tenants although in one instance after a period of time, stopped paying rent and ignoring contact from agent for visits. Had to involve court process to remove and the place was in a right mess.
In the other one, tenant left the property in an appalling state which involved a fair bit of expense to put right before they decided to sell as the hassle was not worth it.
Will it really be an appreciating asset when you account for the cost to keep it going and the fact that she will have to pay CGT at some stage?
Perhaps sell it and buy half (or a portion) of your house and equaliser the situation?
If that idea fills you with dread she needs to keep the investments relatively liquid so she can buy her own should the need arise.
Perhaps sell it and buy half (or a portion) of your house and equaliser the situation?
If that idea fills you with dread she needs to keep the investments relatively liquid so she can buy her own should the need arise.
We had two houses and sold both to buy a new one, as no matter what, my house would always be 'my house' and it was much better to start with a house that was 'ours'
A couple we knew, rented her house through a letting agent.
When the renters moved out, all the copper had been ripped out, all the radiators, the hot water cylinder, light fitting, cables, switches any thing that could be sold for 'recycling' by the local 'moving about' people.
Nightmare.
A couple we knew, rented her house through a letting agent.
When the renters moved out, all the copper had been ripped out, all the radiators, the hot water cylinder, light fitting, cables, switches any thing that could be sold for 'recycling' by the local 'moving about' people.
Nightmare.
Another vote for selling here.
I'm doing the same with 2 of my rental properties currently, too much hassle with tenants, had enough after over 10 years.
Also, historically as in investment, most properties haven't kept up value wise with an all-share tracker fund, if she's looking for a long term investment.
Leaving the house empty doesn’t sound ideal and runs the risk of helping to create an un appreciating asset along with added stresses and indeed outlay - not least of which will be insurance as already stated.
Personally I’d be another vote for selling now and then investing the money elsewhere.
Personally I’d be another vote for selling now and then investing the money elsewhere.
Sheets Tabuer said:
She thinks the whole renting it out aspect is a pain in the arse and would just rather get rid of the faff,
She's spot on. Been there, done that. Stress, hassle, uncertainty, all eggs in one basket, no tax efficiency and a new labour government ready to make things worse. Sell all day long.Sensible option is to sell both places and buy together, any cash left can be invested, if not enough in the kitty a joint mortgage.
Shows commitment by both, rather than the lady feeling that she is living/lodging in 'your' home.
Just selling one property will leave the seller with a wodge of cash, but bricks and mortar are probably the very best investment you can make. Renting is not for the fainthearted, just remember all the horror stories we have read here on PH!
Shows commitment by both, rather than the lady feeling that she is living/lodging in 'your' home.
Just selling one property will leave the seller with a wodge of cash, but bricks and mortar are probably the very best investment you can make. Renting is not for the fainthearted, just remember all the horror stories we have read here on PH!
If all the rumours are true about what the govt are planning, you need to factor in that actually getting possession of the property may be expensive and lengthy unless tenants agree to leave when you want
Also unless the property has an EPC of C or better then if this is resurrected then that could be expensive
Personally in 2024 I wouldn’t recommend going into the rental business
Also unless the property has an EPC of C or better then if this is resurrected then that could be expensive
Personally in 2024 I wouldn’t recommend going into the rental business
Sheets Tabuer said:
Thanks all, pretty much a consensus and confirms her thinking, hate it when she's always right 
My thinking is somewhat clouded by divorce so probably have in my subconscious it's always good to have somewhere to fall back on.
Totally understand this but your partner would have the cash from the sale to fall back on should they need to. My thinking is somewhat clouded by divorce so probably have in my subconscious it's always good to have somewhere to fall back on.
As someone else said, another possibility is to look to either buy a joint property or use the funds to repay your mortgage (if you have one) and put partner on the deeds as a tenant in common with the appropriate percentage ownership.
Our house is 75% Mrs BVD and 25% me given what we brought to the party - I came out of a divorce with sod all whilst she had a house already.
Xyphox said:
+1 sell it. Just sold mine after 8 years - it's not worth the hassle in the slightest and moreover, it's simply not profitable in 2024. Put the money in a low cost index tracker and/or some premium bonds, sit back and relax.
It’s not that bad and they can still be very profitable. That’s not to say they should keep it.
I definitely want to protect her if it goes south, she's 13 years younger than me and I realise she may wake up one day next to a 60 year old and think feck this. Just thinking logically really.
She owes about 100k on a 350k property so would need to remortgage to a BTL mortgage. If she was to let it she'd use a letting agent to take 100% care of it, she would have no involvement. It's 100yds away and we could do without people popping round.
Her idea is to get rid, mine is to keep it for another 25 years and have it as a pension or a fall back.
She doesn't want the faff.
She owes about 100k on a 350k property so would need to remortgage to a BTL mortgage. If she was to let it she'd use a letting agent to take 100% care of it, she would have no involvement. It's 100yds away and we could do without people popping round.
Her idea is to get rid, mine is to keep it for another 25 years and have it as a pension or a fall back.
She doesn't want the faff.
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