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My wife owns a small rental property which she lived in before moving in with me 13 years ago. It's done okay over the years but has been quite a hassle, not least because of an upstairs neighbour who constantly complains about each and every tenant we've had. The neighbour is at it again now and has sent my wife a lengthy email threatening legal action over matters like the tenant not mowing the lawn and visitors parking outside the property. I know it gets my wife down and personally I don't think it's worth it. I think that when the current tenant leaves she should sell up.
The property is worth around 200k and is paid for outright. It generates £975 a month in rent. She's just had a good year rent wise with very little expenses but it hasn't always been like that. She just doesn't do investing and I'd need a very strong argument about what she could do with the money if she sells. I don't want her to stick it in a savings account which I know she would be inclined to do.
What suggestions could I make to persuade her to give the rental up?
The property is worth around 200k and is paid for outright. It generates £975 a month in rent. She's just had a good year rent wise with very little expenses but it hasn't always been like that. She just doesn't do investing and I'd need a very strong argument about what she could do with the money if she sells. I don't want her to stick it in a savings account which I know she would be inclined to do.
What suggestions could I make to persuade her to give the rental up?
I always thought it was a good investment until recently when I started looking into S&S ISAs. She thinks of it as her pension. She's self employed and only has very modest pension provision with a couple of previous employments.
The income is mostly saved. It mounts up and gets used for expenses. For example she had a new boiler put in before the current tenant. There's normally jobs to be done and costs can and have mounted up over the years. If she sells there will be CGT to pay although I haven't tried to calculate how much yet. I have read about Wes Streetings plans to tackle CGT at the same rate as income.
She only has cash ISAs in which she has 6 figures. I know. Its been mostly up to me to ensure she keeps these at decent rates as she's not bothered with it. Very sceptical about S&S as was I until earlier this year.
Personally I'd like her to consider something like opening a S&S ISA as well as a Sipp and putting as much in as possible to shield from tax. Maybe buying max premium bonds temporarily as I intend to do when my late father's flat sells. I believe she can do a lot better but convincing her won't be easy.
We are on holiday this week and she is stressed out by constant messages from the neighbour and her daughter. It's a shame.
The income is mostly saved. It mounts up and gets used for expenses. For example she had a new boiler put in before the current tenant. There's normally jobs to be done and costs can and have mounted up over the years. If she sells there will be CGT to pay although I haven't tried to calculate how much yet. I have read about Wes Streetings plans to tackle CGT at the same rate as income.
She only has cash ISAs in which she has 6 figures. I know. Its been mostly up to me to ensure she keeps these at decent rates as she's not bothered with it. Very sceptical about S&S as was I until earlier this year.
Personally I'd like her to consider something like opening a S&S ISA as well as a Sipp and putting as much in as possible to shield from tax. Maybe buying max premium bonds temporarily as I intend to do when my late father's flat sells. I believe she can do a lot better but convincing her won't be easy.
We are on holiday this week and she is stressed out by constant messages from the neighbour and her daughter. It's a shame.
I’ll leave investment advice to others, but question why the neighbour has a direct complaint conduit to your wife; especially for seemingly trivial complaints. From your description, it seems bordering on harassment.
We probably all have experienced such things before, and the perpetrators often back down when confronted about their behaviour or their bluff is called out. Regardless, blocking further communication from them might seem a good idea.
We probably all have experienced such things before, and the perpetrators often back down when confronted about their behaviour or their bluff is called out. Regardless, blocking further communication from them might seem a good idea.
FlyVintage said:
I ll leave investment advice to others, but question why the neighbour has a direct complaint conduit to your wife; especially for seemingly trivial complaints. From your description, it seems bordering on harassment.
Yes absolutely. I think it's harassment too.The neighbour has my wife's contact details as she used to live in the property. She was always quite bossy with my wife and would often mention the garden amongst other trivial things. When my wife moved out and rented it the neighbour made it very clear that she was unhappy about having the downstairs property rented at all.
I have often felt its not worth the hassle.
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