What to do with a spare £250K house - rent or sell?

[av185]

roadsmash said:

Sell house buy supercar?

Yep 458 Speciale or Performante.

Blue chip investment and almost perfect driving machines.

Win win.

[anonymous-user]

av185 said:

Performante.

Blue chip investment .

Not words that frequently occur in close proximity !!

[av185]

Brooking10 said:

av185 said:

Performante.

Blue chip investment .

Not words that frequently occur in close proximity !!

Personally I think they are underpriced and underrated.

Hope you are enjoying the Lt.

[anonymous-user]

av185 said:

Personally I think they are underpriced and underrated.

Hope you are enjoying the Lt.

That’s kind, thank you.

It’s a very good car.

Looking forward to getting it on track and on some decent long runs.

[Jon39]

gmaz said:

Its worth about £250K and we could get ~£1000pm rent, which would be realistically £600pm after fees and tax.

I think the answer to your question is in that sentence. You are describing a net rate of return of only 2.88%.
Are the costs involved really almost £5,000 annually ? 40% of the rent seems very high.

Although I have experience of more than one home, I have never wanted to get involved with renting. Equities have always been my favourite. Present net dividend income is 5.6%. No work, no fuss and with good businesses, your income steadily increases.

[covmutley]

With such a poor yield and the govt making btl less attractive on the tax front then unless you aim build a sizeable btl portfolio then it doesn't seem worth keeping. Too much bother.

Without fully knowing your situation, paying off the mortgage must be a good thing. Pension also. Other than that, I would just invest in index funds.

[NickCQ]

Jon39 said:

Are the costs involved really almost £5,000 annually ? 40% of the rent seems very high.

That’ll be the tax I presume.

[superlightr]

Capital of the property should be increasing if you buy sensibly.

we have a few properties with a good rent and capital increase has been very good. Sure there will be cgt on the gain but still good and sensible to spread risks around. Take a long term view.