Renting a property when you already own. Mad?
Discussion
Just after some thoughts on this as I wonder if I'm mad to even consider it.
Scenario is:
My wife and I both owned a two bedroom flat each when we met. 3 years down the line, despite trying to sell one of them, we now still own 2 flats. We now live in one of the flats and let the other out to tenants. Our first child is on the way and although we'll be fine in the short term, I think the flat is going to get very cosy quite quickly.
In an ideal world we'd sell both of the flats, make a little money, throw a bit more of our savings at a deposit and buy one proper sized house but as the market stands right now, I can't see both flats shifting.
We've started to consider the possibility of eventually (probably talking at least a year down the line) letting both flats out and then renting a house ourselves. There are some decent houses available for around £1000 per month up here. That's more than likely less than a mortgage would end up costing. We wouldn't be clearing a mortgage off on the house of course but at least the flats would keep us on the ladder as it were.
Anybody done anything similar and wish to share your thoughts?
My biggest worry is the that the place will not be ours to personalise as we wish but maybe that is ok in the short term.
Scenario is:
My wife and I both owned a two bedroom flat each when we met. 3 years down the line, despite trying to sell one of them, we now still own 2 flats. We now live in one of the flats and let the other out to tenants. Our first child is on the way and although we'll be fine in the short term, I think the flat is going to get very cosy quite quickly.
In an ideal world we'd sell both of the flats, make a little money, throw a bit more of our savings at a deposit and buy one proper sized house but as the market stands right now, I can't see both flats shifting.
We've started to consider the possibility of eventually (probably talking at least a year down the line) letting both flats out and then renting a house ourselves. There are some decent houses available for around £1000 per month up here. That's more than likely less than a mortgage would end up costing. We wouldn't be clearing a mortgage off on the house of course but at least the flats would keep us on the ladder as it were.
Anybody done anything similar and wish to share your thoughts?
My biggest worry is the that the place will not be ours to personalise as we wish but maybe that is ok in the short term.
I don't think it's bad idea - keeps you in the market and lets you ride out the current lull, as long (if you're upgrading) happy to subsidise some rent out of your own pocket that isn't covered by the flats on the new house, probably not in your case though.
My bro will be doing the same thing - has a flat in south london bought with the ex, but wants to live in north london with his mates so will rent the south flat out and rent another flat in north. Same problem as you - not a good time to sell and he'll still be "in" the property market when things pick up again.
My bro will be doing the same thing - has a flat in south london bought with the ex, but wants to live in north london with his mates so will rent the south flat out and rent another flat in north. Same problem as you - not a good time to sell and he'll still be "in" the property market when things pick up again.
Thanks fellas. Like I say, unlikely to do anything for a little while but its nice to know I'm either not mad, or if I am, I'm not alone 
I must say I'm staggered by how cheap some of the more rural rental properties are up here. For about the same £/month that we would be looking at for a mortgage on a 3 bed semi in an adequate area, I have seen rental properties more akin to the real estate porn thread. Saw a rather fetching 5 bedroom stone farmhouse with double garage and land in a very nice little village, easily commutable to my work. £1000 per month, unbelievable. That's actually only £300 more than somebody is paying to let our little flat out. Obviously the big sacrifice is that it would be somebody else's mortgage capital being paid off but still very tempting.
I must say I'm staggered by how cheap some of the more rural rental properties are up here. For about the same £/month that we would be looking at for a mortgage on a 3 bed semi in an adequate area, I have seen rental properties more akin to the real estate porn thread. Saw a rather fetching 5 bedroom stone farmhouse with double garage and land in a very nice little village, easily commutable to my work. £1000 per month, unbelievable. That's actually only £300 more than somebody is paying to let our little flat out. Obviously the big sacrifice is that it would be somebody else's mortgage capital being paid off but still very tempting.
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