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

[gmaz]

We have a second property that our daughter and Uni mates were using while at Uni, but now she has graduated and moved on we need to decide whether to sell it or rent it "properly"

Its worth about £250K and we could get ~£1000pm rent, which would be realistically £600pm after fees and tax. I'm a high-rate taxpayer and my wife is just within the low rate.

Or we could sell it but what to do with £220K (after CGT) lump sum. Is there any investment that would have a similar return to letting it?

I know we should really speak to an IFA but I'm just looking for ideas at the moment.

[gmaz]

dai1983 said:

Help the daughter and your other kids out with her own places? I imagine you’ve already done that

Yep that is sorted.

Thanks for all the advice.

I should say that the £250K is not just kicking around. We have a £200K capital on our offset mortgage (our own property) that will need to be paid off in about 10 years so the idea is to gradually pay that off and then finish with a lump sum of whatever is left. I guess I need to consider that when calculating the net income from renting the other house.