We have been considering what to do with the current house in the current property climate. There are two schools of thought:
- Keep it. Rent it out and hope that at some point the market recoevers and the price of the property increases, then sell it.
- Sell it. Assume that even if the property market does recover you will never make up enough to cover the losses accrued while paying for the mortgage on the thing.
It's a tough one. Both have possibilities and both have negativites. There is also the issue of what if we simply cannot sell the house? Some properties in this area are still on the market after a year. If we can't sell it of course we are stuck with option one as a possibility, and not a bad one. The house is desirable, good location and well maintained and the rental market may be set to increase if the mortgage still remain as they are - basically, you can't have one!
The Sell It option has two branches, the money gleaned from the selling of this property we can use in buying a bigger property to start with, or it can be invested into the upgrading/extending of the property in an attempt to start our business. It is business Capital. Or the second option, sell it, pay off the mortgage on it and use the money remaining on it to invest in a smaller property to rent - either long term or holiday. The losses on a smaller property will be less from and investment point of view and it would, hopefully, give us some immediate income and much needed practice at owning a property to rent. Also investing that cash into a property may give better return at the present that investing in a savings account. If we are mot immediately going to start upgrading the bigger property to holiday lets then it may be best to invest cash in the best place.
We are planning a visit to the bank in a couple of weeks when we are both off work - ahh a holiday!! Realised I haven't had a break (bar 4 days - 2 Xmas and 2 New Year) since August!!! - But our trip to the bank will help us see what is what and where the best money can be spent and invested.
Have also been considering chickens - basically - where to get free ones!!! But also considering the Rescue A Battery Hen Programme. We would love to think we are giving some hens a new start in life!!