Investment & Investing

I dunno

Yeah I don’t think you know. But fortunately for you, I did pretty much exactly what you are thinking of ten years ago so I’ve done all the learning for you!

Just sell it. Find a buyer before you look for the new gaff. Buy a baller house. Don’t look back.

1,100 rent on a 200k property? Where is that?

I put the rent lower than what I see some places in the same block going for just as a worse case scenario. It's ex council in Woolwich so not really prime. Maybe that's the slum lord part.

Rents are going down at the moment despite property having a stamp duty boom.

You can get a nice enough 2 bed in Woolwich for £1k at the moment:
https://www.zoopla.co.uk/to-rent/details/56749857?search_identifier=07680edfb97a91345b698b006eb940d6

BRB going to put a family of 8 in a one bedder in Charlton

nice enough 2 bed

I particularly like the bed in the kitchen

[Edit] Ah - it's a sofa type thing.

I already put a lower rent in and my place is 20sqm larger. Also I am not thinking of renting
it out anytime soon that was just me checking what a yield could look like. Still a bit off from
only 1.5%.
I got this mainly as a safety net of a "rent free" place to stay in London and that turned out quite
nicely during this years pandemic.

thats near @Mickie_Cricket !

Depends on the length of tenancy. I'm sure an airbnb could tide me over waiting for the lease to run out.

Yeah, I just don't want people touching my stuff :D

I am half way between that place and Julian Assange.

Where is that calculator?

So you could roughly assume for every 12 months you get ~9 months of rent as income? That's not chump change - it'd buy at least a week's beer. :)

I guess I'd need to speak to an accountant to see if the extra income messed with my tax or whatever.

https://www.landlordvision.co.uk/rental-yield-calculator.html

It's just me playing around with numbers.

you then have a pretty risk free investment sitting around costing you nothing or even making you money. As London prices are very likely to rise faster than most other places, you'll cash in nicely when you retire.

This was why I never wanted to get rid of the flat to buy a new place. But then people started telling me renting was more trouble than it's worth yada yada so I thought I'd pose the question. If I can still get a few grand per year after costs and can then sell it to fund my stupid retirement idea that's neat. I'm currently weighing up keeping the London flat and moving to a smaller new place vs. selling the London flat and getting a much nicer new place. This is kinda what prompted the question.

the extractor fan "just fell off"

Funny you mention that. Ours just exploded this morning. There's two pieces of it on the floor and some burnt bits in the ceiling. Happy days :)

Ealing

I mean, that's what it was 10 years ago.

It will mess with your tax now and it will mess with your tax later (when you sell).

If I would be happy with just a net yield of 1.65% I could rent it out for 650pcm and still pay 3k into a sink fund per year.

Fees through an EA 8-15% dependant on service levels + they charge you extra for paperwork.

Managing it yourself is variable -
Finding tenants is a pain - placing ads, lot of showing round, waiting for no-shows, trying to work out who the weirdos are, etc.
Once you've found them need to (should) use reference checking agency and have to use a deposit protections scheme. Only other paperwork is a shorthold tenancy agreement you can download. And you should have an inventory company in at the start and end of a lease.
Once they're in - most people are reasonable. Most can change a lightbulb. Some aren't and some can't. We've had tenants in for years with barely any contact and a few that have been a pain. You should have an idea of what might go wrong in your flat, but you need to be prepared to go round and sort stuff out periodically (or send a man round).
You can get pretty cheap landlords insurance for fixtures and fittings. - but be prepared that whatever you leave will wear out/get broken.
You need to get gas and electric safety certificates annually.
Sofa/Bed etc need to be 'won't burst into flames' - pretty sure anything not ancient will comply.

Between leases can be a right pain, but it's expensive to get someone else to do it. Once you've got someone in it's generally pretty light touch and you get ££ rolling in every month.

you then have a pretty risk free investment sitting around costing you nothing or even making you money.

Bro do u even opportunity cost?

most people are reasonable. Most can change a lightbulb

They can’t defrost a freezer though.

Ta. I've sent it to the grrl to look at.

Once they're in - most people are reasonable.

That’s what we thought when we rented a room out. We were very wrong.

By then I'll be able to afford an accountant with all that magic tax haven skill though, right?

Sadly they won’t be able to take you back in time to the heady days of generous lettings relief and being able to offset your finance costs against your tax bill. Also capital gains reform is going to fuck things further.

Eek - in your house - sounds like the tagline to a movie? I've had one really bad one and a few careless ones but majority really good.