It’s my first post on this, and it’s very apt for me, and I feel I have a little value to add.
I am a TTSBHTR, that’s a tried to sell, but had to rent, as I had to move areas, so I am currently renting out a 2 bed barn conversion in Somerset for £1000 and renting out my 2 bed Bungalow for £1000 in Surrey. Mortgage is IO on £193500 and costs just a little over £300 on a tracker, the house was valued, a month back, at £325k. Repayment is the rest of the rent going into an overpayment pot. Company is paying the rent.
I was a little dismayed at the costs of rental over here (in Somerset), but wanted something nice to live in, as I am likely to be here a while. However, £900 per month gets you a 4 bed link house.
I think there’s too much going on, to be able to properly compare the two, but outwardly, it would appear, in my opinion, slightly in the favour of owning if we baseline as of today, but that all falls apart if prices start dropping further and IR’s start to rise. I actually think it’s finely balanced, as of today.
I used to be a bull, but recently turned, selling one of my other properties for £340k (from £275k in 2006). I am starting to feel nauseous about holding onto the property, I must admit. However, we have signed up long term tenants and I have advised SHMBO to look at this as a long game for our daughters (whom we intend on giving the house to in 10-15 years time now).
Not being able to sell scared me a little, but if we can get something out of it in 15 years time, then I guess our £60k in it will be worthwhile. If I had sold the house, I’d be looking at renting for the foreseeable future and think it is going to end up being the best bet, in the mid term.
But yes, slightly concerned. IR’s back to 5 and my £1k each month just about clears the mortgage and, for me, that’s the elephant in the corner of the room in this argument….
On a final note, I really would like to see the house for £350k renting out for less than 900 odd. 800 gets you 2 beds and no garden out in leafy surrey