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Rent Or Sell My Newly Renovated House!?!


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I'm sure this is a popular question at the moment but I would really appreciate some well guided advice. Heres my scenario!

I have recently finished refurbishing a 1920's 3 bed semi. I have been on the market now for approx 12 weeks and have had one offer which I was happy with. Only problem is the chain below was incomplete and they have now decided to withdraw altogether.

I'm now in a predicament. Sales are slow in our area at the moment and all I hear from agents is that they simply have more on book than there is demand for.

So do I remortgage, take my profit and put a tenant in the house for the next 6-12 months? (The rent is about equal to my mortgage payment)

Or do I keep it on the market and hope for more interest! Frankly I don't see much happening over the next two months especially with the run up to xmas!

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Is it your main home or do you mean you bought it to do up and sell at a profit?

Sorry forgot to mention that! Its a house i bought at auction approx 7 months ago. If my offer completed the return would have shown approx 35%

I do not live there!

Edited by dmullan
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I'm sure this is a popular question at the moment but I would really appreciate some well guided advice. Heres my scenario!

I have recently finished refurbishing a 1920's 3 bed semi. I have been on the market now for approx 12 weeks and have had one offer which I was happy with. Only problem is the chain below was incomplete and they have now decided to withdraw altogether.

I'm now in a predicament. Sales are slow in our area at the moment and all I hear from agents is that they simply have more on book than there is demand for.

So do I remortgage, take my profit and put a tenant in the house for the next 6-12 months? (The rent is about equal to my mortgage payment)

Or do I keep it on the market and hope for more interest! Frankly I don't see much happening over the next two months especially with the run up to xmas!

Drop the price and sell straight away

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Sorry forgot to mention that! Its a house i bought at auction approx 7 months ago. If my offer completed the return would have shown approx 35%

I do not live there!

Ah ok. Well since you're a professional property developer and I'm not I'll refrain from offering amateur advice. Good luck!

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I'm sure this is a popular question at the moment but I would really appreciate some well guided advice. Heres my scenario!

I have recently finished refurbishing a 1920's 3 bed semi. I have been on the market now for approx 12 weeks and have had one offer which I was happy with. Only problem is the chain below was incomplete and they have now decided to withdraw altogether.

I'm now in a predicament. Sales are slow in our area at the moment and all I hear from agents is that they simply have more on book than there is demand for.

So do I remortgage, take my profit and put a tenant in the house for the next 6-12 months? (The rent is about equal to my mortgage payment)

Or do I keep it on the market and hope for more interest! Frankly I don't see much happening over the next two months especially with the run up to xmas!

How exactly is re-mortgaging "taking your profit?"

Wouldn't you still have to pay the mortgage?

I think you need to do some sums about whether the rent you would get will pay for your mortgage, whether you think there will be a longer term dip in prices than just Xmas, in which case, you need to drop your price to a point that will sell, actually take your profit and then review whether you want to continue developing other properties.

If you think it will all go away after Xmas, then hang on and sell then.

We were told by an EA that September would see a lot more properties on the market.

How right they were.

Still, look on the bright side, at least it isn't a flat, sorry, luxury apartment. :lol:

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Drop the price and sell straight away

Thinking that may be my third option! Just got off the phone now with my agent and we may be in luck for another offer. A healthy 10% less than i had oped for though!

Ah ok. Well since you're a professional property developer and I'm not I'll refrain from offering amateur advice. Good luck!

Im no pro my friend just have found myself renovating houses in between contracts. thinking it might go on the back burner for a while if HPC predictions are anything to go by!

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Thinking that may be my third option! Just got off the phone now with my agent and we may be in luck for another offer. A healthy 10% less than i had oped for though!

Im no pro my friend just have found myself renovating houses in between contracts. thinking it might go on the back burner for a while if HPC predictions are anything to go by!

Not bad at all in current climate. I can't see it picking up with the amount of stock on the books now. And the rental yield you're looking at doesn't offer much margin of safety.

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I think you know the answer already!

IMO, rent just covering the mortgage ain't worth it. I'd look for a "money making" vehicle that generates a quicker return.

Don't think thats property at the mo ;)

Ah ok. Well since you're a professional property developer and I'm not I'll refrain from offering amateur advice. Good luck!
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Point taken! Although i can rent it for roughly the same as my mortgage repayments! With a very small amount left in my pocket.

But then it still comes back to whether things will pick up after Xmas or not...

You don't want to be just covering the mortgage on a property that isn't going anywhere, or worse is losing value.

Good to know you have an offer, though.

I think your kind of property development is going to be trickier in the next few years.

Still if you are quite good at it, in a few years time you should be able to start it all up again, or failing that you might find lots more going at auction for some really low prices and then it's a race against time to do the necessary work quickly in order to stay ahead of a dropping price.

Trouble is though that you can end up with a big bill for remedial work that you didn't foresee and you don't have HPI to save your profit.

Assuming there is an HPC of course.

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But then it still comes back to whether things will pick up after Xmas or not...

You don't want to be just covering the mortgage on a property that isn't going anywhere, or worse is losing value.

Well lets run on the theory that the next 12 months does see a significant drop in prices. Surely rental prices are not effected much, are they? If not then i can afford to keep hold of the house and wait for the market to recover?!?

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I'm sure this is a popular question at the moment but I would really appreciate some well guided advice. Heres my scenario!

I have recently finished refurbishing a 1920's 3 bed semi. I have been on the market now for approx 12 weeks and have had one offer which I was happy with. Only problem is the chain below was incomplete and they have now decided to withdraw altogether.

I'm now in a predicament. Sales are slow in our area at the moment and all I hear from agents is that they simply have more on book than there is demand for.

So do I remortgage, take my profit and put a tenant in the house for the next 6-12 months? (The rent is about equal to my mortgage payment)

Or do I keep it on the market and hope for more interest! Frankly I don't see much happening over the next two months especially with the run up to xmas!

and after you get your answer here you should ask the people here if you should have a steak or nut roast for dinner tonight.

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