Rent Out Current House or Sell and Buy a Flat to Rent Out

[david5hughes]

Right Guys and Girls, I have a problem...

My in-laws have offered us their house while they are not living in it. It is a bigger house and we have decided to move into it.

However, we want to stay on the property ladder so here's the choices:

Rent out our current 3 bedroom mid-terrece, directly across from a primary school in a nice area.

Or

Sell the house (approx profit £30-£40k) and put that down on a flat in a nearby town which has university, college, transport links etc, and pay a smaller mortgage and rent that flat out

Any help, advice, pearls of wisdom are most welcome.

Regards

D

[lee2309]

Right a lot depends on when you bought the property and what rental income you can achieve on your existing property.
If you sell the you will have to buy another property at market value but if you can obtain rental income that covers the mortgage payments why move? You will just have to pay stamp duty, solicitors costs and possibly redemption penalties on your existing mortgage if you are tied in. Brokers & mortgage setup fees to get a new mortgage.

Just remember that buying near a university means renting to students and not all students take care of a property.

This is just my opinion and it is what i would do.

L

[Poppy]

You need to know if there is a rental market for 3 bedroom houses in that particular area. Contact a few local agents.

Yes I know you say it is near a primary school but are there people looking to rent or buy in that area? In London you would have to be on a pretty good salary to afford a rented three bedroom house. Remember probably only one or maybe two adults will pay for the whole rent.

Food for thought?