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gardening-girl

Decisions to make.

Bums,the tenants in our cottage have given two months notice.The extra dosh every month is very usefull.
As we have a house with our job,we are in two minds to sell or not.We have no mortgage.
BTL is worried that,if we keep the house and it needs any work,it will use up our savings.
But,if we sell,where to put the money?nothing is good for interest at the mo.no smilies
Pel

Could you not do it as a holiday cottage? Or is it quite far from you?no smilies
Nick

Stocks and shares can go up and down.
Banks can fold and you could lose everything except 50k.
There's no interest on cash savings right now.
ISAs pay better, but only in relatively small amounts.
Property is priced low now, compared to a few years ago. It may fall in value, but we still have more demand than supply.
Property is functional. You cannot shelter from the rain in a stock, in a barrel of oil, or a crock of gold.

Anything you spend on the house can be offset against the tax you pay on any rent that comes in.

There are many other factors, but property is a good investment if you're happy not to make a screaming profit on it.no smilies
Treacodactyl

Banks can fold and you could lose everything except 50k.
T.


It's 85k per account now* so it would be easy to protect it. I agree with the rest of your post though.

*Full details here: http://www.moneysavingexpert.com/savings/safe-savingsno smilies
Nick

Luckily, I'm still quite a long way* under the 50k limit, so I hadn't had to double check. :D

* Roundabout 48,500 below.no smilies
yummersetter

Would you ever want to live there if there was a change of circumstance?

If so, you could relet it, there's no shortage of tenants round here, and do a standing order that takes off a proportion of the rent into a repairs account. You wouldn't have the worry of where you'd live if your work was under threat, but keep the letting on a short term contract

If not, and if you think it would sell fairly quickly, and gambling on house prices not rising dramatically, you could sell it and if your work situation changes you would have the advantage of being a cash buyer on another place. The chance you're taking is of doing it up to sell out of your own pocket and it sitting unlet and unsold for *** months.no smilies
gardening-girl

Not a house I would want to live in.Bought as an easy to let property.no smilies
yummersetter

Have you calculated how much you'd get monthly in interest as against the rent? I guess some money website will give you figures to work with, or there's NS&I for safety.
It's the limbo time when its not rented and not sold that really hurts, but you can change your mind and relet it if its not shifting. And in a slow market, it's a chore keeping the house and garden clean and fresh over months so that its always ready for viewing at a moments notice.no smilies
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