South Manchester cannot decide to sell or rent
Posted: October 7th, 2018, 10:27 pm
I recently moved out of a 2 bed flat in West Didsbury, South Manchester, into a house I just purchased. I still own the flat and it is currently empty, and mortgage free. It is in a sought after area, worth approx. £200k and would rent for £875 per month.
I am ‘due’ £15k back in stamp duty if I sell the flat within 3 years.
The flat is a 2nd floor flat with solid concrete floors, carpets, large spacious rooms, and electric only. There are 9 flats in the block and 6 are currently let to mainly young professionals. The flat would be easy to let but requires some modernisation, such as:
a. Gas supply and central heating installing (the current old fashioned under floor heating does not work efficiently)
b. 2 new bathrooms (or at the least a good cosmetic job doing on the existing ones)
c. Some painting and some carpets replacing
d. A new electric circuit board and perhaps some more double sockets installing
e. There is a bed, sofa, fridge freezer and a washer dryer. They are working but 10 years old
I estimate the above would cost approx. £10k. The flat can be prone to dampness / mould if not ventilated (a concern if tenants where there).
My dilemma is that if I were to rent it, I would need to spend time and money (£10k to do it up and loss of £15k in stamp duty) to do so. If I sell the thing and invest the money elsewhere e.g Vanguard world index tracker or investment trust such as City of London [4.3% yield]).
I have some experience of letting properties in the past that I have managed myself. I already have approx. £200k in a HYP, hence maybe some reluctant to add yet more money to shares.
I would be interested in your views.
I am ‘due’ £15k back in stamp duty if I sell the flat within 3 years.
The flat is a 2nd floor flat with solid concrete floors, carpets, large spacious rooms, and electric only. There are 9 flats in the block and 6 are currently let to mainly young professionals. The flat would be easy to let but requires some modernisation, such as:
a. Gas supply and central heating installing (the current old fashioned under floor heating does not work efficiently)
b. 2 new bathrooms (or at the least a good cosmetic job doing on the existing ones)
c. Some painting and some carpets replacing
d. A new electric circuit board and perhaps some more double sockets installing
e. There is a bed, sofa, fridge freezer and a washer dryer. They are working but 10 years old
I estimate the above would cost approx. £10k. The flat can be prone to dampness / mould if not ventilated (a concern if tenants where there).
My dilemma is that if I were to rent it, I would need to spend time and money (£10k to do it up and loss of £15k in stamp duty) to do so. If I sell the thing and invest the money elsewhere e.g Vanguard world index tracker or investment trust such as City of London [4.3% yield]).
I have some experience of letting properties in the past that I have managed myself. I already have approx. £200k in a HYP, hence maybe some reluctant to add yet more money to shares.
I would be interested in your views.