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Post by Alanović on Nov 11, 2020 12:35:10 GMT
P.S. I still think "don't sell", Humph, unless the money you realise can make you more money than the rent achieved on the house. Or you are going to buy some other property with the money.
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Post by Humph on Nov 11, 2020 16:11:20 GMT
The capital realised will/might/may enable phase 1 of the "Cunning Plan" Al... 😉
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Avant
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Posts: 691
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Post by Avant on Nov 11, 2020 16:37:17 GMT
I've read that at least here in the south-west, estate agants are quite busy and house prices holding up well. It depends where your house is, I suppose, and whether the cunning plan involves buying more property or a fleet of diesel Renaults....
If it were me I'd trust Espada's judgement on whether this is a good time to sell.
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Post by Humph on Nov 11, 2020 16:51:09 GMT
Aye, good advice Avant.
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Post by tyrednexited on Nov 11, 2020 17:03:31 GMT
The market has been buoyant, and still seems to be so round here judging by a friend's experience of selling two properties quickly in the last couple of weeks, and another friend ditto about four weeks ago. The market has been helped quite a bit by the stamp duty holiday, and rumours are that this might get extended.
I've never ever been tempted by property as an investment, too much trouble involved for me. We did consider years ago buying a seaside holiday cottage (and if we had, it would have proven financially very advantageous by now) but the thought of spending weekends doing mainly maintenance (one house is enough) and holidaying in the same place every year didn't take more than a few minutes to consider and dismiss. I don't regret it.
Having said that, if you have existing investment in property it is, in the current environment, going to give you better returns than most other options. If investment is the target, then I would leave asis (and rent it out).
It would appear, however, that this it might be time for a major lifestyle change. The current circumstances have lead to many considering their options, particularly those who were/are looking forward to retirement in the near future. It tends to make you reflect on what you might miss if you leave it too late.
I'm now coming up to 12 years of leisure, I've never regretted it for one moment, and the lockdown has allowed me to reflect on how lucky I've been to get some of the long-desired activities and visits out of the way with relative ease. I think things are going to be slightly different going forward.
So, if you have a target of lifestyle change, can afford it and realise it before the world and/or you get too old, go for it! As I think I've said before, an ex-works colleague I still walk with rattled on about early retirement for years, but wondered what he would fill his time with. A health scare (and he's had a couple more since, all survived) made him re-assess ("If this had been the end, would I have been happy that I'd spent the last few years as I have?") and he negotiated his way out. He hasn't regretted a minute, has difficulty finding free time, and has fulfilled a number of goals he would never have done otherwise.
Surely, this would be Phase 1b of the plan - Phase 1a being the car purchase.
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Post by Humph on Nov 11, 2020 17:14:50 GMT
Close T&E, close!
Thinking of messing about with a bit of low key property development for a bit.
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Post by tyrednexited on Nov 11, 2020 17:16:23 GMT
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Post by Humph on Nov 11, 2020 17:56:06 GMT
I'm pressed to think of anything to say other than "Geronimo!" then... 😉
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EspadaIII
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Post by EspadaIII on Nov 11, 2020 18:09:18 GMT
I'm just worried that Avant advises that you should take my advice!
I don't know the market in the Crewe/Nantwich area that well. But it appears that the majority of the country is experiencing some form of positive activity; whether it be by people looking to move up to make WFH easier, down sizing to release cash or wanting to invest.
I would keep encouraging the government to maintain low SDLT rates as house sales generate far greater levels of tax by the profits generated by estate agents, lawyers, surveyors, hardware shops, furnishing shops, workmen etc etc. Also encouraging people to move nearer to work reduces energy use and pollution.
So, speak to at least local agents; don't take the one who quotes the highest price! Review the evidence they offer for their opinion of sale price...
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Post by Humph on Nov 11, 2020 18:10:07 GMT
Thing is, after costs and tax, it currently nets way less than £10k a year, sometimes half that if we've had big maintenance bills. Now I'm supposed to be shomething of a bisnisman y'see, and if I can't use a small to medium wad to generate more than ten grand a year I should really be ashamed of myself. 🤔
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Post by Humph on Nov 11, 2020 18:11:19 GMT
Thanks Espada !
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Post by tyrednexited on Nov 11, 2020 20:02:04 GMT
Thing is, after costs and tax, it currently nets way less than £10k a year, sometimes half that if we've had big maintenance bills. 🤔 ...well, that's one way of looking at it, but I assume from those figures that's the return from rental. Additional to that is the (stored) return accruing on the asset value (less any ultimate CGT levied). That may well be close to or outrunning the rental return in "good" property years. Of course, having money tied up in assets isn't any use if you need income to live on, but it isn't sensible to overlook the investment math if not. (We've been in this house over 30 years, the average annual increase in asset value over that time is in excess of £10K p.a. )
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Post by Humph on Nov 11, 2020 20:50:08 GMT
Well, that's the twist in the tale really. At the moment, we really don't need the money, and even if things got a bit tight, we have other options. So all the good advice about leaving it on the rental market is very good indeed.
However, I/we am/are just a bit bored with it in truth. We've a history of a bit of risk taking, sometimes successfully, others not so, but, well, it's hard to explain, but maybe there's an itch that needs scratching...
Would never want only, "He was a very sensible chap" carved on the old headstone y'know.
;-)
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Post by tyrednexited on Nov 11, 2020 20:57:18 GMT
Would never want only, "He was a very sensible chap" carved on the old headstone y'know. ;-) ...there's probably already enough evidence on here to strike that out....
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Post by Humph on Nov 11, 2020 20:58:33 GMT
Can't imagine what you mean ! 😜
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