I have a dilemma, maybe you can offer your opinion as to what I should do.

I own a house in Rotherham outright. Bought it cheap when prices were low and gradually paid off the mortgage and I have a friend in it who rents it from me. It's worth around £50-55K.

In one way it is my little form of security for old age, in another way it's a property that brings me a rental income yet in another way I still have to maintain it, insure it and be responsible for it and I have a lot of equity tied up in it.

The guy that's in it wants to buy it from me. He likes it and doesn't want to move, but sees the sense in buying rather than renting.

Property brings a greater return than a savings account. Ideally I'd like to get a house in Sheffield.

My options are:

a) Sell the house and put the money in the bank and feel rich, but have no property. I'll have no estate agents to pay for and it's an easy sale....I'd never want to live in it again anyway.

b) Buy another house in Sheffield, get a mortgage on it and if necessary remortgage the Rotherham house - lots of debt there, but if handled effectively I could end up with two houses in twenty years or so.

c) Tell my mate that he cannot buy and then get a new tenant when he moves out (but I know my mate and he won't paint the place silly colours or let ducks run around the place). I'd have to go through a letting company.

d) Sell the house and buy another in Sheffield, so I'll have one house and a smaller mortgage.

Suggestions?

Sell it - who wants a house in Toy Town anyway ;)

Good point, but I get a rental income from it.
There must be an attraction, there was for me when I first bought it and lived there....it didn't take me long to move into the big city though.

If you could afford it after selling the Rotherham house it might be worth looking at houses for students (if you could be bothered with the hassle). My friend's dad owns my house and gets rental income from 3, rather than 1, the house is only really a 2 bed terrace, so you would get rather a lot of income.

It might be worth selling now then hanging on to see how the market changes over the next few months as house prises have started to slow down recently, just a thought...

SELL SELL SELL and then take me to some exotic hoilday adventure xxx:D

sell the house and buy one in sheffield and rent it out to students

I'd sell it. Chances are the property market will drop in the future and you'll be able to buy another house cheaper.

It might be worth putting the money you make from the sale in a ISA.

Lol. Unfortunately there are maximum amounts you can put in an ISA. So not a wise decision seeing as you will still have to find a home for the other £45k

It may be worth sitting down and doing the figures on:

Would it be better to invest the money in the Stockmarket?

Shall i sell this house and buy another in an up and coming area?

Maybe sell my house now, and buy a house for rental to Students?


Whatever you do, it is not wise to sell the house and put the money in the bank account. Unfortunately interest is nominal, and you have to pay tax for the majority of it.

Skatie

Whatever you do, don't think about the student market as a secure one...

If the changes in student funding go through (ie: top up fees) then you can expect demand to drop line a stone for a few years..

So, I'd be wary of relying on that demographic as potential source of income for rent...

I'd be tempted to sell to get rid of the worry and invest the money as best I could.

Keep it and, if you can afford to, get another house. The Dukes of Devonshire didn't get to own half of Derbyshire by selling property. They got there by hanging on to what they'd been given and carried on acquiring land. Property may be theft but it's also the main way the seriously rich got that way.

I must admit, I don't fancy going down the 'rent to students' path. If I was going to buy, I'd have a friend live in the new place as well as store my stuff in it. But it's what to do with the Rotherham house that's the dilemma.....

Here's lots of hints and tips on all things to do with money. It's helped me a lot!

www.moneysavingexpert.com