A little while ago I posted about how undecided we were on whether to rent out or sell our house when the move happens. We’ve finally made a decision, I think the photo probably gives it away!
We aregoing to rent out our house. There are a couple of reasons for this. Firstly, if it all goes wrong we still have somewhere to come back to, and secondly, if we don’t make anymore over payments, the mortgage will finish just in time for our planned retirement year and provide us with income. We do plan on making over payments, but if we don’t, then this is where we’re at.
Tell me what you think, is this the right way to do things?
{photo credit: p doodle}
{ 3 trackbacks }
{ 6 comments… read them below or add one }
Renting will be either great or terrible, depending on what kind of renters you get. If you get renters that stay for years and pay on time, you’re good. If you get renters that trash things in their first two months and then stop paying rent, you’re losing money hand over fist. Some of this is predictable by what neighborhood your house is in, and some of it is just the luck of the draw.
Unfortunately, the best way to assure the first type of renters, or at least catch the second type before they do too much damage, is intensive management. You’ll be in Portugal and won’t be able to do it; have you looked into what it will cost to have your house managed?
The Lost Goat´s last blog ..September Anysoldier – 3/10
Hi Laura
That is exactly what I would do. I like to keep my options open wherever possible, but also keep things affordable, and have seen too many people move overseas (usually Spain) and then want to come back but have been priced out of the UK market in the meantime.
Good choice.
Lizzie
lizzie´s last blog ..Laptop RIP
Haha, I can comment again! Its nice to be back!
lizzie´s last blog ..Laptop RIP
That´s a hard decision- but in case if renting doesn´t work out you can always sell a year or two down the line
I think this is absolutely the right decision. If we had been in a position to rent our house out instead of sell, we would have done. You never know what will happen and if it’s possible, I think it is always wise to keep a base here. Well done for making the decision! I rented my house out years ago when I was away and I rented it through an agent. They took care of everything and although I can’t remember the exact %, I don’t recall it being hideous. Never had any problems. I would suggest you do go through an agent though
Fanciful Alice´s last blog ..Could it really be?
I assume you will be renting in Portugal too, until you find the right house/location. I think that is sensible. I have looked into it, and I will also initially be renting my place out for a year while I take a year out to travel. I will rent a *cheap* place until I find a location I want to settle down in permanently, and then will sell up. Based on what I can find out – you really need a good, full-management agency, with a water tight contract. The figure I was quote for full management was 12% of rental income. You’ve then got tax, plus the need to set some money aside for maintenance. Nice to let someone else pay your mortgage for a year though!