To sell or not to sell

mcko

Question, I have a 3 bed semi in a rent control zone in Cirk City, rent 850 per month.
The house was left to me and my to kids equally, my question is would it make more sense to sell , worth about 300k at the moment , pay the taxes due for the kids and split the money 3 ways.
Advise appreciated.

Grawns

mcko wrote: »

Question, I have a 3 bed semi in a rent control zone in Cirk City, rent 850 per month.
The house was left to me and my to kids equally, my question is would it make more sense to sell , worth about 300k at the moment , pay the taxes due for the kids and split the money 3 ways.
Advise appreciated.

The taxes will have to be paid whether you sell or not. What was the relationship of the deceased person to you?

mcko

It was my family home left by my mother to me and my kids, I know the tax will need to be paid, I am just wondering would the cash in the bank be less hassle than 850 a month.

godtabh

sell. Renting isnt worth it.

Cash in hand invested properly will give a better return and less hassle.

Stoner

godtabh wrote:

Cash in hand invested properly will give a better return and less hassle.

It's difficult to get a return, or even keep up with inflation with something like 80 K. You'd need to spread your risk,know what you are at.

Unless I'm missing something. The banks and post office offer nothing ATM.

godtabh

Stoner wrote: »

It's difficult to get a return, or even keep up with inflation with something like 80 K. You'd need to spread your risk,know what you are at.

Unless I'm missing something. The banks and post office offer nothing ATM.

thats why I said invest properly

Samuel T. Cogley

Sell - being a LL is not worth it and we're possibly getting near the peak in terms of pricing. You may have issues getting the current tenants out so now would be a good time as Brexit is presenting some real risk of a down turn.

mcko

I am leaning towards selling even putting 100k in the bank would be less hassle than lending and the kids would have a handy head start in life.
Thanks for all the replies.

Baby01032012

Its a pity your mum didn't leave it all to you to avoid CAT as under life time threshold. Your childrens threshold is limited to 32500 so about 44k in tax between the kids. So say after tax and charges you will have 250k. 
Anyway thats not a relevant point as tax will be due anyway. 850 per month is 4% gross per annum, with income tax you might end up with 2%. Most property returns need to be in region of 8% gross.
Definitely sell. Talk to financial advisor as to where to invest. Long term low risk for kids. Depending on how much tax your paying look to put into pension and get return of income tax and/or EII scheme.
Conclusion: Property prices are peaking.  Return is low. 100% sell.

the_syco

Sell. If you rent now, and then sell, I think as it's not your PPR, you'd get even less.