ASK447: My portfolio is growing...what next? PLUS: Should I hold or sell?
Sep 24, 2024
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In this engaging discussion, investor Luke shares his journey after completing his fourth buy-to-let in South Wales. He's contemplating whether to continue with lower-value properties or switch to industrial lets for better returns. Meanwhile, Tommy, a property owner in Essex, faces a dilemma about selling his leasehold maisonette as he relocates to Newcastle. He deliberates the financial implications of holding onto the property for potential growth versus selling to fund new investments. A lively examination of strategic property choices unfolds!
Investors must define their personal goals, focusing on either rental income or capital growth, to shape future property strategies.
Completing a numerical analysis when deciding to sell or hold a leasehold property can clarify the best investment approach post-relocation.
Deep dives
Evaluating Property Investment Strategies
Investing in property requires a clear understanding of personal goals and strategies. It is essential to assess whether the focus is on rental income or long-term capital growth, as this will shape future investment decisions. For instance, transitioning from low-value buy-to-let properties to other investment types, like industrial units, can be beneficial depending on one's financial objectives. Identifying and refining these goals can guide property owners in deciding whether to pivot their strategy or continue on their current path.
Deciding Between Selling and Renting
When faced with the choice of selling a leasehold property or renting it out, a thorough numerical analysis can help clarify the decision. Weighing the potential rental income against the possibility of selling and using the proceeds to purchase a freehold property is key. Considerations should also include the emotional attachment to the property and the practicalities of managing a rental from a distance. The outcome may lean towards renting it out initially, which allows for more time to evaluate the situation and explore new opportunities after the move.
Get ready for your latest edition of Ask Rob & Rob!
(0:35) Luke’s just completed his fourth buy-to-let in South Wales and is now considering his next move. He’s weighing up whether he should continue investing in lower-value buy-to-lets or explore something new such as industrial lets.
(3:42) Tommy’s owned and lived in a 1-bed leasehold maisonette in Essex for two years, but he's now relocating to Newcastle. He wants to start investing in freehold properties within a limited company, so he’s wondering whether it’s better to sell the leasehold to invest in more properties or hold onto it for future capital growth.
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