Buy to Let Property – Keep it or Sell it?23 Sep 2020
We own a small 1 bed flat that was bought back in December 2018 with a sitting tenant- it’s in Denniston which is a popular spot in Glasgow for young professionals both buying and renting.
The tenant left a few months back – and the flat needed a refurb. So we got the builders in and within 4 weeks they have finished and it looks fab. So my dilemma now is this – should we sell it, or should we rent it out again?
Let’s look at the figures:
Purchase Price £49,000
Total Costs inc fees £13,000
Total Investment £62,000
Potential Resale £75-80k
Potential Rental Income £575pm (less factor fees £50)
So we would definitely make a gain of at lease £15-20k on this but if we keep it, the headline yield is over 10%. Now I need to buy some furniture to rent it so need to put aside about £750 but even at that, it’s a fab return.
Get your thinking caps on – keep it or flip it – what would you do?