House fire
Posts
Post 704846 by MIKESC70T5 on 2014-04-20 11:59:53
Been an eventful couple of days. I own a property which I've let out for the last few years. House is converted from a 3 bed semi into a 4 bed by changing the dining room into another room which allowed me to have 4 students renting it out. Since owning it apart from yearly tidying it up ready for the students returning for the new Uni year things have always gone well.
Late Friday had a phone call saying fire and police were in attendance as black smoke was seen coming out of an upstairs window. End result one upstairs room is gutted along with severe damage to landing, windows etc due to the fire brigades water etc putting it all out. Three of the students were in the local area but none were in the house at the time, which was lucky. House is boarded up now and students have been found alternate accommodation.
Fire assessors have traced it down to a laptop which was plugged in on charge, the charger was at fault and triggered the start of the fire.
Still getting my head round it, I'm fully insured etc including loss of rent, but still sinking in.
Really thinking about selling it on now. I have a mortgage of £160000 on it and purchased the house in 2009 and with house prices on the up a local agent says after the repair work is done it would fetch £210000.
Should I sell or carry on renting for another ten years? The original plan was long term and be a pension for my retirement, but this incident may be a sign to get out while the going is good.
Post 704850 by stephenevans99 on 2014-04-20 12:05:59
Sorry to hear the bad news :(
Continue to rent it out for next few years I reckon....the housing market has only just started to recover in my opinion. It will most likely be worth considerably more in 5-10 years time.
You'll notice the key words - ' I reckon', 'my opinion' and 'most likely'.....unfortunately there's only a few certainties in life, housing market isn't one of them.
It's a tough decision mate & yours alone.
Post 704851 by M-R-P on 2014-04-20 12:08:02
Don't believe the estate agent mate, I'm having to knock nearly 20k off their initial valuation on my place.
Hang onto it as an income, you'll be better off in the long run.
Post 704855 by Harvey on 2014-04-20 12:14:19
[QUOTE=MIKESC70T5;704846]
Should I sell or carry on renting for another ten years? The original plan was long term and be a pension for my retirement, but this incident may be a sign to get out while the going is good.[/QUOTE]
Carry on renting until you need the cash,money in the bank is giving a very low return for you money.
Try to rent the house to a family as they should look after the place better.
I have just finished doing a house for renting it out,but the agents are going to manage it for me not looking to make silly money as no mortgage on it,but as you say it's long term to top up my pension.
Post 704861 by MIKESC70T5 on 2014-04-20 12:18:26
[QUOTE=M-R-P;704851]Don't believe the estate agent mate, I'm having to knock nearly 20k off their initial valuation on my place.
Hang onto it as an income, you'll be better off in the long run.[/QUOTE]
Depends where the property is mate. My rental one is in Winton which is full of students. Been looking around and chatting to a few guys I know who have multiple properties and said the figure is about right. If I change it back to a family layout I'd get slightly more.
Really tempted to sell as at the moment I've two mortgages and this is stopping us moving on from the house we live in in Verwood.
Verwood house we paid £156000 11 years ago, a neighbour has just sold same style house last month for £279000, so maybe the house fire is a sign for me to sell up both, buy a run down property and make it the house the family have always wanted.
Post 704862 by Santa on 2014-04-20 12:20:13
Are you making a positive return (month on month) whilst renting it out. If so it may be best to hang on in there. If you aren't getting a positive return then flog it.
Note : Same disclaimer as Stephen, the above in a baseless opinion. Consult a financial expert before........
Post 704864 by MIKESC70T5 on 2014-04-20 12:22:58
[QUOTE=Harvey;704855]Carry on renting until you need the cash,money in the bank is giving a very low return for you money.
Try to rent the house to a family as they should look after the place better.
I have just finished doing a house for renting it out,but the agents are going to manage it for me not looking to make silly money as no mortgage on it,but as you say it's long term to top up my pension.[/QUOTE]
All the students I've had have been good, and I use an independent guy to manage the place for me. He does everything from getting it let to going round and sorting any issues. Problem with letting to a family is I wouldn't get as much in rental. So far I've been fortunate that the rental has covered all my costs over the years, plus spare money so it makes sense to carry on renting, but the fire and associated worries is something which has made me rethink things.
Post 704865 by M-R-P on 2014-04-20 12:24:03
[QUOTE=MIKESC70T5;704861]Depends where the property is mate. My rental one is in Winton which is full of students. Been looking around and chatting to a few guys I know who have multiple properties and said the figure is about right. If I change it back to a family layout I'd get slightly more.
Really tempted to sell as at the moment I've two mortgages and this is stopping us moving on from the house we live in in Verwood.
Verwood house we paid £156000 11 years ago, a neighbour has just sold same style house last month for £279000, so maybe the house fire is a sign for me to sell up both, buy a run down property and make it the house the family have always wanted.[/QUOTE]
Using the equity from both properties will be a good start for that "dream house" mate. With the equity we have in our place, we can get a place in a nicer area, with more rooms, a driveway and a garage while paying no more per month than we're paying now.
Post 704867 by MIKESC70T5 on 2014-04-20 12:26:25
[QUOTE=Santa;704862]Are you making a positive return (month on month) whilst renting it out. If so it may be best to hang on in there. If you aren't getting a positive return then flog it.
Note : Same disclaimer as Stephen, the above in a baseless opinion. Consult a financial expert before........[/QUOTE]
Yes mate, even last year having to replace all the upstairs windows due to Council requirements which came in, rental income covered it.
Post 704872 by MIKESC70T5 on 2014-04-20 12:39:31
[QUOTE=M-R-P;704865]Using the equity from both properties will be a good start for that "dream house" mate. With the equity we have in our place, we can get a place in a nicer area, with more rooms, a driveway and a garage while paying no more per month than we're paying now.[/QUOTE]
Sounds good, just make sure the garage is big enough, modern ones are useless, mine has no way in hell in getting my car in what with all the other crap in there lol.
Post 704879 by M-R-P on 2014-04-20 12:50:32
The garage will be a workshop mate. We're looking at one next week that's had the garage converted to a studio and has a big car port, to which I would add a load of lights. Driveway has a siding to put another car too.
Only downside is it doesn't have as many bedrooms as I'd like.
Post 704895 by MIKESC70T5 on 2014-04-20 13:35:45
[QUOTE=M-R-P;704879]The garage will be a workshop mate. We're looking at one next week that's had the garage converted to a studio and has a big car port, to which I would add a load of lights. Driveway has a siding to put another car too.
Only downside is it doesn't have as many bedrooms as I'd like.[/QUOTE]
Who cares about bedrooms, man cave is what's important lol.
Post 704903 by LiamT4 on 2014-04-20 13:51:13
[QUOTE=M-R-P;704879]The garage will be a workshop mate. We're looking at one next week that's had the garage converted to a studio and has a big car port, to which I would add a load of lights. Driveway has a siding to put another car too.
Only downside is it doesn't have as many bedrooms as I'd like.[/QUOTE]
How many kids you want? Only need 1 room per kid lol
Post 704907 by M-R-P on 2014-04-20 13:59:28
Sod having more kids, we need an extra room for a study/gaming room ;)
Post 704911 by LiamT4 on 2014-04-20 14:06:37
[QUOTE=M-R-P;704907]Sod having more kids, we need an extra room for a study/gaming room ;)[/QUOTE]
lol study......thats what you say to your mrs ;)
Post 704912 by M-R-P on 2014-04-20 14:08:51
[QUOTE=LiamT4;704911]lol study......thats what you say to your mrs ;)[/QUOTE]
The wife's.a cad draughtsman mate, she'll be using it too. ;)
Post 704914 by LiamT4 on 2014-04-20 14:10:57
[QUOTE=M-R-P;704912]The wife's.a cad draughtsman mate, she'll be using it too. ;)[/QUOTE]
Yeah, but it'll mainly be a gaming room lol
Post 704915 by MIKESC70T5 on 2014-04-20 14:12:23
[QUOTE=M-R-P;704912]The wife's.a cad draughtsman mate, she'll be using it too. ;)[/QUOTE]
Your wife's a man and plays draughts, that explains a lot Martine!!!!!!
Post 704921 by M-R-P on 2014-04-20 14:17:40
[QUOTE=MIKESC70T5;704915]Your wife's a man and plays draughts, that explains a lot Martine!!!!!![/QUOTE]
Well she's got bigger balls than a lot of blokes I know lol.
Post 704932 by V70 Graham on 2014-04-20 15:19:30
[QUOTE=M-R-P;704921]Well she's got bigger balls than a lot of blokes I know lol.[/QUOTE]
I think she still has yours too.....
Post 704933 by graemewelch on 2014-04-20 15:26:12
[QUOTE=M-R-P;704912]The wife's.a cad draughtsman mate, she'll be using it too. ;)[/QUOTE]
now you mention this. and heres me struggling on with cad and no1 to turn to for help
Post 704935 by gwrt5 on 2014-04-20 15:34:39
What ever avenue you go down , I wish you the best of luck , me personally I would hold into the property for a while longer , as you say your fully insured against the damage so the repairs will all be taken care off ? House prices yes are in the up. So why not reevaluate your situation in say 12 months , and see where the market lies ?? , either way best of luck with what ever option you decide to go down
Post 704937 by graemewelch on 2014-04-20 15:40:42
keep the house. your fully insured so your no worse off that befor. except for insurance may go up slightly but life is full of ups and downs. just think of it as small hick up. if you sell it now you could end up regreting it in years to come
Post 704939 by stribo on 2014-04-20 15:48:27
The house will be worth more in a years time, 5 years time, 10 years time than the cash equivalent, so I'd hang on to it.
Post 704961 by JamesT5 on 2014-04-20 16:44:18
Sorry to hear about the fire, it has to be in top 3 worse things to have to deal with.
I'm not too good at advising on properties and investments but perhaps you could sell this one and buy another place in a different area and start again. Sometimes you just feel you want to let go of some things and make a fresh start.
Post 704975 by stribo on 2014-04-20 17:04:44
[QUOTE=JamesT5;704961]Sorry to hear about the fire, it has to be in top 3 worse things to have to deal with.
I'm not too good at advising on properties and investments but perhaps you could sell this one and buy another place in a different area and start again.[COLOR="#FF0000"] Sometimes you just feel you want to let go of some things and make a fresh start.[/COLOR][/QUOTE]
And sometimes you just keep throwing money at them. ;)
Post 704982 by MIKESC70T5 on 2014-04-20 17:18:57
Thanks for the advice, but as I've mentioned its difficult for us to move up the property ladder on our family home due to having two mortgages on the go. Maybe the fire is a sign to move on. I've got two kids 15 and 11 and we all love the area we live in, but space is an issue and I'd really like a double garage and a project house to work on so me thinks it's time to sell up maybe lol.
Post 704984 by MIKESC70T5 on 2014-04-20 17:22:04
[QUOTE=JamesT5;704961]Sorry to hear about the fire, it has to be in top 3 worse things to have to deal with.
I'm not too good at advising on properties and investments but perhaps you could sell this one and buy another place in a different area and start again. Sometimes you just feel you want to let go of some things and make a fresh start.[/QUOTE]
House is in a perfect area for rentals and never had a problem renting it out and never been out of pocket since having it. If I was to sell it I'd plough the profits into reducing my family houses mortgage then sell that and buy a do an upper family property.
Post 704994 by jdavis on 2014-04-20 17:50:21
Sorry to hear about the fire.
With the housing market as it is I'd be inclined to keep renting for the foreseeable.
Post 705005 by jamesy12345 on 2014-04-20 18:13:08
Glad no-one was hurt, a right ball ache but could have been worse
I'm always on at our lass not to leave the laptop charging on a soft surface
Post 705136 by danny1 on 2014-04-20 21:51:58
[QUOTE=MIKESC70T5;704846]Been an eventful couple of days. I own a property which I've let out for the last few years. House is converted from a 3 bed semi into a 4 bed by changing the dining room into another room which allowed me to have 4 students renting it out. Since owning it apart from yearly tidying it up ready for the students returning for the new Uni year things have always gone well.
Late Friday had a phone call saying fire and police were in attendance as black smoke was seen coming out of an upstairs window. End result one upstairs room is gutted along with severe damage to landing, windows etc due to the fire brigades water etc putting it all out. Three of the students were in the local area but none were in the house at the time, which was lucky. House is boarded up now and students have been found alternate accommodation.
Fire assessors have traced it down to a laptop which was plugged in on charge, the charger was at fault and triggered the start of the fire.
Still getting my head round it, I'm fully insured etc including loss of rent, but still sinking in.
Really thinking about selling it on now. I have a mortgage of £160000 on it and purchased the house in 2009 and with house prices on the up a local agent says after the repair work is done it would fetch £210000.
Should I sell or carry on renting for another ten years? The original plan was long term and be a pension for my retirement, but this incident may be a sign to get out while the going is good.[/QUOTE]
Gutted for you mate, If I was you I'd keep it or get an other one if you can so you have two.
I've got some friends in Talbot woods they have 20 + houses now for students in that area.
The market is going up in Bournemouth quite steady.
So I'd hang on to it for sure :)
Post 705179 by siamblue on 2014-04-21 03:54:38
Hi Mike sorry to hear about this,you will get a great buy at auction for 400k it all depends on where you want to live,i want to relocate back to Scotland as London is coming to an end for us soon thank God,all kids nearly left the roost..
If i were you keep the place for a couple more years assess your situation and do some searching for a nice place for what you want out of house or cottage..cost of living changes massively on where you want to live inc insurance for cars..
Post 705192 by AndysR on 2014-04-21 07:47:34
Bad times, but at least no one was hurt and all repairs will be covered by your insurance. If it were me I'd hold onto it for a while longer seeing as it's not costing you to see how the house market goes as I'm sure there's more value to be had it just requires a little more time..
Post 705197 by lance on 2014-04-21 08:30:36
As a property investor and mortgage advisor I would need to know more before giving you my advice on it and also a bit more about the property market in the local area.However either way I doubt you will loose long term. I have a few buy to let's and have found small 3 bed houses the least hassle I have bought them smelling of wee done then up and then rented or sold for a profit, bigger houses and rent don't seem as easy. I converted my own home a large 3 storey 3 double bed into a 4 double bed HMO in 2006 before moving to a bigger house via a let to buy, in hindsight I wish I had sold it as the area has got worse, property prices have tumbled and the the repairs and maintaince for multi let's is much more than standard lets ok with higher rent but you have to pay out for more! Bonkers as it may sound I have just got rid of my young professional multi Tenents and am going down the family route now with this property. I also had another large property rented to a doctor and his wife they even had an opear and again the Maintaince was bigger than average. So far I have found some professionals to be the worst tenants and the bigger and more expensive the house the most hassle and smaller the yield. So maybe In your position i would sell buy the dream house but keep enough deposit for a small buy to let as long term property is a great investment, short term it can be a bind!
Post 705256 by stephenevans99 on 2014-04-21 16:17:10
STUDENTS..... only to be expected imo....Dirty Beggars
Post 705263 by MIKESC70T5 on 2014-04-21 17:11:03
[QUOTE=stephenevans99;705256]STUDENTS..... only to be expected imo....Dirty Beggars[/QUOTE]
Disagree mate, this time it's 4 guys, all the other years it's been a mixture of girls and boys and whenever I needed to go round to sort something the place wasn't perfect, but nothing that raised any concerns.
Post 705337 by AndysR on 2014-04-21 20:00:04
That's in a disgusting state and I know students have a reputation for not being the tidiest but when I was a student I would never ever have left something in that state... Damn right you should be keeping their deposits, tbh I would have kept their deposits if I could even smell smoke in my house let alone see evidence of it in the carpet and have the house in that state when inspected..
What i was more upset about is the state of the house in general. I know students can be messey but this takes the piss, the carpets had food stamped into them, cigarrette burns etc etc. First time its been like this. Already spoken to my agent who assures me they wont be getting their deposits back. Really makes me not like a lot of people. I wouldn't do this to someone elses property or goods, no respect for anything. Ironically one of the students came along with his dad to collect his belongings when i was there and he was ever so chirpy until I had my say, even his dad was embarrassed and apologized to me.
