Better To Sell Or To Let?

Better To Sell Or To Let?

8:58 AM, 7th July 2016, About 5 years ago 14

Text Size

When I decided to move to Malta I also decided to sell some of my properties, not all of them, just a few every year. Better To Sell Or To Let

Many of my tenants have been with me for many years so rather than serving them with notice I decided that I would sell my properties as and when they naturally become vacant.

I shared my plans with all of my tenants and gave them all first refusal to buy. None of them took me up on this.

In the last six months seven of my tenants have decided to move on. One has purchased her own property, the other six are renting elsewhere. Their reasons for moving were very common, e.g. job move, need something bigger, want something cheaper to reduce costs etc.

Three of the vacant properties are now sold subject to contract. I will be lucky if any of them complete within six months. This isn’t good for cashflow.

Interestingly, not one of the properties has sold to an investor. The yields are too low.

On the other hand, those I have advertised to re-let have resulted in 30+ enquiries for each property, all from people who want to rent rather than buy. In every single case I have re-let the property for more than the asking price and significantly more than the previous tenant had been paying.

The reasons?

Well many of the people looking to rent my properties are doing so because their existing landlords are looking to sell themselves. These prospective tenants are all saying the same thing “it is becoming increasingly difficult to find anything decent of the market to rent for a reasonable price”.

Now I wonder why that could be? !!!



Comments

by James Fraser

12:03 PM, 10th July 2016, About 5 years ago

Reply to the comment left by "Bill Morgan" at "09/07/2016 - 21:33":

I have long been saying this. It might be a rough and expensive few years but I cannot see how such hamstringing of an essential supply can ever last. It isn't healthy or encouraging and we know full well that BTR can't and won't be the answer. It would take many years to gain any traction and is far more expensive than the supposedly 'inflated' rents we charge.

by James Fraser

12:10 PM, 10th July 2016, About 5 years ago

So sooner or later, the pleasant flats and houses in mixed communities of the type we are providing will again be more desirable.

by Bill Morgan

0:23 AM, 11th July 2016, About 5 years ago

Reply to the comment left by "Mandy Thomson" at "10/07/2016 - 11:00":

Mandy have you read the particulars of the claim as set out by Cherie Blair? I thought it was very good.The Government are discriminating against a small class of business people and giving a competitive advantage to companies which appears to be illegal.The Government should have produced an impact statement before introducing S24 but they failed.The list goes on.

If the case takes along time to be settled will s24 be put on hold until the final decision?

It might be worth you reading it if you have n't already.

by James Fraser

9:07 AM, 11th July 2016, About 5 years ago

The JR team are confident that we could be successful in court. I can't publicly say why, but the initial reply from govt left a lot to be desired in terms of serious defence. It is possibly for this reason that the date for the court hearing is not forthcoming, when other JRs lodged after ours are being granted. Are they hoping we get bored and give up, or are they actually realising what a boo-boo they've made? Presumably it's one of these...?


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

BECOME A MEMBER