I have recently inherited a £300,000 house and am not sure what to do, i still live in it. Iwas thinking of renting it out, selling it and buying 2 smaller houses or selling it and trying to invest the money. Has anyone got any ideas which may mean i can retire early haha.
2006-11-04 20:17:32 · 9 answers · asked by sirjuliusbellmont 1 in Business & Finance ➔ Renting & Real Estate
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2006-11-04 20:19:36 · answer #1 · answered by ladybug 2 · 0⤊ 0⤋
Once you sell the house you will responsible for inheritance tax. I don't know how much, it differs from state. If the house is paid for or has a low balance. I would finance it to an amount that I felt comfortable paying with a low fixed interest rate. Adjustable Rate Mortgages (ARM) are so unpredictable and fixed rates are about 6%. Than with the cash put 6 months work of bills in checking account. If you work for company that has 401K put money in their for retirement and IROTH accounts thru a bank. If you have children start up a savings account for college. With all that stated above when you go to do your taxes it will help you extremely because you will be writing the taxes off your house and with the accounts I mentioned it's tax deductible.
Now with the proceeds you can invest in rental properties or fix r uppers. Remember with these properties once you sell them you will be responsible for capitol gain tax. So you would have to keep investing into properties with proceeds. Put the proceeds into more real estate or the principle of your mortgage. If in Delaware or New Jersey shoot me an e-mail I will be more than happy to help.
2006-11-05 01:21:50 · answer #2 · answered by Melissa 2 · 0⤊ 0⤋
Live in the inherited house. Take the equity out the house if it is free and clear or if it has a small mortgage amount; buy other houses with the equity and rent those out. Selling now is bad news; rent then sell when the market is better.
2006-11-04 21:09:21 · answer #3 · answered by tianaramal 4 · 0⤊ 0⤋
Ideally you want your property to provide an income now while still being an asset for the future.
So the right choice financially would be to rent it out, to rent somewhere cheaper yourself, so that you have a net income, but the house is there to sell when you finally retire.
If you want to live in the house but still use it as an asset for investment now, then you could purchase another property as a buy-to-let, using your home as security for that loan.
Good luck!
2006-11-07 12:42:37 · answer #4 · answered by Bridget F 3 · 0⤊ 0⤋
sell it and have a smaller house and invest the rest of the money meanwhile keep some money for ur needy and u can enjoy since then
2006-11-04 20:20:02 · answer #5 · answered by yang 4 · 0⤊ 0⤋
sell sell sell sell and get somewhere smaller that will not cost as much to run..and can i have some of the profit
2006-11-04 20:25:52 · answer #6 · answered by Anonymous · 1⤊ 0⤋
Invest in pet cemeteries. In this country a dead dog is grieved over more than a dead human being.
2006-11-04 20:20:46 · answer #7 · answered by Barks-at-Parrots 4 · 0⤊ 0⤋
haste . makes waste . i can't even picture what your going through .
2006-11-04 20:26:16 · answer #8 · answered by martinmm 7 · 0⤊ 0⤋
go with what your gut instinkt is telling u
2006-11-04 20:24:50 · answer #9 · answered by veronica 3 · 0⤊ 0⤋