House price in london?

Question

We Have recently purchased a house in London but can't move into it(far off from workplace) and we don't plan to move there in future also. at present if wesell it off we r getting a
profit(£5000). The other thing is to sell it after 1 -2 years and rent it out now(tenants available). our mortgage will be covered by the rent
only doubt i have is if the market becomes static or the house prices fall down we will land upp in -ve equity
my partner views r if we r not planning to move into that we should sell it off now
my views r we should hold it as house prices always go up and we will make profit from it
what is the advice?

Answer 1

If you can spare the money ( and sounds like you can) you are sitting on a goldmine..well your tenants are sitting on it, but they will pay you for it.

Prizes will rize. It is the best investment AND make sure money. Be sure you are asking the right price. Just you mortgage does not cover all expenses. Be sure you get more out of it than it costs (maintenance, insurance, tax, personal expenses).. If that is not feasible you should sell ASAP.

Answer 2

Generally houses prices go up. Even if they drop dramatically they will eventually go back up. so if yu can afford to have -ve equity for a while you may as wel keep hold of it. house prices tend to double every 10 years. If you are only keeping it for 1-2 then you may as well sell it now as the profit may not be that great but if you can keep it for 5-10 then that's probably worth doing.

Answer 3

If you can afford it, keep the house. Property in London is always a winner.