Should I sell my investment property

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S0@p0per@

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hi all, not sure if this is correct thread but here goes..
I have a rental property , and wondering about selling. details
purchased 2008 as ppr for 310000
rented out in 2010 as moved
current rent 1350 p/m
outstanding mortgage 179000
current value 290000 aprox
wondering if I should sell to pay off other mortgage 72000, and am I liable for cgt ??
 
There’s no CGT if the apartment sells for less than you originally paid for it.

Here’s a framework for looking at this issue:

Key Post - Keep property as Rental or Sell?

Updated May 2020 The question regularly comes up on AAM whether somebody should keep an apartment that their family has outgrown as a rental or whether they should just sell up. Borrowers often run projections on the anticipated rental income from an apartment with a cheap tracker and conclude...
www.askaboutmoney.com
 
PebbleBeach2020 said:
I didn't even open the thread and after seeing the title I immediately said "yes" out loud!!!
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I would be in the opposite camp. The OP should at the very least wait until the apartment reaches its original purchase price (plus transaction costs) as this can be taken free of CGT.

But even apart from this, OP probably has a very low tracker, and if so, there's a nice ongoing profit generated from the bank's money. My only reservation is that the yield is a bit on the low side at 5% or so of property value. However it's about 16% of the OP's equity in the property!
 
S0@p0per@ said:
What would be your reasoning ?!
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Troublesome renters. Issues with payment of rent. Increased regulation. RPZ limiting rental increases. Increasing burden of regisitration required with RTB. Tenancies of indefinite duration. Inability for landlords to get vacant possession of their property. Consequential reduction in the value of the property. Excessive tax burden on income. Property prices at a high so good time to cash in. After tax profit not a good return on your capital and/or time. Easier and less stressful investment options available (i.e. pension with tax relief).

Should I continue? Perhaps we can get viewpoint on whey you shouldn't sell the asset? What are your motives for keeping it?
 
I would say sell - if you have a very good tenant you might be inclined to hold on but there is always the worry about getting bad tenants who refuse to pay the rent and won't move out and as far as I can see the RTB don't have any teeth to deal with this situation. We were accidental landlords and had the same tenant for 11 years and only increased the rent once in that period. I think the view of many landlords is if there iis no hassle and the tenant is good its not worth while getting a rent increase and giving 50% of it to Revenue. Our tenant is retiring shortly and will be moving back to his home place so we are selling up.
 
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