Sell or Renovate?

[gzrd]

I am a newbie here and would appreciate some advice.

 

I bought 3 buy-to-let properties in the North East.   Each property has an interest only mortgage of approx £60k.

Unfortunately, one of the properties needs extensive renovation, circa 12k.

 

Given that the property is currently worth only £50k,  i.e. it's gone down in value I am left wondering what to do next

 

1. Do I invest the 12k and hope the property increases in value and I get back the 12k in rent over 5+ years
2. Do I take the hit and sell
3. Is there another approach

 

Any advice or direction you can offer would be greatly appreciated.

 

p.s. The mortgages are personal, not business.

[Conrad_Paton]

Hi

Bit more info please:

1.£50k worth now in its present condition?

2. Approx worth after refurb?

3. Refurb would effect rental market price?

4. Is it generating rent at the moment?

5. If not...could it (do you need to do refurb)?

6. Do you want the hassle of refurbing it?

More questions but I'm about to get on a train to you to a hub meet up tonight.

Arrrgggh

Conrad

 

 

[gzrd]

Hi Conrad, Thanks for replying.

1.£50k worth now in its present condition - Yes.

2. Approx worth after refurb - 65k,ish - a bit more than the refurb costs.

3. Refurb would effect rental market price - I think it would be difference between being able to rent it or not.  The 12k is for Kitchen and Bathroom updates.

4. Is it generating rent at the moment - Not renting at the moment as the tenant has just moved out.

5. If not...could it (do you need to do refurb) - I think its needs doing.

6. Do you want the hassle of refurbing it - Ideally not.

Regards
Gary