Market Value: £230-290k (you know, Brexit)
Original Purchase price: £197k + £30-35k for renovations
Original Mortgage Amount: £86k
Interest Rate: 1.44%
Mortgage Term: 10years
Term remaining: 10years (remortgaged a few weeks ago)
Amount remaining on mortgage: £86k
Gross Rents: £1,100
Principal and Interest: £762
Taxes and Insurance + HOA:
1) Service charge w house insurance: £120 pcm
2) Council licensing fee: £750/5yrs
3) Approx. £2720 income tax w 8.33% vacancy rate
Deferred maintenance notes:
Nothing worth mentioning, the property has been renovated to a high standard. For every month of vacancy, there are approx. additional £200 expenses (council tax, electricity, water).
Based on my calculations, with 15% set aside for vacany and repairs, I am getting -0.87% Cash ROI, 4.91% overall ROI with self management, dropping to -2.25% cash ROI and 3.53% overall ROI with outsourced PM.
I was planning to sell the property due to abysmall returns and various risks, however the two offers of around £280k didn't go through and the new offers will be in the range of £230-250k due to Brexit uncertainties.
The question really is this:
Is it worth selling now for £230k and investing the £144.5k left over in an index fund vs sticking with the negative ROI for 10 years with outsourced PM considering a) I'm moving to a € denominated country and would lose residency, b) due to loss of residency I'd need to pay 25% capital gains tax if I ever do sell & I'd be stuck with £vs€ currency risk, c) Brexit might make it more expensive to borrow money (my current mortgage product runs out in 2years).
If it's not worth selling for £230k (since I invested more than that), is there a number where it makes sense to sell? I know £280k was a great number to sell for, but the market has dipped significanty and it is a valid question of what Brexit will do to lettings demand as well (but this is more in the realms of guesswork, I'd rather see some mathy answers). :)
I'm looking for any and all opinions.
Thank you all very much for your time!