Discussion
I realise this has probably been done (many times) before but I'm currently undecided about what to do:
Personal circumstances dictate that I've got to sell my current property. I work all over the country on business and spend about 2 days a week here, so that isn't a major issue.
The chances are I'm going to be working in one place for 6-12 months. During that period am I better off buying another house (perhaps a new one if they'll pay stamp duty and solicitors fees) and selling it (or renting it out) when my stint is up, or just bank the profit on this one and rent until I have a firm base?
I suppose it will depend on the state of the housing msrket over the next 12 months which is difficult to predict and the cost involved in buying and selling. I really don't like the idea of throwing rental money away, but I also don't want a lot of hassle. I reckon the rent would be slightly more expensive than buying in terms of monthly cost...
Thanks in advance!
D
Personal circumstances dictate that I've got to sell my current property. I work all over the country on business and spend about 2 days a week here, so that isn't a major issue.
The chances are I'm going to be working in one place for 6-12 months. During that period am I better off buying another house (perhaps a new one if they'll pay stamp duty and solicitors fees) and selling it (or renting it out) when my stint is up, or just bank the profit on this one and rent until I have a firm base?
I suppose it will depend on the state of the housing msrket over the next 12 months which is difficult to predict and the cost involved in buying and selling. I really don't like the idea of throwing rental money away, but I also don't want a lot of hassle. I reckon the rent would be slightly more expensive than buying in terms of monthly cost...
Thanks in advance!
D
A tough one!! Personally id rent for that period of time! Makes things a lot easier and the market I think will have stableised by then but I doubt will have gone up depending where your looking to buy! Unless your moving to Essex as I have a nice flat on the market if yoour interested!! 
It's tough. If the 6-12 months turned out to be a year and a half then it'd swing the balance somewhat.
The other alternative is to buy a run down house and do it up. I should have enought spare cash not to worry about loans and could do it in that time frame (I'll live anywhere so long as there is running water and electric).
The banks currently predict an overall 3% increase in house prices during 2005 but it'll be down one month up the next. If they're right and it ends up a 6 month job then I could certainly lose out (unless I rented it our afterwards).
As you say....tricky!!
The other alternative is to buy a run down house and do it up. I should have enought spare cash not to worry about loans and could do it in that time frame (I'll live anywhere so long as there is running water and electric).
The banks currently predict an overall 3% increase in house prices during 2005 but it'll be down one month up the next. If they're right and it ends up a 6 month job then I could certainly lose out (unless I rented it our afterwards).
As you say....tricky!!
Plotloss said:
If you can get out of the market now and bank your equity I'd get out and stay out until after the election personally...
Yup, there is always that. I suppose I have much more to lose than to gain as I definately think that we've seen the end of the huge yearly % increases.
we're thinking very hard about this at the moment.
How good is your equity split?
In your position I'd be looking at renting out my property and renting another place to stay in myself.Assuming it's just you/you and partner.
That way you can keep getting your house paid for out of another's pocket and it'll be there for you to return to in 6-12 months time if required.
In your position I'd be looking at renting out my property and renting another place to stay in myself.Assuming it's just you/you and partner.
That way you can keep getting your house paid for out of another's pocket and it'll be there for you to return to in 6-12 months time if required.
rude-boy said:
How good is your equity split?
In your position I'd be looking at renting out my property and renting another place to stay in myself.Assuming it's just you/you and partner.
That way you can keep getting your house paid for out of another's pocket and it'll be there for you to return to in 6-12 months time if required.
The house sale is a result of a relationship break-up so we're splitting the equity. I could buy her out, but I just don't need a house of this size and I don't plan on living in this location again (I changed jobs but kept this house so the rest of the family weren't disrupted).
Besides which, I never liked it!!
_DeeJay_ said:
The banks currently predict an overall 3% increase in house prices during 2005
Banks ALWAYS predict houe price growth (even in 1989 )because they are in the business of lending money- to predict otherwise would result in a loss of confidence followed by a drop in lending volume and profit.
Prices in most areas have dropped over the past 3 months - and IMHO are likely to continue a gentle slide.
gingerprince said:
_DeeJay_ said:
The other alternative is to buy a run down house and do it up.
Need a bit more DIY practice first...and your own saw
PS That kitchen shelf level yet?
There's only one way to get the practice, and no, it's decidedly un-straight!
The general concensus seems to be to get out of the market, especially as it's only likely to be a short period of time, so that's what I'll do.....
p.s how's the teeth, eye, nose, head, lip etc doing, and have you seen the thread about embarrassing things done whilst drunk?
>> Edited by _DeeJay_ on Wednesday 9th February 10:20
>> Edited by _DeeJay_ on Wednesday 9th February 10:21
Me and my girlfriend have just sold both our houses.
Both took about 6 months to sell. Asking around, most people are finding it difficult and taking a long time
to sell.
As someone above said, banks etc will always talk up the market. It is in their benefit to do so. Personally, I think prices are too high and will fall a bit. Loads of properties on the market are being reduced in price at the moment.
We are definately going to rent for the time being.
Bank £200k and reap the interet for a while.
Hopefully, then we're off to France.
Renting is money down the pan, but remember if you have a £100k mortgage then roughly £500 of your payments every month will be down the pan (ie interest). Plus £XXX thousand in associated moving house costs.
I've hoping that this property will sell quicker than that, 6 months would be painful.
Having said that, 2 similar properties have sold on my street in the last month having been on the market for less than 6 weeks (one 4 weeks the other 3 days).
I'm planning to put this up for sale for a similar amount (and this is larger, is in a better position and have a free standing garage - the others were integrated). So, fingers crossed!
We're also spending all of our free time to redecorate any rooms that we feel could deter a potential buyer.
I'll speak to a few estate agents and check how bad the market is at the moment, but thanks for the 'heads-up'!
D
Having said that, 2 similar properties have sold on my street in the last month having been on the market for less than 6 weeks (one 4 weeks the other 3 days).
I'm planning to put this up for sale for a similar amount (and this is larger, is in a better position and have a free standing garage - the others were integrated). So, fingers crossed!
We're also spending all of our free time to redecorate any rooms that we feel could deter a potential buyer.
I'll speak to a few estate agents and check how bad the market is at the moment, but thanks for the 'heads-up'!
D
Moneyweek article: debunks all the popular myths about house prices put about by vested interests.
www.moneyweek.com/article/478/investing/property/residential-property-not-waving-but-drowning.html
Assuming refs all OK I'm moving out of my folk's house at the end of the month into a rented 2-bed cottage out in the country surrounded by fields and woodland, in an area of Outstanding Natural Beauty. Location: Surrey. Cost: £900 pcm.
That's not far off what the interest on a 150k mortgage would be at 7% (not unreasonable, it's the long-term average). Now £150k in Surrey typically buys a two-up-two-down terrace at best, probably within easy walking distance of the local crack den.
I'm happy renting!
www.moneyweek.com/article/478/investing/property/residential-property-not-waving-but-drowning.html
Assuming refs all OK I'm moving out of my folk's house at the end of the month into a rented 2-bed cottage out in the country surrounded by fields and woodland, in an area of Outstanding Natural Beauty. Location: Surrey. Cost: £900 pcm.
That's not far off what the interest on a 150k mortgage would be at 7% (not unreasonable, it's the long-term average). Now £150k in Surrey typically buys a two-up-two-down terrace at best, probably within easy walking distance of the local crack den.
I'm happy renting!
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