Selling up to Rent
Discussion
I'm just about to do this but for different reasons.
Sick of the village I'm living in so selling the house, sticking my nice six figure equity in the savings account and then letting the interest cover the rent on a house somewhere else whilst I look for the "dream home".
I'm adament that the next place will be the house for life so I want to get it right. I'm not paying stamp more times than I need to!
Sick of the village I'm living in so selling the house, sticking my nice six figure equity in the savings account and then letting the interest cover the rent on a house somewhere else whilst I look for the "dream home".
I'm adament that the next place will be the house for life so I want to get it right. I'm not paying stamp more times than I need to!
Wise move in my book. I think the housing market has sgot a long way to go down yet before it bottoms out. In my book at least another two to three years. Wit hinflation on the up to, in real monetary value tems it will be at least five years before prices are back to last summer's peak. Rent, earn some interest and keep your eyes open for that real bargain wit hthe desperate seller. Job's a good'n.
I can never understand this logic underless you have to relocate/move anyway.
Unless your kind of property is likely to drop by 50-100K+. You pay estate agent & solicitor fees to sell, removal expenses to move out/into rented. Pay rent for the duration, which (if you're renting something similar) will cost a fair whack. Then you pay stamp duty when you re-purchase + fees + removal costs. Plus all the stress of moving/chain problems/gazumping/gazundering problems.
There are less stressful ways to carry on...
Unless your kind of property is likely to drop by 50-100K+. You pay estate agent & solicitor fees to sell, removal expenses to move out/into rented. Pay rent for the duration, which (if you're renting something similar) will cost a fair whack. Then you pay stamp duty when you re-purchase + fees + removal costs. Plus all the stress of moving/chain problems/gazumping/gazundering problems.
There are less stressful ways to carry on...
garycat said:
I've been trying to do this for the last 4 months but no one is buying despite me dropping the house price by £40K.
As said, you are about 12-18 months too late.
Can I ask if this is £40k less than you paid, or £40k less than someone thought it was worth, or £40k less than the exact same house next door sold for?As said, you are about 12-18 months too late.
NickFRP said:
Thinking long and hard, what do the PH crew think about selling up and going into renting.
Any ideas?
Pros and Cons?
Depends on why you want to do it, where you want to live, how much equity you have, and how long term you are thinking....Any ideas?
Pros and Cons?
If you are doing it to make money rather for somewhere to nicer to live, understand the risks.
Pros - you might sell a house for x, and buy it back in 2 years for x-20%, less costs.
Cons - you get the timing slightly wrong, house prices rise.
Fort Jefferson said:
garycat said:
I've been trying to do this for the last 4 months but no one is buying despite me dropping the house price by £40K.
As said, you are about 12-18 months too late.
Can I ask if this is £40k less than you paid, or £40k less than someone thought it was worth, or £40k less than the exact same house next door sold for?As said, you are about 12-18 months too late.
Our original plan was to sell here and use the interest on the cash to rent in the South West until the market picked up and then buy a bargain... but reality has set in
We are now thinking of renting out our house for ~£1200pcm and moving to the South West where we can rent similar for ~£900pcm and the area/schools are much better.
NickFRP said:
The value of my bungalow is 40k above i paid, i can take a hit but that dents my profit.
It's not really your profit, is it? It may have been had you sold at the peak but even then that was in theory. I'm no economist but I'd suggest it only becomes 'profit' once it's in your/my grubby mitts.Edited by Flintstone on Saturday 9th August 15:48
garycat said:
The estate agent valued & marketed the house at £375K at the end of April, so far we have had one offer of £330K which has fallen through.
It's a buyers market now, despite what the optimists on here think. Valuations mean jack in this environment - if there isn't a buyer out there at that price, and especially if it hasn't a USP, then it won't sell. Houses can be quite illiquid items. You'll need to offer it at a discount to valuation to tempt someone to buy it, and seeing what does sell-to-rent sharks are offering (i.e. 20% off valuation) thats one heck of a discount.Edited by fido on Saturday 9th August 15:30
fido said:
garycat said:
The estate agent valued & marketed the house at £375K at the end of April, so far we have had one offer of £330K which has fallen through.
It's a buyers market now, despite what the optimists on here think. Valuations mean jack in this environment - if there isn't a buyer out there at that price, and especially if it hasn't a USP, then it won't sell. Houses can be quite illiquid items. You'll need to offer it at a discount to valuation to tempt someone to buy it, and seeing what does sell-to-rent sharks are offering (i.e. 20% off valuation) thats one heck of a discount.Edited by fido on Saturday 9th August 15:30
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