Sell and rent or stay put?

[LimaDelta]

We are considering a family move to Canada in the next 2-3 years. I am currently 5 years into a 25 year mortgage on our current place. We have about 100k equity and our payments are a little over 2k/month. I think we can rent something similar for about 1k meaning if we sell up and rent until we emigrate (or not) we have a potential 30k or so extra there in saved mortgage payments. I don't expect that in the current climate our home (rural Northumberland) will increase by 30k in the next 2-3 years.

So, if you were me, would you stay put until you make the move, or sell up now, declutter and rent something in order to maximise savings until the time comes to move?

Since house prices seem to be stagnating right now, I am leaning towards selling, but obviously renting carries it's own risks, not to mention the upheaval of 'moving' twice. Also, if for any reason we don't emigrate, we would need to get back on the property ladder in the UK (though with a decent amount of savings from the sale etc.)

Any thoughts?

[springfan62]

Seems a bit odd you can rent somewhere similar for half the cost of the mortgage.

How much is your interest out of the 2k/per month and how much repayment as the latter will be reducing your mortgage and increasing the equity.
The repayment element is not a cost and should not be factored into your 30k figure.

Edited by springfan62 on Tuesday 31st July 10:04

[LimaDelta]

springfan62 said:

Seems a bit odd you can rent somewhere similar for half the cost of the mortgage.

How much is your interest out of the 2k/per month and how much repayment as the latter will be reducing your mortgage and increasing the equity.
The repayment element is not a cost and should not be factored into your 30k figure.

Yes, I don't mean exactly like-for-like, but this for instance is similar, though we lose two bedrooms. Not a problem as we would be looking to get rid of a lot of junk prior to the move anyway.

I don't have the paperwork to hand but the capital repayment at this stage is less than 50%, but good point, I hadn't really considered it like that.

[dingg]

As long as you're confident you can sell before the move I guess it doesn't make that much difference
I'm off abroad soon and can see it becoming a bit of an issue/hassle if my house isnt sold by the time the date arrives.

Eta also you may or may not fall foul of any cgt rules if you end up selling after the move to canada , something to consider

Edited by dingg on Tuesday 31st July 10:56

[LimaDelta]

dingg said:

As long as you're confident you can sell before the move I guess it doesn't make that much difference
I'm off abroad soon and can see it becoming a bit of an issue/hassle if my house isnt sold by the time the date arrives.

There is definitely an element of this too. At least we know we will be sold up and then only need to give notice when the time comes.

[outnumbered]

LimaDelta said:

We are considering a family move to Canada in the next 2-3 years.

Any thoughts?

Are you "considering" it, or definitely doing it ? Selling your house and renting, if you're only "considering" it, seems like a terrible idea.

[LimaDelta]

outnumbered said:

LimaDelta said:

We are considering a family move to Canada in the next 2-3 years.

Any thoughts?

Are you "considering" it, or definitely doing it ? Selling your house and renting, if you're only "considering" it, seems like a terrible idea.

Seriously considering, but nothing in life is definite.

[Trevor555]

I have no advice on the house bit, although I reckon they've peaked, now I'm reading about possible interest rate hikes, could have an effect.

But the Canada bit,

We were up for doing it 23 years ago, changed our minds at the last minute.

Regretted it ever since.

I know Canada is a big place but the bits I have visited have been lovely, and the people great.

Go for it.

[feef]

Wait till the move,
Declutter and whatnot in the meantime.

When the time comes, take a chunk of equity out the house here, rent it out, and use the equity released to buy (or as a deposit to buy) somewhere in Canada.