Planning next house move in a fast moving market
Discussion
How are people doing this?
I'm on the SE coast and whenever a property that meets our narrow parameters on RM appears, it is 'sold/under offer' within a week or few days. We will be looking for a sideways move around £600k (smaller and into a village ideally) and I suspect that there's some downsizing & relocating going on, with cash.
Last time we moved, 19 years ago, we sold first then rented; even though it worked well, the wife does not want to do it that way again but I fear that we will have to do this!
So when we find the right next gaff we will need to move fast!! But that elusive place may not appear for another long while so we don't want to go on the market before finding the right place.
What can we do? Have £150k cash on hand and buy the new place as a short term BTL until the present place is sold? But tax implications? What are others doing to secure these places?
I'm on the SE coast and whenever a property that meets our narrow parameters on RM appears, it is 'sold/under offer' within a week or few days. We will be looking for a sideways move around £600k (smaller and into a village ideally) and I suspect that there's some downsizing & relocating going on, with cash.
Last time we moved, 19 years ago, we sold first then rented; even though it worked well, the wife does not want to do it that way again but I fear that we will have to do this!
So when we find the right next gaff we will need to move fast!! But that elusive place may not appear for another long while so we don't want to go on the market before finding the right place.
What can we do? Have £150k cash on hand and buy the new place as a short term BTL until the present place is sold? But tax implications? What are others doing to secure these places?
Take out a Let-To-Buy mortgage on your property.
Release some equity at the same time if needed/possible.
Use those funds with your funds for the deposit on the new property.
Rent your place out for a couple of years and then sell it. or sell it and incur the ERC if preferred.
You'll pay the extra stamp duty for a second property but will get it back when you sell the original property.....
Makes you immediately proceedable.......
Or you have to talk your Wife into selling up and moving into rented and become proceedable from the outset......
Release some equity at the same time if needed/possible.
Use those funds with your funds for the deposit on the new property.
Rent your place out for a couple of years and then sell it. or sell it and incur the ERC if preferred.
You'll pay the extra stamp duty for a second property but will get it back when you sell the original property.....
Makes you immediately proceedable.......
Or you have to talk your Wife into selling up and moving into rented and become proceedable from the outset......
We moved last year when the London market was pretty hot. Because we were moving to a different area that we didn't know well, we chose to rent in that area for a year first to (i) check we liked it and (ii) be able to buy and sell chain free.
I am pretty sure that the rental outlay was more than offset by lower stress & better outcomes both buying and selling. Only hassle is moving twice - we have no kids so it's not the end of the world, just a stressful weekend.
I am pretty sure that the rental outlay was more than offset by lower stress & better outcomes both buying and selling. Only hassle is moving twice - we have no kids so it's not the end of the world, just a stressful weekend.
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