To sell or not to sell....
Discussion
I am in somewhat of a pickle and wanted to get some outside opinion.
I am 26 have a fiance and a baby girl who is 11 months. 2 and a bit years ago i bought the flat where we live for 205,000. I had a fixed rate mortgage which ended a couple of months back, so now my mortgage payments are higher. I earn a very good living for my age and work in financial markets so know a lot about whats going on, But as many am unsure how long they will last.
My problem is do i sell my flat in the expectation that house prices are going lower ?? Or do i hold on to the place with the expectation that prices will go up again ?
I can get 195k for my place i am pretty sure, and we can easily rent a house somewhere in the mean time. Then i will be in a good position to buy but will kiss good buy to about 15k.
My first thought would be to sell, cause any turn around in the market will take many years.. But then it looks like interest rates will be cut before the end of the year....
I am just not really sure which path to take so any intelligent comments welcome pls
I am 26 have a fiance and a baby girl who is 11 months. 2 and a bit years ago i bought the flat where we live for 205,000. I had a fixed rate mortgage which ended a couple of months back, so now my mortgage payments are higher. I earn a very good living for my age and work in financial markets so know a lot about whats going on, But as many am unsure how long they will last.
My problem is do i sell my flat in the expectation that house prices are going lower ?? Or do i hold on to the place with the expectation that prices will go up again ?
I can get 195k for my place i am pretty sure, and we can easily rent a house somewhere in the mean time. Then i will be in a good position to buy but will kiss good buy to about 15k.
My first thought would be to sell, cause any turn around in the market will take many years.. But then it looks like interest rates will be cut before the end of the year....
I am just not really sure which path to take so any intelligent comments welcome pls
In the same situation myself.
Bought a medium sized semi in 2004, three bedroom with a decent back garden.
The house next door recently sold for twice what we paid for ours, so no danger of us hitting negative equity for a while (hopefully)
With baby no.2 on the way, we want somewhere with a bit more space, and with me potentially moving to another office moving to the sticks would work well - so as a result we could get a bigger house / more garden etc with not a great leap moneywise.
Do we wait hoping prices will fall lower (thus reducing the gap we need to fill mortgage wise between the two houses) or just go for it now?
Bought a medium sized semi in 2004, three bedroom with a decent back garden.
The house next door recently sold for twice what we paid for ours, so no danger of us hitting negative equity for a while (hopefully)
With baby no.2 on the way, we want somewhere with a bit more space, and with me potentially moving to another office moving to the sticks would work well - so as a result we could get a bigger house / more garden etc with not a great leap moneywise.
Do we wait hoping prices will fall lower (thus reducing the gap we need to fill mortgage wise between the two houses) or just go for it now?
I am going through the same thought process.
The reasoning hinges upon:
(a) whether you think you can successfully second-guess the market
(b) how easy it will be to re-enter at a time of your choosing, i.e. when you call bottom
It seems lunacy for everybody to be predicting house prices going down. If this is "known information", it should already be priced into the market.
Transaction costs (stamp duty, fees etc) are high, which eats into any "profits" (you have to win before you break even).
IMO, the best case is if you are planning to move anyway, sell up now, rent close to where you are thinking of buying, then you get to know the area a bit better - that way at least you are paying to learn something.
The reasoning hinges upon:
(a) whether you think you can successfully second-guess the market
(b) how easy it will be to re-enter at a time of your choosing, i.e. when you call bottom
It seems lunacy for everybody to be predicting house prices going down. If this is "known information", it should already be priced into the market.
Transaction costs (stamp duty, fees etc) are high, which eats into any "profits" (you have to win before you break even).
IMO, the best case is if you are planning to move anyway, sell up now, rent close to where you are thinking of buying, then you get to know the area a bit better - that way at least you are paying to learn something.
If you don't need to sell then don't. Will that property surfice for the next 2-3 years? Ive just remortgaged, fixed ror another 2 years when I am hoping the market will have taken a dive and be recovering. If you think you will need somewhere bigger in the next 2 years then you may as well get out now.
Selling is really a last last resort.
I just bought a new build flat for 30% off its asking price in a pretty mild area of the country.
If finances are a problem I would do what alot of the builders around here are doing and renting out properties as the rental market is very good at the moment.
Is there a possibility of living at a friends/relatives if you could find a tenant?
I just bought a new build flat for 30% off its asking price in a pretty mild area of the country.
If finances are a problem I would do what alot of the builders around here are doing and renting out properties as the rental market is very good at the moment.
Is there a possibility of living at a friends/relatives if you could find a tenant?
sort of similar situation in that we want to move to have children in a couple of years.
my view is market for sale and see where ti takes you.
i think i'd like to put ours for sale for the (traditional at least) post christmas househunters... i'd rather just stay where we are til xmas and keep overpaying because i don't think any will buy befor january anyway.
my view is market for sale and see where ti takes you.
i think i'd like to put ours for sale for the (traditional at least) post christmas househunters... i'd rather just stay where we are til xmas and keep overpaying because i don't think any will buy befor january anyway.
I don't have to sell, the place is in a good location is big enough for us all. I am not in negative equity yet seeing as i had saved about 24k when i bought the place.
But my thought would be that if we sell now we can then rent for a while and be in a good position to buy in a couple of years.... Trying to trade up when the market is at the bottom will be tough because there will be no profit in the place to make a deposit and will be difficult to save one with the market being so rubbish !
The best way to trade is to sell on the way down, and buy on the way up... thats the first lesson i learned for stock markets so why would it not work for housing market ?
But my thought would be that if we sell now we can then rent for a while and be in a good position to buy in a couple of years.... Trying to trade up when the market is at the bottom will be tough because there will be no profit in the place to make a deposit and will be difficult to save one with the market being so rubbish !
The best way to trade is to sell on the way down, and buy on the way up... thats the first lesson i learned for stock markets so why would it not work for housing market ?
Swillsy said:
Selling is really a last last resort.
I just bought a new build flat for 30% off its asking price in a pretty mild area of the country.
If finances are a problem I would do what alot of the builders around here are doing and renting out properties as the rental market is very good at the moment.
Is there a possibility of living at a friends/relatives if you could find a tenant?
Can i just turn round and rent the place tomorrow ? Or do i need a by to let mortgage ? I don't really understand that whole areaI just bought a new build flat for 30% off its asking price in a pretty mild area of the country.
If finances are a problem I would do what alot of the builders around here are doing and renting out properties as the rental market is very good at the moment.
Is there a possibility of living at a friends/relatives if you could find a tenant?
tricky69 said:
The best way to trade is to sell on the way down, and buy on the way up... thats the first lesson i learned for stock markets so why would it not work for housing market ?
What you describe is momentum trading. It works well until it doesn't. How do you know which way the market will go?Everyone is an expert with hindsight.
We are in the same boat and are looking to trade up whilst prices are being talked down.
Our choice is as mentioned previusly, stick our house up for sale and see what happens. I don't need to sell so won't be accepting any silly offers.
If a good offer comes in though I will accept and then start making some silly offers myself.
Our choice is as mentioned previusly, stick our house up for sale and see what happens. I don't need to sell so won't be accepting any silly offers.
If a good offer comes in though I will accept and then start making some silly offers myself.
If you don't need to sell and can afford the repayments I think you would be mad to sell now - the loss in value will only be realised when you sell. Prices will bounce back eventually, but you may need to sit tight for a few years. If you move to rented accommodation you will still 'lose' money in rent.
HundredthIdiot said:
tricky69 said:
The best way to trade is to sell on the way down, and buy on the way up... thats the first lesson i learned for stock markets so why would it not work for housing market ?
What you describe is momentum trading. It works well until it doesn't. How do you know which way the market will go?Everyone is an expert with hindsight.
tricky69 said:
Swillsy said:
Selling is really a last last resort.
I just bought a new build flat for 30% off its asking price in a pretty mild area of the country.
If finances are a problem I would do what alot of the builders around here are doing and renting out properties as the rental market is very good at the moment.
Is there a possibility of living at a friends/relatives if you could find a tenant?
Can i just turn round and rent the place tomorrow ? Or do i need a by to let mortgage ? I don't really understand that whole areaI just bought a new build flat for 30% off its asking price in a pretty mild area of the country.
If finances are a problem I would do what alot of the builders around here are doing and renting out properties as the rental market is very good at the moment.
Is there a possibility of living at a friends/relatives if you could find a tenant?
I'll happily run through things with you, but you need to reply to the OM really.
scotal said:
tricky69 said:
Swillsy said:
Selling is really a last last resort.
I just bought a new build flat for 30% off its asking price in a pretty mild area of the country.
If finances are a problem I would do what alot of the builders around here are doing and renting out properties as the rental market is very good at the moment.
Is there a possibility of living at a friends/relatives if you could find a tenant?
Can i just turn round and rent the place tomorrow ? Or do i need a by to let mortgage ? I don't really understand that whole areaI just bought a new build flat for 30% off its asking price in a pretty mild area of the country.
If finances are a problem I would do what alot of the builders around here are doing and renting out properties as the rental market is very good at the moment.
Is there a possibility of living at a friends/relatives if you could find a tenant?
I'll happily run through things with you, but you need to reply to the OM really.
tricky69 said:
scotal said:
tricky69 said:
Swillsy said:
Selling is really a last last resort.
I just bought a new build flat for 30% off its asking price in a pretty mild area of the country.
If finances are a problem I would do what alot of the builders around here are doing and renting out properties as the rental market is very good at the moment.
Is there a possibility of living at a friends/relatives if you could find a tenant?
Can i just turn round and rent the place tomorrow ? Or do i need a by to let mortgage ? I don't really understand that whole areaI just bought a new build flat for 30% off its asking price in a pretty mild area of the country.
If finances are a problem I would do what alot of the builders around here are doing and renting out properties as the rental market is very good at the moment.
Is there a possibility of living at a friends/relatives if you could find a tenant?
I'll happily run through things with you, but you need to reply to the OM really.
tricky69 said:
Swillsy said:
Selling is really a last last resort.
I just bought a new build flat for 30% off its asking price in a pretty mild area of the country.
If finances are a problem I would do what alot of the builders around here are doing and renting out properties as the rental market is very good at the moment.
Is there a possibility of living at a friends/relatives if you could find a tenant?
Can i just turn round and rent the place tomorrow ? Or do i need a by to let mortgage ? I don't really understand that whole areaI just bought a new build flat for 30% off its asking price in a pretty mild area of the country.
If finances are a problem I would do what alot of the builders around here are doing and renting out properties as the rental market is very good at the moment.
Is there a possibility of living at a friends/relatives if you could find a tenant?
BoRED S2upid said:
tricky69 said:
Swillsy said:
Selling is really a last last resort.
I just bought a new build flat for 30% off its asking price in a pretty mild area of the country.
If finances are a problem I would do what alot of the builders around here are doing and renting out properties as the rental market is very good at the moment.
Is there a possibility of living at a friends/relatives if you could find a tenant?
Can i just turn round and rent the place tomorrow ? Or do i need a by to let mortgage ? I don't really understand that whole areaI just bought a new build flat for 30% off its asking price in a pretty mild area of the country.
If finances are a problem I would do what alot of the builders around here are doing and renting out properties as the rental market is very good at the moment.
Is there a possibility of living at a friends/relatives if you could find a tenant?
OThers will take a view depending on LTV or circumstances.
Yet more are fine with it.
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