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Saving to sell?
katie1234
Posts: 130 Forumite
Hi. quick introduction. We bough our apartment 3 years ago when prices were high and byers were silly. Anyway, due to bad advice from the people we trusted and our young naivety we bought our first home. 3 years down the line and we desperately want to move. We have noisy neighbours, no garden, no space, all the things we werent bothered about when we moved in but as our priorities have started to change the house no longer suits us.
Just a question. My solution has been to save up and sell. Currently our house has dropped 70k. Not all our loss thankfully as we bought with a shared equity scheme so only own 50%. In 2 years we will hopefully hav the money to put towards getting rid of the house. It will leave us with no deposit etc but will just move to rented and continue saving.
As this is our first house im just wonderin is this somthing other people do? Faced with the same situation what would others do and does this seem like a good idea?
Thanks for reading.
Just a question. My solution has been to save up and sell. Currently our house has dropped 70k. Not all our loss thankfully as we bought with a shared equity scheme so only own 50%. In 2 years we will hopefully hav the money to put towards getting rid of the house. It will leave us with no deposit etc but will just move to rented and continue saving.
As this is our first house im just wonderin is this somthing other people do? Faced with the same situation what would others do and does this seem like a good idea?
Thanks for reading.
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Comments
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Well your only other option is taking out a loan to cover the negative equity, which would no doubt be at a higher rate than your mortgage, but would mean you get to move to somewhere nicer. It's just a case of working out what is more important - a debt, or a nice place to live?
As it's a HA property, isn't it harder to sell? i.e. it has to be sold to a key worker?Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
Could you rent it out?0
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Hi
We're in a similar situation to you - having to save to sell with the intentions of renting a bigger place.
We bought a one bedroom maisonette in August 2007 and we want to move. We'll need to find money to get rid of the place - which we've accepted and we're fine with.
We put our place on the market for 7 months and have just taken it off as it wasn't selling - we'd need to reduce the price even more.
Anyway we've decided to stay here for a bit. Our reason for wanting to move is to start a family. We're going to wait until I'm actually pregnant and then put the property on again at a lower price. We figure it could take some time to actually conceive and we can save a substantial amount of money whilst we're still living where we are now. We'll be paying roughly £500 per month to live in a two bedroom rented house.0 -
HAMISH...thinks you can not lose on housing...the above tells me different....its a fast way to blow a lot of money..It is nice to see the value of your house going up'' Why ?
Unless you are planning to sell up and not live anywhere, I can;t see the advantage.
If you are planning to upsize the new house will cost more.
If you are planning to downsize your new house will cost more than it should
If you are trying to buy your first house its almost impossible.0 -
Like someone has suggested we looked at renting our place out as an option. It may work for you but for us it's not really an option.
We didn't get a very good mortgage so if our lender allowed us to rent out the property and for that privilege added a higer interest rate the rent we'd get wouldn't even cover our mortgage - and that's whilst rates are at a historically low rate. We'd then have the other expenses on top so it would be very costly for us. We'd be better cutting our losses and selling the place cheaper than what we purchased it for.
I'm just grateful that we've learnt this valuable (and expensive) lesson at this stage in our life.0 -
HAMISH...thinks you can not lose on housing...the above tells me different....its a fast way to blow a lot of money..
I'm sure Hamish can talk for himself, and I'm sure he would disagree with that statement.
If you do not plan your circumstances against your commitments of course you can lose in housing; but sensible decisions can be winners.
Blanket statements like the above are not helpful. Advice and experiences are.0 -
HAMISH...thinks you can not lose on housing..
HAMISH... thinks you're an idiot..
You can certainly lose money on housing if you buy at the top and sell at the bottom.
Of course, the OP could wait until prices recover, and not make a loss at all. But for a shared ownership property that's lost 70K already, that could well be another 5 or 6 years.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Thanks for the replies. Its a shared ownership scheme in Northern Ireland which basically means you choose the house and essentially borrow the money. Anyone buying the house will do so normally with a normal mortgage and we will just pay them back but at the new lower price!
Renting is an option but due to the amount of work and money we put into the place (just needed the work done and made the place our own, not to add vaue or anythng) , we would be slightly reluctant to rent it out as i've seen the damage that can be done.
A bank loan would be a good idea also but were goin to try and stick it as long as possible to avoid paying the interest. Luckily at the minute our mortgage is sitting on a base rate tracker which were happy enough with for the next year or so. Hopefully we can stick this out until we can sell as were not on a deal.
Fannyann- its nice to know someones in the same boat. It gets lonely down here!
Also, we may have lost loads in buying the house but everyone makes mistakes and if this is the biggest we ever make I'll be happy. We fully intend to buy another house and it has not put me off one bit. Now we have more knowledge behind us i still think its the right thing to do.0 -
Its a shared ownership scheme in Northern Ireland
Ouch.
Sorry to hear that.
I don't often say this, but in your case I reckon you're doing the right thing to cut your losses.
Northern Ireland is a very different situation from the mainland UK, and has little chance of returning to peak levels in the foreseeable future. NI is down 45% or more from peak and still falling.
Whereas the mainland UK only dropped around 20% from peak and recovered to the current situation of around 10% below peak. With some areas already back to peak prices and many more headed that way in the next few years, waiting it out or renting remains the best option for most mainland UK owners.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0
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