What to do next... what would you do?

mr.broderick

Premier wrote: »

Well you've missed the boat already for selling - the peak was last October.

Do you think you'll accurately predict the bottom of the trough for buying?

Owning a home isn't about buying low and selling high - that's for the stockmarket.


In the meantime, you'll need to live somewhere - would you prefer to lose your money to a landlord or buy a home of your own.

Why not buy a dump and work on it/extend it in your spare time increasing it's value?

That bit tickled me, anyway what if the imminent bear trap spikes prices above last october, what advice will you be giving then?

Premier_2

mr.broderick wrote: »

That bit tickled me, anyway what if the imminent bear trap spikes prices above last october, what advice will you be giving then?

No idea, all the other people on this site seem to be holding the crystal balls.

I can only tell you for sure what's happened historically

Does your crystal ball suggest prices are going to rise suddenly soon? Think yours must be faulty - no one else's seems to be showing that

jimnastics

What the hell are bear trap spikes anyway?! Are some people predicting prices will shoot up out of nowhere?

We're going to seriously consider the following:

a) Doing this place up the best we can to put as much value as possible into it, sell it, then buy a proper dump to renovate. The idea being that, potentially, the renovation could counteract marketr decline.

b) Sell this place asap and rent, then re-enter the market at a better time. I really hate this idea big time, but of course I do understand the merits.

I think it's going to boil down to one of those two. I don't think we can stay here and try and ride out the storm because I'm sure that we would regret it, we could be into our 30's before the market picks up enough for us to move on. Likewise, I think we would be silly to spend top whack on a house in the current climate.

What do you think?

GracieP

jimnastics wrote: »

b) Sell this place asap and rent, then re-enter the market at a better time. I really hate this idea big time, but of course I do understand the merits.

What exactly is it that you hate so much about renting? I hated renting too, but am currently very relieved to be going back to it. I worked out what I hated about it and how they stacked up against being in a stronger position to buy the home I really want in a few years time.

Some thing I hated were easy enough to sort out. I hated the idea of going back to crappy rental furniture, so I rented unfurnished. Things in the house will be to my taste as it's my furniture I'll be living with.

Sure we lose some security as there is a risk that the LL will decide to sell/be repossessed, but there was very little security in owning a house I knew I would not be happy in forever while prices are falling.

On the plus side I spent a fortune on my boiler last year, but if my boiler breaks down this year it's not me who has to pay to sort it. I get to live in a house "worth" 2x what mine was for less outgoings each month. I can afford to keep adding to my savings pot and consider having a baby. And when I see a house which looks like good value to me, I'm ready to move straight-away. I don't have to try to sell my own place first.

There is a certain social stigma attached to renting, especially when you are a couple who has already owned. There is a feeling as you couldn't hack it as a homeowner or couldn't really afford it. I have a feeling that a few people we know think we sold to move to rental as we were in financial difficulty. But I've learned not to care about what people think. We made what seems to be a pretty sound financial decision and if that means I have my 1st, and maybe 2nd, baby in a home I don't own I don't care.

Davesnave

We're going to seriously consider the following:

a) Doing this place up the best we can to put as much value as possible into it, sell it, then buy a proper dump to renovate. The idea being that, potentially, the renovation could counteract marketr decline.

b) Sell this place asap and rent, then re-enter the market at a better time. I really hate this idea big time, but of course I do understand the merits.

Personally, I don't think you have the luxury of the time to do (a). You might usefully give it a lick of paint, but that should be it. Unless you are a dab hand at DIY, the second part of (a) is too risky.

If you decide to go for (b) then you must price your property very competitively because, on average, there are 15 properties chasing every buyer. Putting yourself in the buyer's shoes is really difficult, but if you're not willing to buy now, you can see that you must offer a serious incentive for those who are still motivated. Decide if you can afford to price 3 months ahead, thus undercutting others. That might seem extreme, but it could also head off potential problems, like gazundering at exchange.

Over the last month I've knocked £40k off my asking price in order to sell and rent. Nobody likes it. In a situation like this you either grit your teeth, do difficult, unpleasant things and take calculated risk, or you leave everything as it is, go into denial and become a sure victim of circumstances.

SouthCoast

I have extensive knowledge of the Worthing property market and will be buying for cash...............

........in two years time.

P.S. Watch the prices of The Warnes flats crash!

Rabiddog_2

Or you could sell NOW and buy :


A camper VAn...Cheaper than renting... Drive to work (and stay there) commuting costs zero! Council Tax zero!? depreciation ,low.

gazzak_2

I like what Rabbidog just posted!

You have no kids yet so are in an ideal position to sell now, rent, then buy when the worst is over. Whilst renting save like dogs. Bases covered.

confused31_2

jimnastics wrote: »

What the hell are bear trap spikes anyway?! Are some people predicting prices will shoot up out of nowhere?

We're going to seriously consider the following:

a) Doing this place up the best we can to put as much value as possible into it, sell it, then buy a proper dump to renovate. The idea being that, potentially, the renovation could counteract marketr decline.

b) Sell this place asap and rent, then re-enter the market at a better time. I really hate this idea big time, but of course I do understand the merits.

I think it's going to boil down to one of those two. I don't think we can stay here and try and ride out the storm because I'm sure that we would regret it, we could be into our 30's before the market picks up enough for us to move on. Likewise, I think we would be silly to spend top whack on a house in the current climate.

What do you think?

I think you will struggle to sell at the price your at, in a perfect world everybody would be selling now at top price and then renting.

Basically you will have to at least knock 10,000 pound off to get people to look, then maybe they will want another 10,000 pound off.

Then with all your fees you will be lucky to have much equity and if your thinking of buying an house for 280,000 you will need a deposit of 20% to get your next mortgage which is about 55,000 pound.

If youve got the 55,000 pound you will be paying back just over 1800 pound a month, that is with the best deals and you will need to have the 55,000 pound deposit.

I dont know your circumstances , but i hope youve got some savings and i also hope youve both got well paid jobs, taken that into account if your planning on having children your income will be lower.

Personally i would sell and rent, im trying to do that myself and its hard , my house as been on the market since november last year and ive knocked 20,000 off and still no interest.

I hope you do sell quickly but id prepare yoursef for a long wait,

confused

jimnastics

confused31 wrote: »

I think you will struggle to sell at the price your at, in a perfect world everybody would be selling now at top price and then renting.

Basically you will have to at least knock 10,000 pound off to get people to look, then maybe they will want another 10,000 pound off.

Then with all your fees you will be lucky to have much equity and if your thinking of buying an house for 280,000 you will need a deposit of 20% to get your next mortgage which is about 55,000 pound.

If youve got the 55,000 pound you will be paying back just over 1800 pound a month, that is with the best deals and you will need to have the 55,000 pound deposit.

I dont know your circumstances , but i hope youve got some savings and i also hope youve both got well paid jobs, taken that into account if your planning on having children your income will be lower.

Personally i would sell and rent, im trying to do that myself and its hard , my house as been on the market since november last year and ive knocked 20,000 off and still no interest.

I hope you do sell quickly but id prepare yoursef for a long wait,

confused

The £280k house idea is quickly going down the pan, I have my hand poised over the flush... we can see that now. We're going to get the ball rolling on up-to-date valuations on this place, and discuss the viable options open to us. Thanks to everyone here for the guidance :beer: