Want to move - mad options??

natman

Hi there - Thanks in anticipation for bearing with me. I will try and get to the point

Ok - I have a house and a mortgage. House valued at £145,000 12 months ago, and outstanding mortgage is £26,000.

We would like to move to a different area( not sure where) the reason for moving is. I have been a probation officer and Drug addiction counsellor in my area and have seen a lot of negative people and to be honest i want to start a fresh. I have anew job out of that environment which is good.............But now i want to move.

I was thinking of options and wondered if anyone here could come up with some ideas.
I pay £420 a month repayment and have around 6 years left on my mortgage.

I was thinking of selling - straight off say for £130,000 banking the money and paying rent with the interest ( interest would be about £580 a month) in a new area, to check it out to see if we liked it.
Next plan - extend mortgage to say 30 years pay intrest only( costs would be about £70 a month) and have a friend live there paying rent, so he could look after the house.
We then could rent a place in a new area, but my friends rent money would go towards the costs of our rent money in the new home...( does this make sense)
Or buy a place in a new area and either sell our house or rent it out to my friend!!!!!

Basically we have a home worth around £130,000 and only have a £26,000 mortgage. We have fallen out with our area and want to move somewhere, but really unsure which location........ we have been pondering what we should do with our home and the best way forward in the current climate to mave to a new area.
My partner and I are in full time employment and have good credit scores.

Any thoughts guys & gals???

silvercar

If you never want to move back to this area, I would sell and buy a bargain in a new area.

PasturesNew

I'd sell it, bank the money in high interest etc accounts, but not touch it.

Use your salary to pay your rent, live within your means while your spare money's accumulating. In fact, try to add more savings to it if you can.

Then look to buy in the new area if you like it there in 1-2 years. Houses will be cheaper, your savings will have grown by a lot and the world's your oyster for houses. You can pay cash even.

House prices are going down. The short-term (1-3 years) this won't change. In the medium-term (3-10 years) you probably won't lose any ground and you'd have all that accumulated savings earning compound interest.

natman

PasturesNew wrote: »

I'd sell it, bank the money in high interest etc accounts, but not touch it.

Use your salary to pay your rent, live within your means while your spare money's accumulating. In fact, try to add more savings to it if you can.

Then look to buy in the new area if you like it there in 1-2 years. Houses will be cheaper, your savings will have grown by a lot and the world's your oyster for houses. You can pay cash even.

House prices are going down. The short-term (1-3 years) this won't change. In the medium-term (3-10 years) you probably won't lose any ground and you'd have all that accumulated savings earning compound interest.

I like it a lot -
This is an option. But my other half would like to get the mitts on the money.:rolleyes:
I have already opened 2 high interest savings accounts that pay monthly intrest just in case i needed the dosh........ ICICI AND KAUPTHING. Perhaps I am heading that way...
Thanks