can't sell our house

mewbie_2

daddyorchips wrote: »

...the renting option was just one idea of reducing our outgoings...

I don't understand this comment, but I'm a glass half empty person. To me this sounds like doubling your outgoings - mortage on one house plus renting another - unless you are able to keep renting out the property 100% of the time.
I think too many people are saying - lets just rent the old one out - as though it were an easy option.

daddyorchips

suebfg wrote: »

Hi,

We're in a similar situation - see my post re should I drop the price - although our houses may be in a different price bracket.

My gut feel is that you need to reduce the price pretty significantly in order to entice viewers - particularly if you're not within the first time buyer bracket. We spoke to our Estate Agent today who gave a glowing picture of houses still selling - but once we went on his website and Rightmove, most of the houses shifting were first time buyer types; barely nothing over £200k was shifting and over £300k the market was pretty grim.

I think most potential second time plus buyers are sitting it out to see if they can grab a bargain - especially if the predictions of 20 - 30% price falls materialise.

That's just my feeling - after all, I've posted for advice too - but hope this helps in some way

Thanks for your input.We are sadly ( should be happily ! ) in the 300k + bracket so I think we need to sit tight.We have thought about going down the "sell it yourself" route which would enable us to reduce the price to account for removing the agents fee..any thoughts ?

daddyorchips

mewbie wrote: »

I don't understand this comment, but I'm a glass half empty person. To me this sounds like doubling your outgoings - mortage on one house plus renting another - unless you are able to keep renting out the property 100% of the time.
I think too many people are saying - lets just rent the old one out - as though it were an easy option.

Yep..fair comment.The idea was to rent ours out at approx £1200pcm and rent a smaller property at ..say £750pcm but as you say, the gamble is whether we have any unoccupied periods on our property.It's not an easy decision and probably not what we are going to do.

monkeymaster

daddyorchips wrote: »

Thanks..We are probably just being impatient .. we don't have to sell but the children have moved out and we are looking at downsizing.As we still have a mortgage, the renting option was just one idea of reducing our outgoings until the we could get our target price for the property so I thought I would see if others had considered it and what the pros & cons were.Realistically we will probably sit tight for a year or two. You are right about the agents though..very generous giving out the rose tinted glasses !!

If you're downsizing you'd be better off getting rid now before the market deteriorates further over the coming years, eg.

Selling 200k house to buy 100k house = 100k in the bank

But after a 20% drop (very conservative estimate!)

Selling 160k house to buy 80k house = 80k in the bank

And with a 40% drop...

Selling 120k house to buy 60k house = 60k in the bank

Reduce your price and make sure you negiotiate an equivilent drop on the one you buy.

moomin_white

daddyorchips wrote: »

Yep..fair comment.The idea was to rent ours out at approx £1200pcm and rent a smaller property at ..say £750pcm but as you say, the gamble is whether we have any unoccupied periods on our property.It's not an easy decision and probably not what we are going to do.

is that rental price realistic? is that what other houses in the area go for? or are you just trying to cover your mortgage? just a couple of sensible questions (obviously i have no idea what your house is like-which is why i ask)

daddyorchips

moomin_white wrote: »

is that rental price realistic? is that what other houses in the area go for? or are you just trying to cover your mortgage? just a couple of sensible questions (obviously i have no idea what your house is like-which is why i ask)

Yeah.. we have had an assessment from a local agency and it does compare with similar properties in the area.

suebfg

Yes, you should weigh up the pros and cons of renting - as you say, you may have period when property is not let, there are up front costs in terms of obtaining boiler and electricity certificates etc, and then it depends upon the quality of tenants you get

susanmarie

My sister works at a letting agent and she has no doubt that rent is going up. So I just thought I would say that you should get a current rental value as you might get more than you think. It would be a sensible option if you still cant sell your house.
or you could find a good Buy to Let Mortgage broker? see if they can help you switch the mortgage and you an get it rented out??

SquatNow

daddyorchips wrote: »

I was merely asking for peoples' constructive views on what we were thinking of doing.. shouting random comments is not entirely constructive but thank you for you concern. :rolleyes:

No offense was intended, it's just you seemed to have answered your own question in your first post. Sometimes you have to shout to be heard.

If no-one will buy it at the current price and you can't drop the price, then there IS NO QUESTION. You can't sell it so you'll have to rent it out.

Further responses were not needed as you'de answered it yourself and I hoped to put an end to the thread.

SquatNow

susanmarie wrote: »

My sister works at a letting agent and she has no doubt that rent is going up. So I just thought I would say that you should get a current rental value as you might get more than you think. It would be a sensible option if you still cant sell your house.

Actually, rents are falling due to the large number of people who can't sell renting their houses out instead. Advertised rents are rising, acheived rents are falling.