advice please moving but should i sell or rent old house?

cozzyman

hi all

a bit of advice need
I'm thinking of buying a new build house which has been reduced greatly from last years values and is a good step up from my own house which going by other house in my area for sale is the same in value 190K
so am very tempted to move and can afford the new morgage and have a large deposit.
So my initial idea was to rent out my present house to cover present morgage and have 150 per month excess (tho will increse payments to negate this for tax purposes) but is this unwise if prices are set to still come down? I would have 3 years b4 I had to sell so the tax man didnt get a cut so would like to have sold by september 2011
or should i sell the present house now cheap b4 the prices tumble more?

or should i not bother and sit tight and buy/sell nothing?
(tho would like to make move)

cozzyman

no oppions|

Tassotti

How much did the new build originally go for?

dopester

I think it is financial suicide.

Could you handle a further house price crash of just 20% on both properties, and possibly a lot more?

Where would that leave you?

Don't be assuming a quick 7 year return to 2007 peak either... Capital Economics suggest it may take 25 years to get back to those levels.

Tassotti

You are funny Dopester...

Do you go out on the weekends with make-up and a curly wig?

It may be a loss of 20% but will take 10-12 years to recover.

Either way, OP, ,if you buy new build, you are in the poo

I have always been a bull for the last few years, but always said that new-builds are financial suicide.

There was a time when we flipped on new-builds, but that was a long time ago...Who remembers those days..I bet some do (BOB property?)

If you want to buy, look at older properties...They dont need to be antiques, but something from the 30's onwards...All good gaffs.

Tass

cozzyman

oh dear
my rosie move dont look good

well the builder bought the sight with planning passed for 180 last year
(tho only used half the land for build he's keeping other half)
and sites in the area are around 150 at moment without house passed
it was never on the market at higher price cause its only finished this year

in its 2007 hay day it would probably have been 250 to 300 (at a guess)
if it had been built.

as to things going down another 20% i thinks probably when not if
hence my trepatation.
Tho people have dropped in price and dropped again how much do u think people are willing to drop again. The prices are getting afforadable again if the banks would lend the money to 1st timers

bazzais

If your going to be making a profit by renting your old house and buying a new one - go for it in my opinion. Markets go up and down all the time - its how the uber rich make money.

You will only lose money if you want to sell the new build if the market goes down. Rent is pretty much stable so you wont have to lower the rent on your old place. Ride the wave man.

cozzyman

the old house morgage is 350 at minute with rentable value at
520 so good profit (tho will increase morgage to cleare profit so tax man dont get a cut)

but the thing is i'll be paying interest only morgage on new build (which i won't be selling) as i hope to sell old home to clear morgage to clear debt
within 3 year as after 3 years tax man will want his capital gains tax.

is ther a way round the 3year bummer as house will be down b4 its up to clear morgage

cozzyman

or should i be doing a repayment morgage?
tho thought this might be a bit to much of a money strain