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Debate House Prices
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If you can sell, then sell now
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Comments
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horseinhatman wrote: »happy with renting babe?
She must be, i hope jumping into the housing market very recently and now regretting it/counting on your equity to last/keeping your BTL empire made you happy0 -
JonnyBravo wrote: »eh?
So... when you've finally got your house and when prices crash/go down whilst you own.... (this will happen at some point in your life) you'll be selling?
I thought it was going to be your home not an investment.
JonnyBravo misses the point of the thread....................;)0 -
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Average house is currently £174,178 (from Halifax).
Average price in 2010, £137,000 (beingjdc at post #9).
Cost to sell, £5K (a guess).
Cost to buy, £5k (a guess).
Rent for 27 months, £18K.
Profit by waiting £9,178*. Not a massive dividend IMHO especially as you are unlikely to achieve the average price for an average house if you start to market it today. Not worth the hassle of selling, renting and buying again in 2 years.
I suggest that for most people, continuing doing whatever they are doing is the better option. The opportunity to profit by STRing has largely passed by.
Unless the crash is worse than the spread betting market expects.
* My buy or rent calculator shows a saving of £20K+ over 27 years by waiting two years to buy but it excludes selling and buying costs.
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Gorgeous_George wrote: »Average house is currently £174,178 (from Halifax).
Average price in 2010, £137,000 (beingjdc at post #9).
Cost to sell, £5K (a guess).
Cost to buy, £5k (a guess).
Rent for 27 months, £18K.
Profit by waiting £9,178*. Not a massive dividend IMHO especially as you are unlikely to achieve the average price for an average house if you start to market it today. Not worth the hassle of selling, renting and buying again in 2 years.
I suggest that for most people, continuing doing whatever they are doing is the better option. The opportunity to profit by STRing has largely passed by.
Unless the crash is worse than the spread betting market expects.
* My buy or rent calculator shows a saving of £20K+ over 27 years by waiting two years to buy but it excludes selling and buying costs.
GG
What about the interest?'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
Buy now?
House price (now) £ 170,000
Interest rate 6.00%
Mortgage term 25
Renting cost £ -
Mortgage cost £ 328,594
Total cost £ 328,594
Buy later?
Rent £ 650 per month
Rent (rather than buy) for…2 years
Estimated rental inflation 3%
Estimated house price in 2 years £ 137,000
Interest rate 6.00%
Mortgage term 25
Renting cost £39,000
Mortgage cost £ 264,808
Total cost £ 303,808
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0 -
Gorgeous_George wrote: »Average house is currently £174,178 (from Halifax).
Average price in 2010, £137,000 (beingjdc at post #9).
Cost to sell, £5K (a guess).
Cost to buy, £5k (a guess).
Rent for 27 months, £18K.
Profit by waiting £9,178*.
Ahem. Two years of having £169k in the bank for 27 months at 4.5% net of tax = £17k. Or not having a £169k mortgage negative-non-25k or so.
Profit by waiting £26k
:beer:Hurrah, now I have more thankings than postings, cheers everyone!0
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