If you can sell, then sell now

skap7309

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 happy

skap7309

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....................;)

kennyboy66_2

carolt wrote: »

Before prices really crash........

Don't you think that by the time you found a buyer it may be a little too late.

mr.broderick

carolt wrote: »

I'm not looking to buy anything..yet.

But chop 50% off the price, and I might be interested.

Carolt one of the tens of thousands who will miss the bottom and end up chasing the market up...sad...ps don't feed the troll even though i couldn't resist myself.

Gorgeous_George

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

StevieJ

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?

Gorgeous_George

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



GG

beingjdc

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: