Property dilemna - What would YOU do.

lostinrates

If it were me, under the circumstances you have described I would sell. If a substantial part of your income, through your OH, is property related and with it all in such unpredictability then I would feel that holding the 'money' in somthing unreelated would be akin to spreading the risk. I also think, to some degree, a bird in the hand, in unpredictable times, might be a comforting thing. So, holding on to the land MIGHT well make it more valuable in the future, but you might be forced to sell it at some point before then...maybe for less .

People are buying projects (I was just outbid on a fixer upper that the agent thinks the other person is essntially buying as a plot) and they may, or may not be buying plots/projects with such enthusiasm in the near future.

Whuile savers interst rates ar set to be unexciting, I think, over the time you would othrwise realise mor on th land the tiny intrst paymnts might add up to the same as the potential increase (or decrease!)in land value.

(caveat, I have no experience in any of this, just answering what I would do but then if your OH is connected to the industry and you guys are still not sure, maybe experience isn't all! Good luck!)

huntersc

risla0, where is the land?

Debt_Free_Chick

rizla01 wrote: »

I could hold land in the hope of an eventual rise (3yrs or more)

PP doesn't last forever. It expires, unless the development begins or you apply to renew the PP.

Something else to throw in to the mix ....

JimmyTheWig

Do you need the money?
Why not keep the land as it is and have a beautiful garden to enjoy in your retirement. Surely this is a better solution all-round than building another house in another garden in green-belt land?

Generali

rizla01 wrote: »

Hi,

Firstly it's green belt and the existing prop is tiny so to get a 4 bed on there was a little short of a miracle (Had to part submerge designed prop (Sloping ground) to enable the overall volume to be increased).


Three hopefulls are each offering 250 - 255k so that is secure but was 'on' for £285. (Stamp Duty prevails once AGAIN!!).

I could hold land in the hope of an eventual rise (3yrs or more) or sell up my house (Difficult as existing home was bought with the intent of full refurb costing £30 - £40k and will struggle to sell for more than I paid 12 Mths ago) to fund the build, but that would then mean living rough (caravan) or renting untill build was finished and then ALL of my funds would be tied up in the house, whereas by carrying on living here and selling I would then have 250k to play with AND a decent home (But not new) to live in.

A new home for me, was, like it would be for anyone, a dream that nearly happened but at 57 (but fit), and the OH reaching retirement aught to consider keeping funds behind us, but the money isn't going to get much interest and, if traceable will prevent her getting any pension top-up.

My only thinking is that the money from the land could prove useful if a cheapo prop comes along during the downturn, which we might be able to make a few bob out of.

What would you advise?

If you're bit of green belt is like mine I'd definitely look at selling. Cash and very liquid assets are hard to come by right now and you may well be able to buy up some distressed stuff very cheaply over the next few years.

It is very hard for me to see how land prices can rise let alone reach the exalted values of last year for a long time. If we accept the last crash as a model it'll take 10 years minimum. I think things are going to be a fair bit worse than the early 90s though.

If you're lucky you can sell and then buy the same bit of land back at 1/3rd of the price in a couple of years!

rizla01

huntersc wrote: »

risla0, where is the land?

Hi Hunter.

It's in a place called Thundersley in Essex. (SS7)

Just thought I'd make clear, By the way, that the land is not adjoining my house - It's about 15 Miles away.

twokcc

If its not attached to house(presuming that it didn't previusly have a house on plot i.e was bought reasonablely cheaply) you will have to pay Capital gain Tax on the sale, this could be substantial if you acquired it before it had planning permission. If gain after CGT allowance is £200k CGT wil be £36K. If you built on it then sold new house after you had lived in it there would not be any CGT. (advice given as an informed layman check your own circumstances with your finacial adviser)

Generali

twokcc wrote: »

If its not attached to house(presuming that it didn't previusly have a house on plot i.e was bought reasonablely cheaply) you will have to pay Capital gain Tax on the sale, this could be substantial if you acquired it before it had planning permission. If gain after CGT allowance is £200k CGT wil be £36K. If you built on it then sold new house after you had lived in it there would not be any CGT. (advice given as an informed layman check your own circumstances with your finacial adviser)

The way asset prices are going at the moment, by the time the house is built OP will have lost considerably more than £36k!

twokcc

Generali wrote: »

The way asset prices are going at the moment, by the time the house is built OP will have lost considerably more than £36k!

So you ignore the savings that will accrue from a self build?

Generali

twokcc wrote: »

So you ignore the savings that will accrue from a self build?

Yes because they are just compensation for the hassle of looking after the build yourself, effectively what you get paid for not employing a project manager etc.

If you enjoy that stuff then fine, you gain from building it yourself. If you don't have those skills then perhaps it's not much fun and you can end up spending a lot more than you wanted.

The savings from DIY aren't self evident. The last 2 times I moved house for example I paid someone else to pack my boxes as I could earn more by being at work as a contractor.