Should we take the plunge??

ooknows

We are keen to move house but are having no luck in selling our house.

We have paid the mortgage on our existing house and the new house is likely to be in region of 350 - 375k. We will be able to put down a deposit of at least 100k (we have some ISAs that we will not touch), are hoping to rent our house out, and each bring home about 4.5k a month so 9k in total.

No sign of our jobs being at risk - although clearly no guarantees.

The idea we are having is that we buy at what we hope is the bottom of the market and hopefully sell our existing house once the market recovers.

I'm a bit anxious about the strategy but my other half thinks I'm being silly.

What do people think???

hethmar

Cant you wait 6 months to see how the market settles?

ooknows

This is what I'd rather do - I think the market may fall further this year and at least if we hang on, we'll have a clearer idea of whether either of our jobs may be at risk.

ooknows

Does anyone else have a view???

poppysarah

Why are you so keen to move?
Have you ever been a landlord before? Is there rental demand for your type of house?

ooknows

We desperately need more space and are on a busy road with a small child.

Difficult to say re rental of our house but we weren't banking on renting ours out as our earnings are good.

poppysarah

So you'll be leaving a house empty rather than lower the price?

poppysarah

Squatters.
Insurance expensive/hard to get if it's empty for more than 30 days.
Break ins.
Council tax still has to be paid.
Standing charges on utilities.
Pipes bursting in cold house.
Fires & vandalism.
Neighbours might not be happy at being next to an empty house.
House left empty for a length of time will be harder to sell or rent.

ooknows

we've lowered the price - hardly anything is shifting round here.

We'd look to put it on at an attractive rental price as obviously would rather have it occupied than not.

poppysarah

Round here things are shifting - or appear to be - once the price gets low enough. If you're not prepared to lower the price that much then it won't sell.

ooknows

possibly you're right.

I guess we were looking to turn it to our advantage if possible. As we don't need to sell ours to trade up, we thought we might buy at the bottom and sell when things are better.