Banks Playing God

Optimist

snowyB wrote: »

Do you think people really get a good market value for part-x deals or not?

They tend to offer between 90 to 95% of the valuation of your property.

Reaper

You'll struggle to get sensible advise round here.

If you have a bargain of a mortgage and a good income have you considered keeping the flat and renting it out instead? It would mean you have to find the deposit elsewhere for the new place (parents?)

New builds are desperate and are offering all sorts of deals but have no idea if the particular part exchange they are offering you is any good. I suspect they would price the flat for the amount it would get at auction so (I'm guessing here) you would probably be equally well off if you sold it at auction yourselves and negotiated without it.

snowyB

Reaper wrote: »

You'll struggle to get sensible advise round here.

If you have a bargain of a mortgage and a good income have you considered keeping the flat and renting it out instead? It would mean you have to find the deposit elsewhere for the new place (parents?)

New builds are desperate and are offering all sorts of deals but have no idea if the particular part exchange they are offering you is any good. I suspect they would price the flat for the amount it would get at auction so (I'm guessing here) you would probably be equally well off if you sold it at auction yourselves and negotiated without it.

Thank you, that is food for thought. Have also considered the private sale route too. Unfortunately the parents option isn't really applicable in our situation. What's your opinion on renting it out without a BTL mortgage? Mixed views on that one so far...

dopester

Reaper wrote: »

You'll struggle to get sensible advise round here.

If you have a bargain of a mortgage and a good income have you considered keeping the flat and renting it out instead? It would mean you have to find the deposit elsewhere for the new place (parents?)

I suppose that is sensible advice?

Unless you've really got a stack of money to fall back on, I'd be wary about renting out my main home. Renting it out and buying again without loads on money to fall back on - risky beyond belief in my opinion.

So many things to go wrong. What if tenant quits and then voids, with mortgage needing paying, water rates, empty property risk and everything else. Bad tenant who damages or doesn't pay. It all just gives me the shivers.

I couldn't believe what this guy was going to do - rent out his own home to keep it whilst buying, (initially renting) a bigger place, when it was clear he'd struggled for his £4000 savings. More, I couldn't believe the positiveness of the forum.

Thankfully he was put off the idea at the last moment, just as he was ready to move out, by the fact the tenant coming in couldn't get a reference on her last place, and it transpired she had been paying something like £32 a month for her last place, instead of £320 a month the landlord required for her last place, which she claimed was a "banking/admin/clerical error." The landlord probably had to take costly steps to get her out + miss out on real rent.

http://www.singingpig.co.uk/forums/thread/688330.aspx

Reaper

I was just chucking out ideas rather than making recommendations - I couldn't do that without knowing more about their finances. However they did describe their income as "healthy".

Yes there is risk - risk has to be understood but not always avoided. I've rented out my home 3 times while I was out of the country with no problems so it isn't always the worst case scenario that you imagine.

snowyB

This is it. I don't want to avoid risk for the sake of it being 'risk'. If I'm well informed with a clear plan then I've got the best possible chance of making the right decision regardless. Everything is a gamble to a certain extent.

What also puts me off with tenants is the letting agent fees but also my place is pretty old and sooner or later I'd end up replacing boiler/carpets/white goods so in the long run could be more of a millstone. Although with my mortgage so low, I would be making a profit by renting it out and it's in a very popular location. Guess it's time to draw up a list of pros and cons....

To put you in the frame a little more, joint annual income is 70k. If I move it would be my third property purchase but my partner's 1st. My mortgage is currently 120k and we'd need to double that to get a place we want. But then I don't want to bore anyone with my mortgage details!! The main issue is the deposit which would have to come out of my equity, 6 months ago, about 40k now about half that so not even likely to make the new higher deposit demands, even for a new build.

I guess what I need is more information on what to expect from new-build deals.

dopester

snowyB wrote: »

Guess it's time to draw up a list of pros and cons....

To put you in the frame a little more, joint annual income is 70k.

The flat which is supposedly "virtually impossible to sell" will sell at the right price.

Do you really think it will get any easier to sell in the coming months and years? You give no mind to those who calculate property has a long way to fall in price?

There isn't as much money or credit to go around these days, whereas house prices have trebled in many areas in 11 years. A lot less real money and a lot less credit available, to property stock where quite a lot of people believe it still has near peak values. Doesn't seem a recipe for any quick recovery of prices going up to me - very far from it.

You think rents won't fall? There are many reasons why I believe they will and are doing. Rising unemployment, people put on less hours or days, pay-cuts.

You can confirm the direction yourself if you download firefox browser and get the property-bee plugin, to use with Rightmove and other property sites.

incher

How tiny is your flat? And how quickly are you planning to get married and then try for children?

I ask simply because for the first year at least a baby can easily sleep in the same room as you (our first did).

Perhaps by the time you get round to marrying, then having a baby, things will look different?

Just putting forward my immediate thoughts on your situation. Possibly useless, but thought I'd put them out there anyway!

mr.broderick

It's like a battle of wills, who will be the 1st to thank one of snowy's posts.
Imagine making over 3,000 posts and being fantastically fervent and never had received any thanks.

incher

mr.broderick wrote: »

It's like a battle of wills, who will be the 1st to thank one of snowy's posts.
Imagine making over 3,000 posts and being fantastically fervent and never had received any thanks.

Ooh, intriguing, seeing as Snowyb apparently only has 8 posts. I guess you have to have been on here a while to know the background!