Is it worth it??

Pitman

Hi

Just a quick question to gain an opinion or two.

I own a property purchase in 2004 for £80K, which I modernised at a cost of approx £20k. I have a mortgage of approx £77k. I am considering moving to a new house currently valued at about £150k, which due to the current down turn is a bit of a bargain.

The problem is that i may only get maybe £90k for my current property therefore losing £5-10K which i have spent doing it up.

Although this will clear the mortgage with a bit to spare for a deposit on the new place, I am wondering if it is worth taking the hit? The only advantage is that I am really keen on the purchse property and I assume that its valuation has also suffered due to teh down turn.

Any advice

simpywimpy

Have you checked the price of the new property against anything else on the same road/area to see if it is competitively priced?

By the time you add on your selling fees, solicitors for both buying and selling, you probably won't have enough left for a decent deposit

Pitman

Thanks for the reply.

I think that the property is pretty competitively priced and am sure that in time it will prove a good buy.

Thankfully I have cash to pay fees etc, so it is really just deciding as to whether I want to take the hit on the loss of time and money invested in my current property?

zone

If you are confident your own property will sell at the price you need to move, put it on the market. Or you could wait and see if there is a recovery but who knows how long that could take..

SavingSteve

As you are buying AND selling then you need to look at the price differential. There is no point waiting for your property price to increase if the other property will also increase.

Stop thinking about this as making a a loss on your property, and just focus on whether the difference between the two places is likely to grow or shrink.