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Buying a new house and renting...advice sought
bingobangobongo
Posts: 218 Forumite
First off, I just want to say I posted this over on Housepricecrash forums and received the expected response. Just want to know what others here think:
http://www.housepricecrash.co.uk/forum/index.php?showtopic=107186&st=0
Myself and my gf bought our first home over 2 years ago for £157,000 with a mortgage of £150000. It looks like we are currently about £10,000 in -ve equity on the mortgage as the house is prob worth about £140,000.
We always aimed to get on the property market and then try and move in a couple of years. But obv this is next to impossible now.
I have since inherited £50,000 and we are looking at buying a house closer to Belfast, and using this money as a deposit. We would be looking at a more permament move, somewhere bigger we could happily live for 10 or so years anyway.
Regarding our current house, we would be aiming to rent it out at about £400pm. Our interest only mortgage will be dropping to £300 per month from april 1st, so assuming we get a tenant it should cancel out that mortgage.
Any comments on this? I know its a risk and its playing on my mind a lot. If we stayed put and took £50,000 off our current mortgage we could be stuck in this house for years and years which I dont think is an option. If we buy the other house we can afford both mortgages atm if we cannot get a tenant. As long as the interest rates stay low that is...
The house I am considering buying is a new build house (semi - 1700 sq ft) currently priced at £215,000 - I would be offering in the region of £185,000 (15% less) - any comments on this? Its nearer Belfast and would make our lives a lot easier.
I know some people are saying its crazy to buy a house in a declining market but I guess I just want some balanced opinions on this plan.
http://www.housepricecrash.co.uk/forum/index.php?showtopic=107186&st=0
Myself and my gf bought our first home over 2 years ago for £157,000 with a mortgage of £150000. It looks like we are currently about £10,000 in -ve equity on the mortgage as the house is prob worth about £140,000.
We always aimed to get on the property market and then try and move in a couple of years. But obv this is next to impossible now.
I have since inherited £50,000 and we are looking at buying a house closer to Belfast, and using this money as a deposit. We would be looking at a more permament move, somewhere bigger we could happily live for 10 or so years anyway.
Regarding our current house, we would be aiming to rent it out at about £400pm. Our interest only mortgage will be dropping to £300 per month from april 1st, so assuming we get a tenant it should cancel out that mortgage.
Any comments on this? I know its a risk and its playing on my mind a lot. If we stayed put and took £50,000 off our current mortgage we could be stuck in this house for years and years which I dont think is an option. If we buy the other house we can afford both mortgages atm if we cannot get a tenant. As long as the interest rates stay low that is...
The house I am considering buying is a new build house (semi - 1700 sq ft) currently priced at £215,000 - I would be offering in the region of £185,000 (15% less) - any comments on this? Its nearer Belfast and would make our lives a lot easier.
I know some people are saying its crazy to buy a house in a declining market but I guess I just want some balanced opinions on this plan.
0
Comments
-
I would not want to more than double my exposure to the housing market at the moment. It is not crazy to move but it is crazy to keep hold of your currrent house.
Its is clear that it would be good for you to move if it would be easier for you.0 -
Do you think that in 2, 3 or even 5 years time the prices will have recovered somewhat - so it would make financial sense to sell our current house then?
Assuming we can get tenants for that long, and also that the interest rates dont go nuts...0
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