sell or stay put?

calculator2009

Hi,
I and my other half are in big dilemma. I have lost job last year and my husband is still in employment. We live in London and our plans were to move to Lake District in 6 years time to retire. Shall we sell hour house in London now and cash the money from our property sale now (while the prices of the houses are still relatively high) and move to North East or shall we stay put and sell in 6 years time (as planned)?
The dilemma is:
1. if we sell now we will have capital to live over there for a while (but both of will be out of work) or
2. do we stay put but see our equity in the house go down in the 6 years time

If the property prices stay the same in 6 years time then it will be better to stay put but we are worried that the prices in 6 years time would be much lower than now.....

any advise please? we have a good offer on our house already but we are unsure if we are doing the right decision.

getmore4less

IF you have a good offer and can find a place to live in up north then it is down to do you need income from working or can you aford to live without working.

How eaasy would it be to find work in the new location.

Working even part time can be a good way to get into a new community so moving now and trying to find work may be a better option than moving in 6 years when you don't want to work any more.


Personaly I think we have a way to go to bottom out but you do need to live somwhere so with a move of this type it is the relative costs that matter, where will prices change the most? I have no idea.

calculator2009

we already have a property in Lakes which we bought 4 years ago on B2L basis. Now we are worried that if we leave it till 6 years time to move there, the value of our current house in London will go down even further and we will have no equity left to live on over there. The unemployment is quite high in Lakes so chances of finding jobs would be slim..

calculator2009

the plan was to work in london for another 6 years and then move there living of savings and some equity from our london house but as the house prices are going rapidly down we are worried that in 6 years time we will not be able to sell it for similiar price like now and therefore not having enough of money left to live there.

penguine

If you look at historical averages (average wages compared to average property prices) then house prices are still overvalued, so I think they've got further to fall. However there are so many individual factors to consider that it's impossible to say whether it's right for you to sell or stay put. Probably the best you can do is work out the various options you have, make lists of the pros and cons of each one and try to decide which feels best for both of you. You've got to both be happy with whatever you decide.

If you both leave your jobs now and go through with your hosue sale you'll be living on the equity, but missing out on the next 6 years worth of savings you could have earned by working longer. Could you rent a smaller, cheaper property in London and carry on working and saving for a few more years? Or if you move to the Lakes now could you bring in any kind of income through self-employment or distance working?