Has STRing paid off for anyone?

Harry_Powell

Building from a post I made on a different thread, I was wondering if anyone actually has made or will make a profit from STRing (Selling to Rent)?

I don't mean buy selling at the peak and DOWNSIZING, which is obviously a great way to gain, but the process of selling a house in order to buy a similar property at a cheaper price or to move up the chain and buy a larger property.

When I see statements from STRers they just quote bare facts like "house prices have dropped 15%, so I have pocketted a 15% profit". Yet they fail to factor in that unless they sold at the very peak and then buy at the very trough they will not make the full 15% (or whatever the final percentage is) HPC gain.

They also forget that they had expenses when they originally bought their house (stamp duty, solicitors fees, searches, etc) then more costs when they sold their house to rent (solicitors fees, estate agent fees, removal costs, perhaps mortgage redemption fees, etc.) and will then have more fees to pay when they buy the new house (stamp duty, etc. etc.). They also have to factor in how much they pay in rent while they're out of their house - is it less than their mortgage would have been especially given the low mortgage rates we've seen over the past 18 months.

I just can't seem to make the figures work out. As I said on my original post, I love the thought of people takign a chance and benefitting but this just doesn't add up.

Could anyone who STR'd please come to my aid and tell me if it worked for you?

LydiaJ

I think many of the STRers are expecting prices to fall further over the next couple of years, so they're still renting and waiting. They'll feel that you're asking this question prematurely.

stonethrower

I sold to rent prices are down 12-15% and my investments made roughly the same. so I very happy

Really2

I was 1 day away from STR last July.
Glad I never but that was down to personal circumstance and opportunity.

One of the things I would have regreted had I STR would have been missing out on some mortgages (base rate trackers).

Harry_Powell

stonethrower wrote: »

I sold to rent prices are down 12-15% and my investments made roughly the same. so I very happy

When did you sell? How much was your house and how much did it cost in expenses to buy and then sell?

Also, until you actually buy back into the housing market you'll not know how much you've gained from the HPC. I could be possible that the market turns and increases by 5% before you buy a house. This would mean you gained 7% to 10% from HPC which could feasibly be less than it cost you to buy - sell - buy when you STR'd.

chucky

Really2 wrote: »

I was 1 day away from STR last July.
Glad I never but that was down to personal circumstance and opportunity.

One of the things I would have regreted had I STR would have been missing out on some mortgages (base rate trackers).

i let to rent waiting for the right opportunity to come along.
it did and the plan of getting a good mortgage rate also worked - 4.69% for 5 years.

cheap property price and excellent mortgage rate - it's all good.

StevieJ

Harry_Powell wrote: »

. They also have to factor in how much they pay in rent while they're out of their house - is it less than their mortgage would have been especially given the low mortgage rates we've seen over the past 18 months.

Don't forget the extremely low interest rates on their sales proceeds that was supposed to finance the rent while prices were dropping :eek:

stonethrower

Harry_Powell wrote: »

When did you sell? How much was your house and how much did it cost in expenses to buy and then sell?

Sold in sept 2007 for £239000 and I suppose expenses for selling were about 6000, cant remember how much to buy was 14 years ago

StevieJ

Harry_Powell wrote: »

When did you sell? How much was your house and how much did it cost in expenses to buy and then sell?

He obviously only STR in Aug 2007, found a good savings rate, then moved the lot into the stock market in March 2009 what a smart fellow or fellowess.

Cannon_Fodder

Last summer you could get 7% on savings...I don't call that low.

PasturesNew

I didn't do it for money. I did it for other reasons:
- ditch a house I couldn't afford to fix/maintain
- ditch an area that had no work, to move where there might be some
- get a smaller/newer house (warmer, less maintenance)

But if I were to go back there now and buy a similar/better house of the same style I'd have effectively cleared £40k off the mortgage in the time and saved on maintenance costs and running costs (larger place).

Until you have bought/sold and unless similar houses bought/sold at both dates, you can't easily say how much you've won/lost.