to sell or not to sell?

blueowl

So, we are heading off for a year or two abroad....
Option one, sell house 30k more than bought it for 4 years ago, bank 100k and on our return be in a good position to by our 'final house'
Option two, change to interest only mortgage, rent out house then come home to patch it up a bit and sell
Any advice? What do you think the market will do over the next couple of years?
Thanks!

penguine

If you don't want to live in the same house when you return to the UK, you're best off selling it. That way while you're abroad you won't have to worry about the state of the UK housing market, whether prices are going up or down, whether your tenants are paying the rent and whether you might have to fork out for any unexpected repairs.

(You'll get opinions on both sides of the argument as to what house prices will do over the next couple of years, so if this is a factor that's going to sway your decision one way or the other, you're best off doing your own research and coming to your own conclusion.)

Bufger

thats a million dollar question i'd love people to answer for us. lol

Chinahand

If your house were mine (Just my opinion) - I would sell it and bank your profit, that way when you do return to the market you will have a nice deposit and you will get a mortgage no problem.

Also - if you change to an interest only mortgage (these are more expensive than normal mortgages and 'when' the mortgage rise begins again - you will be paying more than you are now.)

You will have a trouble free trip knowing that you have 'backup' in the bank (as long as you don't blow it on your travels :-)

If your property is vacant for any length of time, you will still have to pay the mortgage. Also you can never guarantee your tenant will take care of it as you would. + you will have to pay agents fees (not cheap).
Make a clean break and bank your profit - you are in a very lucky position to be in and enjoy your travels.
You may decide on returning not to even live in the same town... good luck! :-)