Was STR worth it?

fc123

lostinrates wrote: »

Oh, you remind me, I saw a Dorset coast property for sale in the paper and thought of you..

I think it will always be a dream...OH just doesn't want to 'do' living in the middle of nothingness (his definition of that type of area not mine).

Even if we could afford it (which is unlikely) 2 homes is such a hassle..without wanting to sound all uppity and wannabe....:o

edgey88

why does it have to be some game of strategy... many first time buyers (and future generations of first time buyers) have never had (will have) the chance to join in and will be waiting on the sidelines for some time to come.

Even if I was resting on my laurels, I would be concerned for my childrens future prospects (even more so if they fled the country escaping a debt that wasn't their's)

Generali

purch wrote: »

Ok.........final Edit !!!!! :cool:

No offense, but I would consider anyone who STR'd, who did it for any reason other than they were about to be repo'd because they couldn't afford the mortgage, or were going to move anyway, or wanted to spend time with their very young kids, or saw the lull as a chance to move away, drop out of having to work, chill out were completely BONKERS !!!!

I think you need to do another final edit.

lynzpower wrote: »

I also sold to rent - it was definately the best thing Ive ever done really.

I bought a 40% share in a newbuild shared ownership flat . When I put it on the market 2 years later it had appreciated by a further 100k, so I took my share of that. As I was on an interest only mortgage, I was only renting from the bank anyway.

After we sold we went into rented but after a year I got a job with tied accomodation, so our living costs are tremendously low. We are saving pretty hard , and have freedom. We are not "throwing our money away on rent".

When we do buy we will have more than fair deposit, and will be able to buy a much better property in a better area.

We have started to look around a bit but ideally would luike to save more before we do buy. There is not a great deal around in the areas we are interested in, put it this way, we can buy a 3 bed semi for the same price as the flat was sold for in a better area.

Im not panicking one little bit just yet

kabayiri

Until I read ths thread I was unfamiliar with the term STR.

I guess I have relatives who fit this category. They sold at peak, planning to try living in Canada. Job changes meant that move was only temporary, and a rental one at that.

They then switched focus to France, again job related really, and were renting there. Anyway, I found out in the summer that France is no go for various reasons.

But....most of their money is held in Euros now, so they were telling me; and it's improved their buying power massively because they are looking at buying back in UK.

Good fortune more than good planning I expect though...

Running_Horse

We moved at the absolute peak, and nearly rented when the purchase hit trouble. In theory it could have worked because the area we moved (Medway) from was a bit rough and prices collapsed in our road. But the area we moved to was good and asking prices have held firm. So there would have been little benefit waiting, and we would have missed out on our base rate tracker mortgage. We are also paying off mortgage, and our house was fairly uniqe and unlikely to be on the market for another 20 years.

StiflersMom

Hmmm… as I expected. In the overwhelming majority of cases STR was either due to outside circumstances (such as taking a job with live-in accommodation, or retiring to the sun), and the only ones who claim to have made money on it did so through luck rather than judgement.

One of the key indicators that the market has turned is the complete absence of discussion of the case for STR in the current climate. Even the most bearish commentator would have to concede that it would be insanity to STR in the post-crash market.

Still, we expect another one to come along in the next 15 years or so !! Might consider STR myself in ooooh 2024 or so !!!?!?!

Generali

StiflersMom wrote: »

Hmmm… as I expected. In the overwhelming majority of cases STR was either due to outside circumstances (such as taking a job with live-in accommodation, or retiring to the sun), and the only ones who claim to have made money on it did so through luck rather than judgement.

One of the key indicators that the market has turned is the complete absence of discussion of the case for STR in the current climate. Even the most bearish commentator would have to concede that it would be insanity to STR in the post-crash market.

Still, we expect another one to come along in the next 15 years or so !! Might consider STR myself in ooooh 2024 or so !!!?!?!

Time will tell whether the housing market has 'turned' or whether falls are merely resting. I suspect that record low base rates might be helping a little.

the_ash_and_the_oak

tbh if my parents manage to sell they'll rent (at least temporarily)

StiflersMom

Generali wrote: »

Time will tell whether the housing market has 'turned' or whether falls are merely resting. I suspect that record low base rates might be helping a little.

As so often pointed out here, low base rates have not yet driven out lower cost new mortgage products. A number of them are now starting to appear on the market, which should further expedite the rate of price recovery.

:beer:

Harry_Powell

TBH I think it's a brave decision to withdraw monies from any market, whether properties, shares, bonds, Gold or whatever based on what can only be little more than a hunch that the market is about to turn. To risk a family home though is sheer folly, especially if you have kids.

A bloke I met who has been very successful with his investments was selling his house back when the market had started to tumble. He had a buyer and was just looking for a place to buy for his own family. I asked him why he didn't consider renting for a few months to gain from further falls. He told me that "you should never be out of any market for long".

I must admit I thought he was a bit daft, especially as house prices were falling like nine pins. However, history has proven him right and both the stockmarket and housing markets have staged a recovery that few people were expecting, and that a lot of people have missed out on (I'm talking more about the stock market here really).

You never catch the top or bottom of the market and even the so-called 'experts' in fund management, have missed out on the stock market boom. They do this as a job and have all the best information at their finger tips, all we have is the financial press and the BBC to base our judgements on, hardly up-to-date material.

The bloke at work was bang on. You should never be out of a market for long.