Thinking of selling home to go into renting...

duchy

You are looking for a home (at this point) not an investment so selling and renting seems sensible provided you are not going to run into problems getting a mortgage later as you are both self employed -eg if both businesses are fairly new will you have the required number of years accounts to get a decent deal ?.

Other than that-sell and go live where you want to live as nothing seems to be holding you back.

SuzieSue

Gwhiz wrote: »

Just do it. It makes no sense being somewhere where you don't want to be and, more importantly, don't have to be.

Life is only full of regrets for the things you did not do, not those things you tried and did do.

Sounds like selling and renting is the ONLY sensible solution for you.

I agree, but as saving for a deposit is the most important aspect of this, then I think you need to consider which would be cheaper - renting or staying put.

sarah_elton

Definitely do it! Living in an area is the only way to truly get a feel for the streets you want to live in.

Prices may rise a little during 2010, but the market is not going to rise crazily and run away from you (as you probably felt it was when you bought in 2006 - I bought at the same time).

Best of all, if you can rent somewhere that costs less than your current mortgage payment, you can save even more each month for the deposit. With renting, just take the cheapest place you can manage to live in for six months.

I sold in Feb and we've rented since while looking for a place to buy. For us, it was because I had a flat and they were taking ages to sell, and with the number of chains falling down we wanted to be chain-free buyers when we bought. Not only does it make it simpler, it puts you in a great position to offer on houses.

It's not all about the £££ (even on this site). It sounds like you're looking for a reasonably long term family home, not an investment property. I'd say getting the right house in the right place is the priority, and if it's a newish area to you then renting really will give you a better feel for it.

Tuscan

id say sell and rent now, if property does drop anymore then as your interest only you could fall into neg equity.

also you cant put a price on standard of living and happiness, we are thinking of doing the same in the next 18 months and move to rural Suffolk from Essex, sell up clear some bad debt we have and rent for a few years to rebuild our credit and buy again. we will be left with about 80k in the bank so im happy to sit on and add to that for a while until we can buy again.

to have some stress free living in the country is priceless if you ask me....

Gwhiz

SuzieSue wrote: »

I agree, but as saving for a deposit is the most important aspect of this, then I think you need to consider which would be cheaper - renting or staying put.

I agree to a certain extent. However, the OP does not want to make same mistake again (so try before buy seems best option) and if you are looking for your perfect house you might as well be in a position to buy it when you find it rather than then having to sell.

SnowBunny

Thanks everyone! I really appreciate your input! Society always tells us property investment is best. There's this big deal about getting onto the ladder. And whilst that's true in some cases, it's mainly the property developers putting out those messages in the media - keen to ensure the market continues to grow.

I think we have nothing to lose. The only thing we gain from being here is that we're settled. We've got all the right furniture. We're sorted. So to speak. Some of our friends would LOVE to be in our position and I guess, in a way, that's why we've stayed so long. Everyone thinks we've got it made.

But the truth is - with an interest-only mortgage and living in the wrong area I wouldn't even call 'home'.. we're no better off than our friends who are still renting.

I've not got £85k to sit on! Wish we had! We've got zilch at the moment. So I think we're going to go for it. Move into a rented property for a year or so. Save like demons and buy again when the time is right and we've got a significant chunk.

I think the only thing I'll miss is not being able to feel like I can make any changes. My own bricks and mortar. But then - it's only temporary and is a step away from where we are in the right direction.

Seems petty to want to move just because of location. But I'm sick of the heroin addicts and feeling unsafe at night, walking home. With nothing on our doorstep apart from a few rough pubs you just wouldn't go into.

I'd love to be nearer friends and family and live in this gorgeous town we're really keen on. It's in the countryside too plus close to a bigger city that's got loads going for it. It's not far from where we are now either so work wise we're fine.

It's going to be interesting to see what happens in 2010.

Thanks everyone... Going to read your replies to husband now

SnowBunny

Update update! We're putting the house on the market in January!! Wooopppp!!

SnowBunny

Ok... Early repayment charge is nearly £3,000.... !!!!!!. And we'd barely get anything from the sale of the house. But we'd still just about break even.

Is it worth it still? We've pumped a little money into improving this house.. I'm so confused now. Torn!!!

Tuscan

dont forget you will need some money up front to rent, deposit etc plus moving cost. if you can cover everything and walk away from your house without owing id still go for it.

ps we only have the equity we have as bought at the right time, only bit of luck we have ever had...

we need to stay put for another 18 months 2yrs for one reason or another then we will be off our selfs. would put ours on the market tomorrow but the timings not quite right for us just yet..

SnowBunny

Thanks Tuscan.. Moving wise we're fine. We know someone with a large van. And as for deposit.. It's no problem.

I'm getting excited but still a little apprehensive. I know it'll be a while before we get back onto the property ladder. But it won't matter.

We might even have children between now and then. So that worries me too - but I guess we don't want to be living here when that happens anyway so it won't matter where we are.

Either way, we'd be financially better off renting. And doing exactly the same as we'd do staying here. Paying interest-only mortgage, i.e. rent to the bank... and saving for a deposit.

I'd rather be doing that whilst I'm young and in a better area