Is it worth leaving the property ladder for 2 years?

phlash

Hey there

I know Nottingham very well, and the traffic is a nightmare in the mornings. I know roads that can take 45 minutes to go 8 miles.

Even if you did sell, for a half decent place in the outskirts of Notts you are looking at £500 rent per month, which is more than your mortgage.

On the house price front, I do believe we have further to fall, along with the economy. But before people bombard me with doom monger comments, it is with well reasoned arguments as to why. However, this doesn't mean it is the deciding factor, only a consideration.

I believe post election we will see very different news headlines - so any current house price growth is not a reflection of the pattern to come in the next 3/4 years.

Everything must be considered - that is why personally I rent, but I also own BTL properties. And yes, I still believe house prices will fall. PS. My wife and I have been in a similar position - i.e. one income etc and other studying. PM me if you want to chat about local areas etc.

new_home_owner_3

the answer you are looking for are houses going to go up or down nobody knows the answer to that, your mortgage is only 400 pound how much will it cost you to rent?

Remember house prices have rose since last february, if you think they are going to fall in the next two years then sell and rent, i personally doubt house prices will fall 17 percent, but thats the gamble you take.

If it was me i would stay put and try and struggle through, if you and everyone on this forum knew house prices where going to fall 17 percent we would all be selling now and buying in 2 years.

Now take a look at how many houses are actually up for sale by me there is hardly any new houses up for sale and when they are all the good ones get snapped up in a couple of weeks.

@THOMAS If prices rise so you can't afford a house, how will any other FTB's be affording a house?
I'd get on with selling it and enjoy the flexibility of renting if it was me. What if prices fall in the next 2 years?

That sounds like if you dont sell your house your not helping first time buyers buy, renting is dead money and this person seems to be telling you sell so you can provide a house to a first time buyer, then bury your head in the sand for 2 years hoping house prices fall.





good luck and i hope you make the right direction

franklee

delmar39 wrote: »

A Problem is you're selling when house prices are low so if prices rise and you're in rented you may get even less for your money. If you stay put and prices don't move you may regret not taking the £92k. Very difficult one this. .

Err the third and IMO very possible thing is that prices fall.

franklee

92203 wrote: »

Description....................Debt......Monthly...APR
Mortgage...................... 81000....(400)......2.2

That's a good rate, have you factored in how long you think it'll last?

92203

franklee wrote: »

That's a good rate, have you factored in how long you think it'll last?

Hi, It's the Standard Variable Rate from our Mortgage lender (our fixed rate ran out in April).

It is set 2% above the Bank of England base rate, so if this goes up, so will our mortgage rate.

According to the BBC Mortgage calculator, even if interest rates rose to 5% (and we were paying 7%), we'd only be paying £637 a month.

Not too bad really.

nollag2006

92203 wrote: »

According to the BBC Mortgage calculator, even if interest rates rose to 5% (and we were paying 7%), we'd only be paying £637 a month.

Not too bad really.

Sounds like you have your head screwed on. The risk with selling, and renting elsewhere, is that the market could have well and truly moved away from you when you try to buy again. Even if the market collapses (and given the huge efforts that global governments continue to make to bolster their economies post the credit crunch) your own home will have moved in value with the market, so you should be able to obtain something relatively similar if you decide to move.

I would strongly counsel that you do not sell, unless you ABSOLUTELY have to. The downside risks are just too strong. You may never be able to get on the ladder again

delmar39

92203 wrote: »

Hi there,

I take home £1700 per month after tax. My girlfriend receives a £500 per month bursary which is tax free.


A breakdown of how our money is spent each month ;

• £400 - Mortgage
• £250 - Car Loan (Due to finish this June)
• £60 - Virgin Media - (soon to be reduced to £30)
• £75 - Council Tax (Incorporating Student/Single Person reduction)
• £40 - Gas & Elec (Eon)
• £30 - Orange Mobile Phone contract (Will be £10 prepay from Dec onwards)
• £10 - Top up for Girlfried's prepay mobile
• £27 - Barclays Home Insurance
• £15 -TV License
• £15 - Life Ins
• £35 - Water Bill
• £200 - Food
• £170 - Girlfriend's petrol to and from University
• £60 - Girlfriend's parking at university/hospital
• £70 - My train fare to and from work.+
• £50 - Petrol for my car *
• £50 - Insurance for my car*
• £40 - Credit Card

+It is possible that my role at work may be changing and that I will be required to have a car at my disposal. This will involve driving to and from work each day and paying for parking. This will add an additional £60 to the cost of my commuting. However, when on work business I will be paid 40p per mile.
*Irrespective of whether we are staying or leaving I intend for us to go down to having one car only (job sitation permitting) which is going to save money.

Cheers

92203

I think you could save quite a bit on life insurance and home insurance. You're paying way too much.

phlash

nollag2006 wrote: »

Sounds like you have your head screwed on. The risk with selling, and renting elsewhere, is that the market could have well and truly moved away from you when you try to buy again. Even if the market collapses (and given the huge efforts that global governments continue to make to bolster their economies post the credit crunch) your own home will have moved in value with the market, so you should be able to obtain something relatively similar if you decide to move.

I would strongly counsel that you do not sell, unless you ABSOLUTELY have to. The downside risks are just too strong. You may never be able to get on the ladder again

I'm sorry but this post is absolute tosh.

"You may never be able to get on the ladder again"....I loathe this most commonly used, yet most ridiculous and fictitious statement.

The moment two young professionals cannot afford a house, at all, is the moment that house buying and selling ceases.

If they "miss the boat", the boat has to come right back, since it can only survive when it has passengers!!

The decision is not to be purely based on what the housing market will do. His other half may not get a job at the QMC, it may be Derby, in which case a fixed place of residence is no good. This, along with many other factors, is a consideration for the decision.

People who tell you to stay put because you may never get on the 'housing ladder' again are ridiculous fantacists, and the day that such non-moneysavingexpert advice is irridicated the better.

new_home_owner_3

phlash wrote: »

If they "miss the boat", the boat has to come right back, since it can only survive when it has passengers!!

Now thats a load of tosh house prices do fall but not very often i think you will find the last time house prices dropped was in the 90's before 2007/08 and they have trippled in price since the 90s, not all people can wait 10 to 15 years for the boat to come back......


http://www.housepricecrash.co.uk/graphs-average-house-price.php

Fire_Fox

new_home_owner wrote: »

Now thats a load of tosh house prices do fall but not very often i think you will find the last time house prices dropped was in the 90's before 2007/08 and they have trippled in price since the 90s, not all people can wait 10 to 15 years for the boat to come back......

http://www.housepricecrash.co.uk/graphs-average-house-price.php

No really it is you spouting balderdash. Of course you can wait fifteen or twenty years for the next recession, are you going to get some terminal illness simply because you are in rental accommodation? Is there a law that states those in rented housing are not allowed to procreate children or will have them seized at birth if they dare to defy? :rotfl: