Should I sell the house and rent instead?

Jowo_2

cannegan wrote: »

...We're having the house valued tomorrow so that may sway my mind one way or the other.

Well, there are estate agent valuations and then there's the actual selling price, if it sells. In some places, there's strong supply and few buyers.

A friend of mine has dropped their selling price over the last 6 months by 40k (around 20% of the original asking price) and still no takers because there's a total glut of properties for sale in her area.

What are similar properties in your specific local area actually selling for?

cannegan

Around £135 - £140 - desirable village due to reputation of secondary school. If we can't sell it for enough, we won't move! We're not so desparate that we'd make a loss on it. But true about the valuation. I will presume it will sell for sometjing under the valuation, and go from there.

There is still something at the back of my mind saying 'keep on that property ladder,' but i honestly can't see why. I think it might be my my mother's nagging drone....

SimbaSimon

cannegan wrote: »

Hi there - really confused so hoping someone can advise. We have a secured loans / mortgage worth around £125000 on a house worth £135000. We are also in a debt managment plan with payplan to repay debts of around £50000. Also have a car loan of £270 / month.

I think if we sold our house the equity should just about be enough to pay for removal / fees for leaving mortgage agreement / stamp duty etc. Our mortgage and secured loan payments are around £900 a month, and we could rent a decent sized house in the same area for £600 - £700. Should we do this and to save £200 a month, plus save on house insurance / life insurance costs? I should add that we are only paying interest on our mortage payments, so they feel like wasted money anyway!

I thought we could consider buying again once our debt management plan finishes, by which time we would hopefully have saved enough for a deposit?

Please help!

Many thanks

Personally if it were me I'd see where I can cut down. £200 a month isn't much and you'd need 6 weeks deposit anyway for renting plus if going through a rental agency any admin fees that come with it (contract fees, credit check fees, etc, it soon adds up!). Start cutting down wherever possible, get on the DFW board and see where you overspending. Start tackling your biggest APR debt first, clear it then move onto the next debt.

cannegan

Well, our budget is as tight as it can be - hence the DMP, which is paying off all my unsecured debts (5 of them) interest free at the moment. Definitely can't trim the budget any more (tesco value beans and noodles are a staple part of the family diet!)