Getting Off the Property Ladder an Option?

chambta

We currently have our two bed terrace property on the market but I'm not holding my breath in the current climate. We need to move in the next 6 months one way or other to give our second child his own room. (7 months old, daughter 3 and a half). Rather than waiting to sell then buy there may be a second way.

My thought today was to rent this place out, or sell if a buyer comes along, and use this next 3/4 years to stand still, rent in the area we want to live and try to save more for the deposit. (Rent should actually be less than the mortgage would be on similar properties). I have saved a reasonable chunk and the equity in this place is not significant.

I don't expect property prices in my area to be much different in 3/4 years and then my partner will be able to work thus increasing mortgage affordability at that time. We should also be in a strong position with no chain should our perfect property come along in the meantime.

Any thoughts? Anything relevant I've failed to mention?

MadnessOfHPI

With prices falling getting off the ladder would be a very good idea. In three or four years there's a very good chance price will be lower than today, maybe considerably lower.

Sell up, rent and save up the spare money you are saving on the mortgage vs rent. Save as much as you can and buy back in at a lower price in a few years time.

Running_Horse

I wouldn't sell up and move my family into rented accomodation, but then I don't see our home as a financial speculation, and love my family too much to gamble their future on an uncertain prospect. You might as well sell up and put the money on red in a casino.

I want prices to fall as much as the next person, but doubt they will do so enough to make it worthwhile selling. From memory, even those who sold at the peak in 2007 were not much better off, once you took all costs and rent into account. Whether it be shares or houses, few have the luxury or foresight to buy and sell at the perfect moment. Life just isn't like that.

Oh, and there is a house price forum for house price discussions.

ukcarper

MadnessOfHPI wrote: »

With prices falling getting off the ladder would be a very good idea. In three or four years there's a very good chance price will be lower than today, maybe considerably lower.

Sell up, rent and save up the spare money you are saving on the mortgage vs rent. Save as much as you can and buy back in at a lower price in a few years time.

You will probably get posts like the above one telling you to sell as prices are almost certain to drop and you will probably also get post telling you house prices will go up.

But no body knows what is going to happen you only have to look at the last 4 years to see that so all I would say think very carefully before you make your decision and be very careful who you take advice from on here.

Running_Horse

ukcarper wrote: »

be very careful who you take advice from on here.

Very many of those advising silly offers and predicting an imminent crash have never even owned a house. What do they know about whether you should sell or not?

LilacPixie

No one knows what will happen in future. You need to make the decision for yourself (i'm toying with similar thoughts myself).

One thing we have considered is having the kids sharing, is it possible for the short term while you keep marketing your current home. Could your current 2nd bedroom accomodate two children? How pressing is this move?

TBH I have pretty much decided to keep marketing my home then see what happens when it sells. I have pretty much discounted renting this out and renting elsewhere because I feel the negitives for us outweight the benefits.

olly300

Unless the bedroom your daughter is in is ridiculously small your children can easily share until she is 7/8.

For some reason there is now a ridiculous idea that children of different genders can't share rooms while young.

Lots of young children are happy sharing rooms, even if they fight with one another, and in fact some refuse to sleep in a room alone until they are around 7.

Brallaqueen

Your children could share the second bedroom - bunkbeds for example?
Do you have a second reception room that could do the job (not all terraced have, to be fair) or a cellar to convert for more space?
Problems with renting could be varied- problem landlord, problem agent, rent increases, notices served etc, even just the landlord's circumstances changing.
I personally would baulk at renting again because it leaves you that much more vulnerable, not a good situation to be in when you have children.

MadnessOfHPI

MadnessOfHPC wrote: »

When on the ladder only a fool would sell to rent. Refer to Mr Davies.

Only a fool would stay on a ladder that is getting kicked from under them if they had the chance to get off.

ukcarper

I think you can see what I mean

chambta

Running_Horse wrote: »

I wouldn't sell up and move my family into rented accomodation, but then I don't see our home as a financial speculation, and love my family too much to gamble their future on an uncertain prospect. You might as well sell up and put the money on red in a casino.

I want prices to fall as much as the next person, but doubt they will do so enough to make it worthwhile selling. From memory, even those who sold at the peak in 2007 were not much better off, once you took all costs and rent into account. Whether it be shares or houses, few have the luxury or foresight to buy and sell at the perfect moment. Life just isn't like that.

Oh, and there is a house price forum for house price discussions.

My post isn't about house prices any more than buying, selling or renting. Thanks anyway.