Getting Off the Property Ladder an Option?

Running_Horse

chambta wrote: »

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

Glad we got that straight.

chambta wrote: »

I don't expect property prices in my area to be much different in 3/4 years

So no gamble involved then. Go ahead. What can possibly go wrong?

mynameisdave

If you sell consider the following fees.

Estate agent costs for selling
solicitor fees for selling
Moving costs
referencing costs for agencies (plus other possible fees)
Moving costs again when the LL wants his property back.
Moving costs again when you move back into your newly bought house
Stamp duty costs when buying
solicitor costs when buying.

Is the savings in rental compared to mortgage costs going to cover all those possibilities? If it is not, and you are confident that prices will not be that much different then I don't see the point in selling.

Leaves you with the option of renting and having somebody rent your place, but that still has the problem of insecure tenure and agent fees, along with the costs associated with being a LL - gas checks, EPC, agent costs to manage the property, costs to repair, calls to maintain the property and fix a leaky tap...

Realistically I think the best option is the children sharing a bedroom. May not be ideal but I think it is the probably the better solution.

mudshark

If you rent your house out and then rent another there might be tax implications when you do sell your house as it's not your main residence. The kids can share - whole families used to share rooms in the olden days...

chambta

mynameisdave wrote: »

If you sell consider the following fees.

Estate agent costs for selling
solicitor fees for selling
Moving costs
referencing costs for agencies (plus other possible fees)
Moving costs again when the LL wants his property back.
Moving costs again when you move back into your newly bought house
Stamp duty costs when buying
solicitor costs when buying.

Is the savings in rental compared to mortgage costs going to cover all those possibilities? If it is not, and you are confident that prices will not be that much different then I don't see the point in selling.

Leaves you with the option of renting and having somebody rent your place, but that still has the problem of insecure tenure and agent fees, along with the costs associated with being a LL - gas checks, EPC, agent costs to manage the property, costs to repair, calls to maintain the property and fix a leaky tap...

Realistically I think the best option is the children sharing a bedroom. May not be ideal but I think it is the probably the better solution.

Sensible and well written post.

I'd kind of already come to that conclusion after mulling it over.

Castleman

Property ladder or property snake?!

MobileSaver

chambta wrote: »

We need to move in the next 6 months one way or other to give our second child his own room. ... My thought today was to rent this place out,

Apart from all the one-off costs involved the biggest issue for me would be security of tenure.

For me the risk that worst case scenario you might have to completely up-sticks every 6 months or so would far outweigh your two little ones sharing a room. Moving house once in 3/4 years is a massively stressful, emotional and expensive experience, having to do it 2, 3, 4 or even more times if you get unlucky with landlords would be a nightmare.

olly300 wrote: »

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

I have to agree and I don't mean it in a nasty way towards the OP. When I were a lad there were five of us sharing one bedroom that had two bunkbeds in it! Ah, the joys of innocent youth! Of course at that age we knew no better and would it have made any difference anyway - it was just the way it was.

sunshinetours

Can you extend your current place as an alternative? Only skim read the posts so sorry if you have mentioned. Making it into a 3 bedroom house would probably add value even in a falling market compared to other houses so its not dead money

With two kids I wouldn't gamble a secure roof for potential financial gain.

The biggest point many seem to miss in house price falling threads is the fact that is there is a crash, then where will interest rates be at that time. i would wager they won't be at 0.5% base rate. Smaller morge in £ terms yes maybe, but in %age terms no almost certainly not

chambta

sunshinetours wrote: »

Can you extend your current place as an alternative? Only skim read the posts so sorry if you have mentioned. Making it into a 3 bedroom house would probably add value even in a falling market compared to other houses so its not dead money

With two kids I wouldn't gamble a secure roof for potential financial gain.

The biggest point many seem to miss in house price falling threads is the fact that is there is a crash, then where will interest rates be at that time. i would wager they won't be at 0.5% base rate. Smaller morge in £ terms yes maybe, but in %age terms no almost certainly not

It's an idea as there is decent space and we added a Velux window when reroofing.

Perhaps my motives have been slightly misread; the reason for renting would not have been to take advantage of the housing market, more to get the extra bedroom my other half says is essential.

I'd be a winner and loser equally as I'd either buy again in three years in the same market or prices will have risen and so too the value of this place.

It course, the insecurity and the pitfalls of becoming a landlord are far from desirable.