I'm going to sell, and here's my plan....

HeWhoDares

I've got £100,000 equity in my house.
I'm going to sell and rent.
Rent will need to be subsidised by £350 to live on current means.
I'm going to fill up my (and wife's) ISA's with as much as possible (against FTSE 100 currently (Jupiter Finance)).
Then with as much as good interest rates allow, I'm going to contibutr to Regualr Savings accounts monthy (electronic setup).
Whatever's left I'm going to bank in high interest account.
I'm also going drip feed the £350 into my account for the rent subsidy.

Obviously I'm banking on the housing crash and making myself Interest Rate immune.

What do you money savers think - I'm still very much researching this idea!!

Thanks Guys - and keep winning!!!

silvercar

if rents ever increase you'll lose out!

what happens when your 85? if you had kept your house and mortgage you would then be living rent free, with your plan you'll still need to find the rent.

can you face moving home with 2 months notice, on a landlord's whim?

bobsa1

Renting can be insecure, what if landlord decides to sell etc. Also if the market doesn't crash and at some stage you want to buy in the future, getting back into the market could be tricky.

Good luck with whatever you decide.

whambamboo

HeWhoDares wrote:

I've got £100,000 equity in my house.
I'm going to sell and rent.
Rent will need to be subsidised by £350 to live on current means.
I'm going to fill up my (and wife's) ISA's with as much as possible (against FTSE 100 currently (Jupiter Finance)).
Then with as much as good interest rates allow, I'm going to contibutr to Regualr Savings accounts monthy (electronic setup).
Whatever's left I'm going to bank in high interest account.
I'm also going drip feed the £350 into my account for the rent subsidy.

Obviously I'm banking on the housing crash and making myself Interest Rate immune.

What do you money savers think - I'm still very much researching this idea!!

Thanks Guys - and keep winning!!!

The FTSE 100 is high risk I understand.

Ask on the Savings and Investments what do with £100k.

I believe you would aim for a range of unit trusts across a variety of sectors, e.g., £10k in Japan, £10k in Europe, etc.

whambamboo

silvercar wrote:

if rents ever increase you'll lose out!

what happens when your 85? if you had kept your house and mortgage you would then be living rent free, with your plan you'll still need to find the rent.

can you face moving home with 2 months notice, on a landlord's whim?

I don't think he proposes this is a long-term thing, but rather a short/medium term bet on property prices falling.

With £100k invested sensibly you could make >£5k/annum net

I think 2 month's at the landlord's whim is not the worst thing in the world, and fairly uncommon in reality.

HeWhoDares

I missed out that this is a 4-5 year plan - judging the housing market. If prices fall and interest rise, then I'm laughing. This is still speculative, but judging by the high personal debt, high mortgage debt and over valued house price (6 times avg salary as opposed to 3.5 five years ago), I can only see interest rate rises and house price drops (40% in 90's).
Am I blinded?

noyk

No by all means go for it. I too believe the economy is screwed up at the moment and if i had a house to sell i probably would! You'll have a lot less to worry about with renting anyway and with cash like that in the bank, you should sleep soundly.

advent1122

I wonder how many people have done this over the last 5 years and are now totally screwed, unable to get back on the property ladder at the stage that they left it.

roswell

If they put there money in the right places and didnt spend the capital regardless of the current market if the slump hits there on a winner, if not they either accept it as a risk they took or hold out till wage inflation rises in line with cost of living.

ginger_nuts

ok here is my story .January 2005 I decided to buy a cheap BTL property .
I hadnt a clue .But I bought a one bedroom flat in May 2005 ,cost £40,000 .As I said a cheapy .By April 2006 it was worth £55,000 .I thought £15,000 in 11 months really good .This week I phoned an estate agent to ask for a valuation .........£90,000 .Would I sell my house and pay rent to someone else ,no way . different areas different prices.

densol_2

But what about your happiness? Both me and my fiancee having seperated from our ex partners have been in rented for 18 months. We are finally at the end of legal wranglings in divorce and about to complete on the purchase of our new home together. We are 41.

Living under Landlords rules, boredom at being unable to do anything to the property and hating the decor and carpets have frankly drove us mad for the last 18 months.

Having owned a property before and then going into rented - think about the enjoyment as well as the money - I would say