We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Selling To Rent
kopicbloodaxe
Posts: 76 Forumite
Hi all,
For various personal reasons we have decided to sell our house in Hampshire, use the profits to pay off our large-ish debts and move into rented accomodation in Hertfordshire. I know all the arguments against renting ("dead money", etc) but I see this as a viable option because I will be able to fairly quickly (a year or two) save up enough as a deposit to buy another house (if we decide to do so) as I won't be paying off the debts any more.
The bottom line is that we have to move. There's just enough equity to cover the debts with nothing left for deposit on new house.
I would be grateful for any thoughts anyone may have on this subject!
I am hoping that there will be a drop in house prices over the next few years which will further salve my conscience for this seemingly retrograde step!
Many thanks.
--Simon.
For various personal reasons we have decided to sell our house in Hampshire, use the profits to pay off our large-ish debts and move into rented accomodation in Hertfordshire. I know all the arguments against renting ("dead money", etc) but I see this as a viable option because I will be able to fairly quickly (a year or two) save up enough as a deposit to buy another house (if we decide to do so) as I won't be paying off the debts any more.
The bottom line is that we have to move. There's just enough equity to cover the debts with nothing left for deposit on new house.
I would be grateful for any thoughts anyone may have on this subject!
I am hoping that there will be a drop in house prices over the next few years which will further salve my conscience for this seemingly retrograde step!
Many thanks.
--Simon.
--Simon.
0
Comments
-
To me this seems a valid reason for selling and renting if there is no additional equity in your house Paying off your debts is positive.
You are not doing it to speculate on a large housing crash (though guess you will be praying for it!) which I consider a "big gamble".
My only advice is when finding a rented house that is meeting your basic requirements (rather than your ideals as you don't own the house) so that you can get the lowest rental rate to allow you to save more quickly.0 -
I guess you have no choice if your debts are really big. This would seem to be the most mature decision to make and I congratulate you on "biting the bullet".
I would urge you to take every opportunity in the next few years so save as much as you can to get back on the ladder. This is going to be very boring and a hard slog but you can do it if you try.
Use this site as much as you can to get the best deals on everything, and pay over the odds for nothing.
Good luck !0 -
Thanks for your thoughts. I hadn't really thought about the "meeting your basic requirements" angle but it makes sense. As long as I'm not paying more than my current mortgage for the rent then I'll be happy.--Simon.0
-
Maybe it's better to make a quick calculation on how much of your repayments are/were actually interest and compare the rent against that.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604K Mortgages, Homes & Bills
- 178.4K Life & Family
- 261.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards