Coming off the ladder-bad idea?

*Summertime*

I have just had my first baby and want to spend some more time with her (i.e not work full time).

We have decided to move back in with my parents and sell the house. While we are here we will save save save, add this to our funds from the house sale and hopefully be in a very good position to buy something decent in a year or 2.

But people are saying we are 'mad' to come off the property ladder. Any views?

Nickynoo1

can you not rent it out instead? personally I wouldn't sell, you may find it very difficult to get a mortgage in a year or 2 and who knows what will happen to property prices in that time. Having said that, you have to do what you feel comfortable with and make decisions that are right for you now.
good luck

*Summertime*

Thank you.

We have toyed with the idea of renting, however there is quite a lot involved: increased fees in mortgage (consent to let) all the safety reports (our house is very old and more than likely need a new fuse board), finding the right tenant....the list goes on.

Also, if we see something in 6 months or so that is a little gem (I search the internet for property daily just because it interests me) we would need to be in a position to move.

I understand it being difficult in this time but surely if we have a good deposit getting a mortgage shouldn't be too difficult?

We have been getting the house ready for letting for a while now although I wanted to sell, now we are selling I feel a huge weight has been lifted......until this evening when I am wondering if we are doing the right thing!!!

Nickynoo1

It sounds like you've armed yourself with lots of information and are able to make the right decision for now. It will be easy to look back and say, oh I wish we had done so and so. Unfortunately we dont have the benefit of hindsight. Perhaps worth speaking to a mortgage advisor to see how easy it is to get new mortgages these days?
I rented my house out through a lettings agents and it has been relativly stress free. Perhaps worth getting one round to talk about the options available. At the end of the day you will have to decide what is best for you now, and let the future bring what it will
regards

DannyboyMidlands

I fail to see why your idea has been described as mad. Provided you bank the equity and don't spend it then I can't see a problem.

Thrugelmir

Would you need to return to work full time in order to meet your current mortgage payments?

Mint1955

My one big question would you have private space back at Mum and Dads as although it sounds a great idea think long and hard about how it will be in the cold light of day.

LittleMissAspie

Financially I don't see the problem. With the equity and a couple of year's savings you should have a big deposit when you buy again so it shouldn't be hard to get a mortgage (assuming clean credit, average income). I really cannot see house prices going up in the next few years.

But can you really live with your parents, partner and baby? I think I'd go mad.

dimbo61

Renting out a property is alot more work than people think and with older properties you may need to do a complete rewire with hard wired smoke alarms, heat sensors, security lighting, gas safety checks, landlords insurance, consent to let ETC
What you might save on is stamp duty and selling costs so lots to consider

hcb42

Firstly don't worry about people who say you are mad. It's just that it's not their choice, or they think that prices will rise and you will lose out, or spend all the money on overseas cruises and not be able to get back on the ladder again, or simply that they value home ownership and all that it brings.

As it happens I think you are mad too. But it doesnt make me right, and it's not my decision. You've done your homework, you have to do what feels right...

I've been told a few times I have made 'mad' decisions, just because they don't fit to the norm or whatever - but they have all worked out

sismith42

Sounds to me like you're not "coming off the ladder", you're "putting yourself into a situation where you will be the ideal candidate when the right property comes along". Or so you can tell people when they criticise. It's even basically true, since you're planning on buying again in 1-2 years (or 6 months if something right comes up). How many people on here are lauded as sensible because they plan to sell, rent for 6 months, then buy? Just beware of captiol gains tax if you don't buy within a certain timeframe (2 years?)