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Is buying and reslling in 5 years feasible?
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rainio
Posts: 44 Forumite
Hello there,
we're thinking of buying a house for around £410,000 in Bromley.
Is it feasible to buy with an intention of selling within 5 years and buying elsewhere in London, not to make a huge profit, but to at least break even (with all the taxes and fees)?
I think it'll be pretty close. I think it'll be around £20,000 in fees, so the main question would be would house prices rise by £20,000 in 5 years - difficult question, I know, especially with talk of a double dip recession.
What do you guys think?
Cheers.
we're thinking of buying a house for around £410,000 in Bromley.
Is it feasible to buy with an intention of selling within 5 years and buying elsewhere in London, not to make a huge profit, but to at least break even (with all the taxes and fees)?
I think it'll be pretty close. I think it'll be around £20,000 in fees, so the main question would be would house prices rise by £20,000 in 5 years - difficult question, I know, especially with talk of a double dip recession.
What do you guys think?
Cheers.
0
Comments
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Look at it this way: it would be equivalent to paying £20k in rent for five years. Do you think that's a fair amount to live in a £400k house?0
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You'll be paying two lots of stamp duty alone, and that's on top of the other fees. I think you'll lose a lot of money. Plus, there's the mortgage to pay (i'm assuming it's not a cash purchase). You'll probably lose £40K+ in just fees and stamp duties.Everyone is entitled to my opinion!0
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BitterAndTwisted wrote: »Look at it this way: it would be equivalent to paying £20k in rent for five years. Do you think that's a fair amount to live in a £400k house?
It's not as simple as that - if you are going to compare the cost with renting then you also need to take into account the interest on any mortgage paid over the five years and/or the loss of interest on the capital that you will be putting towards the purchase.0 -
buy it for 20k less that way you have a safety net0
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who knows!
If it holds value, it will be worth it anyway, plus you would be able to get next place having contributed 5years off mortgage, which will be significant chunk of cash paid off. (assuming it is mortgaged)
You could spend your life wondering what if...you might not even move. You dont say why you would do this, I tend to move for career reasons or aspirational reasons, if my income has gone up say, but not with five years notice.0 -
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