Stepping off the property ladder - help?

kim.pollard

Hi, I’m currently in the process of selling my 50/50 shared ownership property in the Midlands because I’ve got a job in London and can’t afford to pay rent in London as well as the mortgage and rent I have to pay my own property, so I’ve decided to sell. Obviously this means stepping off the property ladder as I can’t afford to buy in London either, I’m starting to feel very nervous as I feel like I could be making a huge mistake.
Am I making a huge mistake stepping of the property ladder? I have made quite a decent profit in the 18 months and I’m thinking of either putting the profit in to a savings account until I’m ready to buy again (this could be years in London) or buying a property to let out to students, is this a good idea or does anyone have any better advice?

Nervous and confused…. I really don’t want to make a huge mistake. If anyone has got any advice at all I would be extremely grateful.

Cheers.

bert

Now is a good time to get off the property ladder.

frugal_dougal_3

Wouldn't it be possible to rent out your property in the Midlands to cover the cost of your mortgage on it ?

Obviously you need to work out the mathematics to see if you can afford to keep it, and I agree with you that it seems a retrograde step to get off the ladder despite all the doom and gloom being bandied about.

BTW Bert is a self confessed wind-up merchant so I should disregard his comment ! Read his past posts to get the full and frank admission.

dougk_2

I would favour f_d ' s idea myself , however as its a shared ownership house you may have problems with the property company/agency - they may not link you in effect sub-letting... this said maybe you could purchase the other 50% also and still cover the rent?

Personally I think once you are off the ladder its hard to get back on and you have to make sure you don't spend the money you have from the sale.

spotter

Kim

Some ideas..

Is buying a shared ownership property in the London area an option? Priority is given to existing council or housing association tenants, and those on waiting lists. Google on 'shared ownership property london' .

Have you looked into the home ownership schemes run by the government such as key worker living?

See http://www.odpm.gov.uk/stellent/groups/odpm_housing/documents/divisionhomepage/033487.hcsp

Good luck
spotter