good idea or not? what you think

mooncat

thinking of selling my house . then moving into the girlfriends parents for a while whilst we look for a new property.

i will have a large sum of money readily available for my next house purchase.

do you think this will enable me to get the house i want easier.

cant think of any major pittfalls unless the housing market suddenly takes of

Pal

Depending on the rent that you will be paying this seems like a good idea to me. I have done the same but am renting a house with my family - Mrs Pal would probably object if I moved in with my girlfriends parents

Personally I have done it because I think house prices are going to either stay static or fall, and I want to wait a year or so, earning interest on my realised equity, to see what happens.

I also want to be able to buy without a chain below me, and want the flexibility to continue renting for a couple of months after moving so that we can decorate etc. Being a cash buyer should also smooth the wheels a bit. Obviously these advantages also apply to you.

Worst case scenario, house prices increase and you lose out on some of the equity when you buy back in. You never worked for the equity anyway, so you haven't really "lost" anything - it is just an investment gain on your old house that you didn't get to take full advantage of. I also personally believe that any significant house price rises are unlikely.

mooncat

thats what i was thinking. they wouldnt charge us rent anyway and also id save on bills.
so this would offset the worse case as you say if they did suddenly rise quickly.

99% sure im gona take the chance

Jay-Jay_4

If I were selling a house and had two buyers, one has a house to sell and is in a chain, the other has the money in the bank and can complete straight away......I know who I'd rather sell to.

If house prices rise then that's obviously a shame but you would be in a MUCH stronger position to buy when your dream house comes along, possibly saving you money as a lower offer with the promise of a quick sale may be accepted.

It's a great idea IMO.......go for it.

loanranger_4

We've been in a similar situation for a couple of months (staying with family) and house hunting! (no rent, no notice period, they can't wait for us to move out!)

However when it comes to offers we have found that we can't make the savings that we thought we might be able to by offering a little less (as there are other chainfree buyers), we're simply preffered over other non proceedable buyers. By selling now you would also remove risk that might jeopardise the purchase of your dream home!

Also with the market relatively static you're unlikely to lose out in the short term.

deemy2004

mooncat wrote:

thinking of selling my house . then moving into the girlfriends parents for a while whilst we look for a new property.

i will have a large sum of money readily available for my next house purchase.

do you think this will enable me to get the house i want easier.

cant think of any major pittfalls unless the housing market suddenly takes of

Having cash in the bank as against needign to sell a house is always an advantage ! Think of all the interest you will be earning whilst house prices are falling - could make a big difference in 3 years of falling prices as against 3 years of earning interest...

Ive calced if house prices fall by 12%, then I will be 27% better off in 3 years time !

Even if it does not fall, but rises, depending on the size of your cash pile, it would need to rise more than the interest your earning..

Elliott_Woods

Yes Mooncat this is a very good idea if you can put up with girlfriend's parents. They may seem very nice but dont forget people are different to live with.

The other point I think I should mention is that if you are putting your equity into any purchase jointly with your girlfriend, and your girlfriend is not putting an equal amount in the transaction then you should consider having a Trust Deed drawn up in the event that you split up because without this she could claim more than her fair share of the equity.

Also you would need to consider how to hold the property "legally" but again your Solicitor/Conveyancer will advise on this.

Hope this helps.

mooncat

yes i did wonder what to do as 95 % of the money being put in will be mine. i suppose i should speak to a solicitor when finally i purchase new house

Woby_Tide

deemy2004 wrote:

Ive calced if house prices fall by 12%, then I will be 27% better off in 3 years time !

Out of curiousity does that include rent/living expenses during the 3 years or net of that? Impressive figure though.....if it happens