Selling up...

clarab_3

lynzpower wrote: »

this is moneysaving expert- not moneywasting expert!! I completely refrubed my house ( well not the floors, but repainted, bought new stuff for it and styled it out to the max) and paid the solicitors estate agents and removal men.

I had a budget of 1200 for the lot, and went over by about 75 quid.

I came out 37k better off. I paid off some debts, stoozing some others at the mo, and feeling pretty perky about the whole thing.

I didnt HAVE to do this tho, I chose to, and I think the only thing posing problem is when they are attached to bricks & mortar. Ive never been one for caring where I live, wherever I lay my hat & all that

As an aside, I came off my fixed rate at end of October, when my place was under offer, and my outgoings on mortgae were 750 -they went up to 1100 :eek: I just would not have been able to handle the rising prices, and when you can rent for the same or less- why would I want to ?

Thanks Lynz - have to say my whole attitude to money and "belongings" has changed since I turned MSE. It's people that make my life fun - its belongings that got me in the financial doodoo.

Im going to bite the bullet and see a couple of agents - I just dont fancy all the cleaning to sell it!

ZTD

If you look at previous house price cycles, they are about 13 years peak to recovery. This one has gone on a lot longer than most, with what appears to be complicity in sustaining it.

Nevertheless, usually it takes about 6 years to hit the "trough" from the "peak".



HTH

bandraoi

In Ireland they've been saying that house prices are going to peak for 15 - 20 years now. I think they have pretty much - finally, but the market first started rising in about 1990.

From what I can see of house prices in London on an income vs price of housing trend, I can see them continuing to rise for another bit. Not sure about the rest of the country.

thebillet

I have little to say on whether people should rent rather than buy but for anyone considering it I would like to endorse an earlier message; check the costs. We recently sold our house but couldn't use our usual solicitor because he was the buyers uncle and they wanted to use him. However after a little panic as I know how costly solicitors can be, I did a quick check on the net and saved 50% of the usual cost, a good service and all through a proper solicitor.

hope this helps!

bandraoi

ZTD wrote: »

If you look at previous house price cycles, they are about 13 years peak to recovery. This one has gone on a lot longer than most, with what appears to be complicity in sustaining it.

Nevertheless, usually it takes about 6 years to hit the "trough" from the "peak".



HTH

em, that graph doesn't show any 12 year cycle.
It seems to show a peak in 1973, 1977 and 1990 or thereabouts.
If you ignore the second peak mini peak you get one 13 year cycle, which is only visible by ignoring a significant chunk of data.

The end of the second 1989 to 2001 arrows you've drawn in points to a point on the graph that's not even half way up the current peak, and we're 5 years later. The second cycle on that graph runs from 1989 to 2007 and beyond.

So what you've got is ONE 13 year peak to peak cycle, followed and pre-dated by unknown peak market to peak market lengths. From that graph the 13 year peak to peak may be totally untypical of the market, it gives absolutely NO IDEA.

ie you have absolutely nothing to base a cycle on, also the graph starts at £20,000 which while it does help the clarity of the information shown, also tends to over-emphasize the peaks.

To me that graph shows a 4 year cycle, a 13 year cycle and a 17+ year cycle.

ZTD

bandraoi wrote: »

em, that graph doesn't show any 12 year cycle.
It seems to show a peak in 1973, 1977 and 1990 or thereabouts.

Peak to recovery - i.e. when prices are once more at what they were before - i.e. at the top of the previous peak. The year 1977 is not a recovery because it does not equal or exceed the 1973 peak.

bandraoi wrote: »

The peaks are a continuation on from the previous recovery.

If you ignore the second peak mini peak you get one 13 year cycle, which is only visible by ignoring a significant chunk of data.

The end of the second 1989 to 2001 arrows you've drawn in points to a point on the graph that's not even half way up the current peak, and we're 5 years later. The second cycle on that graph runs from 1989 to 2007 and beyond.

Again - not a peak, just a recovery.

For a prediction on how long it's going to be from a recovery to a new peak - you're on your own...

bandraoi

You've still got three peak to recovery cycles, one 12 years, one 13 years and one 6 years (1977 to 1984)

ZTD

bandraoi wrote: »

You've still got three peak to recovery cycles, one 12 years, one 13 years and one 6 years (1977 to 1984)

Ignore 1977 - the housing market hadn't recovered at that point. It's peak to recovery. It's not a recovery, so it's not important.

If you want to go from any point where there is a rise in house prices during a long-term cycle, (without a recovery) you could try 1992-1996. Or if you wanted, zoom the graph in more detail and undoubtedly they'd be monthly ones.

The graph shows that from a historical maximum, until that value is attained again, it takes about 12-13 years.

Not guaranteed to, but further grist to the mill.

backtomum

clarab wrote: »

hi folks - long time no see, i've been keeping the head down and doing overtime.

Been giving a lot of thought to houseprices recently and selling up. Basically I have a good amount of equity in my home, but stand to lose about £20k from that if prices crash in the next year as many are mooting will happen. I live in the city centre and its typically one of the first areas people will bail out of in a problem market.

Now, no one can afford to lose £20k and selling up would repay all debt and leave me a nice nest egg to tie up. Renting would not cost more than my mortgage.

So why am I so sentimental about my home? How did any other DFW's deal with moving into a rental?

I have sold to pay off my debts. We sold last year as we thought prices would have started to fall. I still believe this will happen eventually.

Pros
Paid 25k of debt off
Can now sleep at night
Have 30k equity in a high interest account, ISAs etc

Cons
Hate living in a rented house
Rent costs us more than our mortgage did (then again we had massive debt repayments too)
Scared in case landlord decides to sell and we have to move again
Worried stiff in case we get priced out and never own again

Even with the cons myself and other half definitely think we've done the right thing by selling up. We could have put the debt on the mortgage but decided to take what could be considered a high risk. It all depends on if you feel its worth it!

Good luck with whatever you decide

rayday2

I honestly wish we had stayed in rental. When I left my first husband he kept the house and I got a terrace, looking back it was huge and the rent was £325 a month. I met my current hubby and it seemed right to get married, buy a house have a baby.

So now 18k down the line, have a house in an OK area but needs a hell of a lot of work and everytime something breaks its down to us. Plus if hubby loses his job we have to find the mortgage if you rent you can get help (not that I want anyone to loose a job!!!)

Its not the end of the world and so what you own a house, you own roofs that need replacing, windows, heating systems, fencing and it is all a drain. If you can be debt free you really can start living and maybe save up to get on the housing ladder again if you fancy or enjoy the guilt free holidays!