Sell house and downsize - bitter pill to swallow

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poledancer49
poledancer49 Posts: 119 Forumite
edited 25 January 2013 at 6:00PM in Credit cards
I have just joined this site.....looked at some previous posts regarding sell house and downsize to pay off debts. I'm in a situation where this may be an option but bought our house in July 2007 just before house prices started to drop and now have lost value on the house...possibly worth £55,000 less than in 2007. Like a lot of people debt has caught up with me and to be honest am sick and tired of struggling every month but also realise that I am very lucky as have a bit of equity in the house even after the drop in value (approx £170,000) but do I sell now or see if the market picks up. So annoyed that I have lost money and just wonder if I should just plod on?

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  • phoebe1989seb
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    Our circumstances were slightly different in that we moved to the wrong area when we sold/bought in 2007 so selling up/buying again was more about finding a place in which we could settle and be happy, but like you we had to take a financial hit in order to do so. We'd spent in excess of £40k on restoring our very old period property and on top of that *loss* we sold in 2011 for £20k less than we'd paid - so a total loss of £60k+ :(

    We knew it would be pointless pricing to reflect our costs - we'd still be on the market now if we had as it's a slow-moving area - so we deliberately priced realistically and achieved a quick sale which was some consolation.

    However, the difference it made to our lives in buying somewhere in a nice area is priceless :D

    As you've got a fair bit of equity (we did too, being mortgage-free and fortunately we were able to buy on without recourse to borrowing) and if the current situation is getting you down, I'd say it's virtually a no-brainer.

    Good luck with whatever you decide!
    Mortgage-free for fourteen years!

    Over £40,000 mis-sold PPI reclaimed
  • KonkyWonky
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    If you wait on the market picking up you may get more for your property but you will also have to pay more for the property you move in to (unless you plan to rent).
  • bengalknights
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    If you can wait it out do so otherwise sell.
  • System
    System Posts: 178,104 Community Admin
    Photogenic Name Dropper First Post
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    As other's have said, if you wait until (if) prices recover the house that you'd buy will also likely rise too.

    You can always make more / spend less money - but life is too short to be dragged down.
    However, the difference it made to our lives in buying somewhere in a nice area is priceless :D

    As you've got a fair bit of equity (we did too, being mortgage-free and fortunately we were able to buy on without recourse to borrowing) and if the current situation is getting you down, I'd say it's virtually a no-brainer.
  • Layla_T
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    Agree with KonkyWonky. Whatever Market you sell in you'll be buying in the same. If you're ready to move on then why waste time. Get it on the Market and as soon as you get an offer go out and find yourself a bargain.
    Good luck with it!
    Layla T
    :D
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    Buying and selling will incur cost, particularly sd, so economically best to stay where you are. As this on the loans board do you intend to repayother debts?

    Long term outlook for housing is flat, very low rates and lack of supply provide support but lack of growth in incomes mean no rapid increases either.
  • poledancer49
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    Thank you all for your comments. Will think long and hard how best to move forward.

    Bigadaj- What did you mean by : As this on the loans board do you intend to repayother debts?
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    Sorry it actually on the credit card board, my mistake. The point of the comment was that I would have thought that a housing question would have been on one of the housing or mortgage boards.
  • poledancer49
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    I see...sorry.....raised question and did not realise at the time that there was different categories.
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