Selling Up and Bailing Out

500Triumph650

Had the Estate agent in today and signed the papers. First viewing tomorrow. I am selling up and taking the £100,000 equity. It's renting for me for at least the next 4 years. I am doing this because I have large debts to settle but I am comfortable with it because I think the crash is coming

PJD

heh heh!

Join the club :beer:

I sold in December 06, put aside the equity (not quite as much as yourself, but I have no debts) and i'm staying off the ladder also.

I have different reasons, ie not sure where I want to live at the moment, - but even if i did, I would not buy. Houses are just not worth the asking prices at the moment IMO. So even if I wanted to get back on the ladder now, - I wouldn't.

Slaving away for the rest of my life paying off a huge debt on a cramped little shoebox is not my idea of a life tbh.

If there's no correction in the future, and things actually "level out" like some people expect, - then I think I'll end up moving out of this country.

Romani_Ite_Domum

500Triumph650 wrote: »

Had the Estate agent in today and signed the papers. First viewing tomorrow. I am selling up and taking the £100,000 equity. It's renting for me for at least the next 4 years. I am doing this because I have large debts to settle but I am comfortable with it because I think the crash is coming

Good timing IMO and good luck.
I have been trying to sell for a while now. The market in my area appears to have stagnated with little selling.

Greenstuff_2

Me too, had a house I didnt want to be in forever, huge interest only mortgage with debts and no spare cash. Sold at the end of last year for a good price, didn't make a fortune but paid off all debts with a little aside, renting a nicer house in the area I do want to live in and paying much less than I was on my mortgage.
We are happier than we have been in years, are having the first 2 week foreign holiday since our honeymoon 7 years ago.
Our lifestyle is better, even if we don't manage to 'get back on the property ladder' for a few years we are happy with our decision.
I check rightmove regularly and have a gleeful grin every time a house is reduced (although they are on for stupid money to begin with, some 100k more than last years sold prices).
I think if you have a long term fixed repayment mortgage that you can comfortably afford, know you don't want to move again for some time and maybe have some equity in your property than great, if not then think seriously - especially if money's tight and or you don't love your home.
It's not perfect and I would honestly prefer to own my home, and do want to buy again at some point but given the choice I would stay here with the financial security rather than own my own home and be constantly worried about money and not be able to afford any treats - especially for my children.
I wish you the same feeling as we have, best of luck.

pricedout_1

Good luck to you all. I think you've timed it well ... IR and inflation are on the up and the USA is falling. HIPS could also put a large spanner in the works. Make sure you save and/or invest the equity to reduce the capital and interest on your next mortgage.

martwise

Very refreshing thread, i really wish the best of luck to you people. i am also leaning towards this idea and i think the clincher was more treats for the kids without the financial worry.
once again good luck, but you wont need it

CB1979_2

hughgallagher wrote: »

Good luck to you all. I think you've timed it well ... IR and inflation are on the up and the USA is falling. HIPS could also put a large spanner in the works. Make sure you save and/or invest the equity to reduce the capital and interest on your next mortgage.

hmm this morning on the radio, reckons the introduction of HIPS will increase the value of houses in london/south east

reckon once the HIPS are introduced fewer will come onto an already intense market place.

but i can see why people want to sell to rent, to release their "equity", etc. good luck hope you don't end up regretting it.

meanmachine_2

I was looking in North London earlier in the week.

Even in the poorer parts two bedders with short leases are going over the 3% stamp duty threshhold.

As they say on Dragon's Den, I'm out!

(Paying sellers silly money is one thing, but giving Gordon Brown 7K plus, na ah!)

harryhound

Victorian terrace (1970 make-over).

Bought 7.5 years ago sold 2.5 years ago.

Cost 50K Sold 131K.

Nethouseprices suggests some have sold as much as 155K since.
(2000+ makeover ?).

Next door but three has just sold for 134K (Trying to remember if this is still in original (run down) condition).

Nobody blows a horn at the top of the market or rings a bell at the bottom.

"Markets always do what they have to do to make fools of the majority"

pricedout_1

CB1979 wrote: »

hmm this morning on the radio, reckons the introduction of HIPS will increase the value of houses in london/south east

reckon once the HIPS are introduced fewer will come onto an already intense market place.

Sellers wiil just try to add the cost of the HIPS onto their already over inflated asking price ... which will just put off more and more buyers. On the other side of the coin more and more sellers will be put off from moving ... less properties on the market ..... STALL

van_persie

hughgallagher wrote: »

Sellers wiil just try to add the cost of the HIPS onto their already over inflated asking price ... which will just put off more and more buyers. On the other side of the coin more and more sellers will be put off from moving ... less properties on the market ..... STALL

You're suggesting stagnation, are you?
One simple reason this theory doesn't hold water is sentiment. Forget HIPS - house prices are way too high. The media are turning, Joe Public is realising that HPI isn't necessarily a good thing and Uncle Sam's tanking.
When our market turns it will take years to reach its cyclical bottom. Why won't people buy up houses as soon as prices drop? Because the sentiment will have changed from 'buy now, or miss out' to 'why buy now when it'll be cheaper tomorrow?'
I estimated mid 2007 as the real turning point for the market last year owing to inflationary pressures. But it won't be inflation/high IRs that take the market down - it'll be the trigger. Sentiment will do the rest.