Selling Up and Bailing Out

Rick62

I live in a house that would probably cost about £500k to buy but pay rent of £1250/month. You do the maths.

hearts

Rick62 wrote: »

I live in a house that would probably cost about £500k to buy but pay rent of £1250/month. You do the maths.

Aye but if you bought a place with a mortgage and costs amounting to that 1250 then you would own an asset that in the right area would increase in price over the next few years ( only in the opinion of some I agree). So you would be investing 1250 a month instead of giving it away ;-)

Gorgeous_George

Good luck to all MSEers selling to rent!

I won't be selling my home but if your reading of the market is right, you will make £££s out of other people's misery. I'll be happy in my home with a relatively small mortgage. Of course, if you are wrong and prices continue to rise, so will rents and you will be able to spend all your equity on a BTL tenancy.

Good luck!



GG

Uncle_Fester_2

This will be your biggest financial mistake! :rolleyes:

meanmachine_2

hearts wrote: »

Aye but if you bought a place with a mortgage and costs amounting to that 1250 then you would own an asset that in the right area would increase in price over the next few years ( only in the opinion of some I agree). So you would be investing 1250 a month instead of giving it away ;-)

Come again?

The poster is renting a 500K pad for 1250 a month.

If they wanted to "buy" the place interest only (in other words rent from the bank) they'd be stumping up 2100K a month.

That's insane.

Gorgeous_George

meanmachine wrote: »

Come again?

The poster is renting a 500K pad for 1250 a month.

If they wanted to "buy" the place interest only (in other words rent from the bank) they'd be stumping up 2100K a month.

That's insane.

Of course MM's sums are right but what price 'owning' your own home?

The £1250 per month rent may increase every year (depending on local conditions) but would still seem to be good value providing the rent doesn't increase by more than 60%.

As for the LL, maybe (s)he expects to live in the house one day or is keeping it for a child or relative. Selling may not be an attractive option either, due to CGT implications.

Maybe the LL paid £250K for the property and is, therefore, earning 6% on his/her investment (before tax). Maybe the LL is making a loss and offsetting this against a gain elsewhere. Just maybe, the LL is building up a property portfolio for the long term.

Make hay while the sun shines.



GG

vansboy

Not quite sell to rent, for us, but, sold & moved into a flat which was my mums place. We 'bought out' my brothers share of its value when Mum died & kept it since.

Not sure how long we'll need to be here, 'till we can find another house, so spent £20k completle refit, throughout - it hadn't been done for a loooooooooong time & we've now got it like new & the way we want it, also making it the best flat in our road!

Only thing is, we're finding it really hard to even get to view any houses we like, despite there being plenty to choose from. & the HIP will only make it harder, 'cos I reckon anyone that was intending to sell, in the near future, will already be on the market now!!

VB

franklee

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.

Been there, done that, got the [STRIKE]tee shirt[/STRIKE] money in the bank.

I think people forget (or don't realise) what a wad of cash can do, I can easily live off the income from mine.

500Triumph650 wrote: »

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

Welcome to to dark side, the numbers here seem to be growing

ManAtHome

Depends on your circumstances and plans - personally, I think England is well stuffed, although TB and GB and many others will ride off into the sunset with their (many more than) 12 peices of silver.

On the other hand, you may have more belief in the "miracle economy" (based on ever-increasing debt) than I do - circumstances and plans...

Romani_Ite_Domum

meanmachine wrote: »

Come again?

The poster is renting a 500K pad for 1250 a month.

If they wanted to "buy" the place interest only (in other words rent from the bank) they'd be stumping up 2100K a month.

That's insane.

If I sold today I would be looking at a £550K property advertised for £1200pcm. It's been on the rental market for a while so I think I get that down a little.

It's not that insane when you consider the 500K property should be worth nearer 300K if the housing bubble hadn't been engineered in the first place.