sell to buy or rent? FA help please

tiggy748_2

We are looking to sell our home by mid june/july due to daughter schooling. It valued at £119950 . It has been on the market for four weeks. We have recieved two full asking price offers (1x fell through, the other hasnt sold their house yet so is irrelevant).

Daughter has two options one in Hull and one in Loughborough. Hubby has always wanted to move to the coast and this seem good time to do concider this.

When we got our offer we looked at withernsae and found a large 4 bed victorian house in need of work which we can get for 104,000.

Hubby is driver so will find work the next day in Hull, although wages are £3 p/h less, im currently looking for work both localy and hull. The offer fell through.

We have received another offer of 112,500. And hubby is starting to think we should stay local for his work but move closer to loughborough for daughter.

Option one: sell at 112,500 and rent for two years whilst daughter is doing A levels. Try to save from income, invest lump from sale. Rent would be £550.

option two: sell at 112500 accept a slight increase in mortgage or £600 less than what we need to do house up in withernsea.

option three: rent ours out, rent elsewhere.

option four: sell and buy again locally

Hubby wants to stay in localish are due to wages and schooling, he also hates mortgages and prefers renting - god knows why, Ive yet to understand this. Im not bothered for the short term - will NOT be paying someone elses mortage long term, but want to know which option we chose is a sound financial based decision.

Reading around it seems that most are expecting a 4% rise in house price each year till 2015. If we were to sell id like our savings for the lump sum to match this, or thereabouts. Any thoughts on where to invest if we do sell? I think we'd clear 29700.

Also we wont have much savings each month, so im expecting you lot to say use the isa allownace for what else we can save?

thanks in advance for thoughts and advice

hamster2013

i would go with option three

rent your house - and move in rented accomodation
let the rent pay out the remaining mortgage and part of your rent.

two years down the lane, your house would have gained value (depends where you are - i am assuming this) and you can sell to move to your dream location.

you would have saved up more too to be able to reduce mortgage and put in a bigger deposit.

keep in mind, to get a mortgage, banks will see if you are in full time employment, and ifyou are changing cities, then you are more likely not be in a job when you apply for the mortgage - or just have joined and still be in probation period.

tiggy748_2

Thanks - we have a mortgage sorted already for new house.

I just cant seem to make the sums add up to even concider renting, we pay of 8K of the mortgage in two years and with the house prises set to rise thats another 5K on the house value. Now way could we invest 30K for 2 years to earn 13K!

trouble is i love the victorian home - withernsea not so much but the house, space and price - i just cant see it happening again.