Should we Sell Up to Start a Fresh?

ValHaller

loveka wrote: »

Would renting it out cover the mortgage? If you rented it out you would still have your asset for your pension, as long as you can afford to pay your debts and a private rental as well. Some friends of ours did this recently and it has worked really well for them. Good luck.

Given the description of the area, the question of whether you would get decent tenants who would stay has to be considered. A succession of 6 month tenants with 2 months between will drop the income expectation to 75%, plus the odd one who is desperate enough to take it but cannot pay make this a distinctly unattractive option

pennies_from_Heaven

Hi Bob,
Sorry to hear about the situation you are in, it is a terrible thing, and can overshadow all aspects of your life.

What I would say is to weigh up the pros and cons very seriously.

We were in your situation a couple of years ago, and decided to sell up. My kids were getting bullied, we hated where we lived, there was a big drug problem with houses getting raided etc etc the list could go on.

We sold up, leaving about 35k equity in our house. We had 27k worth of debt which we paid off, with the view that the rest would start a nest egg for another mortgage (we are in our mid and early 40's).

The problem was things which I didn't account for! The rent is more than our mortgage (although I see you hope not to have that problem). Rent advance and deposit too another 2k. We had to buy other furniture to fit into this house as ours literally didn't fit (think low ceilings and smaller rooms) another 2k (even though some of this was 2nd hand!)
Even down to the utilities being more expensive as the oil crippled us last winter as it is horrendously expensive!!

Anyway, I digress. Overall I would still do it again. Yes I know that sounds odd after what I just said, and to many where property is key, but you really cannot put a price on your own happiness and peace of mind, nor your kids safety and quality of life whilst they are still living with you. In the mornings I wake feeling positive, rather than to the overwhelming feeling of dread, wondering what nasty things the day would bring.

Sometimes I think maybe we should have stuck it out, from a financial point of view but you still have to have a decent quality of life instead of saving for something in the future. My dear dad spent his whole life working desperately hard to pay a mortgage & pension, planning for the days where he could put his feet up. Sadly he passed away at the ripe old age of 51, my mum lives alone in a house paid for with his life insurance, living on his pension which she has to pay tax on. If you asked her what to do I know what she would say.

So please Bob think carefully about unexpected expenses if you do decide to move, but please do what works for you and enjoy the time you have with your family around you in a safe and more peaceful place. Some things you cannot put a price on.

Pennies xx :A

Growurown

Bob64 wrote: »

No... I think I'll have to cut my losses and accept the fact that saving for my future is the only thing left now for pension/retirement purposes.

Time to start a fresh while I still can.

Hi Bob, entirely get where you are coming from and it is hard to be without credit, especially when it comes to those big purchases like cars. I have lived in some areas with similar problems to yourself and it is miserable and I don't blame you at all for wanting better for your family. We are so much happier living where we are now and that counts for an awful lot, my OH says he would rather rent and be happy than own a house on a crummy estate and be miserable:)

Hatecreditors.com

Bob64 wrote: »

I have answered my own question, I was just needing confirmation that I was doing the right thing and not jumping the gun by throwing away what little assets we thought we had.

....but when others are suggesting you're doing the wrong thing you don't seem inclined to accept it. So you have answered your own question really.

Personally, if I hated an area so much I wouldn’t even want a rentable asset there. Like others have said, you have to take into account the type of tenant you will attract. And even if you do get a really nice tenant who pays in full and is there for the long term, how long do you think they will stay after their windows have been put out?

Stewart_78

I agree with Pennies from heaven. Your quality of life is more important. Living under constant stress could lead to health problems and that could lead to more money problems.

I would look for a clean break. I'm in the opposite position really. I could sell up and pay everything off but I know I would probably never get to live in a place like I do now which is just perfect for us. So to me, dealing with the debt is a small price to pay.

Bob64

Well, everyone that has taken the time to give me their advice on what really is a stressful situation for me and my family at the moment I'd like to say, thankyou... Your comments have been a godsend.

I've shared all your comments with my wife and we have sat down and made the decision to sell up and move from this miserable place. For years we have hated the area which from the outside in looks fairly quiet and peaceful until after school hours when the hoodies and neds come to life. If only there parents knew what they got upto after school hours.

Anyway... It's onwards and upwards to a nicer place for us... At least when renting you can be choosier even if it is at a price. We are excited just at the thought of staying somewhere nice and safe for ourselves and our kids. We will be moving into a catchment area for what are classed as the "better public schools" so hopefully our youngest will see a benefit there.

Once again thankyou very much for sharing your wisdom and personal experiences and views on what we should/could do for the best. I'll let you all know how we get on after selling up and moving on to a better place.

Growurown

Good luck Bob, hope it all works out for you.

kissjenn

Hi Bob,

Another thing to consider is that if you sell up and rent then you'll have the safety net of Local Housing Allowance should you ever need it.

The poster who commented upon the downfalls of lettering is absolutely right, have a look at my thread https://forums.moneysavingexpert.com/discussion/3443469 if you want some horror stories. You need to have enough in the way of resources to pay the mortgage, keep the flat repaired, advertise for tenants etc over and above any expected rental. It's a minefield and having one property in what you describe as a "horror" location is putting all your eggs in one very rickety basket.

I'd make a clean break and make sure I use the cash generated to clear every last debt.

Hope that helps a little.

KJ

AlexLK

Hello there,

Any reason you can't sell the property and use the equity as a deposit on another house?

suburbanwifey

Only 9 years left on the mortgage then you would be mortgage free. I fully understand your situation but you will never get back on the property ladder, never again get a mortgage, never own your own home again, nor be secure in a rental. I would do anything rather than sell that flat. Another poster on here has advised the same, I'd listen to them x