Sell or keep

rfsk2010

I bought my home in 2012 feb for 200000. The two year fixed rate with Halifax has ended now . I am looking at the market and talked to a broker and looks like it could sell for 280000-295000.

Similar sized properties are selling for 320-330 so I guess 280-295 is fine due to the location of it .

I am thinking may be it's good to sell it and keep the money and buy another house elsewhere after a year
I am currently renting the property out

I am a newbie and would be very grateful if anyone can throw some light on wether it's a good idea to sell it now or keep it and remortgage .

rfsk2010

Bumping the thread . Please could anyone respond :-)

Running_Horse

I have never understood two year mortgage deals; the only ones who gain are brokers and the people charging. The idea of owning a house for two years is a bit strange. Not sure why you would want to lose out on a year of capital growth in a rising market, but only you know your personal circumstances. Do whatever is best for you.

AndyT678

What would you do with the residual money from the sale of the house? Do you have an investment that generates a better return than the rental income + possible house price growth? If not why would you even consider it.

Prothet_of_Doom

rfsk2010 wrote: »

Similar sized properties are selling for 320-330 so I guess 280-295 is fine due to the location of it .

I am currently renting the property out

.

So let me get this straight in my head, your options are sell for £40K less than it's worth, or continue to rent it out.

If it's a pure business based decision you are looking for, You've made perhaps £80K in 2 years, plus the rent, if you sell (minus the taxes due) so Call it £100K from what level of investment ?

Assume you had a deposit of £50K. You've made £100K out of £50K in 2 years ? Wow. lucky lucky lucky.

So what to do. Crystal ball says house price bubble will ..... oh it's misty.

So if it's flat house prices, you'd be better off taking £100K of equity in the Remortgage, and using it for another rental or 2 ? Build a portfolio ?

And if house prices are on the rise, you'd be better off taking taking £100K of equity in the Remortgage, and using it for another rental or 2 ? Build a portfolio ?

I say, keep it, put the rent up, and remortgage to bring equity down, to say 40% and use money to leverage more lending. :rotfl::rotfl::rotfl:

rfsk2010

I have decided to keep it and take equity out of it during re mortgage to buy a buy to let. thanks to all those who responded

the_matrix

rfsk2010 wrote: »

I have decided to keep it and take equity out of it during re mortgage to buy a buy to let. thanks to all those who responded

Exactly what I was going to suggest.