I Have This Dream

cjohnson355

My hubby and I have approximately 8 years before we can retire and draw our pensions. If we sell our current property we could buy a decent sized house with land in Norfolk and become mortgage free. I am thinking along the lines that we could rent out the Norfolk property and rent locally here for our work for the next 8 or so years. We also have endowment policies ( yes they were the in thing when we first got a mortgage) that matures this year and a couple the following year but they would not leave us mortgage free in our current property.
I then wonder if there's any point in doing this at all as we'd just be paying rent instead of paying a mortgage?


Whilst typing this I think I have just answered my question but would still be interested in other peoples views.

Tixy

Will you be downsizing in terms of property value when you move? or will it be an similar value?

From a personal point of view I can't see what the benefit is of trying to sell your house now and buying in Norfolk now. I can see quite a few potential downsides including the potential hassle of:

-Being a landlord is effectively running a business and can have significant costs (void periods, repairs, court costs if tenant gets in to arrears or needs evicting, landlords insurance etc).
-Having to pay tax on your rental income (which you cannot offset the rent you pay against).
-Potential for capital gains tax at the point you eventually sell the property - as it won't have been your main residence for all the time you owned it.
-Possibility of having to move fairly frequently in rented premises for the next 8years.
-The risk that you change your plans within the next 8 years or end up not wanting to live in the particular area that you have bought in.

Sazzie23

would it be better to downsize where you are if you need to stay in that area? Just a thought...

Seanymph

I wouldn't rent a property with land. If you are going to rent then you would be better off in Norwich with a town house.