Should i sell or stay put?

kilby_007

Personally I wouldn't trade up at the peak of the market. Is there an option to trade down, or sell and rent for a while, and then get more for your money when house prices have fallen back? I'm renting at the moment. Prices have fallen in Hull by a few % since we sold up, which has roughly cancelled out the rent we've paid and has the added benefit that we can wait for the right house to come up for sale and there's no chain behind us.

economic

kilby_007 wrote: »

Personally I wouldn't trade up at the peak of the market. Is there an option to trade down, or sell and rent for a while, and then get more for your money when house prices have fallen back? I'm renting at the moment. Prices have fallen in Hull by a few % since we sold up, which has roughly cancelled out the rent we've paid and has the added benefit that we can wait for the right house to come up for sale and there's no chain behind us.

Thanks for your comment

No option to trade down as its an average two bed and don't want to go smaller. What I might do is release equity now taking advantage of low rates and then wait for prices to fall and find the right place over the next year or so. I can keep the current one to let. What do you think?

economic

Anyone else? Thanks

Brightspark87

Personally? Do you have an mortgage left (not sure from your posts). If so, low rates are the perfect time to be paying this off to avoid when you are coming to retire and rates shoot up.

I wouldn't want to take on additional mortgage debt nearer to retirement but I would if I could be in the area I want to be in for retirement etc then I would. Does that make sense?

With regards to lettings in London I would look at potential agents (I am guessing as a First Time Landlord you would use one) and see what the net return would be. Then see all our other assets etc and if it is worth the 'risk'. I am sure you would avoid long void periods being where your properties are likely to be, but if you think it perhaps one month a year it might be empty during your calculations.

Either way, I think the most important thing is how you feel about renting out your home. Could you cope if it wasn't well loved? That might be the first stumbling block.

teddysmum

It could be a biased impression as the producers just concentrated on that area, but a lot of the landlord horror stories, on tv, seem to be in the London area and the problems are not always from people who spend their rent allowance on other things or abuse the premises. A number people featured have been professionals. (a teacher and an accountant come to mind)

economic

Brightspark87 wrote: »

Personally? Do you have an mortgage left (not sure from your posts). If so, low rates are the perfect time to be paying this off to avoid when you are coming to retire and rates shoot up.

I wouldn't want to take on additional mortgage debt nearer to retirement but I would if I could be in the area I want to be in for retirement etc then I would. Does that make sense?

With regards to lettings in London I would look at potential agents (I am guessing as a First Time Landlord you would use one) and see what the net return would be. Then see all our other assets etc and if it is worth the 'risk'. I am sure you would avoid long void periods being where your properties are likely to be, but if you think it perhaps one month a year it might be empty during your calculations.

Either way, I think the most important thing is how you feel about renting out your home. Could you cope if it wasn't well loved? That might be the first stumbling block.

mortgage is about £210k and property value 550k. i was thinking of actually releasing equity to take advantage of low rates and i am only 33.

economic

teddysmum wrote: »

It could be a biased impression as the producers just concentrated on that area, but a lot of the landlord horror stories, on tv, seem to be in the London area and the problems are not always from people who spend their rent allowance on other things or abuse the premises. A number people featured have been professionals. (a teacher and an accountant come to mind)

maybe. my flat is in highgate so the type that highgate attracts should be ok. of course there is always a risk but i see little downside as the flat is not newly refurbished and actually needs modernisation (although can still be used as is).

Brightspark87

apologies OP - I thought you were older!

If that is the case - defo pay off your mortgage early. When rates increase you will be paying far less in the long run. However, taking on some additional debt to live in the area you want to be in is worth thinking of....

Yes rates are low = cheap borrowing. BUT wouldn't it be great to be paying your mortgage off 10 years early? I've only just got mine and instead of the 33 years it was taken out for I hope to be mortgage free in 20. Over payments aren't vast sums either. Then when rates do increase (as they will over your lifetime) you will have a smaller mortgage or none left so rates increasing won't have the same affect