Should I sell to invest

Annie0707

I have never posted to a forum before, so please bear with me.

I partially inherited my home when my parents died several years ago, I had to mortgage it to complete the three way division of the estate, so I owe £88k on the house which was valued at £270k 6 months ago.

I'm a nurse working part time and a single mum of 4 children. My earning potential is low due to the high cost of childcare. I am barely making ends meet, with no savings and very little left for non-essentials. I want to provide a better life for my kids.

My house is a great size for five of us and is kn a good area. However, I am seriously considering selling my house to make my money work for me. I think that I could use some of the money to start a small business and invest the rest.

My fiends and family are horrified that I would even consider selling my house, I would like advice from knowledge people who have no emotional connection.

What do you think?

anselld

Annie0707 wrote: »

I am seriously considering selling my house to make my money work for me.

... and live where?

Annie0707

I would rent a house

Apodemus

anselld wrote: »

... and live where?

A secure family home for the kids is one of the most important things you can provide for them.

Also starting a business can be a gamble, so I, personally, would not risk any one-off life-savings money for start-up costs.

But only you are in your situation and you need to do what feels right for yourself, not what random strangers on the internet think, so feel free to ignore us!

Voyager2002

Try an experiment...

Move the family into the kind of rented accommodation you could expect and rent your family property. Find out whether the extra income would compensate for living under worse (probably far worse) conditions.

DiggerUK

You have a secure roof, and now you are considering putting it all at risk.
If I thought you had half a chance of being a millionaire this time next year, I would urge you to carry through on your suggestion.

As it is, forum rules prevent me from being as candid as I would like to be with a newbie..._

le_loup

I am not suggesting that this is a crazy suggestion because I would be banned from this forum. Therefor I am not going to try to help.

AnotherJoe

Annie0707 wrote: »

I have never posted to a forum before, so please bear with me.

I partially inherited my home when my parents died several years ago, I had to mortgage it to complete the three way division of the estate, so I owe £88k on the house which was valued at £270k 6 months ago.

I'm a nurse working part time and a single mum of 4 children. My earning potential is low due to the high cost of childcare. I am barely making ends meet, with no savings and very little left for non-essentials. I want to provide a better life for my kids.

My house is a great size for five of us and is kn a good area. However, I am seriously considering selling my house to make my money work for me. I think that I could use some of the money to start a small business and invest the rest.

My fiends and family are horrified that I would even consider selling my house, I would like advice from knowledge people who have no emotional connection.

What do you think?

I think it's impossible to know without understanding what this small business would be but you would be taking a huge risk so I understand the reaction of friends and family. A secure home is one of the most important things to most people, especially with children, and you are contemplating giving that up.i think that's more likely a reflection of being in a rut than a rational step to take.

As for investing, what experience do you have of that? Why do you think you could beat house price inflation ?

I have taken some pretty big financial risks over the years made and lost some significant sums of money but I never even contemplated gambling with my house. Seems to me that perhaps a career change or job change might get you out if this rut without having to make such a huge gamble with your security.

Have a look at your income and see what changes you could make there. What could you do to change your job or your career to get more income and do better than just managing ? Go agency? A different career ?

Also, you say childcare costs are huge but that won't last, they will diminish over time, so you could also regard that as an inbuilt pay rise over the next few years.

Annie0707

Point taken

Bravepants

My partner and I paid our modest house's mortgage off last year or so. We don't have kids, but we are secure in the knowledge there will ALWAYS be a roof over our heads. They (whoever they are) will get our house off us over our cold dead bodies! My brother-in-law however thinks nothing of paying £1500 a month (yes, a month) in rent! That's over half my salary worth of dead money!

Masomnia

Have you looked realistically at what renting would cost you?

In places I've lived past few years the rent was higher than a mortgage with 90% LTV would have been.

Have you considered remortgaging and whether that could bring down your outgoings?

Re the business, maybe try that in your spare time (if you have any!) and see how it goes before completely changing your life for it.

Good luck whatever you do.