Sell up and rent? Need advice

Askfor

Hi, I’m in need of some advice, thanks so much I’m advance.

I currently own/ pay a mortgage on a flat, however, I am looking to move to London as have gotten a new/better job which would have taken years and years to achiev in current city. I have decided to go for it in terms of moving to London. I have owned the flat for 2 years, however it has gone up in price quite a bit . London being London though everything is very pricey. I could probably afford a very small flat in London proper, just about scrape a house in th burbs. Yet, with Brexit on the horizon and quite a stale market in London it seems sensible to wait for a year in case prices correct to a point that i can get something more long term.

I need some advice therefore, does selling up and renting for a year seem like a good move, reassessing in a year and then potentially buying with more knowledge about London/ where I want to live long term/ potentially dip in prices

Should I try and rent my flat for a year (I have looked into this and it seems like it would cost me to rent it out due to landlord tax, agency etc etc) ie Some money would go into the mortgage but I would probably have to pay money in cash terms to let it out.

I’m not sure if there are other options, I could commute for the short term but it is expensive and very tiring so would only be a short term option realistically. Thanks again!

hazyjo

I'd say it's a good idea even if just because you'll probably want to work out which area works best for you.


At the moment, I can't see a year making an awful lot of difference (can't see prices shooting up for a while) - although without a crystal ball, I'm only using my own judgement/opinion!


I'd rent as small and cheaply as possible for a year (prob a good idea to make sure there's a six month break clause) and save as much as I could.


No idea where you are now, so can't really comment on options for a possible commute other than to suggest a Mon-Fri let and go home at weekends. Not sure what ties you have where you are now though.


I'd not rent my property out, but that's me. Not sure how you'd afford rent in London and any possible voids for one (lots of other reasons).

Crashy_Time

With the Fed determined to raise rates prices will be shooting down not up, and probably best to stay far far away from London property debt at the moment with all the headwinds that are out there.

chucknorris

Askfor wrote: »

Hi, I’m in need of some advice, thanks so much I’m advance.

I currently own/ pay a mortgage on a flat, however, I am looking to move to London as have gotten a new/better job which would have taken years and years to achiev in current city. I have decided to go for it in terms of moving to London. I have owned the flat for 2 years, however it has gone up in price quite a bit . London being London though everything is very pricey. I could probably afford a very small flat in London proper, just about scrape a house in th burbs. Yet, with Brexit on the horizon and quite a stale market in London it seems sensible to wait for a year in case prices correct to a point that i can get something more long term.

I need some advice therefore, does selling up and renting for a year seem like a good move, reassessing in a year and then potentially buying with more knowledge about London/ where I want to live long term/ potentially dip in prices

Should I try and rent my flat for a year (I have looked into this and it seems like it would cost me to rent it out due to landlord tax, agency etc etc) ie Some money would go into the mortgage but I would probably have to pay money in cash terms to let it out.

I’m not sure if there are other options, I could commute for the short term but it is expensive and very tiring so would only be a short term option realistically. Thanks again!

I wouldn't do anything rash, if I was you I would rent the flat out and see how things go in London. Wait until you feel settled (or otherwise) in London and when you are sure that you will stay there for a long time before you make a decision. I moved to London (from Newcastle) after graduating, I stayed there for about 15 years, then I moved to Surrey.

I did buy 6 months after moving there, but that was in 1991, in the middle of a property crash, so (to me) it was a 'no brainer' to buy at that time. I only waited 6 months because I had to decide where in London I wanted to live. But London property prices are high right now, so there is no need to rush.

Crashy_Time

chucknorris wrote: »

I wouldn't do anything rash, if I was you I would rent the flat out and see how things go in London. Wait until you feel settled (or otherwise) in London and when you are sure that you will stay there for a long time before you make a decision. I moved to London (from Newcastle) after graduating, I stayed there for about 15 years, then I moved to Surrey.

I did buy 6 months after moving there, but that was in 1991, in the middle of a property crash, so (to me) it was a 'no brainer' to buy at that time. I only waited 6 months because I had to decide where in London I wanted to live. But London property prices are high right now, so there is no need to rush.

But what happens if prices go up more, the OP might never get on the ladder?

tlc678910

My money would be on Brexit causing prices to at least stagnate if not fall a little so if you are happy with the value your flat will achieve now I would sell and bank the money until you are ready to buy. Obviously it's a gamble but when you are ready to buy it would be a shame if your flat had just fallen in value when you need to sell. Haven't really heard anyone say they expect Brexit to lead to a swift increase in property prices - have you?