Selling a home then renting

Gam2015

As the title says has anyone ever sold their home and then rented for the short term until they found the right property? My trouble is I’m mortgage free on current home and all my equity is in the house. All the properties I’m wanting are too expensive for my salary (around the 200k mark) and i only earn about £28.500. I could obviously put mine up for sale but the housing market at the minute is crazy and i will be in a chain which isn’t great. Any thoughts on this 🤔

grumiofoundation

I’m sure many people have sold them gone into rented. Being chain free on new purchase will make your life easier. But have to factor costs of renting plus any house price increase during time renting.

But if you are saying you can’t afford the properties you want now why would you sell and go into rented as opposed to stay in your current property? 

Edit: just seen your other thread and you are currently mortgage free. There you were proposing to take out 75% equity and buy new property - how would that work if you can’t afford 200k with 100% of equity from current property (and not having to pay the +3% (6k on 200k property)???) 


https://forums.moneysavingexpert.com/discussion/6288602/renting-out-current-home#latest

Gam2015

grumiofoundation said:

I’m sure many people have sold them gone into rented. Being chain free on new purchase will make your life easier. But have to factor costs of renting plus any house price increase during time renting.

But if you are saying you can’t afford the properties you want now why would you sell and go into rented as opposed to stay in your current property? 

Edit: just seen your other thread and you are currently mortgage free. There you were proposing to take out 75% equity and buy new property - how would that work if you can’t afford 200k with 100% of equity from current property (and not having to pay the +3% (6k on 200k property)???) 


https://forums.moneysavingexpert.com/discussion/6288602/renting-out-current-home#latest

Because my current home is worth around the 100k mark 2 bed semi in South Yorkshire. But like i say with my salary i can only borrow a maximum of 150k with my salary i have savings also. But the houses i like are around 200k but I wouldn’t want a massive mortgage if you get me. 

grumiofoundation

Gam2015 said:

grumiofoundation said:

I’m sure many people have sold them gone into rented. Being chain free on new purchase will make your life easier. But have to factor costs of renting plus any house price increase during time renting.

But if you are saying you can’t afford the properties you want now why would you sell and go into rented as opposed to stay in your current property? 

Edit: just seen your other thread and you are currently mortgage free. There you were proposing to take out 75% equity and buy new property - how would that work if you can’t afford 200k with 100% of equity from current property (and not having to pay the +3% (6k on 200k property)???) 


https://forums.moneysavingexpert.com/discussion/6288602/renting-out-current-home#latest

Because my current home is worth around the 100k mark 2 bed semi in South Yorkshire. But like i say with my salary i can only borrow a maximum of 150k with my salary i have savings also. But the houses i like are around 200k but I wouldn’t want a massive mortgage if you get me. 

But you would have far more (2 x) the mortgage debt if you went down your BTL plan.

You took out 75k from property A you would have a BTL mortgage of 75k and a mortgage on new property of 125k.

As opposed to a mortgage of 100k on property B (and 6k in your pocket from not having to pay +3% SDLT).

I would also say in your original post you state "All the properties I’m wanting are too expensive for my salary (around the 200k mark)" - which is clearly not true as you could easily afford with a ~100k deposit and a ~100k mortgage (~3.5 salary multiplier).

Gam2015

grumiofoundation said:

Gam2015 said:

grumiofoundation said:

I’m sure many people have sold them gone into rented. Being chain free on new purchase will make your life easier. But have to factor costs of renting plus any house price increase during time renting.

But if you are saying you can’t afford the properties you want now why would you sell and go into rented as opposed to stay in your current property? 

Edit: just seen your other thread and you are currently mortgage free. There you were proposing to take out 75% equity and buy new property - how would that work if you can’t afford 200k with 100% of equity from current property (and not having to pay the +3% (6k on 200k property)???) 


https://forums.moneysavingexpert.com/discussion/6288602/renting-out-current-home#latest

Because my current home is worth around the 100k mark 2 bed semi in South Yorkshire. But like i say with my salary i can only borrow a maximum of 150k with my salary i have savings also. But the houses i like are around 200k but I wouldn’t want a massive mortgage if you get me. 

But you would have far more (2 x) the mortgage debt if you went down your BTL plan.

You took out 75k from property A you would have a BTL mortgage of 75k and a mortgage on new property of 125k.

As opposed to a mortgage of 100k on property B (and 6k in your pocket from not having to pay +3% SDLT).

I would also say in your original post you state "All the properties I’m wanting are too expensive for my salary (around the 200k mark)" - which is clearly not true as you could easily afford with a ~100k deposit and a ~100k mortgage (~3.5 salary multiplier).

Yep sorry how I explained it. Think I’m going to go down the house sale route then just rent for a bit while hunting for the the ideal family home. Thanks for your replies 

borkid

We're doing so now. Sold our house and said to our buyer we would rent if we didn't find anywhere. As it was we did find somewhere but it was a probate property so we weren't sure how long it would take. Completed our sale mid May and ended up completing on our purchase mid June. We haven't moved in yet and  are having work done. We pop over 3 times a week to sort out the very overgrown garden and clean up inside. The money saved on stamp duty covers the rent. It is far less stressful doing this way but I am getting a bit tired of being surrounded by packing boxes.

luvchocolate

I think it's a good Idea in the current market. Houses are selling within days and it's hard to even get a viewing. 
Being cash ready is a big help. 
I've done it in the past and worked for me 

macfan21

We are in the process of selling our house and will be moving into a rental. We have had mixed feelings about it because we are a couple of years off buying our next home realistically, but want to take advantage of the current market to sell our house, plus don’t want the risk of anything big needing to be done to the house in the next couple of years. 

There’s always a risk that house prices will continue to rise, but there’s also a chance that houses will take longer to sell (our house was on the market for 2 years when we bought it, sold within 24hrs when we put it up for sale) but it’s just a risk you have to decide if it’s worth taking. 

Our house sale is going through now and we have already lined up a rental yet I’m still getting cold feet about whether it’s the right thing to do, but what the wife says goes

Gentoo365

I have done this as I wanted to make sure I sold my place while it was fairly easy to do so.

I haven't found a place to buy, and prices have continued to rise but it's not massively concerning at the moment as I can still afford to buy once I decide what to do. 

The reason I have delayed a bit more was to see what the 'work from home' situation ends up looking like in reality. Loads of companies who initially hinted they would retain WFH flexibility permanently have kind of rolled back a bit on that, and while I would love to buy somewhere 'further out' I wont do this if I need to commute 3-4 days a week.

Ashworks

We completed on ours and are now in a rental. We found one to buy just before we exchanged on our sale, so it made sense to move out rather than keep our buyers waiting. 

lookstraightahead

Yes we do it every single time without fail. Then we're always bottom of chain and make our rental money back. Every single time.
it's the savvy approach to money saving in my opinion.