Would you rent a for a while until finding next home?

IAMIAM

Circumstances have changed and I no longer like where I purchased 4/5 years ago. I do not have any commitments and have taken some equity out, £50/£60k in order to potentially fund another purchase whilst I put the property onto rental for a couple of years with consent to let and then decide what to do with it long term.

My question is that I am contemplating personally renting somewhere else for 6-12 months MAX in order to really gauge what I want to do/where I want to live and have a fresh mind before making another major commitment again and I ultimately feel if I buy straight away now, anything I view will be great as it will not be my current residence if that makes sense. My salary will cover both mortgages from a lending perspective (First Direct/HSBC) and future purchase (Natwest), who have agreed to lend up to 90% LTV, taking into account both mortgages as a commitment. I feel in two years time, when I have two years of rental income, I will be in a more favourable position to decide what I want to do with the first property long term. Hopefully my equity release will fund stamp duty and deposit up to 15% and I will continue saving too.

The reason I do not want to sell up is I want to keep it as an investment long term (good area, good ltv and very good rental market). I also do not want to come off the ladder (for safety reasons etc, if things go wrong etc)

Anyone been in a similar situation? Is renting a bad idea for short term etc. Just wondered peoples thoughts. 

lookstraightahead

No problem renting, it's not scary and lots of people do it. But have you been a landlord before? 

IAMIAM

lookstraightahead said:

No problem renting, it's not scary and lots of people do it. But have you been a landlord before? 

Nope, I am going to get a good agent, have had a couple around - 8/9% fee and potentially direct line landlord insurance with all the extras. 

The income tax part I can handle myself hopefully. 

climbthatwallseegar

We are in a short term rental. I sold my last property a few months ago and waiting to purchase a new one. It was possible for me to keep the old place while buying a new one but I didn’t want the hassle of being a landlady plus my freeholder was an !!!!!! and I just wanted shot of the place. I understand why you want to do it though.  

It’s fine renting but I wouldn’t want to do this again. I don’t particularly like where we are but again, it’s not long term. After owning for over 10 years it does feel a bit strange. 

dimbo61

The big question here is what part of the country do you live in and what is the local housing market like ?
In some parts of the country there is a shortage of rental properties available and 4/5 potential tenants chasing every rental that comes on the market.
Have a look on Rightmove and local letting agents websites to see what is available to suit you and how much you will pay each month.
There are quite a few responsibilities involved with being a Landlord and yes you can appoint an agent to manage but the buck stops with you !
The Tax situation with Mortgage Interest on rentals has changed making it more difficult to make a profit or even break even.
Do your research

seanfos

We will be renting from next month as we have sold our house so we can buy a new build. Having to move twice and update address details, insurances, etc. is a pain but will be worth it when we are in our new home next year

Sean

IAMIAM

dimbo61 said:

The big question here is what part of the country do you live in and what is the local housing market like ?
In some parts of the country there is a shortage of rental properties available and 4/5 potential tenants chasing every rental that comes on the market.
Have a look on Rightmove and local letting agents websites to see what is available to suit you and how much you will pay each month.
There are quite a few responsibilities involved with being a Landlord and yes you can appoint an agent to manage but the buck stops with you !
The Tax situation with Mortgage Interest on rentals has changed making it more difficult to make a profit or even break even.
Do your research

I am in the north England, my house is one that this will happen to. Many have said I will end up dealing with a bidding war for my rental property. On the other hand, I will head into the city for a bit, so there seems to be ample for me.

IAMIAM

seanfos said:

We will be renting from next month as we have sold our house so we can buy a new build. Having to move twice and update address details, insurances, etc. is a pain but will be worth it when we are in our new home next year

Sean

This was an option for me, and maybe me in the future. I am adamant I do not want to let this property go, I just do not want to live here. It will be my only rental that I will keep for life. 

Trynsave2

As with everything there are pros and cons to renting. Less of an issue for a tenant who has a good job and can move on relatively pain free. More issues as a landlord esp if you get lumbered with a difficult tenant. The first I would do again if the situation warranted it, the second, not on your nelly (or anyone else's for that matter), if I could at all avoid it. Sounds like you have decided that both are for you though, so do your homework and best of luck!

neydejean

If there was something causing a sustained, long-term delay then I would consider it but if its just because conveyancing is slow then I wouldn't do it just to break the chain.

amandacat

I tried to do this earlier this year. I couldn’t get a rental, too many applicants per house and I never got selected as I have pets. But even without them there were around 10 applicants. Ended up moving in with family for nearly 4 (stressful) months while I bought a new house. Ended up having to settle for a house as I couldn’t live with family any longer. I’m in the north east.