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Should I sell for a loss and use sale money as deposit for next property?
Comments
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you are suffering from the Sunk Cost Fallacy..:)2
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The opposite view is that selling now crystallises losses that may disappear if you hold on.jj_43 said:you are suffering from the Sunk Cost Fallacy..:)I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
The fact you're considering renting it out suggests to me that you already have deposit funds for a separate house without need to sell flat? Also, 7 years of mortgage payments may have offset the value drop.
On that assumption, if it were me, I'd probably sell up as wouldn't want 2 mortgages atm unless being a LL was a business aim rather than by circumstance. Whether to go for the biggest deposit available or keep some back depends on your current savings I guess.0 -
that is also the Sunk Cost Fallacy
You should based the decision upon which investment gives you the best return. 1 -
A one bedroom flat should be an easier rental than a family home in terms of maintenance etc. But do the maths carefully0
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Mr.Generous said:Ah a flat, I was thinking of 1 bed houses. My bad.
There isn`t much difference in size in some cases.Mr.Generous said:Ah a flat, I was thinking of 1 bed houses. My bad.0 -
The "opposite view" is also sunk cast fallacy.silvercar said:
The opposite view is that selling now crystallises losses that may disappear if you hold on.jj_43 said:you are suffering from the Sunk Cost Fallacy..:)
Would you offer more for a property based on what the current owner paid for it several years ago?
An asset that is worth £30k is worth £30k. The price you bought the asset for is completely irrelevant to what you should do with it.0 -
Until you have a buyer and their lender has valued it you have no idea what the loss will be, no point in making plans based on guesswork.0
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