Has anyone decided to sell up and put all equity into cash and buy again in a year or two....

IAMIAM

Ie rent.....or stay put and hope equity doesnt drop...

ashe

a well known poster on here did that for a time and spent about 10 years renting. rents arent going down so it seems a bit of a barmy risk

Sarah1Mitty2

The smart money did this during the stamp duty holiday I would have thought?

jimbog

IAMIAM said:

Ie rent.....or stay put and hope equity doesnt drop...

‘hope’ doesn’t come into it since inflation is at 10% so it’s dropping as it is 

Windofchange

My parents did this in 2003 convinced it was all about to go wrong. 2016 I think it was they finally brought back in - miles away from where they were, in a poorer area and a smaller house. Why on earth people consider gambling with the roof over their head is beyond me. If you are planning on selling up anyway then maybe you get lucky, but to plan to do this is a madness in my opinion. 

[Deleted User]

Sarah1Mitty2 said:

The smart money did this during the stamp duty holiday I would have thought?

Sorry. Are you referring to the stamp duty holiday during the pandemic? If so I dont agree. 

Sarah1Mitty2

Windofchange said:

My parents did this in 2003 convinced it was all about to go wrong. 2016 I think it was they finally brought back in - miles away from where they were, in a poorer area and a smaller house. Why on earth people consider gambling with the roof over their head is beyond me. If you are planning on selling up anyway then maybe you get lucky, but to plan to do this is a madness in my opinion. 

It was only a gamble with interest rates falling to near zero levels, with mortgage rates heading for 10% again prices are unlikely to be going anywhere for a long time.

Martico

IAMIAM said:

Ie rent.....or stay put and hope equity doesnt drop...

No way. In my area for my kind of place, two years rental payments would cost over 10% of the value of the house that I already own. Add moving costs, stamp duty, inconvenience and insecurity, and that all adds up to crazy for me.

propertyhunter

[Deleted User] said:

Sarah1Mitty2 said:

The smart money did this during the stamp duty holiday I would have thought?

Sorry. Are you referring to the stamp duty holiday during the pandemic? If so I dont agree. 

Actually, I'd agree in terms of selling a flat to an investor during the SDLT holiday. I did this and purposefully broke the chain to push through before 30 June 2021 because otherwise the numbers don't add up for an investor. My old neighbours are having problems selling now. FTBs are shut out due to restricted lending (typical market for a flat) and many investors are not picking up properties at all knowing that prices are likely to be dropping. 

billy2shots

Sarah1Mitty2 said:

The smart money did this during the stamp duty holiday I would have thought?

But CrashyTime, how long have you been renting now?

A year or two ago we worked out you needed a drop of 60% on the average house price to break even. It must be almost 70% by now. 

[Deleted User]

propertyhunter said:

[Deleted User] said:

Sarah1Mitty2 said:

The smart money did this during the stamp duty holiday I would have thought?

Sorry. Are you referring to the stamp duty holiday during the pandemic? If so I dont agree. 

Actually, I'd agree in terms of selling a flat to an investor during the SDLT holiday. I did this and purposefully broke the chain to push through before 30 June 2021 because otherwise the numbers don't add up for an investor. My old neighbours are having problems selling now. FTBs are shut out due to restricted lending (typical market for a flat) and many investors are not picking up properties at all knowing that prices are likely to be dropping. 

Yes, I imagine that the market for some flats is a different kettle of fish. But there is no generalisation to be made. 

Property prices have continued to increase since then in general and it would be optimal and smart to sell at the top of the market.

I mortgaged one property and bought my home during the stamp duty holiday. Long fixes, low interest rates, 20% increase in value to date, not a penny in exorbitant rents.