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

Ath_Wat

ashe said:

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

Well, they probably learned their lesson.

Sarah1Mitty2 said:

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

hmmmmm........

Ath_Wat

billy2shots said:

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. 

At least they realised that having the name "CrashyTime" for 10 years rather undermined any claims they had to prescience.

Ath_Wat

propertyhunter said:

brett19852010 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. 

You seem to be talking about offloading additional property assets; the question is about selling one's home.  Those are very different things.

caprikid1

My Ex father inlaw who was very wealthy (Self made) once told me, you go short or long in property, but you never exit the market altogether.

If you have one house, then the buying and selling costs can wipe out a lot of the gains plus the cost of renting / uncertainty rarely worth it. Your first house is a home not an investment.

That said there are some properties than can only be sold in a boom as they are so undesirable in a competitive market.

Mr.Generous

The only way this would work is if you could move back in with family. I can't see the fall being steep enough to cover rent, buying and selling fees, stamp duty, and giving a good enough return to compensate for the risk, time and trouble and general upheaval. I also love the way people who don't rent assume it's just a case of deciding to rent - like there are so many available rentals you have your pick and the landlords will want you anyway.

The way completion dates get put back over and over would be a nightmare trying to arrange a rental start date too, if you think the landlord would be ok with that think again. You'd have to rent before your sale went through and pay 2 x council tax, utilities etc. I 'd love to hear from someone who did it - apart from Crashy who outsmarted the market when I paid £73k for a renter now worth £150k+ against his (or her) advice.

GDB2222

Sarah1Mitty2 said:

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.

It’s still a gamble, whichever way interest rates are going. But, if interest rates really do end up close to 10%, it’s a gamble that has a better chance of winning. 

I don’t think that it’s a good gamble for most people to take, but it could work out. It’s the sort of gamble that hedge fund managers take, although they do this with their investors' money, not their own.

Gycraig

Only way I would consider this would be to remortgage myself down to 10 percent and reinvest the rest. 

Paying more to rent, dealing with a landlord, being evicted / landlord not doing stupid stuff he’s supposed to do isn’t worth a few quid, especially if you miss the boat for the rises. 

london21

Can be risky to try to time the market.

Yu will be renting and not much certainty there, rent increasing, landlord might need house back.

People have been saying price will drop only time will tell, might be slight correction due to increase in interest rates but depends on area, demand/supply etc. 

sevenhills

Mr.Generous said:

The only way this would work is if you could move back in with family. I can't see the fall being steep enough to cover rent, buying and selling fees, stamp duty, and giving a good enough return to compensate for the risk, time and trouble and general upheaval.

Or buy a campervan and live in it for a year or two.

fewcloudy

sevenhills said:

Mr.Generous said:

The only way this would work is if you could move back in with family. I can't see the fall being steep enough to cover rent, buying and selling fees, stamp duty, and giving a good enough return to compensate for the risk, time and trouble and general upheaval.

Or buy a campervan and live in it for a year or two.

The lack of emojis after that suggestion is worrying me a bit...