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

movilogo

Don't do it with your primary residence. It is speculative and risky. Nobody knows the future
If you have investment properties, then different matter. Makes sense to dump it now when price is still good and then later buy back at a reduced rate. 

Keep_pedalling

movilogo said:

Don't do it with your primary residence. It is speculative and risky. Nobody knows the future
If you have investment properties, then different matter. Makes sense to dump it now when price is still good and then later buy back at a reduced rate. 

Providing that reduced rate more than covers selling costs, buying costs and CGT.

RelievedSheff

Trying to time the market is a mugs game.

We all need somewhere to live. You may as well be paying off your own mortgage (if you have one) rather then spending similar money to pay of the landlords mortgage.

To rent a similar property to the one we currently own would cost around £200 more per month than our mortgage. So even disregarding the costs associated with selling and moving it is a none starter.

Yes we could rent in a cheaper area or rent a smaller house or flat. But why would we? We are quite comfortable and happy with the home that we have. It's value is irrelevant. If it dips in value it isn't really the end of the world. It is still our home.

GDB2222

RelievedSheff said:

Trying to time the market is a mugs game.

We all need somewhere to live. You may as well be paying off your own mortgage (if you have one) rather then spending similar money to pay of the landlords mortgage.

To rent a similar property to the one we currently own would cost around £200 more per month than our mortgage. So even disregarding the costs associated with selling and moving it is a none starter.

Yes we could rent in a cheaper area or rent a smaller house or flat. But why would we? We are quite comfortable and happy with the home that we have. It's value is irrelevant. If it dips in value it isn't really the end of the world. It is still our home.

"To rent a similar property to the one we currently own would cost around £200 more per month than our mortgage."  

Can I ask how long your mortgage is fixed for, and what you would be paying if you had to renew your mortgage currently?

jimbog

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. 

had noticed that the mask had been slipping of late 

steve866

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.

Selling my home which has a mortgage fixed at 2.2% for 5 years, paying rent for 2 years at around 30% more than my current mortgage, then re-entering the market with a 10% interest mortgage, as well as paying stamp duty and legal fees doesn’t seem like a very good plan. 

MFWannabe

Not a chance: would be complete madness 
in our area rents are higher than our mortgage plus spend all that money on rent that you could have been paying off mortgage and then you’ve got to try and get another mortgage to get back on the property ladder; which will be at a higher interest rate 

jj_43

No, I think prices will fall but not by much, in nominal terms. Prices will be held up by a small number of motivated buyers and with labour inflation less than general inflation I can’t see unemployment increasing by much at the moment.

Bonniepurple

We have a very low monthly mortgage payment.  To rent a similar property would cost us about 3 times as much.  Add to that the fact that there simply aren’t rental properties around where we live - and want to continue living- and we wouldn’t have the security that we have now (pay mortgage, we can’t be evicted, pay rent, can still be evicted if the landlord wants), we would be idiots to even think of it.

Oh, and our mortgage is low because we’ve gone for a loan up to my current predicted State Pension Age of 68.  If we sold and bought again in the future we would have higher repayments to counteract the reduced term.

[Deleted User]

Bonniepurple said:

We have a very low monthly mortgage payment.  To rent a similar property would cost us about 3 times as much.  Add to that the fact that there simply aren’t rental properties around where we live - and want to continue living- and we wouldn’t have the security that we have now (pay mortgage, we can’t be evicted, pay rent, can still be evicted if the landlord wants), we would be idiots to even think of it.

Oh, and our mortgage is low because we’ve gone for a loan up to my current predicted State Pension Age of 68.  If we sold and bought again in the future we would have higher repayments to counteract the reduced term.

Interest on my mortgage is £216 per month. Renting equivalent property £1600  to £1800 per month.