Advice on reducing asking price

SusieT

Rightmove seems to go in £25k price brackets, so reducing to the next down is a good idea, but no point changing agents at the moment, just relist it with the current ones and any potential buyer will see the rightmove advert regardless of the agent.

lookstraightahead

jimbog said:

lookstraightahead said:

Their rent is unlikely to increase

Not what renters are experiencing at the moment

lookstraightahead said:

MobileSaver said:

Aberdeenangarse said:

MobileSaver said:

Sarah1Mitty2 said:

JJR45 said:

MobileSaver 

Most of the rest will have taken out a five-year or longer fixed rate so they won't be worrying about renewing for at least another three years yet...

it is around 50% of new lending that was on 5y+ fixed in 2020, but that could still mean the majority of a mortgage on a property in terms of value could be on a different term.

Around 70% of mortgage debt payers will see their monthly debt costs rise in the next couple of years apparently.

Around 100% of renters will see their monthly rent costs rise in the next couple of years apparently.

Yes, particularly with all those  over leveraged Landlords trying to offload their ‘investments’

Agreed, probably not a good time to be a renter by choice just now.

 they will be making interest on their savings and there will be some excellent opportunities to be had in their position with nothing to sell.

Interest rates on savings are poor. With a shortage of property on the market there are few opportunities

You can't increase rent for a year (I don't think, but happy to be corrected).

Interest rates are better than equity reducing. I don't think there is a shortage of property at all.

JJR45

jimbog said:

lookstraightahead said:

Their rent is unlikely to increase

Not what renters are experiencing at the moment

lookstraightahead said:

MobileSaver said:

Aberdeenangarse said:

MobileSaver said:

Sarah1Mitty2 said:

JJR45 said:

MobileSaver 

Most of the rest will have taken out a five-year or longer fixed rate so they won't be worrying about renewing for at least another three years yet...

it is around 50% of new lending that was on 5y+ fixed in 2020, but that could still mean the majority of a mortgage on a property in terms of value could be on a different term.

Around 70% of mortgage debt payers will see their monthly debt costs rise in the next couple of years apparently.

Around 100% of renters will see their monthly rent costs rise in the next couple of years apparently.

Yes, particularly with all those  over leveraged Landlords trying to offload their ‘investments’

Agreed, probably not a good time to be a renter by choice just now.

 they will be making interest on their savings and there will be some excellent opportunities to be had in their position with nothing to sell.

Interest rates on savings are poor. With a shortage of property on the market there are few opportunities

We are waiting on our house build to finish (long story).
We are currently renting while we wait and have not had an increase for 2 years.
Our pre-tax interest per month on NSI is now around £700 per month, so nearly paying our rent.

MobileSaver

JJR45 said:

jimbog said:

lookstraightahead said:

Their rent is unlikely to increase

Not what renters are experiencing at the moment

lookstraightahead said:

MobileSaver said:

Aberdeenangarse said:

MobileSaver said:

Sarah1Mitty2 said:

JJR45 said:

MobileSaver 

Most of the rest will have taken out a five-year or longer fixed rate so they won't be worrying about renewing for at least another three years yet...

it is around 50% of new lending that was on 5y+ fixed in 2020, but that could still mean the majority of a mortgage on a property in terms of value could be on a different term.

Around 70% of mortgage debt payers will see their monthly debt costs rise in the next couple of years apparently.

Around 100% of renters will see their monthly rent costs rise in the next couple of years apparently.

Yes, particularly with all those  over leveraged Landlords trying to offload their ‘investments’

Agreed, probably not a good time to be a renter by choice just now.

 they will be making interest on their savings and there will be some excellent opportunities to be had in their position with nothing to sell.

Interest rates on savings are poor. With a shortage of property on the market there are few opportunities

We are currently renting while we wait and have not had an increase for 2 years.
Our pre-tax interest per month on NSI is now around £700 per month, so nearly paying our rent.

That's a little disingenuous isn't it? It may be nearly paying your rent now but it won't have been for the last two years.

JJR45

MobileSaver said:

JJR45 said:

jimbog said:

lookstraightahead said:

Their rent is unlikely to increase

Not what renters are experiencing at the moment

lookstraightahead said:

MobileSaver said:

Aberdeenangarse said:

MobileSaver said:

Sarah1Mitty2 said:

JJR45 said:

MobileSaver 

Most of the rest will have taken out a five-year or longer fixed rate so they won't be worrying about renewing for at least another three years yet...

it is around 50% of new lending that was on 5y+ fixed in 2020, but that could still mean the majority of a mortgage on a property in terms of value could be on a different term.

Around 70% of mortgage debt payers will see their monthly debt costs rise in the next couple of years apparently.

Around 100% of renters will see their monthly rent costs rise in the next couple of years apparently.

Yes, particularly with all those  over leveraged Landlords trying to offload their ‘investments’

Agreed, probably not a good time to be a renter by choice just now.

 they will be making interest on their savings and there will be some excellent opportunities to be had in their position with nothing to sell.

Interest rates on savings are poor. With a shortage of property on the market there are few opportunities

We are currently renting while we wait and have not had an increase for 2 years.
Our pre-tax interest per month on NSI is now around £700 per month, so nearly paying our rent.

That's a little disingenuous isn't it? It may be nearly paying your rent now but it won't have been for the last two years.

No, I did say it is now nearly paying, I never said it was before. 
But the comment by the OP was regarding poor savings rates, so was just an example, nothing disingenuous about it.

MobileSaver

lookstraightahead said:

MobileSaver said:

Aberdeenangarse said:

MobileSaver said:

Sarah1Mitty2 said:

Around 70% of mortgage debt payers will see their monthly debt costs rise in the next couple of years apparently.

Around 100% of renters will see their monthly rent costs rise in the next couple of years apparently.

Yes, particularly with all those  over leveraged Landlords trying to offload their ‘investments’

Agreed, probably not a good time to be a renter by choice just now.

I think the worst situation to be in would be paying over valuation now , with interest rates as they are. Or even near to current valuation as this is going down (in my opinion).

As you said recently, we see life differently. You and others seem to view their home as just a pile of bricks, in my world most people see their home as more than that.

I think the worst situation would be to miss out on your dream home because of some misguided principle that you mustn't pay over or even near the valuation price. If a particular property is perfect for you but someone else is interested and you have to go £5k, £10k or more over valuation to secure it then that may be the best money you ever spend.

lookstraightahead said:

with interest rates as they are.

Interest rates have been rising for over a year, so far house prices have risen by 12% since then...

lookstraightahead said:

The best position anyone could be in now would be if they sold high recently and they're short term renting and looking to buy in the next year or so. Their rent is unlikely to increase,

That's all very well if house prices drop significantly in a year's time but what if they don't? Last time it took 18 months for prices to drop significantly and that was with the housing market in a much more precarious position with liar loans, 100% mortgages and plenty of interest-only mortgages. Basically loads of people had little or no equity in their homes, so the wheels came off quite quickly and people had no choice but to sell bringing prices down.

Today the situation is very different because lessons were learned last time. Most people have at the very least 15% equity in their homes so even if a significant drop did happen it isn't the end of the world.

You then have the practicalities; renting might be fine in principle but I've just done a search within a 5 mile radius of my village - there is literally just one house available to rent and that came on to the market just 4 days ago. So if two people want to Sell to Rent today they can't both stay living around here.

lookstraightahead said:

It appears a lot of people aren't happy to move twice/ couldnt possibly rent and it will have cost them tens of thousands of pounds as opposed to short time renting (but that's ok if they're staying there forever I suppose).

Pretty much every "most stressful lifetime events" poll ever conducted has moving house in the top three so it's hardly surprising most people would try to avoid doing it twice in as many years if they possibly could.

Sell to Rent may be just about doable if you are single but must be exponentially harder as a couple; both of you have to be prepared to put up with all the compromises it inevitably brings. Add children into the mix and there's a whole extra layer of complexities.

As has been said a hundred times, trying to time the market is a mug's game. You're taking a huge gamble with some guaranteed negatives (e.g. stress and cost of moving twice, paying landlord's mortgage instead of your own), probable negatives (e.g. higher interest rates) and potential negatives (e.g. rubbish landlord) all in the hope that prices drop enough to make it worthwhile.

Maybe that's a risk you think is worth taking but I'm not sure too many others will.

MobileSaver

JJR45 said:

MobileSaver said:

JJR45 said:

Interest rates on savings are poor. With a shortage of property on the market there are few opportunities

We are currently renting while we wait and have not had an increase for 2 years.
Our pre-tax interest per month on NSI is now around £700 per month, so nearly paying our rent.

That's a little disingenuous isn't it? It may be nearly paying your rent now but it won't have been for the last two years.

No, I did say it is now nearly paying, I never said it was before.

My point was that you were comparing rents set two years ago with interest rates set today so no-one selling to rent now will be in as fortunate position as you.

JJR45

MobileSaver said:

JJR45 said:

MobileSaver said:

JJR45 said:

Interest rates on savings are poor. With a shortage of property on the market there are few opportunities

We are currently renting while we wait and have not had an increase for 2 years.
Our pre-tax interest per month on NSI is now around £700 per month, so nearly paying our rent.

That's a little disingenuous isn't it? It may be nearly paying your rent now but it won't have been for the last two years.

No, I did say it is now nearly paying, I never said it was before.

My point was that you were comparing rents set two years ago with interest rates set today so no-one selling to rent now will be in as fortunate position as you.

No, I was just responding to the poster's points saying everyone's rent has or is going up and interest rates were poor.
I think you are reading things I have simply not posted. 
You said I was being disingenuous, which is simply not correct. I have just stated the facts of our current situation.

lookstraightahead

I think the worst situation to be in would be paying over valuation now , with interest rates as they are. Or even near to current valuation as this is going down (in my opinion).

As you said recently, we see life differently. You and others seem to view their home as just a pile of bricks, in my world most people see their home as more than that.

I really don't see my home as just a pile of bricks. What I don't want is my "dream home" (hate that saying) becoming an absolute nightmare. A property that is an absolute nightmare is much worse than missing out on a dream home. I don't want to fund any more bad debt from wanting a "dream" house.

I suppose an actual house on its own isn't going to bring me happiness. I don't get happiness from wallpaper and matching duvet sets. I get happiness from my life a a whole. So I don't place so much emphasis for my happiness on spending more than I can afford, or losing money for the sake of it. I don't buy dreams. 

MobileSaver

lookstraightahead said:

I think the worst situation to be in would be paying over valuation now , with interest rates as they are. Or even near to current valuation as this is going down (in my opinion).

As you said recently, we see life differently. You and others seem to view their home as just a pile of bricks, in my world most people see their home as more than that.

What I don't want is my "dream home" becoming an absolute nightmare.

If, like most people, you buy a home with a five-year or longer fixed rate mortgage then how does that become an "absolute nightmare"? What specifically are you afraid of?