Buy a house or sit on the money?

GDB2222

gazfocus said:

GDB2222 said:

I’m afraid that the right answer is to disappoint your buyers. It makes no sense to sell your house without a plan to move somewhere else.

If you feel bad about your buyers, pay some or all the fees they have spent. But, don’t make yourselves homeless just to please them.  

It’s impossible to say what will happen to house prices in the next three years, and they could race away from you whilst you have your money in the bank.

Sorry, I should have said, the house we are selling is not our ‘home’. It was once our home but we currently rent in another area so we won’t be homeless. 

My worry is that house prices could keep climbing to a point where our money in the bank will technically be worth less, so you have a valid point. 

What do you gain by selling this property and buying another? There are substantial costs involved, so there need to be substantial advantages too. 

gazfocus

MFWannabe said:

If you are currently renting why not buy somewhere to live in the area you currently rent in? 

Unfortunately, we can’t afford to buy a big enough house where we currently live (at least without a mortgage), and would be subject to high interest rates due to my wife’s poor credit. 

gazfocus

lookstraightahead said:

What in real terms is the difference between what you can afford now mortgage free, and what you would buy with a mortgage? If you're renting now you can buy with no chain your end which often is a good negotiating point.
could you buy a do-er upper that you could turn into your 'forever' home?

I don't agree with the 'buy now whatever' theory but as you're mortgage free its a great position to be in - it's lovely not having a mortgage especially if you've struggled financially.

I’d say, if we were to buy a home to live in now, we’d need to spend about double what we were going to pay for the house we were buying as a holiday let, so we would be buying with a 50% deposit. 

When we started looking, it became apparent that do-er uppers don’t seem to be listed for any less than houses that are in live-in condition. For example, there was one house in the area that we live that we could’ve just about afforded outright. Many of the rooms had been taken completely back to the brick work. It was on at the same price bracket as similar size houses in the area that didn’t need all that work doing. 

gazfocus

GDB2222 said:

gazfocus said:

GDB2222 said:

I’m afraid that the right answer is to disappoint your buyers. It makes no sense to sell your house without a plan to move somewhere else.

If you feel bad about your buyers, pay some or all the fees they have spent. But, don’t make yourselves homeless just to please them.  

It’s impossible to say what will happen to house prices in the next three years, and they could race away from you whilst you have your money in the bank.

Sorry, I should have said, the house we are selling is not our ‘home’. It was once our home but we currently rent in another area so we won’t be homeless. 

My worry is that house prices could keep climbing to a point where our money in the bank will technically be worth less, so you have a valid point. 

What do you gain by selling this property and buying another? There are substantial costs involved, so there need to be substantial advantages too. 

We’ve been renting the house out with consent to let from our mortgage lender. That consent has now expired so we either have to get a buy to let mortgage (which we’ve been told would be in the region of 10% due to my wife’s credit), move back to the house (but it’s in the wrong area), or sell it. 

Selling it now, we’ve made a ‘profit’ which gives us the option of buying mortgage free but at the same time I can see the appeal of having the money in the bank vs having another house to try and sell when we are ready to buy. 

sheramber

Remember you may have to pay Capital Gains Tax on   the gain you make when selling the house.

GDB2222

gazfocus said:

GDB2222 said:

gazfocus said:

GDB2222 said:

I’m afraid that the right answer is to disappoint your buyers. It makes no sense to sell your house without a plan to move somewhere else.

If you feel bad about your buyers, pay some or all the fees they have spent. But, don’t make yourselves homeless just to please them.  

It’s impossible to say what will happen to house prices in the next three years, and they could race away from you whilst you have your money in the bank.

Sorry, I should have said, the house we are selling is not our ‘home’. It was once our home but we currently rent in another area so we won’t be homeless. 

My worry is that house prices could keep climbing to a point where our money in the bank will technically be worth less, so you have a valid point. 

What do you gain by selling this property and buying another? There are substantial costs involved, so there need to be substantial advantages too. 

We’ve been renting the house out with consent to let from our mortgage lender. That consent has now expired so we either have to get a buy to let mortgage (which we’ve been told would be in the region of 10% due to my wife’s credit), move back to the house (but it’s in the wrong area), or sell it. 

Selling it now, we’ve made a ‘profit’ which gives us the option of buying mortgage free but at the same time I can see the appeal of having the money in the bank vs having another house to try and sell when we are ready to buy. 

10% interest rate is high, but the outgo depends on how large the mortgage is. Your rental income is presumably higher on this property than it would be on a smaller one without a mortgage. You can compare all that over say 3 years to the cost of selling one house and buying another just in order to maintain a toehold in the housing market. 

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When their is a cure for that pernicious, British made disease with the mindset “Ooh my house is worth.....”

Johnny foreigner must laugh amongst themselves how some people here would spend 500k on a wooden garden shed that’s sits on a damp shingle beach, and to cap it all untreated sewage being pumped into the sea....Madness.

Sit on your money.    

 

Yellowsub2000

Moving house with Charlie on YouTube is the source 

he is often on bbc and other places.

yes we are at the top at the moment but there is a delay on reported figures so in fact the crash has started £1000 per week.


yes £50k year crash for a few years anywhere between 35% - 50% before bottom

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silvercar said:

 The average house price is £310k,

Official statistics here.

This is from your link ? -

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Now look at the median salaries in the UK.