Sell and buy a year later?

Wild_flower

Hello,

I’m a single mother to an 18 month old, living in my one-bed garden maisonette in Kent. I want to move into a 2-bed house in West Sussex where I’ve got more family around- and I love to be by the sea. I’m trying to figure out a plan of how to do this.

I’d love to get thoughts on my plan.. if there’s anything I’m perhaps not thinking about or other possible options.

The plan:

• put property on market nov 2026 with view to complete March 2027. This is when my fixed mortgage deal ends. Should get APROX 100k equity.
• Move into my mums, things into storage, equity into ISA and top tier saver, son into nursery part-time, find PAYE job that ticks the salary-required box for 100k mortgage. Already earn a part-time wage so I need a top up of about the same again. I don’t want to borrow more than 100k as I plan to do overpayments and want to keep my lifestyle as flexible as possible. I’ve got some assets I can
• After 6 months of employment get MIP, start property search and buy

Staying at my mums is not ideal but I can’t think of how else to do this. All being well I’d hope to find a property and complete within a year. One of my concerns is money being lost with inflation but I guess it wouldn’t be too much on such a low amount?

Thanks,

Ruth

sheramber

What are house prices where you want to buy. Compared to your selling price ?

How much deposit do you expect to have.

Remember buying fees.

silvercar

You won't be out of the market for that long, in terms of house price inflation as well as general inflation. It certainly works as a savings method, primarily because you are staying at your mums. How well do you get along? What would her view be if it took longer to buy? If you end up at each others throats and move into rented, the rent is going to blow your plan out of the water.

GDB2222

November is a quiet time to sell. And December quieter still. You probably should start marketing sooner.

Having just looked after our granddaughter aged 3 for a fortnight, I take my hat off to you if you're looking after a young child and holding down any sort of part time job!

Myci85

Remember that some of your equity will be swallowed up in selling fees, moving fees, and buying fees including stamp duty. And you may find that if your plan is to take on a 2nd job to meet the mortgage requirements, some lenders won't consider income from a second job until you've been in it for a certain length of time (to satisfy themselves you've not just taken it on to pass the affordability and then will leave). Additionally, some lenders will only take a certain percentage of your 2nd job income into account for affordability, so I don't know if there is the option to leave your pt job for one full time job?

Obviously you should hopefully be able to save up a chunk of money whilst living with your mum (if she isn't expecting rent) but just important to make sure that you will realistically be able to afford the sort of property you want in the area you want.

jackieblack

Four months from putting it on the market to completing a sale seems optimistic, even more so at that time of year

Slinky

https://forums.moneysavingexpert.com/discussion/comment/82079255#Comment_82079255

Absolutely. House in our street had a sold sign outside in about October/November, it only completed in May, a year after being put on the market. Someone I know has been trying to sell for 18 months without success. Several people interested but haven't sold their own property.

mlz1413

This plan hinges on you getting a job with more hours. What are the options if that doesn't work out? Or what are the options if it is a full time job only with no flexibility fo home working?

If moving in with your mum isn't ideal, how long is it sustainable?

There are a lot of variables in the plan, you need to have a plan B for each one.

In principle I'd say it sounds perfect, invest equity, save as paying mum nothing, have a built in baby sitter so you can live a little. Then buy a year later with recharged batteries.

But the reality.. what if savings don't beat inflation, mum doesn't want to babysit every Fri and Sat. Will you feel lonely and away from your friends. Or At logger heads with mum to the point of choosing to renting. Then you can't find anywhere to buy and/or a job flexible enough to pay the wages you need. Will you actually be in a better place?

twopenny

Houses don't sell in November December or January. People are spending money on Christmas for one and don't want to move to a new property in winter when they can't do renovations or get trades.

Solicitors and such take a two week holiday over the Christmas period which sets everything back weeks.

Properties near the sea have a premium. More buyers so higher prices.

Your idea is good but over optimistic and needs more planning. Start looking for the properties you want in the area you want and see how long they stay on the market. You can do this easily with Rightmove. Remember to add the buying fees.

Do the same for your area so you have an idea of how long to sell.

If you can, sell in the spring to get a quicker sale and buy late autumn when properties are reduced.

If you get a job that's accessible from your mothers that's going to be the area you need to buy in.

Herzlos

Assuming you have a job currently, your plan is presumably to get a new job in the new area? If so I think that's probably your best bet.

If you're planning on moving over, it's definitely worth trying to do so before kid starts nursery.

A few points:

There's nothing stopping you moving before your house sells, to start a job or nursery.
The earlier you prep your place and get it on the market the better. As mentioned, November onwards is slow and it could take longer than you think to sell.

You're aiming for £100k equity and under £100k mortgage - have you checked how much you'll need for your proposed 2-bed house and how much you'll need to save in the year you're staying with your mum?

Emmia

Are you sure your mum won't expect some sort of rent for housing two people? If nothing else if she's currently living on her own she'll lose the 25% council tax discount when you move in, and her utility bills will rise too (I'm going to presume you'll be paying for groceries)