To Sell or not to sell - Help needed please

jabbawoki

Hi Fellow Members

I am fairly new to the money saving site but think it is superb. As such I am seeking assistance with my predicament.

I currently own a 2 bedroom flat in Guildford, Surrey (shared ownership. I own 40%, Home Group owns 60%. Valuation 240k.

I am in the process of selling my 40% for 96k which will leave me with a profit after fees etc of about 12k. I am fearful of the current credit crunch, potential realignment of prices etc. As such I am proposing to buy a place in Perth, Scotland for half the total value of my current property which would be 120k, but I do not want to price myself out of a move back down South if needed.

My rational is that as my property is worth 240k and it is just below the 2nd tier of stamp duty threshold. In current conditions I believe that house prices, even in the South East may stay static or realign slightly. Therefore it could take a few years to be worth more than 250k as people have to offset the extra stamp duty that they would have to pay. Based on most reports coming out of Scotland the housing market is still fairly robust due to the lower ratio of earnings to House Prices, therefore doe anyone think my apprach is sensible or misguided?

I need someone to look at this from purely a financial perspective.

Thank you in anticipation.

Jabbawoki

aztec21

It is hard to give a sensible answer without a time frame. If you wanted to buy again in the South two years from now you may not have any difficulty because of the market correction. However if 10 years from now you want to move back it could be a completely different story.

jabbawoki

Sorry, lack of clarity on my part. it would be within 2 years tops if I did move back. Should add to my last post the question - Could I potentialy come back with more than the 12k I left with?

aztec21

In that case I wouldn't worry about the market running away from you. Go for it.

jabbawoki

aztec21 wrote: »

In that case I wouldn't worry about the market running away from you. Go for it.

Thanks friend,

Does anyone have any thoughts on the robustness of the Scottish Market in terms of grwoth potential comapred to the South East? :rolleyes:

jabbawoki

Thoughts anyone? :j

pinkshoes

I'd say it'd be a little naive to follow the advice of people from a forum, especially as some are obsessed with house prices crashing!

I would presume Aztec lives in Guilford to be able to make comments like that!!

I thought Guildford was one of those desirable places to live where properties don't stay on the market long!?

You'd need a crystal ball to answer your question about growth potential. If people could answer that, we'd all be rich!

Christal_2

I'd agree with part of what Pinkshoes said, no one has a crystal ball so no one, can say what will happen to the market for sure. You make assumptions and you stick to it or change your mind, it is easy to give advice on a forum as if you do follow the advice and it turns out to be wrong, you have no one to blame but yourself.

I would say if you have confidence in Scots market and has a bit cash in hand, then you can consider buying the scottish property without selling the existing one, but only if you can afford the mortgage.

wiccanangel

The property market is a gamble wherever you live at the mo..house prices are cheaper in Scotland but surely its HOW YOU LIVE and not where you live..making a move like that has to be a positive one and as pink shoes said no one can see into the future.....or can they...:rotfl: 12k isnt a lot of money to go into property and a full mortgage will be needed.If a change of scenery is wanted then go for it but otherwise beware of all your eggs in one basket...:A

Gorgeous_George

£12K is not the issue here.

We need to consider what the future may hold. Without a reliable crystal ball, nobody can give advice with any certainty. My view is that there may be troubled times ahead.

Batten down the hatches or jump into a liferaft before the storm hits. Fingers crossed, I'll be taking the liferaft route.

GG

vetfred

jabbawoki wrote: »

Thanks friend,

Does anyone have any thoughts on the robustness of the Scottish Market in terms of grwoth potential comapred to the South East? :rolleyes:

No knowledge of either market or growth potentials but at least, at the moment as you know, the Scottish market seems quite positive currently considering the situation: http://news.bbc.co.uk/2/hi/business/7288506.stm

Best wishes whatever you conclude.