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Sell up and wait until the strom has blown over?

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Comments

  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I'll admit that I am starting to itch for a bit of DIY after 13 months.
    There are some schemes run in some areas where pensioners get DIY jobs done by competent people at about/below minimum wage.

    I certainly saw one advertised in the hospital when I was visiting my mum.

    If you want to do some DIY AND do some good, you could look into this and do small odd jobs for local pensioners maybe.

    I've suggested this as it would be a good way to do some DIY (allbeit not where you are living) without the commitment of starting your own business and actually having to work for ungrateful and annoying real customers :)
  • pinkshoes
    pinkshoes Posts: 20,607 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You'd also have to consider the "cost" of the inconvenience of having to move twice within a couple of years. Given that a lot of landlords are selling up, you'd have to make sure you find somewhere that won't be sold while you're living there, as then you'd have to move again after 6 months. Not much fun with 3 kids!

    Make sure you'll be able to get a mortgage too.

    If prices are dropping, then if you accept an offer of 10% lower on yours, then offer 10% lower on the house that you want to buy. The saving won't be as big as if you rent and (IF) the prices drop some more, but then you can't but a financial value on the hassle of having to move twice, and living in limbo land while you wait. The financial value of the hassle of moving to me is a lot of money (I hate rented accommodation, as it never feels like home or mine), but some people don't mind this.

    If you accept a lower offer on yours, but can't get a lower offer accepted on a 4 bed house, you can always hang on, or pull out of your house sale. Nothing is binding until you exchange!
    Should've = Should HAVE (not 'of')
    Would've = Would HAVE (not 'of')

    No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    The dream scenario obviously being that a year or two down the line we'll be able to consider the properties that are just of reach at present.

    Make sure you realise that this is property speculation, and prices can go up as well as down.

    There are plenty of "STRs" who took this speculative gamble and sold 3 or 4 years ago who have been priced out of the market - which is why they are so desperate for a crash now.

    It could easily happen again.
    Trying to keep it simple...;)
  • Jorgan_2
    Jorgan_2 Posts: 2,270 Forumite
    beingjdc wrote: »
    Curious. Always interested to hear where in the country this is the case in these times of high prices (with which rents have not kept pace at all!) - did you include the interest you would earn on the equity you'd release by selling (if any) in your maths, or just the mortgage vs the rent?

    My figures were based on the current mortgage cost vs renting a suitable property. I didn't take into account any interest from the equity that could be sat in the bank. The difference between rent & mortgage payments would be about £320pcm. The equity would probably earn more over a year, but I'd need to factor in stamp duty & other costs.
  • geeba88
    geeba88 Posts: 247 Forumite
    Thanks all for the feeback

    I think on reflection we'd be better off staying put. We're not talking mega mortgages, bought for £45K in 2001, valued at £130K now. I guess any significant price drop will bring other properties onto our radar anyway. Our 5yo and 2yo can certainly share a bedroom for another few years!

    I think we'll sit tight for a year or two, i'm hoping there might then be the possibility of buying another house but keep our current home as a rental. With our mortgage at £400pm and rental prices at around £600pm, it might be a good way of a) using any remaining equity left after a correction, and b) addressing my criminally neglected pension pot.

    All very hypothetical I know, lord knows what the state of mortgage lending, interest rates, rental prices will be in a couple of years.

    Thanks Again
  • baby_boomer
    baby_boomer Posts: 3,883 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Don't forget to factor in stamp duty costs. If your future dream home costs £250K to £300K maybe Gordon will be nice and drop the stamp duty on this bracket from 3% to 1% while you are renting = £5K-£6K saved. But don't count on it as his stamp duty revenue will be falling in this market as either transactions or sale prices fall or both.
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