Selling house - are we mad?

Mrsd_2

Hello everyone. Just looking for some opinions.:o Husband is currently in the air force and I am a stay at home mum. We have a 1 year old and another on the way and own our own house. We are just about managing to survive but seriously considering selling our house to move into married quarters (rented). Currently we owe about £45,000 (2 x credit cards, 2 x loans). Our logic of thinking is this, we can sell house and pay off debts. We'd also be about £500 a month better off. This would mean we can put money into savings and afford luxuries like days out and holidays. At the moment we are just having to plough money into our house as everything just keeps going wrong. The other thinking behind moving to a base is so that I will have a support network with other young mums, we can move down to one car, and any problems with house get sorted via raf. We worked out that over the time husband has left in force we could save appx £30,000 and we he comes out he will get about £40,000. Therefore we'd have a nice deposit to put down on a house. He would also get a decent pension each month. Anyway, if you have got this far - well done! So are we mad by leaving the housing market?
:beer:
Thanks in advance x

leftieM

With 45k of debt you may be as well to sell and start again. You will need to address the spending habits that got you into that much debt in the first place or you will be back there again in the future.

Mrsd_2

leftieM wrote: »

With 45k of debt you may be as well to sell and start again. You will need to address the spending habits that got you into that much debt in the first place or you will be back there again in the future.

Thanks, I see it as a chance to start again. It's just a scary decision to make knowing that we won't own our house. Although whilst in the air force we know we will never be homeless.

BettiePage

I'll miss my magnolia woodchip when we eventually move out of mq's and buy a house. Hopefully next year when I finish uni.

One way of looking at it, is at least when he's posted, you can all just go with him.

UK007BullDog

Sounds like a good idea, but Please Please Please set up a budget and a savings plan right after the sale of the property. Otherwise you will be again in such rediculous debt. But this time no house to bail you out.

budget_counsellor_shaz

We lived in quarters until August last year when my husband left the navy. The supportive network is really good on the base for everyone especially the wives. I really enjoyed my time on the base it was great fun.:beer:

You will save money as you don't have to pay rates either as its included in the rent. We had a 4 bed detached house it was really good value for money.

Especially in the current climate of crazy house prices and the probable house price reductions.;)

Anyway whatever you decide all the best.:rolleyes:

Mrsd_2

Thank you everyone, think we are just going to bite the bullet and go for it. Now I need to convince my mum that it's the right idea!

Ivrytwr3

I'm Air Force too, but we own our own home and live on married quarters. What we have done is let out our home, this will give us somewhere to live when i leave (7 years) or sell and move up the ladder.

If you can get someone else to pay your mortgage you are onto a winner, but you must be sure you can continually let the house or you could end up in more debt!

Mrsd_2

Ivrytwr3 wrote: »

I'm Air Force too, but we own our own home and live on married quarters. What we have done is let out our home, this will give us somewhere to live when i leave (7 years) or sell and move up the ladder.

If you can get someone else to pay your mortgage you are onto a winner, but you must be sure you can continually let the house or you could end up in more debt!

Thanks for suggestion, nice idea but doubt we'd get the continual tenants. Not a risk we'd want to take with 2 small babies. Also I doubt we'd be able to afford it

Trollfever

This would mean we can put money into savings and afford luxuries like days out and holidays.

I think that you have answered your own question.

Stop being a debt slave.

Good luck.

EdInvestor

Mrsd wrote: »

Thanks for suggestion, nice idea but doubt we'd get the continual tenants. Not a risk we'd want to take with 2 small babies. Also I doubt we'd be able to afford it

It's worth investigating the pros and cons of letting the house not least because you may have trouble selling in the current climate.Will the market rent cover the costs of the property ( mortgage,insurance, letrting agent,repairs/maintenance)?

Not an easy way out of course, but you may have missed the easy way out.