sell house then rent?

CYBERCIDERSAVER

The RICS has just come out saying they expect a modest 5% reduction due to the fact their will be fewer distressed buyers and the lack of housing stock.

Would a 5 percent reduction be enough to turn a profit on this scheme? Perhaps not so you may be forced to wait longer... 2 3 years maybe (assuming prices continue to slide.

In that time you my be forced to move 3 times by landlords wishing to sell up. Also the endless battles with landlords over fixing the boiler/leaking conservatory/overflowing toilet etc. And then the battle for your deposit at the end.

Like everything in life it's a gamble and I am sure some will make money, but I'm also sure some will really wish they hadn't bothered.

Good luck to you in whatever you decide. I hope it works out for you.

Fusewire_2

Dopester I totally agree with your post, even if it is a little harsh! Selling to rent in the current market would be an excellent idea if there were willing buyers out there, but there aren't any. Not sure if the market will go down by 50% though?

Confused - If you can persuade your missus to sell up and you manage to find a buyer at a price that suits you, then good luck to you. Its a good move in my opinion, bank the cash and wait for the drop. You'll be in a great position to buy. Buyers are few and far between at the moment though, plus mortgage offers are taking ages to come through. Even if you do manage to get a sale today, you'll be lucky to complete by October.

webmuppet

dopester wrote: »

I just can't understand some people.

They reckon their house is worth stacks of money and come here with the big fresh new idea of trying to sell at near top money - then rent until the market crashes hard - then buy back in very low and bargain hard.

Next they'll be here slagging off their EAs for no getting no viewers and blaming FTBs for not spunking hundreds of thousands of pounds on some hell-hole, those few with an actual deposit and mortgage financing for not buying their BARGAIN house and doing the same as they want to do.

They just don't understand they are caught in a trap - it's mostly too late to STR - the smart did it last year or before. Good luck finding your mug buyers. I think alot of you are now tightly strapped in for the full steep ride down -50% +.

I think thats a bit of an over reaction. Some people want to buy to rent to get out of a chain, get more of a chance of getting a bargain by being able to move quickly or maybe some other reasons that you couldn't see in your rush for the red lettering.

neas

Dopester your comments are hilarious .

I also think that.... like any market.. you got to be one step ahead... Waiting till the crash is publically called by every newspaper, every bank, every surveryors union... isn't clever.

Its hindsight..

Good luck selling if you can.. it is the best idea... but the crunch point will be in selling... If you weren't greedy and realised your losses now rather than later (lot moer losses) you could nknock 20k off your asking price and move out fast...

geoffky

Timing my friend its all about timing!!!!!! and its just gone midnight for most people..

posh*spice

Factor into your calculations the cost of buying and selling - estate agents, lawyers, etc. Also factor in the loss of a good interest rate if you have one. The deals that are around now are not as good as they have been. Make sure you end up with a good LTV. Have you looked at the cost of renting a house similar to the one your are living in? Take this into consideration. Also, if you have kids you need to be thinking about catchment areas for schools.:money:

neverdespairgirl

Phill_555 wrote: »

I can't say that I follow you're logic confused. Why someone would want to get off the housing ladder once they have got on it is beyond me?

Because at the moment, it's more of a property snake!

WTF?_2

geoffky wrote: »

Timing my friend its all about timing!!!!!! and its just gone midnight for most people..

Yep - once the media is calling a housing crash it's too late to easily cash in your chips, though you might be lucky.

The optimal time to Sell To Rent (STR) would have been last Sep/Oct. Around that time there were plenty of us posting in this group that the market was set to tumble and as part of that stance, pointing out that STR was something to be considered.

Of course, what happened is that most people didn't want to hear that news and complained so much that all talk of house price falls got marginalised onto a single thread. It's only in the last month or two that a sub-forum was opened up to discuss prices falling on the housing market after the thread became one of the biggest and most popular threads running and wouldn't die.


So well done 'head in a bucket of sand' brigade. Your inability to accept opinions that you didn't want to hear back in September has lead to plenty of MSE readers being denied information and opinions that could have saved them some money or put them in a better financial position. :rolleyes:

confused31_2

dopester wrote: »

I just can't understand some people.

They reckon their house is worth stacks of money and come here with the big fresh new idea of trying to sell at near top money - then rent until the market crashes hard - then buy back in very low and bargain hard.

Next they'll be here slagging off their EAs for no getting no viewers and blaming FTBs for not spunking hundreds of thousands of pounds on some hell-hole, those few with an actual deposit and mortgage financing for not buying their BARGAIN house and doing the same as they want to do.

They just don't understand they are caught in a trap - it's mostly too late to STR - the smart did it last year or before. Good luck finding your mug buyers. I think alot of you are now tightly strapped in for the full steep ride down -50% +.

To be honest that would suit me as well, i would love my property to go down 50% if the one im going to buy drops 50% like i say i was going to borrow over 50000, if mine comes down 50% to 85000 and the one i want to buy comes down 50% which is over 200000 i will still only need to borrow a bit.

Im in no rush to sell but im looking at all options and to be honest if i sell next week i would do the renting option and hang on.

If i dont sell and the houses drop down by 50% i will get a small mortgage when i do sell and get the house i want, to be honest this so called housing crash could not come at a better time for myself.

confused

SquatNow

The question for the OP is if they sell how much equity will they have.

Selling at £150k might give them £105k equity. Or place might sell for £100k.

Or OP might end up chasing the market down and selling at £60k.

The OP needs to SELL the house and then decide if he is gin to wait or buy striaght away. You cant make the choice until you've ACTUALLY SOLD.

Until you've acually sold you are mearly fanstasising about what could be.

once you've sold and have CASH in your pocket you are then in a position to bargain if you so wish.