Thinking of selling up to rent, not buy - advice please

[Aqua 10]

My house has been on the market since the end of July, and I’ve had two viewings but no offers. I know it’s early days so I’m trying not to panic but I’m aware that prices keep dropping and it concerns me that my house is constantly dropping in value. The reason I want to move is to be closer to family as I’m a single parent and they help out a lot, plus I want to be in the catchment area for a good school for my son. It will be further away from work but I can live with that!

 

I’ve been wondering lately if I should sell my house and rent for a while in my preferred area. That way I'll be able to pay off the small credit card debt I have with some of the equity and put the remainder into an account as a deposit for when I buy, putting me in a good position as a buyer. It would also give me time to save a bit more towards a deposit. As house prices are still dropping, I thought it might be a good idea to do this because I could hopefully get a decent-ish price for my house before prices drop more, then if they keep dropping I'll be able to buy one for a cheaper price than they are at now. Also, if I were to rent, I would be able to drop the asking price on mine to get it sold, as I wouldn’t have to worry about having enough money to buy another property straight away.

 

I have a 2 year fixed rate mortgage where the fixed rate doesn’t end until Jun 2010, so I know I’ll have to pay a penalty if I pay it off early, but this would probably be offset by the fact that if I leave my house on the market for months on end, the eventual drop in price would probably account to more than the fee.

 

My only worry about renting is I don’t want to have to keep moving every 6 or 12 months as I don’t want to keep uprooting my toddler, plus it would have to unfurnished as I have a house full of stuff! Also, what would I do if I sold my house but couldn’t find a place to rent in my preferred area prior to completion? Plus, I have a cat and a lot of landlords don’t allow pets. Apart from those concerns, I’m not overly fussed about whether I own my own home or rent – the area is more important to me than the ownership!

 

Just in case it helps, my mortgage currently stands at around 89k, and places for rent in the area I want to live in are rented out for roughly the same as my monthly mortgage payment, dependent on type of property. This is the link to my current house:

http://www.rightmove.co.uk/viewdetails-22479005.rsp?pa_n=1&tr_t=buy

 

What are your thoughts on doing this? Is it a good idea? Pros/cons? Has anyone done this and got any advice?

 

Thanks,

Aqua x

[Tomataheeed 10]

My house has been on the market since the end of July, and I’ve had two viewings but no offers. I know it’s early days so I’m trying not to panic but I’m aware that prices keep dropping and it concerns me that my house is constantly dropping in value. The reason I want to move is to be closer to family as I’m a single parent and they help out a lot, plus I want to be in the catchment area for a good school for my son. It will be further away from work but I can live with that!

 

I’ve been wondering lately if I should sell my house and rent for a while in my preferred area. That way I'll be able to pay off the small credit card debt I have with some of the equity and put the remainder into an account as a deposit for when I buy, putting me in a good position as a buyer. It would also give me time to save a bit more towards a deposit. As house prices are still dropping, I thought it might be a good idea to do this because I could hopefully get a decent-ish price for my house before prices drop more, then if they keep dropping I'll be able to buy one for a cheaper price than they are at now. Also, if I were to rent, I would be able to drop the asking price on mine to get it sold, as I wouldn’t have to worry about having enough money to buy another property straight away.

 

I have a 2 year fixed rate mortgage where the fixed rate doesn’t end until Jun 2010, so I know I’ll have to pay a penalty if I pay it off early, but this would probably be offset by the fact that if I leave my house on the market for months on end, the eventual drop in price would probably account to more than the fee.

 

My only worry about renting is I don’t want to have to keep moving every 6 or 12 months as I don’t want to keep uprooting my toddler, plus it would have to unfurnished as I have a house full of stuff! Also, what would I do if I sold my house but couldn’t find a place to rent in my preferred area prior to completion? Plus, I have a cat and a lot of landlords don’t allow pets. Apart from those concerns, I’m not overly fussed about whether I own my own home or rent – the area is more important to me than the ownership!

 

Just in case it helps, my mortgage currently stands at around 89k, and places for rent in the area I want to live in are rented out for roughly the same as my monthly mortgage payment, dependent on type of property. This is the link to my current house:

http://www.rightmove.co.uk/viewdetails-22479005.rsp?pa_n=1&tr_t=buy

 

What are your thoughts on doing this? Is it a good idea? Pros/cons? Has anyone done this and got any advice?

 

Thanks,

Aqua x

 

 

You could rent yours out, and rent somewhere in your prefered location. I've given up trying to sell - I had offers, but people cannot do the deal.....you could currently easily be waiting 6-9months. I was reading over the weekend about agents that are only offereing to sell house for those people that have a real reason to sell. The acceptable real reasons ? - death and divorce.

[Sheffy2008 10]

My house has been on the market since the end of July, and I’ve had two viewings but no offers. I know it’s early days so I’m trying not to panic but I’m aware that prices keep dropping and it concerns me that my house is constantly dropping in value. The reason I want to move is to be closer to family as I’m a single parent and they help out a lot, plus I want to be in the catchment area for a good school for my son. It will be further away from work but I can live with that!

 

I’ve been wondering lately if I should sell my house and rent for a while in my preferred area. That way I'll be able to pay off the small credit card debt I have with some of the equity and put the remainder into an account as a deposit for when I buy, putting me in a good position as a buyer. It would also give me time to save a bit more towards a deposit. As house prices are still dropping, I thought it might be a good idea to do this because I could hopefully get a decent-ish price for my house before prices drop more, then if they keep dropping I'll be able to buy one for a cheaper price than they are at now. Also, if I were to rent, I would be able to drop the asking price on mine to get it sold, as I wouldn’t have to worry about having enough money to buy another property straight away.

 

I have a 2 year fixed rate mortgage where the fixed rate doesn’t end until Jun 2010, so I know I’ll have to pay a penalty if I pay it off early, but this would probably be offset by the fact that if I leave my house on the market for months on end, the eventual drop in price would probably account to more than the fee.

 

My only worry about renting is I don’t want to have to keep moving every 6 or 12 months as I don’t want to keep uprooting my toddler, plus it would have to unfurnished as I have a house full of stuff! Also, what would I do if I sold my house but couldn’t find a place to rent in my preferred area prior to completion? Plus, I have a cat and a lot of landlords don’t allow pets. Apart from those concerns, I’m not overly fussed about whether I own my own home or rent – the area is more important to me than the ownership!

 

Just in case it helps, my mortgage currently stands at around 89k, and places for rent in the area I want to live in are rented out for roughly the same as my monthly mortgage payment, dependent on type of property. This is the link to my current house:

http://www.rightmove.co.uk/viewdetails-22479005.rsp?pa_n=1&tr_t=buy

 

What are your thoughts on doing this? Is it a good idea? Pros/cons? Has anyone done this and got any advice?

 

Thanks,

Aqua x

 

 

Hi Aqua

 

I hope things work out for you in this horrible time and I think you're wise to take account of your finances now, rather than when it is too late.

 

Though I rent, I'd be careful as you may have either a void if you set your rent too high or you may get bad tenants which can damage your house, and you will be liable for fixing things if they go wrong, and renters don't take such a good care of things when they know the landlord/lady will fix them for free.

 

I'd think very carefully about whatever you decide to do.

 

I think you are the tip of the iceberg and thank you for the post.....but I genuinely think it will be very tricky for you, sorry I couldn't offer more advice.

[Aqua 10]

Sheffy2008 - I don't mean I'll rent my house out - I don't want to do that - I meant I want to sell my house and then rent one in the area I want to move to, rather than buying one there. Hope that makes sense.

 

CC x

[Sheffy2008 10]

Sheffy2008 - I don't mean I'll rent my house out - I don't want to do that - I meant I want to sell my house and then rent one in the area I want to move to, rather than buying one there. Hope that makes sense.

 

CC x

 

Oh stupid me!

 

That sounds like a good plan...sell to rent......earning decent interest with what's left.

 

Goodluck Aqua.

[GrannyGranny 10]

I would wait to see of you can sell your house first.

 

Even in a falling market I would still buy. There are good deals if you have sold STC.

 

It sounds like this move will be long term so the value over the next 2-3 years is not important. Also you will not be hit with charges if you keep your mortgage going.

 

Your rent would be about the same as your present mortgage so whats the point?

 

You are paying off your debt instead of the landlords debt.

[numbercrunch 10]

Your rent would be about the same as your present mortgage so whats the point?

 

You are paying off your debt instead of the landlords debt.

 

Rubbish.

 

You can rent a 300k house for less than £1000 per month (I know, we do). The mortgage on a 300k house would be far in excess of that. If you had a sizeable deposit to reduce your mortgage, then that would be money you could earn interest off if you rented.

 

At present, a 300k house is losing about 3-5k a month in value. Why not let your landlord stand that loss while paying him less than a third of what he is losing.

 

The people on here recommending buying want you to buy for a reason, and that reason has more to do with their well being than yours.

 

You may struggle to sell, but if you do, there are so many houses to chose from for rent (people who won't reduce their prices enough to sell are renting them out 'waiting for things to pick up').

 

Good luck - and remember if you get an offer on your house and turn it down, you will probably be happy to accept 10% less than that offer in a year when prices have fallen another 15% minimum.

 

Then in 2010, take a look at the market again once prices have bottomed out.

[Sheffy2008 10]

Rubbish.

 

You can rent a 300k house for less than £1000 per month (I know, we do). The mortgage on a 300k house would be far in excess of that. If you had a sizeable deposit to reduce your mortgage, then that would be money you could earn interest off if you rented.

 

At present, a 300k house is losing about 3-5k a month in value. Why not let your landlord stand that loss while paying him less than a third of what he is losing.

 

The people on here recommending buying want you to buy for a reason, and that reason has more to do with their well being than yours.

 

You may struggle to sell, but if you do, there are so many houses to chose from for rent (people who won't reduce their prices enough to sell are renting them out 'waiting for things to pick up').

 

Good luck - and remember if you get an offer on your house and turn it down, you will probably be happy to accept 10% less than that offer in a year when prices have fallen another 15% minimum.

 

Then in 2010, take a look at the market again once prices have bottomed out.

 

 

OMG!!

 

Another human being with common sense!

 

 

 

 

 

 

.........

[doodle 10]

We sold up to rent in 2006 and bought April this year. We had two houses to rent during that time. One was quite good because it was a friend of the family's that we rented from. They allowed us some freedom in the house, such as redecorating etc. The boiler bust, and they came and sorted it straight away. The second house was a private landlady and was the experience that drove us back to buying our own home. She took her time fixing some things, others were bodged - like the tv Ariel (and the house in general) and other things weren't deemed necessary. In wet weather our tv and phone didn't work. The phone would cost us money to fix, so didn't bother. The house turned out to be the coldest house ever, with gaps in the double glazing, gaps in the doors etc. It cost us a fortune in gas during the winter, as there was nothing we could do without spending money and the landlady didn't care. We are still in debt now for the gas that was used for the 1 winter we was there. I hated the fact that I was paying her mortgage off for what was essentially a crap house. We have bought a bigger and better condition house and pay the same amount in mortgage as we did in rent.

 

I also have a toddler, and I found that it was hard as I wasn't able to make the house safe for her or decorate her bedroom. I was also very worried about her doing typical toddler things, like drawing on the walls in case I lost my bond.

 

The money we had for a deposit was put in to high interest accounts, but I had to have easy access ones as I didn't know when I was going to buy again. I also made sure I swapped it as much as I could to get the highest rate. I put some of the money each in to high ISA's as well ensuring I was using the cash limit to the full.

 

Hope this helps.