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Everything posted by mikthe20

  1. I know I'm ploughing my own furrow here, but what the hell - I'm hoping people find it useful and I would urge you to try it. I have updated the original post with a new version of the spreadsheet. What I have added is the ability to calculate the savings on a new mortgage by STR'ing or WTB'ing. There are some serious savings to be made! - IF you get the timing right! I suspect a lot of people don't want to go to the effort of using a spreadsheet, but here's an example from the default figures I put in: Equity released on sale of your house A: £180,000 Value of your current house: £250,000 Current price of house B you'd like to buy: £400,000 Monthly rent: £1,000 Average tax on savings: 30% HPI: Year 1 -10% Year 2 -10% Year 3 -10% Year 4 -5% (total 31% drop in market from peak) Year 5 0% RESULTS: If you STR then, assuming you will have take out a mortgage, your cumulative savings would be: Year 1: £60,154.32 Year 2: £112,312.32 Year 3: £157,122.23 Year 4: £169,589.72 Year 5: £155,338.75 (goes down because rent now more than house price drops) If you simply stay put and Wait to Buy, you'd save as follows: Year 1: £26,306.55 Year 2: £49,982.45 Year 3: £71,290.76 Year 4: £80,879.49 Year 5: £80,879.49 Please put your own figures into the spreadsheet - it's certainly made it easier for me to tell the wife we won't be buying a bigger house this year
  2. Thanks for the compliment LTP! You're right, I think the spreadsheet highlights how crucial timing the market is in all this - both at what time you STR, and at what time you buy back in.
  3. zzg - we have considered that, but our property is not particularly conducive to extending, and neither do I like loft conversions (loss of storage space and not sure they add value in a falling market). I guess we're at the stage where our next move is the "here until we retire house" and so we want to get it right.
  4. Sorry - I should have said. You need to right click and then save it (yes, I have anti-virus software on my PC!). After that, either rename it so that the extension is .xls instead of .txt, or open Excel and then simply drag the file into it. HTH.
  5. Well, I'm finding this pretty useful (although I must admit I'm surprised there's not much interest in this on this forum ). Anyone care to make any long term predictions for HPI over the next 10 years?(sound of can of worms being opened ) I have set defaults of: Year 1: -10% Year 2: -10% (these are year-on-year) Year 3: -10% Year 4: -5% (makes a peak to bottom drop of 31%) Years 5-7: 0% (bottom of cycle) Years 8-10: +5% per annum
  6. Thanks Van. You are right, I have not added the mortgage savings costs, but this could perhaps be factored in by putting a "NET rent" figure. I'm still playing with the spreadsheet myself for various scenarios. I'm certainly absolutely convinced that WTB (like that term!) is a good idea (or rather, trading up is a bonkers idea!) - still undecided on STR though. PS: I'm off for meetings for most of the day so will not be able to respond until later.
  7. Right, please find attached the spreadsheet file. I've had to upload it as a .txt file (thanks [email protected]%GY) so in order to open it in Excel please rename it .xls, or simply drag and drop the file into Excel. A bit of background: - This is the first pass - there are probably lots of errors - and I'd appreciate feedback - The usual caveats - I did this for my own use, so use at your own risk - I have deliberately left some items out at this stage (note in the file) - The reason for developing this spreadsheet was that I am an OO, have a growing family, and wish to upgrade, intuitively saw upgrading as risky but wanted a mathematical model to make a proper assessment. I therefore wanted to see what might happen for various scenarios. - The main results therefore show how one may or not benefit by staying where you are or by moving to a bigger/more expensive house now; or showing how one might benefit or not by selling up and renting. Using it: - The INPUTS section at the top shows the data to enter. I have included the ability to set interest rates for each year up to 10 years ahead (long cycle in property!). I have put in defaults (not my actual numbers!) - The RESULTS section below shows how much all of this will cost, as well as the "opportunity cost" of not doing anything - the most interesting bit for me is the cumulative costs of staying put/STR/upgrading. - Other interesting data (depending on your circumstances and thoughts on future HPI and interest rates) is that it can show at which point STR may turn from being attractive to unattractive - Don't forget that it relies on your predictions of rates, and so there is a risk of that prediction being wrong, so it's best to try various scenarios to see the cost of being wrong I'd appreciate any feedback - particularly spotting any bloopers in there - I'm no spreadsheet demon Sell_to_Rent_and_Upgrade_calculator.txt Sell_to_Rent_and_Upgrade_calculator.txt
  8. I've tried that - it says "Upload failed. You are not permitted to upload a file with that file extension." It's a .xls spreadsheet file.
  9. Oops - any way I can upload an Excel spreadsheet?
  10. Hi everyone - first post. I've been a lurker for a while I'm afraid. Quality forum. I'm an OO who had the extremely good fortune to buy in the mid-90s in a good area. I bought at 3 times my salary and the "value" (yeah, I know) of my house is now 6x my (higher) current salary, so prices seem pretty nuts to me. I am vaguely thinking of STR'ing and would like to make calculations on whether it makes financial sense or not depending on various scenarios (I appreciate there is another significant non-monetary cost of moving my family into rented accomodation). Has anyone built a spreadsheet to calculate the costs/benefits of STR relative to different prospective future house prices? I'm happy doing (a simple) one myself, but if anyone's got one available it would save me some time. TIA. Edit: Spreadsheet now added!! Instructions to download: You need to right click and then save it. After that, either rename it so that the extension is .xls instead of .txt, or open Excel and then simply drag the file into it. Edit: Spreadsheet has been updated to latest version to include new mortgage costs. Sell_to_Rent_and_Upgrade_calculator_1_2.txt Sell_to_Rent_and_Upgrade_calculator_1_2.txt
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