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I wonder if I may ask your advice.

Like many of you, I am of the view that house prices are ludicrously overpriced and, in view of that and the state of the national and international economies in general, are doomed to crash. By how much I'm not sure.

I have a house in Wandsworth Common, an attractive, 4-bed, terraced, arts-and-crafts-style house with a nice garden, in a nice road, in a nice area, in the catchment area for a saught-after school. An agent has recently valued it at 635,000.

I got divorced a couple of years ago and had to re-mortgage to buy my ex-wife another house, so it now has a mortgage of £415,000, which costs me about £1800 a month.

I can't really afford to pay that sum, so I am renting and have let out my house for about £2300 pcm, which covers my costs, but doesn't really generate any extra. But the tenants are leaving in October.

I like the house and would like to live there; it would be convenient, I would be quite happy there, it would save me the considerable hassle of looking for another place, but to pay that mortgage would be a stretch. I am a freelancer, so there no guarantee there will always be work for me... Is it worth struggling to cover that mortgage, when the asset the loan is against is depreciating?

Do I ...

1. Let it out again.

2. Move back in and let out a room.

3. Sell it, rent and buy again in four or five years.

Any thoughts would be appreciated.

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I wonder if I may ask your advice.

Like many of you, I am of the view that house prices are ludicrously overpriced and, in view of that and the state of the national and international economies in general, are doomed to crash. By how much I'm not sure.

I have a house in Wandsworth Common, an attractive, 4-bed, terraced, arts-and-crafts-style house with a nice garden, in a nice road, in a nice area, in the catchment area for a saught-after school. An agent has recently valued it at 635,000.

I got divorced a couple of years ago and had to re-mortgage to buy my ex-wife another house, so it now has a mortgage of £415,000, which costs me about £1800 a month.

I can't really afford to pay that sum, so I am renting and have let out my house for about £2300 pcm, which covers my costs, but doesn't really generate any extra. But the tenants are leaving in October.

I like the house and would like to live there; it would be convenient, I would be quite happy there, it would save me the considerable hassle of looking for another place, but to pay that mortgage would be a stretch. I am a freelancer, so there no guarantee there will always be work for me... Is it worth struggling to cover that mortgage, when the asset the loan is against is depreciating?

Do I ...

1. Let it out again.

2. Move back in and let out a room.

3. Sell it, rent and buy again in four or five years.

Any thoughts would be appreciated.

1) Let it out again - For how long? Do you expect your income to rise long-term so that one day you'll be able to afford the repayments and move back in again.

2)Fine if you want to share.

3)It's a risk. Might pay off, might not. In a few years you could be quids in, living in a simliar house with lower repayments, or, if prices rise, you might have to look for a smaller property.

Stick or gamble - the choice is yours.

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1) Let it out again - For how long? Do you expect your income to rise long-term so that one day you'll be able to afford the repayments and move back in again.

2)Fine if you want to share.

3)It's a risk. Might pay off, might not. In a few years you could be quids in, living in a simliar house with lower repayments, or, if prices rise, you might have to look for a smaller property.

Stick or gamble - the choice is yours.

What do you want to do?

What can you afford to do?

Do you mind living with strangers haunting your televison?

Can you afford to 1400 morgage (taking into account the 400 from the lodger) if the economy turns down (contractors are always the first to go)?

Do you need a good school (Do you have kids)?

Do you love the house enough to take the risk?

How do you want to live your life?

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I wonder if I may ask your advice.

Like many of you, I am of the view that house prices are ludicrously overpriced and, in view of that and the state of the national and international economies in general, are doomed to crash. By how much I'm not sure.

I have a house in Wandsworth Common, an attractive, 4-bed, terraced, arts-and-crafts-style house with a nice garden, in a nice road, in a nice area, in the catchment area for a saught-after school. An agent has recently valued it at 635,000.

I got divorced a couple of years ago and had to re-mortgage to buy my ex-wife another house, so it now has a mortgage of £415,000, which costs me about £1800 a month.

I can't really afford to pay that sum, so I am renting and have let out my house for about £2300 pcm, which covers my costs, but doesn't really generate any extra. But the tenants are leaving in October.

I like the house and would like to live there; it would be convenient, I would be quite happy there, it would save me the considerable hassle of looking for another place, but to pay that mortgage would be a stretch. I am a freelancer, so there no guarantee there will always be work for me... Is it worth struggling to cover that mortgage, when the asset the loan is against is depreciating?

Do I ...

1. Let it out again.

2. Move back in and let out a room.

3. Sell it, rent and buy again in four or five years.

Any thoughts would be appreciated.

No offence. But what is an arts & crafts style house????

The answer anyway is number 2 & believe me I know what I'm talking about as my houses are close to you and it is an excellent location & very popular with tenants.

Letting 3 rooms will pay your entire mortgage & your room will be free.

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Guest Charlie The Tramp

If you can get the price sell it, if not I agree with TTRTR.

Both ways will at least keep your head above water. I have found people who try to keep hold of assets they really can`t afford end up in serious financial trouble when their income is not more or less guaranteed.

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If you can get the price sell it, if not I agree with TTRTR.

Both ways will at least keep your head above water. I have found people who try to keep hold of assets they really can`t afford end up in serious financial trouble when their income is not more or less guaranteed.

The only problem with this is that a lot of people are put off by lodging. It always feels like someone else's home. For TTRTRs benefit, this is where it really is like sharing your underpants with strangers.

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Stick or gamble - the choice is yours.

Personally I think the gamble is trying to keep the house. Your future income sounds uncertain, and as a freelancer you may be more susceptible to economic downturn.

If interest rates rise can you cope with the repayments?

I live VERY close to you and agree it is a very nice place to live (Chez Bruce being a particular benefit in my opinion!).

If you stay, you are effectively betting that prices will continue to rise over any given time period.

If you sell and prices stay static, you will have lost nothing and will be in better financial shape (less debt!), probably less stressed (it is a killer, remember).

If you sell and prices drop, you will be in a much better position (or to look at it from the other side, if you keep it and prices drop, you could be in dire straits).

On the upside, I think family houses will still sell for a decent price at the minute in this area.

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That's one of things. It is a good family house in a good area, so you wonder if it'll go down byt that much in the forthcoinig crash.

Anyway, thanks folks. Your thoughts are much appreciated. Any more ideas - keep 'em coming.

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Ask yourself a question - "What is the worst that could reasonably happen to me in this situation?"

The answer is most likely something like losing your income in an economic downturn, interest rates rising or tennants being hard to find (or they don't pay up and trash the place).

PLAN for the worst, HOPE for the best and you will be safe.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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