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ok heres the question:

have a 3 bed semi all paid for, worth about £110k.

have about £45k savings.

want 4 bed detached, asking price £175k, maybe will take £165k.

detached here outsell semi and terraced by 2-1, according to BBC.

so as you can see we are in a pickle. we could probably sell but it would take longer than the 4 bed we want to buy. net migration to the area tends to be cash rich southerners or mortgage devoid eastern europeans who then rent. though according to a rental agent the ratio has tipped since the crash from 80% EU 20% Local to 50/50 split. which is probably why semi's and terraced are so hard to sell.

my location is Boston Lincs.

your thoughts please.

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Because they live in Boston, Lincs?

Sorry :rolleyes:

yes very funny. trouble is i work here and need to move closer to work so we can take one car off the road. also we would like a detached and more space.

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Why sell? Prices only go up and it's your pension, innit? :rolleyes:

On a more serious note, you're confident that you could get £110K for your current place, and possibly buy the house you want almost debt free. What do you expect your current place will be worth in 12 months? Assuming its price falls, will the price of the 4 bed fall as much, the same, or less? What impact will that have on the level of debt you'll be carrying if you make the move in 12 months as opposed to now?

How much do you know about being a landlord. Will you manage the place yourself, or will you use an agency? Have you done the maths on a mortage for the new place alongside voids/maintenance/insurance for the old place?

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depends if you want the stress or can handle it, because there will be times where you will get it,

in the long run it is better to keep it, and sell it in about 10 - 15 years, but there will be times when you wish you got rid,

i have friends into BTL and some love it some hate it,

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You're current cost to change excluding fees is £165k-£110k=£55k

If house prices go down 30% linearly, it becomes £115.5k-£77k=£38.5k

So, you stand to gain £55k-£38.5k=£16.5k by holding on for a 30% drop.

It really depends therefore on how much you earn and whether £16.5k is a lot of money to you. Personally, I wouldn't bother waiting for that sort of saving, particularly if your car costs go down too - quality of life is worth a lot too.

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You're current cost to change excluding fees is £165k-£110k=£55k

If house prices go down 30% linearly, it becomes £115.5k-£77k=£38.5k

So, you stand to gain £55k-£38.5k=£16.5k by holding on for a 30% drop.

It really depends therefore on how much you earn and whether £16.5k is a lot of money to you. Personally, I wouldn't bother waiting for that sort of saving, particularly if your car costs go down too - quality of life is worth a lot too.

we can get maybe £550-580pcm. yes my first choice is to sell, but no one this end of the market is buying. i dont think they'll go down linearly, this it what weve been waiting for for the last 3-4 years, and it hasnt happened yet.

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we can get maybe £550-580pcm. yes my first choice is to sell, but no one this end of the market is buying. i dont think they'll go down linearly, this it what weve been waiting for for the last 3-4 years, and it hasnt happened yet.

How much is the actual market value of your house? = A price that would actually sell it, say, within a month.

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we can get maybe £550-580pcm. yes my first choice is to sell, but no one this end of the market is buying. i dont think they'll go down linearly, this it what weve been waiting for for the last 3-4 years, and it hasnt happened yet.

Looking at the income side of things

You might expect £5,500 rental income per annum

You will lose the interest on your savings (say 2.5% of 45k = £1,125)

you will have to take on an extra £110k of mortgage to cover the equity left in your old house (say 3.5 % of 110K = £3,850)

therefore you will be £525 per year better off in income terms letting your old house, assuming you don't have any major repair bills....

Looking at the capital side of things

You will be exposed to the property market to the tune of an extra £110K. If the market goes up you're quids in, if it goes down you're making big losses.

Letting can be very hard work if you're unlucky, and the rental returns can be very insecure. One bad tenant who trashes the place, grows skunk etc. and things get very expensive. Doing it yourself can be more profitable but you need the spare time: if you need an agent I think they take about 10%.

To be honest, when I was deciding whether to sell and looked into this I decided in 5 minutes that letting my old house would have been madness. Every case is different however, so good luck whatever you do.

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hmm probably sell for £105k. two others near me are on at £112k with no movement, but one sold for about £113k about a year ago, and only took weeks to sell. the trouble is i cant see the 4 bed guy moving much on price, he had it on the market about 2 years ago for the same money, and sold it twice and it fell through twice. now hes trying again, but i dont think hes in any sort of hurry.

thank you for your comments and maths, but renting out still gives me the willies. so maybe we'll wait another year and hope he doesnt sell.

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  • 284 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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