Would You Str At The Moment? Bubblicious Offer Received.

[19 year mortgage 8itch]

First - Yes

Second - Yes, but probably only up to 2005. (and did makes offers up to then but all refused as too low). Had to wait until 2010 for an acceptance from desperate seller.

Third - No. I was getting an average of 4% on around £300K of STR equity, mostly tax-free as wife is non-taxpayer. Basically, it covered the rent completely.

It think that's key. The obvious observation about your situation may have been that 2003 was too early to STR but I'm not sure it was. Heavy lifting of HPI before then and good yields with the proceeds in the following years. When was the ftse low? Rhetorical.

That's the difference this time. Even with small annual gains in rent prices, 13 years means higher rents and yields have been crushed. Takes a far braver man this time.

Which is why I have a target price price that equates to magicking 2 years gross salary for 2 years occupation. That's 10 years worth of savings in one fell swoop. All that's needed though is a plan B because you can't rely on buying back in cheaper for the same thing. Still got a year to sleep on that.

[Jason the 4th]

STRing is like BTLing; you need to do the sums properly (as you have).

Just to move in and out of the market, ie sell and buy the same house the next day will cost around 5% (3% SDLT and 2% fees and other costs). Assuming all cash, your interest will be around 2% (can get more but difficult if you want access to the cash to buy back in when YOU want to) and rent (where we are) is about 4% of property cost.

So in the first year you need a fall of around 7% to break even rising to 9% in year 2 and 11% in year 3. So I agree it is difficult to justify with the uncertainties of renting and the government and the BBC working against you as well.

I'd agree with this, and it's probably why personally I'd never STL for a meaningful period (selling to be cash rich and buy again straight away is another mater imho)). Of course, if you don't sell right at the top and prices rise a bit before falling, the level of falls you need to make it work increase even further. Imho there's just too much risk involved. Yes, you might make a few quid, but the potential downside of not being able to buy back in at the same level is just too big a risk to take for me.

[BoredByTorque]

We are looking at leaving the UK in 2/3 years so recently thought about STR as l wouldn't mind a change of scenery (ftb and longest place I've lived in in very long time).

But my calculations didn't make it worthwhile. While my house has increased substantially (London) so cashing in would make sense, the fees plus rent alone to live in a slightly bigger house and/or better area and have some security actually left me feeling a bit depressed.

Because of crazy low interest rates our mortgage is ridiculously low meaning we are able to save. Renting would mean no saving and probably dipping into 'house bonus' money.