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Thinking of coming off the housing ladder - madness or a smart move?!

(27 Posts)
Fairywhitebear Wed 30-Jul-14 14:35:54

Our flat has sold. We haven't found somewhere to buy. We need a house, and there are no houses at all for sale without upping our mortgage by a good 30k.

Our circumstances have changed since we sorted our mortgage, and although we can port our existing mortgage, it has been confirmed we will not get any more lent to us (both DH and myself on temp contracts, and I'm actually on mat leave at the min)

We have two small children.

Given that times could well be tough these next few years, how crazy would it be to sell up and rent for say 5 years until the kids start school? By then, both DH and myself will prob be in perm jobs, so both working.

Or will we have absolutely no chance at all of getting back on the ladder?

Kendodd Wed 30-Jul-14 14:42:35

I would buy if I was you, just for the security of having your own home. You can decorate the children's rooms and if they crayon on the carpet, well, it's your carpet.

KingJoffreysBloodshotEye Wed 30-Jul-14 14:43:53

The reason I was desperate to buy was because of the insecurity of renting. LL can ask for their property back at any time.

You could move 5 times in those 5 years, costing ££££s each time for tenancy, security checks and numerous other bullshit. It's 6realy^ unpleasant.

I'd try and buy somewhere else.

KingJoffreysBloodshotEye Wed 30-Jul-14 14:45:17

Italics fail and spelling fail?

Apologies for sullying your lovely thread.

brew

dogsandboys Wed 30-Jul-14 14:46:05

I would really buy in your situation.

micah Wed 30-Jul-14 14:48:35

I'd buy. Buy what you can afford- it'll likely only be for 5 years, so if your children are small you can cope with a smaller place?

Even if you buy a too small place and let it while you rent your house.

Sallycinnamum Wed 30-Jul-14 14:49:18

If it was me, I would get back on that ladder ASAP.

We keep being told the housing market will implode but I just can't see it happening.

We went from a 2 bed to 3 bed house in 2012. If we were buying it now, there's no way we'd be able to afford it and we're on a good income in the south east.

It's utter bloody madness but if i think you're being naive if you think in five years time it will be more manageable plus the way things are going, renting is outstripping mortgage costs anyway.

Fairywhitebear Wed 30-Jul-14 14:50:48

But there's nothing we can buy for what we have sold the flat for. sad

This is the catch 22.

Our flat is a lovely new build, so all brand new, safe etc. The only houses going for the price of what we have sold it for are really nasty houses in very very dodgy areas.

Really don't know what to do.

Plus we sold ours on the basis of no chain, so we'll have to find a chain free property like now to have any hope of getting in.

ken It's been a while since I've rented but surely you can decorate? White paint, neutral, no?

King Maybe I've been lucky renting in the past. Never had to move, felt perfectly settled in every house I ever rented prior to buying.

KnackeredMuchly Wed 30-Jul-14 14:52:33

I'd rent, buying is overrated!

I'd pull out of the flat sale.

Rent flat out.

Let a new property for you to live in.

When your jobsearch change, sell and buy then.

Sallycinnamum Wed 30-Jul-14 14:56:06

monkey has a very good point. I'd be thinking about pulling out too.

Why did you put it on the market when you weren't sure if you could afford a house and how much is the average rent for a house in your area?

Fairywhitebear Wed 30-Jul-14 14:59:17

monkey Been in the flat since it was newly built 9 years ago. Obviously went through the crash in 06/07 and we lost money on it. There have been absolutely no buyers at all round here for apartments (too much choice). We tried to sell last year, went so far and the buyer pulled out.

It would rent to be fair, but then we'd have the headache of managing our property. Got enough on my plate with two small babies!

Do people really think house prices will just keep going up? I'm really hoping for another mini crash!

Fairywhitebear Wed 30-Jul-14 15:01:11

sally because it's a top floor flat with no lift and I have two under two! Also obviously no garden etc. Really hard to manage day to day with two little ones. Tried to sell when we had first baby and just no interest at all.

Average rent for a house here is about £750 a month. Apartments rent out for about £550.

GemmaTeller Wed 30-Jul-14 15:01:26

For various reasons we sold our house five years ago and now rent in a really lovely area we couldn't possibly afford to buy in.
We have stayed renting in the same house for the last five years.

The money from the sale of the house is still in the bank and we are looking to purchase (outright if possible) our retirement home on the welsh coast.

You would have to be strict with yourselves and not spend any money you make on the sale of your flat as thats going towards your next house.

Fairywhitebear Wed 30-Jul-14 15:01:45

Just sold apartment for £130k...cheapest houses are about £150-£160k.

It's not that much of a headache to rent it out. It's modern so should be easy maintenance.

House prices won't chance much over 5 years I wouldn't have thought. And there will always be a buyer somewhere.

Bowlersarm Wed 30-Jul-14 15:03:08

I'd buy. I'd want stability.

I don't think prices will keep going up, but I don't think they'll spiral down either.

Fairywhitebear Wed 30-Jul-14 15:03:49

Hmm. Rented it out 5 years ago when I went abroad with work.

Came back to £1000+ of damage. Right bloody headache! Always vowed I would never rent it out again.

I always thought that about a buyer being out there, but with an apartment, I"m not so sure. Very specific type of buyer?

Fairywhitebear Wed 30-Jul-14 15:05:15

Gemma We'll end up with about £30k equity, so not enough to buy somewhere elsewhere, but certainly enough for a decent deposit in five years.

wejammin Wed 30-Jul-14 15:18:35

We rent and have never owned, so slightly different, but we have saved our deposit and have almost bought but it fell through.

We have DS aged 2 and newborn DD. Having looked at school catchments, have decided not to buy until both children start infant school. We could never afford to buy in our preferred catchments and renting actually gives us a lot more options. There is always the risk of being turfed out but we've never had a problem before (been in current house 5 years).

I would personally chose to rent a suitable home with small children than buy an unsuitable one just to stay on the ladder if it means being unhappy with your surroundings.

Nomama Wed 30-Jul-14 15:33:23

Rent. You can get a home that you will enjoy and, if you are stingy judicious in your spending you could keep that deposit topped up until you do both get perm contracts and can buy a house you would love to live in.

House prices will do what they do. Whatever you do next there is a good chance something else would have been better, so stop trying to second guess it and find a house you'd like to make a home, rented or bought. Look for both.

There is a lot of moaning about LL and their agents on here, but lots of us have had only good experiences. My best advice would be to shop around for agents as much as you shop for a house, that can make the difference between a lovely let and an horrendously naggy and expensive one.

Fairywhitebear Wed 30-Jul-14 16:12:32

Well, the plan was to keep saving and add to the deposit fund.

Also I am concerned about catchment areas. My lo's have another 2 yrs before school, but I know that's not a long time. No way could we afford to buy in a nice area with a great school but we could rent.

AnnaLegovah Wed 30-Jul-14 16:17:42

I think nomama has it right. We're about to jump off the housing ladder for similar reasons and planning to save up more of a deposit in the meantime.

babybat Wed 30-Jul-14 16:19:41

Can you rent for a short time while you keep looking for a place to buy? The advantage of renting is you'll still be chain-free so if you find somewhere to buy you can just give notice and move. If you could find somewhere reasonably priced that would help with saving for a deposit.

Another question - is council/housing association an option where you are?

DollyParsnip Wed 30-Jul-14 16:23:01

I think it depends where you live too. DH and I bought this house 4 years ago but almost pulled out, as the vendors were being a pita. We persevered, largely because we are in SE London (we relocated) and we worried that prices would move on.

That said, we live in a large btl area and most people have been here for years so it doesn't seem like it's that scary an area to rent in, which I think makes a difference too.

Friends were moving at the same time (S Yorkshire); they're in the process of remortgaging now and found that their house has decreased in value.

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