Sell now and rent?(10 Posts)
Not sure if this is the right section to put this on but here goes....
I’m in a bit of quandary and would appreciate some advice. I bought a house in January and have done a fair bit of work on it. I paid £402k and have done £23k’s worth of work on it (we're South East). It has just been valued at £525k which I’m obviously very pleased about. The mortgage is £213k.
I am a single mother with 2 DC’s (13 & 9). I work full time and I have a DP of 6 years although we don’t live together. We are planning on selling mine and his houses in April next year and moving in together. We are moving half way between him and I into a catchment area for an outstanding secondary ready for DC2 in September 2020 (he also has 2 DC who he has 50% and are settled into their secondary school around 40 minutes from where we are going to live, DP works from home so can do the school run when he has them, not a problem) my eldest DC is at boarding school, going into Y10 in September but will transfer to the outstanding secondary near our new location for sixth form.
My thinking is that I sell mine now and rent in the new location until DP is ready to sell next April? it means I will definitely be in catchment for the new school and can also get a feel for the place. I can also go part time at work which I am desperate to do (I can’t afford to at the moment with school fees and lack of cash after doing the house up) as I feel my youngest needs me around, I am behind on all household stuff and potentially have the opportunity to work 9-3 . The reason DP and I haven’t moved in together yet is because my eldest’s school fees are means tested therefore if we move in together the fees will go up massively. If we move in together by next July/August his bursary assessment will have been agreed in the May for his final year (Y11) so all good.
Do you think houses are selling fast in your area? I keep reading threads with people on them who are finding it’s taking ages to sell their homes.
I haven't been keeping an eye VERY recently but I thought now could be an idea time as we have an outstanding girls secondary within catchment and potential buyers could want to be in by this September in order to get their daughters in by next September?
Previous to me the house sold three times in 6 months but the sellers kept changing their mind and taking it off the market!
If you can be arsed moving twice I'd sell yours now. It will be one less house to sell next year when you're ready to buy.
That's what I thought Mauriel. I don't actually mind moving and it will give me some cash in the bank as I'm pretty skint from doing all the work to be honest..
Depends how much money matters and how much you will be paying in rent, but sounds like a good plan to move sooner, except for wasting money on renting, but if house prices stay the same you won’t have lost anything but staying put x
Renting wouldn't be ideal (my mortgage atm is £900, rent would be around £1500) as I do think it's a bit of a waste but the positives are I'd have equity in the bank (I am a bit worried about finances at the moment as I really have maxed out doing this place up), I could work part time, I'd be in the catchment of the secondary school we want, I'd get a feel for the area plus we'd only have one house to sell in a years time...
Won't your lump sum in the bank affect the means testing for your eldest, if you sell? And will you effectively be living on the capital for a bit? I'd find that scary- but ymmv!
Reasons for selling all sound positive, now is the time to do for the summer market definitely. It’s a worry when you don’t have a lot of money plus working full time so if the opportunity to reduce those stress levels are there you should grab it.
There’s plenty of equity and you’ve done well to increase the price with the alterations you’ve made. Plus if you can move to the catchment area soon that’s a huge bonus.
Messy - I had thought about that but I'm hoping to put it in a bond or something for a year and explain to school that I will be buying again and will be using it for that. It is a bit of a worry though.
I'll still have my salary coming in (albeit £8k less a year if going part time) but without having a loan and credit card to pay off each month I should be able get by without touching the capital (she says, fingers crossed!)
Mari - Thanks for all the positives, I was a bit worried people would say I'm mad for even thinking of it!
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