anyone else considering selling up and renting to avoid an even worse fall in house prices? or too late for this game?

[woodstock3]

we bought early in 2007 : we had 75 pc mortgage so while we assume value has fallen a bit we are ok for now.
but we were originally planning to move in 2-3 years and are worried that by the time we are ready to move, we could be in negative equity if prices carry on sliding like this
is it worth selling up now (if we can, of course) and banking the cash, which would probably involve realising what is currently a paper loss in ivalue but could avoid a much worse loss later down the line and/or being trapped in this house because of negative equity? we'd rent somewhere smaller for a year or two and then buy again when things are cheaper.
am put off by the disruption involved especially with baby ds plus we'd probably have to spend a bit tarting up the house to get it to sell - then there's the cost of estate agent fees etc etc and possibly early redemption penalty for mortgage. but wondering if it is the least worst of all possible alternatives. anyone else thinking about this? we probably should've done this six months ago when you could still actually sell a house...

[pinkyp]

house prices will rise again, it just might mean you have to sit on it for a little while longer than origionally planned. Renting is wasted money - why waste a few thousand pounds renting when it can be paying off your mortgage? plus like you say theres all the fees too.

[Jampot]

we sold in march of this year and moved into rented. i reckon our old home has dropped in value by about 20k and so far its cost us 5k in rent. however, we didnt sell just to move into rented - that would be a huge decision to make and totally personal - its just worked out wwell for us so far.

[Chocolateteapot]

I guess it depends what is happening in your area but round here you would definitely have missed the boat. If that is the case, are you in a position to overpay on your mortgage to put yourself in the best position possible when you are looking to move?

[sunshineandshowers]

pinnkp - how do you know house prices will rise again? House prices in Japan are STILL 40% lower today than they were in 1990.

OP - don't waste time traing up the house , get it on the market asap, and see what happens. Let the Gods decide your fate. If you get an offer, you can then decide what to do. Good Luck (but be quick).

[noddyholder]

Too late imho.We sold summer 2007 and have been renting ever since.We were originally going to buy a flat to be mortgage free but have just bought a house at 2002/3 price.Prices will rise again but not for years.Stay put and enjoy your home as it could be costly to do otherwise.

[PumpkinPatty]

It soundds like you're panicking. And it's not wise to make an important decision in a panic.
Why do you need to move in 2/3 years? It is not possible to just stay where you are for longer then you orginally planned.

I don't know where you live, but where I am houses prices haven't fallen by much at all. Although thats not to say they won't in the future (however, flats / apartments have fallen)

[noddyholder]

PP asking prices may not have fallen but acheived prices are at least 12% down on the beginning of the year and have a lot further to go imo.Lots of people say they haven't fallen where they are because sellers are still putting them on at last years prices.This is the biggest bubble in history so 30% is now looking like the best case scenario

[MegBusset]

I would stay where you are, if you have got enough space for a few years. Use the money you would have spent on fees, doing up the place etc to overpay on your mortgage -- this will help protect against negative equity.

Remember that in a few years' time if prices have fallen further, you will have to pay less to move up the housing ladder.

I would personally not go into rented with a small child if I didn't have to, there is no security in it. If you find yourself struggling with your mortgage for any reason, the lender will usually help you to avoid losing your home. But a landlord could kick you out the minute you fell behind on your rent.

[PumpkinPatty]

My DH gets emails from a website (not sure of name) that lets you know what houses have sold for recently in your area, and they are not selling for much less then a year ago where I live.
But I live in t'North so may be different elsewhere.

[compo]

I agree with MegBusset. This is really not the time to be selling up.

[noddyholder]

Prices that come in for august on those sites are for houses that 'sold' six months earlier and have just been registered at the land registry.So for houses selling now the figures won't be released before about Feb.Unfortuantely for economic reasons no one is immune this time.We will see a return to sensible mortgages and low valuations in order for the banks to start lending again.Basically a valuation is just that a figure plucked from the air using various methods it is what someone offers and can fund which indicated the true worth.

[binkythebullet]

Agree with everyone else. Prices aren't dropping where we are but nothing is selling either, therefore the actual drop isn't being reflected yet. I would stay put, and maybe put your efforts into your current place. Would extending be an option for you if needed in the future?

[southutsire]

Too late. In your shoes I would stay put - as someone else said, in a few years the gap between your place and the next 'rung' will be smaller and in your position sounds like renting would be stressful.

I can't help picking up on pinkyp's assertion though, that renting is wasted money. We hear this all the time and it is often far from true, depending on your circumstances. Our rent is 1/3 of the mortgage we would have on the house where we are living, meaning we have been able to save up a 25% deposit for a house when we come to buy - that is a real chunk of actual bricks and mortar paid off. If we had bought this place what we would be paying is almost entirely INTEREST on a huge loan on an asset which is now falling rapidly in value.

Which one sounds like more wasted money to you?

[KatieDD]

If you are trading up then it's fine because the percentage your next house drops by will be more than your drop.
Negative equity is only a problem if you can't pay the mortgage and have to sell, if you think that is likely in the next 5 years get it on the market now.

[pinkyp]

its a buyers market at the moment - i have just bought a housr 10k lower than the asking price, not a great time to sell.

[woodstock3]

thanks all - whoever said i was panicking was probably right! but the reason for moving in that timescale is that a)dh hates living in the city and i have promised (with arm twisted behind back) we could be in country by then and b) schools here lousy, and in three years' time ds will be coming up to school age. so staying here longer while not financially disastrous would be really, really not ideal. think we might look at doing up the house and overpaying - at least that way the gap might not be too enormous.