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WWYD - Selling Buy-To-Let or Postpone?

1 reply

Elvesandthepoomaker · 03/04/2017 09:00

We moved back to the UK three years ago. I rented out my one-bed London flat while we were overseas - we're overpaying the mortgage so we should own it outright in six years, with a view to rent going towards the DCs' universities and then selling it for a lump sum years down the line to create a deposit for their homes. This is my sensible long-term vision.
DH's employer provides us with a house for about a sixth of the market rental rate. However, I'm really feeling the pressure to get on the housing ladder properly, with house prices in this part of the South-East shooting up. If we save for a decent deposit we wouldn't be able to buy for two years - God knows what prices would be like then. On the other hand, I'll be back in FT work and we won't have the same childcare costs.
I'm trying to decide - do we sell the flat now and secure a nice house with a manageable mortgage, but no nest egg for the future, or do we wait for the two years, hope prices don't rise too much and then have that extra security in the background?
Any advice gratefully accepted.

OP posts:
Kiroro · 03/04/2017 13:46

Depends how much house prices actually are rising in your area.

You could leverage the B2L up (debt sized to rental yield) and use that equity to fund a new house.

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