Housing dilemma - sell my house to rent somewhere bigger?

[Mimi07]

Me and my dh have a mortgage which is £850 a month. We have around 60,000 equity in the house but we're unable to buy somewhere bigger right now as he is not working. We have 1 year old triplets and an older child and work and childcare just isn't an option - it costs too much. So for the next 2 years we plan to manage on just my salary, which isn't huge - 24k.

We need more space - well, we're fine in all honesty and we could stay put for the 2 years but it's a bit of a nightmare. The other issue is the mortgage is eating up a lot of my wage. We have a car on finance and a credit card and by the time we have paid these things and bought necessities there isn't anything left which can be stressful when you have 4 kids.

I'm considering selling and renting somewhere - but realise this would just eat up all my equity - would it be the worst idea ever? I'm 30 - i feel like i have time to start again, but should i just struggle this next few years and deal with it?

Ok, writing that down seems daft and makes me think - yes, just stay put and be skint for a bit.

One thought i had was we could get a buy-to-let mortgage easier and get somewhere smaller (house would be around 90,000 purchase price and rental income of £550)- I have ran this past a broker and it looks do-able with about a 30,000 deposit. We would then have 30,000 left in the bank to pay rent for the 2 years until he can work and at least I know i won't blow all of the equity and we have some assets. Am I being daft? I over think a LOT and my mind just keeps running through different options to save us from the stress we're currently dealing with.

I would stay on the ladder one way or another - whether you stay where you are or get a BTL. Renting will slowly kill your equity, and it'll be very hard to get back on the ladder later. I imagine you want some housing stability with 4 children (and on an unrelated note - I'm in awe of 1 year old triplets).

Would suggest you stay in your current property

You could possibly do a loft conversion or build a play room in the garden, if you have availability

Do you live near a park or open space

Perhaps rent an allotment for out door activity ?

I know a couple who did this - sold house, rented with a view to buying again later (reasons were valid at the time). House prices rocketed and they never got back on the housing ladder - and remember - rents always go up and a mortgage goes down. I would NEVER recommend doing that, once off the ladder you will struggle to get back on. As others have said, look at ways of making extra money - sell stuff, make stuff, offer services - even babysitting money adds up...

The other issue is the mortgage is eating up a lot of my wage. We have a car on finance and a credit card and by the time we have paid these things and bought necessities there isn't anything left which can be stressful when you have 4 kids.

How much is on the credit card OP? What are the repayments? Could you pay a little bit extra every so often and get rid of it??

When you say necessities? What do you mean? Can you cover your 4 walls (house costs) and food?
Are you just looking for extra fun money essentially?
Is your dh going to get another job or is he the sahp?
Do you get any tax credits/child credits etc??
Have you made out a budget? Cut out an subscriptions etc?

Sorry for all the questions, you just don't paint a FULL picture in your post.

No no no don't rent.

Can your DH get a couple of evening shifts around your work? 2 night shifts in a care home Friday and Saturday? Just to bring some extra money in? It won’t be fun but only for a couple of years until you have childcare. Meanwhile, do not sell. Stay out and make the best of it. Just ride out the next couple of years and you will have more equity, could even remortgage and add an extension/loft conversion etc. Declutter as much as possible, give the kids the master bedroom if you have to, just get through it. You will really regret it if you don’t.
You sound like superwoman working with 1 year old triplets!

Stay put! Don't rent and don't become a landlord either. What would you do if your tenants were unable to pay rent for 6-months? Or there were other problems? Being a landlord is complicated and potentially expensive. It's not an easy way of keeping an asset while you rent.

Could you describe your home and perhaps we can help you get the most out of it?

Could you describe your finances and perhaps we can help your money go further? J

I think you need to stay where you are or you could be renting forever.

Wouldn’t renting a suitable property be more expensive per month than your mortgage?
I wouldn’t want to get off the housing ladder if I was you

Don’t sell. Rent won’t be much cheaper. Buy to let would be suicide. Either pay less on your credit cards, you could get a debt management plan. It will affect your credit rating. Or get a loan to clear the credit cards and cut them up.

Would you be able to redraw some of the equity and pay off the credit card with that to get some breathing space?

I rent do not under estimate how shit it is
Not being able to give your children a settled home, always living with 2 months notice over your head
Inspections, they make you paranoid and feel judged.
Not being able to Paint your childrens room or put a picture on the wall
Pets, not being able to even get a rabbit without someone else’s permission. This landlord might accept them but the next might not
It rules every decision, buying a sofa. Best get a small one as you don’t know where you will end up.
Washing machine, next one might be built in. I’ll just get a cheap one.
It’s not worth growing your garden as you won’t be able to see it flower.
The paranoia when your children want to do some craft activity about the carpet or walls!!

Do not underestimate the stress of finding a new rental at short notice within catchment of current schools. Or the realisation you’ve been priced out of “home” area

That’s before you look at long term, pensions (you’ll have to save enough to rent privately for your retirement) and inheritance for your children

Rent yours out and rent a bigger if you must. But do not lose that property

I think renting would be more expensive!! If you had money in the bank or still owned a property you wouldn't get any help with rent.

Have you got your credit card on a 0% one? If not do that.

Could you extend the term of your mortgage to make monthly payments lower?

Have you applied for UC to see if you get any help at all?

Do you really need the car? Ok so it's not much fun without but it may be doable or just have a small one for getting to work and the food shop etc.

Stay put, can’t even imagine the hassle and cost of moving with 3 very young children + 1.
I’d stay, budget everything and dh get an evening / weekend job or find some way of extra income.

How much are your monthly pension contributions, you could opt out for a couple of years but please don't do it for long.

Presumably the triplets will be eligible for reduced childcare at some point?

Hopefully your DH can eventually pick up an evening or weekend job even for a few hours to increase income.

Your rent on a bigger house will probably be more than your current mortgage

Renting will only add more stress

BTL is only good if you have spare funds to buy, plus repairs & other responsibilities
Not a good idea for you

BTL at the moment when we could see a property crash is a huge risk, as well as the risk that your tenant can’t/won’t pay or you have an empty property for a while. Don’t do that.

Can you sell the car and buy a very cheap one outright? Can your husband work at the weekend? Any chance of you getting a promotion? If you can stay put for now it makes sense to pay off your debt ASAP, grow your cash reserves and move house when you really need to. Property prices may have fallen by then as well.

Evilpea that all sounds so stressful and limiting 😕

Stay put. Any capacity for you to increase your salary? Or you stay home and DH works could he earn more?

No way. Really bad idea.

OP I can imagine how hard it must be with triplets, it's not just like having 3 children because you have to buy X3 of everything, every time. You don't get that advantage of hand me downs whether clothes or toys, or bigger items like cots, high chairs etc.

That said, I wouldn't advise you to move to rented and become a landlord yourself. There are so many potential pitfalls.

I was thinking of becoming a landlord recently, I had the opportunity to buy a house at the sort of figure you mention, with similar rental potential. It was a decent house in good condition which didn't need more than a lick of paint. But when I started to look into it further, there's so much you have to think about - tax implications, maintenance, renting it through an agency costs £££s but if you don't then you have to vet the tenants yourself, what if your tenant doesn't pay and you have to evict them?

All in all it seems bloody stressful and hard to just break even. It seemed too much hassle to me and my DC are grown up, in your position I just think you don't need the extra stress!

Also as has been said if you rent yourselves, it's a precarious position. You may end up with a shit landlord who won't do repairs, or one who sells up after a year forcing you to move.

Are there any ways to reduce your current outgoings and increase income? Also are there any ways you can make your current house more suitable for you, even in the long term? That's what I'd focus on.

I don’t understand how a BTL would help?

I would also stay put if you can.

Explore all the suggestions made by PP.

We have saved loads by changing to more veggie meals, using lots of fresh food from budget shops. The 29p deals in Tesco for cauliflower and other veg, Lidl and Aldi cheese for cauliflower cheese, curries etc. Tasty dahl, home made hummus with is so cheap compared to ready made and toddlers love as a dip or in sandwiches.

All easy to say, I know: I would collapse if I had 4 kids including toddler triplets.

What's going to change in 2 years? Is there no work your husband can do in the meantime?

It sounds as though you need to focus on clearing the credit card debt, not moving out to let.

Are you prepared for the expense and responsibility of being a landlord?

I think if you sell you will massively struggle to ever save enough money to purchase again.
I think you are better off staying put, tighten your belts and see it through.
Once your DH has a job it will be a lot easier, check what you are entitled to in support and in a few years time you will be glad you didn't sell.