Put property on the market or not? What would you do?

[Stalemate112358]

We bought our first home in 2017 and as we were FTB, we ended up making a lots of mistakes in the process. Trying to rectify the situation now and move forward.

Would you try moving or stay put for 1-2 more years if you were in the following position.

We are a couple in our early 30s. Expecting our first child in 06 weeks so quite ecstatic at the moment! We bought a property in 2017 with focus on internal space and didn't look much into the location (I know, stupid me! :/)

Here are the pros and cons of the property:

• Good condition (we did a lot of renovation work)
• 3-bedroom (2 are double and all are good sized)
• Gas combi central heating (I paid for a new gas connection and central heating system. Only house in the row of maisonettes to have a gas connection)
• Double glazed windows and loft insulation
• 7-mins walk to the nearest train station and 40 min train into central London.
• 116 year lease with peppercorn ground rent and around £150 annual building insurance contribution. No service charge.
• Generally safe environment. We haven't faced any issues with the neighbours or sounding environment since we moved here (03 years).
• "End of terrace" and adjacent maisonette is owned by bank who use it for storage (so a lot of privacy).

Cons

• Looks onto a class B dual carriageway. Although noise is dampened a lot due to double glazing.
• Adjacent to a barely maintained private road with potholes.
• No allocated car parking (private car park behind which charges £30 per month for 01 car).
• Shop downstairs is a grocery shop. Good people but don't keep the outside of the shop clean.
• We think we paid more than the property was worth at that time due to our inexperience.

Since we bought this place, our financial situation has improved considerably and we can now afford something up to £500k. We have a baby due in 06 weeks which adds to the complexity. Wife is going on maternity which will impact our savings in the future and moving house during this time is no easy feat.

With the combination of stamp duty relief and fear of house prices falling next year (potentially eroding our equity or worse, resulting in negative equity), I'm thinking of trying to sell. I'm not trying to time the market but just worried due to my situation and an unappealing property which is hard to sell even in normal times.

Quick research in my area shows that there are 06 properties like mine on the market - some from last year. Only one got sold this month. Estate agents are positive about selling but I suspect they just want the business.

Quite stressed nowadays about this. What would you do in my place? If needed, we can stay put for 1-2 more years but would prefer our child to grow up in a different town.

I think that buyers might prefer your property over some of the other ones due to the improvements you’ve made.

Other than that, your new budget sounds very good and should be enough for a house in a leafy area even in pricey parts of the commuter belt or outer London. I’d focus on green spaces, family amenities, good schools etc in my search.

I think I’d either just put it on the market now, hoping you’re SSTC or wait until the baby is a few months. I’d probably be too impatient to give it 2 years (not that your child will have any memories of it whatsoever).

It might just be worth talking everything through with an experienced mortgage adviser as you’ll have a big change in circumstances with mat leave and then childcare costs/drop in income.

I have no answers but we are in the same dilemma about whether to sell now. Properties near us are going for over inflated prices - obviously would help us sell but when going for a more expensive property, the fear is a major crash and sense of having made a bad decision. The current situation being so unprecedented as well makes it even harder to feel a way through!

Lifestyle wise, I’d prefer to live in the place I’m going to be living when baby is small, so you can put down roots and make friends. This is obviously not essential though.

I'd say wait until a year or so's time, when things are more settled with the baby. It'll be stressful all round otherwise and you want this to be a happy occasion, not overshadowed with estate agents, viewings, solicitors, and all that buying & selling entails.

I'd concentrate on getting your place as smart as possible and try and get something done about the private road. It should still be properly maintained even if it is private and potholes could damage your wheels. Find out who owns the road and write to them and see what response you get. If your income has increased, then save like crazy and invest it carefully so you've built up a pot for when you do move. The market will be uncertain for the next year or so, so it's not a good time to gamble on where it'll be next year. If prices in your area are going to fall, they'll fall more in cash terms on the house you're looking to buy than the one you're selling.

I’d would try and sell now, you’ll have less baby stuff now than in a year’s time when babies have more toys, clutter etc. All moves are stressful but if the demand is there I would test the market.

I think it would be worth putting it on the market. Emphasise the improvements you have made to the property, talk up all the good points about the location, and this includes the option for renting a parking space nearby.

Do you have to drive down the private road? Would it be possible for you to make some temporary repairs yourselves to the pot-holes? I live on a private road myself, as do my parents, and we are always delighted if anyone takes it upon themselves to fill a pothole.

As you describe it, there seem to be more positives than negatives. You may not get back all the money you’ve spent though, but if you can sell at a epreasoanble price and move on, then accept that as a cost of moving.

I'm sure you've got this covered but I'd research schools before you move and get a house in the right catchment area - 4 years goes surprisingly quickly and presumably you don't want to be forced to move again in time for school applications

Sounds like you’ve invested a lot and 2017 was an expensive year to buy (we did too). You can put it on at a price you make money and cover all your investment but don’t sell for less just because of the baby. Sounds like you have space for new arrival and things aren’t so bad - if it sells, great, you can move on or rent if there is nothing available. If you don’t, you are safe and stress free. The stamp duty holiday is a bit of a con - prices have gone up so much you won’t save much there really. Also houses in the upper end of market won’t be affected much by price falls - rich people probably won’t be losing their jobs.

Really difficult to say. I would probably wait to see what happens to the market and wait until the baby is a little older. It might also be easier to get a mortgage once your wife is back at work (not sure if this is relevant or not). The liklihood is that house prices will fall overall at the end of this year/ next year and a larger house will fall by a larger amount.

@Blossomorange- it's not true that rich people won't be losing their jobs. I know three who work for large financial institutions on 6 figure salaries who have lost their jobs as well as people on lower salaries.

Pilots are very well paid and a load of them are loosing their jobs.

I feel like rich people will not be under pressure to sell, is maybe a better way of putting it :)

The only thing about putting it on the market now is your wife may not like having people viewing when she is imminently due or has a newborn, and if it sells packing up with a very young baby.
I'm selling in Portsmouth and the stamp duty hasn't made me increase the price, just hoping it sells quicker.

No down side to try and sell it now (apart from viewings when you have a newborn). If it doesn't sell then you haven't lost anything. I'd give it a go.

@Blossomorange- fair enough. They would definitely be more likely to have a financial cushion.

Your home sounds quite a suitable space for a young baby. In your circumstances I would wait it out a bit. I wouldn’t want to be exhausted, recovering from birth, trying to establish feeding etc and then also trying to keep the place tidy and having people traipse round the place during viewings, disturbing naps etc. Things like the dual carriageway etc don’t matter whilst the baby is tiny. I would want to spend that time being a new family, not worrying about moving.

I would maybe reassess where the market is come the new year/springtime then consider going on the market then. Baby will still only be 6-9 months so still very young. As previous posters have noted, if you are upsizing then any house price falls will be to your benefit. Having low outgoings means you’ll be able to save too, or at least not have any financial worries during mat leave etc.

I would put it on the market now. I know it's a very stressful time for you but I think property prices will fall. You could even privately rent to stop a chain

If you try to sell now what is the worst that could happen?
Give it a go.

31 March will be upon us sooner than you think.