truman Posted August 7, 2014 Share Posted August 7, 2014 If you are self-employed, that still doesn't guarantee you a mortgage. Nope,not self employed.... Link to comment Share on other sites More sharing options...
poppet2 Posted August 7, 2014 Author Share Posted August 7, 2014 Nope,not self employed.... You had better stay put. You might need it to pay for your nursing homes In your old age. Link to comment Share on other sites More sharing options...
Cyclone Posted August 7, 2014 Share Posted August 7, 2014 I'm not trying to convince anyone..just answering poppet's original post .If I sold now I'd have about 300k in cash available to me.... I could probably rent a home similar to mine for not far off the same amount as my mortgage...I could put half my cash away for a future deposit (for when prices have dropped) and enjoy myself with the other 150k... Just to be clear, that's 300k clear after the mortgage is repaid. Your rent then equals your current mortgage payments, so no worse/better on a monthly basis. You're then gambling on house prices falling. (Something that historically speaking doesn't happen very much or for very long). Ignoring the bit about enjoying yourself, in a few years time (somewhere between 2 and 5) when the prices have fallen and bottomed out you then buy your house back (for the sake of argument), but now have a smaller mortgage or maybe none at all (or maybe even cash left over) all depending on how far prices fell. Oh, but that's ignoring that when you buy it back (or a similar house) you will pay £15k in stamp duty, and that when you sell you will pay 2k in estate agent and solicitors fee's and that when you buy you will pay £500 in solicitors fee's and surveys (at least). Just the act of selling and then rebuying your old house would cost close to 20k, 5% of the value of the house immediately. To make anything worth the hastle you'd be betting on what, a 20% fall in price? The only scenario that makes sense to me is moving to a cheaper area where you actually wish to live, so moving out of central London might make sense for anyone who owns there and doesn't mind commuting on the tube. The only equivalent in Sheffield might be moving out of a decent area and into one of the peripheral villages where it's cheaper. Or downsizing, which only really applies to those who own a large house due to family that have now grown up, and would like something smaller. ---------- Post added 07-08-2014 at 12:34 ---------- It costs about £20K for the average person to move house. New carpets, moving costs etc are not recoverable. You aren't going to win trying that game. It costs nearly that much in stamp duty if we're talking about 300k houses. Most houses come with carpets though... Link to comment Share on other sites More sharing options...
truman Posted August 7, 2014 Share Posted August 7, 2014 You had better stay put. You might need it to pay for your nursing homes In your old age. Nah..I intend to spend it way before then... Link to comment Share on other sites More sharing options...
poppet2 Posted August 7, 2014 Author Share Posted August 7, 2014 Nah..I intend to spend it way before then... Providing you reach old age! Link to comment Share on other sites More sharing options...
truman Posted August 7, 2014 Share Posted August 7, 2014 Providing you reach old age! If I don't I won't need a care home....you can't have it both ways poppet Link to comment Share on other sites More sharing options...
hyper Posted August 7, 2014 Share Posted August 7, 2014 Then I have a 50% deposit on a 300k home should I want to buy againBut the home you moved out of was worth more - the net proceeds after redeeming your current mortgage is the £300k. So, to summarise, if you sell up and prices don't fall, you can move into a home worth less than the one you currently have. Very much states the bleedin obvious. A massive risk and not the one you seem to be easily brushing aside Or maybe I'm just missing your point ?? Link to comment Share on other sites More sharing options...
Cyclone Posted August 7, 2014 Share Posted August 7, 2014 I think he was only suggesting a hypothetical reason why you might sell. I can't imagine anyone speculating on house prices falling by selling their family home though, the risk is too high. Link to comment Share on other sites More sharing options...
truman Posted August 7, 2014 Share Posted August 7, 2014 But the home you moved out of was worth more - the net proceeds after redeeming your current mortgage is the £300k. So, to summarise, if you sell up and prices don't fall, you can move into a home worth less than the one you currently have. Very much states the bleedin obvious. A massive risk and not the one you seem to be easily brushing aside Or maybe I'm just missing your point ?? I'll have had 150k to spend... rather than have to use it to fund my dotage.. ---------- Post added 07-08-2014 at 13:23 ---------- I think he was only suggesting a hypothetical reason why you might sell. I can't imagine anyone speculating on house prices falling by selling their family home though, the risk is too high. At least you've grasped it Cyclone..hypothetical...Kids have left the nest..only me and the missus....no "family" to have to worry about... Link to comment Share on other sites More sharing options...
Cyclone Posted August 7, 2014 Share Posted August 7, 2014 Family home doesn't mean you have to have kids in it. Unless you and your wife don't consider yourself a family Link to comment Share on other sites More sharing options...
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