Business & Finance

selling house

we have a 100% mortgage on a property in London that we will outgrow in 1 year. should we hold on for a year and sell or sell now in anticipation of a price drop?

henry12 Tue 29/04/08 12:25

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Zacsmaster
Tue 29/04/08
13:14

Makes no difference really as the places you will be looking at in years time will probably have dropped in price as well.

henry12
Tue 29/04/08
15:24

Question Author

well, except that we have a 100% mortgage so selling for less that we bought (in Aug) will leave us out of pocket

Postdog
Tue 29/04/08
15:32

and parts of london are actually bucking the trend and rising, so depending where you are and where you go to could make a difference.

Finance Guy
Tue 29/04/08
20:27

Like everybody else, you would be acting (or not) based purely upon speculation. I would say that London is, generally speaking, immune from significant drops, due to constant demand for properties to rent and buy.

If you have no equity in the property, would renting it cover your mortgage? On that basis, you could live where you choose and the rental property would, based upon historical price trends, eventually glean an equity profit for you both

Just a thought

Good luck

Zacsmaster
Wed 30/04/08
08:50

So, to sum up; You're in negative equity and you want to move to a bigger property in todays housing climate? Mmmmmmmmm.

http://uk.news.yahoo.com/skynews/20080430/tuk- house-prices-fall-by-45-a-day-45dbed5.html

henry12
Wed 30/04/08
08:53

Question Author

Thank for replys
very negative Zacsmaster. we do want to move to a larger property OUTSIDE london. thus hoping our money will buy us a bit more. however obviously keen to get the best price possible for current property.
usefull advice from finance guy. thanks

Zacsmaster
Wed 30/04/08
12:49

I'd prefer to say 'realistic'.

lollyangeley
Thurs 01/05/08
00:42

moving out of london should get you a larger property dependant on where you are moving and why.

To give you an idea, average 2 bed flat I have done mortgages on in london are around 245k.

where i live in Lincoln, 245k would get you a 5 bed detached with double garage.

If you are moving to that extreme, please pace yourself accordingly... would not recommend that you bought the HUGE house but something managable that gave you a bigger house for less outgoings. You then get a better standard of living and as the credit crunch is set to continue you won't have much to worry about.

Anyway good luck

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