House Prices

Nicksyb · #1 (**permalink**) 09-05-2008, 22:06

So here is a question and was wondering what you would do.

You have a house, which has over the last two months lost approx £10k and so is now on negative equity.

You need to move away from the area, you have two options:
Sell the house and pay the difference off the mortgage or
Keep the house and rent it out.

But here is the catch, you are moving to another area of the UK and need somewhere to live, you have no savings and due to the credit crunch can't get another mortgage. There is shared housing but as you own a house already the won't even consider you. To rent a place would cost way too much dead money each month.

So what would you do?

Peter W · #2 (**permalink**) 09-05-2008, 22:19

That is a really awkward situation to be in. Your only option may be to rent.

Renting is not dead money if house prices are falling.

Indizine · #3 (**permalink**) 09-05-2008, 22:42

what area would you be looking to move to?

Nicksyb · #4 (**permalink**) 09-05-2008, 23:52

It could be Oxford. Just looked at house prices and quickly turned away. Need to have a better investigation on Monday when we go there.

Chubster · #5 (**permalink**) 10-05-2008, 00:01

Why not rent for the short term and see what happens....if / when the house market picks back up it wont take long for the house to recoup the loss and hopefully make a profit, which you can then use as a deposit.

Am I right in saying that normally when house prices start to fall the rental market goes up...so you might even make a tidy profit on the rental??

An Oasis · #6 (**permalink**) 10-05-2008, 07:07

Agree with the above.

Sell taking a hit, rent and watch the market. Then buy at the right time. If you're canny and buy at the right time you'll make on the deal.

You could also reverse the thought process that says a house is an asset and see it as a liability - that ties up your finances for years...when you could have been doing something else with the money!

sally · #7 (**permalink**) 10-05-2008, 08:04

Come to Egypt, you can buy a nice 3 bedroom flat for £10,000

fee · #8 (**permalink**) 10-05-2008, 08:07

Quote:

Originally Posted by sally

Come to Egypt, you can buy a nice 3 bedroom flat for £10,000

seriously sally?????? blimey

sally · #9 (**permalink**) 10-05-2008, 08:12

Well if you go to the very posh area of my town it could be £15-18k and the tourist areas are a rip off of course but in Egypt proper it's cheap as chips but you have to put up with the mosquitoes.

Nicksyb · #10 (**permalink**) 10-05-2008, 08:27

Egypt it is

With regards to the house my partner see's it as his pension and doesn't really want to get rid of it. It is a tough one and such a hard decision