Husband thinks timing good to sell family home and rent. Is he right? Post Reply

[Kirstie’s Mom]

Given the recent fall in sterling - the guy is probably doing ok now .

[TFP]

The warnings in this thread are all very sensible, though I suppose the last few days' news haven't exactly weakened the case for doing something like this.

[PWIF]

To add to the many comments.

House market is very illiquid and inefficient. Even if prices did fall past the 10% you need to make it financially viable there is a real probability you won’t find a house you like and want.
People pay way over the odds for a house because they want it and it may not come in the market for another generation. Lower house prices will reduce the supply (for many reasons) exactly when you want to buy.

[Kirstie’s Mom]

Actually a cut in stamp duty may now cause a flurry of activity and The dramatic fall in sterling May cause a large influx of non £ buyers so the opposite of a crash may occur . That’s the thing - too many artificial measures at hand to prop the market up - never bet against the flow of money even if valuations look toppy . At least not with the family home

[Anne123]

Agree with most on here.  If the gamble is to get upside then you need to consider:

- Stamp duty and refurb costs to get back into market
- Are you intending to stay in the same area in London?
- Equity invested
- Time horizon

I think the only way this is a good strategy is if you intend to move out of London and the price you get for a small townhouse ~1.2-1.5 would buy you a huge house with acres and great schools around then I'd say go for it.

If you just want to take advantage of a potential downturn and are treating your home as merely an investment I'd stay put.

[Alaydent]

My partner and I went through something similar a couple of years ago. He thought it might be a good idea to sell while prices were high, but I was nervous about losing the security of our home. We ended up talking to a financial advisor and doing some research.