for my two-penneth i have to agree with one comment made by PKFryer about his chat with an evaluator -
Quote -An evaluator I got chatting to actually recommended selling every two years regardless.. to make the most use of house price growth- end quote
I looked at my property sales in the last 3 years, where i have bought and sold 3 properties. We moved as we simply needed a bigger house due to the arrival of children, and sold a small house for double what we had paid for it three years prior, at 65k. We moved area, payed 54k, didnt like it and 10 months later sold to return for 74k. At this point i was becoming more financial savvy, and decided to "strap myself up" and go for the biggest property i could afford, and bought for 135k, (mortgage 93k)
Now 2.5 years on i have come to two conclusions.
1. i dont want to be around with a large mortgage if interest rates start climbing up = sell
2. if i had stayed in property no. 1 and was NOW looking to move into my current property i could sell it for £130k but my current is now sold for £250k. i would need a mortgage for £150k. i could never do it, so by making the moves in between, and trading reasonably frequently with the market, i have traded up and up without having to make huge investments.
This simple issue is what causes most people not be be able to afford to move.
But i have hopefully devised another option for myself. Let me see what you think.
my one objective in life is to be mortgage free. I know all about using other peoples money to my advantage etc etc, butfor the safety of my family and there security this is my one objective.
If i now sell ( currently about 2 weeks from completion) for 250k, i have made 115k profit in 2.5 years.
i intend to buy a similiar house in an area that is going through massive regeneration for 200k, with the hope that once the regeneration is complete the area will be much more desirable, hence better property prices. So no real loss in standard of living in the move.
i could simply move all my profit and have a 50k mortgage (after sol. fees, stamp duty etc).
Nearly there with my martgage free plan then.
i could actually increase my mortgage and use the cash short term in a market that is showing all the signs of major growth, if i can find one. i am not confident enough to trade with big money at the moment, and am looking for an easier way to in effect pay off that last 50k.
i therfore decided to see if i could find my solution in property abroad.
Spain, france italy is out, as prices there have sky-rocketede, probably die to us brits cashing in and buying holiday homes. I then came across bulgaria, due to join the EU in 2007, prices of property has tripled in the last 2 years and is set to follow a similiar path to spain 15-20 years ago.
So, take an additional 35k on my mortgage here, making 85k in total. Thats still less than i am currently paying. Buy over there, sit back in my new home in the UK, watch my UK property either increase in value if we never see market crash, or decrease if we do. But also watch the bulgarian market, which has a much faster potential or growth. If i can get that property to double at 70k plus, then it does not matter what happens here in the UK.
Bit longwinded i know, but thats my plan. i am in effect hedging my uk property purchase.
What do you more educated people think to my logic?