Advice re selling/buying home

M

mayfield05

Guest
Hi there.
We are looking to move from where we are to the southside as we want to send our young child to a language school there. Our house is worth 500/550k - we bought it at 350k. Our mortgage is now at 280k as we paying 2,500 pm (we overpay monthly) We are looking to buy a house about 750k max. My husband is talking about selling our house and renting in the area we want and buying in a year or two, putting the equity from our house in a high earning account. Does anyone have any advice on doing this? Is it advisable?
Thanks
 
I thought about this when were moving.

In very simlistic terms - You sell for €500k, leaves €220k. Put that on deposit, maybe get 5% net return €11k p/a. If your rent was €2.5k per month then you would be €11k better off p/a.

The thing is you can't really compare it with buying because that is a long term strategy and of course there's the whole house prices issue...

If you are definately going to sell, then there is nothing really wrong with waiting before going back into the market.
 
I think you and your husband would be very wise to do this

advantages I can see are:

1) Prices are falling - 750k house will be cheaper in 2 years
2) Renting in the new area gives you a sneak preview without committing to buy there

I'm sure there are many more that your husband or you have thought about already...

Financially, to me, it makes perfect sense
 
There are several existing threads on the sell and rent issue. Try searching for them.
 
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