Would it be madness to come off the property ladder ?

[penny12]

Hi, I previously went though a trust deed which ended in 2011 and my husband was sequestrated at this time also. We have a mortgage and previously took out a secured loan on out property which is not due to end until 2021. Out mortgage is currently just over £500 a month and out loan is just under £500. We are considering whether it would be worth our while selling our property and renting for around £500 a month allowing us tk save up. By selling we would clear our feet of our mortgage and loan, estimating we may walk away with £5000 in our hand. Would it be madness to come off the property ladder and rent? Any advice would be greatly appreciated

[luluj]

We sold up during our iva and for us it was a turning point in our quest for debt freedom.
Seven years on we are still debt free but having rented for four of those years are now back in our 'mortgaged' home ...renting was great during our iva but since that ended getting our feet back on the property ladder is even better!

[UpToMyNeckInIt]

You have to assess your own situation.

You make a compelling argument in favour of selling up, if renting an equivalent property leaves you £500pcm better off - not to be sniffed at.

Saying that, the news keeps banging on about property prices going up etc.

So you have to play the long-game.

down in SE England, prices have gone mental in the last 2 years, with my property growing in value by more than I earned through employment.

Also, round here, renting an equivalent property is considerably dearer than having a mortgage.

So for me, coming off the property ladder will mean being highly unlikely to ever get back on it.

However, I assume you are in Scotland, and I am not familiar with what the housing market situation is ther.

I think you have to ask yourself: If you invested that £500 surplus in ISA's, shares, savings - whatever, over 7 Years, what interest would you earn, factoring in the risk of the chosen investments? VS how much is you property likely to increase in value over the same period?

Round here, property wins every time, by a considerable margin.