[b]HEADING TO NEW ZELAND IN APRIL FOR 23 MONTHS THEN ONTO OZ. MY MORTGAGE IS GOING UP AND I WILL HAVE TO SEND MONEY BACK TO PAY IT. DONT WANT ANY HASSLES WHEN IM AWAY SO ANY SUGGESTIONS. SHOULD I SELL IT AND MOVE ON OR SHOULD I RENT SO I HAVE SOMEWHERE TO COME BACK TO.
HAS ANYONE BEEN IN THE SAME BOAT. IF I SELL MY HOUSE I BREAK EVEN MONEY WISE.
As house prices are heading south at a rate of knots back to levels based on lower income-multiples then I'd say sell, if you can and you are willing to accept significantly less than the asking price. Personally I think that within the next five years prices will be back at Y2K levels as the credit tab has run out.
THANKS I WANT SOME TIME AWAY WITHOUT ANY HASSLES,,, THINK YOUT RIGHT THINGS ARE LOOKING PRETTY GRIM AT THE MOMENT WITH REGARD TO HOUSE PRICES AND THE CREDIT CRUNCH
I would say it depends on your own financial future. Property is always a sure thing. Over the last 30 years I have heard people proclaim it's fall from the investment portfolio. And always it's come out on tops. Property always comes back.
Then again renting can be an extreme hassle and I would not recommend it unless you have an property agent from heaven or a family willing to help you.
All in all. If you plan to buy again in the future, make sure you are not out of the market too long. It's big money, and it's not so easy to some by these days either.
Someone once said this, can't remember where "God only made so much land, and he's not making any more."
Good luck, either way being on the road is the good choice!
[ Edit: Edited on Jun 10, 2008, at 11:35 AM by outcast ]
THANKS FOR ALL THE ADVICE PEOPLE, THINK SELLING MIGHT BE THE OPTION AS RENTING SOUND LIKE A TOTAL NIGHTMARE
You can obviously read load of news articles on the subject, but as someone the wrong side of 40, who is old enough to remember the last time the market crashed, I cannot see prices rising for at least five years.
The last slump was 1988 - 92, after which prices bumped along the bottom for the following four to five years. I bought in 1999 at the ripe young age of 32 on a low income-multiple and have since paid the mortgage off. I have no vested interest in being 'bearish' or 'bullish' on prices as I have no need or wish to move house for the forseeable future, so I hope that I can at least give somewhat objective advice
A younger work colleague of mine bought a few years ago and recently moved in with his girlfriend. He let his house out but is now finding that he cannot get enough rent to cover the mortgage, as there is a glut of rental properties on the market (what with a lot of the Poles returning home etc), hence he is trying to sell.
I think that you would be as well to sell and look at re-entering the market sometime between 2012 and 2015 and not have to worry about paying the mortgage while you are off on your travels (as long as you can find somewhere to store your stuff while you are away!)
As you are only breaking even I would seriously sit down and look at your options, concentrating on what your plans are once you return.
Most mortgage lenders will offer you a payment holiday of anything up to six months, would this be a option to you?
You've also got to think if you do sell your house(making no money), where you plan to live once you return? this could work out quite expensive for you, (that is unless you dont plan to return to same place) especially if you buy again, solicitor,surveys,furniture etc etc..
Im not a fan of renting, I used to rent a couple of houses and just ending up selling them cos of hassle, but Ive several friends who have no problems at all.
It is not an easy choice for you, especially with all the media saying doom and gloom bout housing market in UK, but sometimes you gotto look at whole picture and not whats gonna be best for next few months while travelling.
The house market will drop but then stablise as I cant see there being another house crash as a whole the country is alot more financially stronger.
Choices and decisions , who needs them eh?
Best of luck with your travels
I would agree with the other opinions, given that i am currently in a similar position.
I have been away from Australia for 2 years and had been renting our Australian house for that time (to my brother for most of that time which wasn't too bad hassle wise). Over the time with interest rates going up, the shortfall on the rent payment compared to the mortgage has been getting more and more.
Whilst we have been living in UK we brought another house over here with it being more for the purpose of not paying rent and hopefully getting back some of what we put into it when we sell it, as oppose to looking at it as an investment.
I can say from our experience that having the rental shortfall to cover on the australian property is a big pain. Every 3 months we take a chuck of the savings that we accumulate (with the intention of it funding our travels) and shift it back to Australia to cover the shortfall. It starts to get a bit draining as our purpose for coming over was to enjoy life for a few years and see as much as we can, rather than pay 2 mortgages.
On the flipside however, the amount we have made on the Australian property over the 2 years we have been here have far outweighed that topup we have been making so we have benefited. Wether this would continue was the question
So we sat down and took stock of the situation, based on the feeling that we are going to be living in UK for another 2 years at least. Given this, we believe we can make more money out of investing the profit on the australian property in a 9% term deposit rather than keeping the property and renting. So we have just recently sold the place there. But we aknowledge that when leaving the UK our house here may be back to the levels which we purchased at 18 months ago or slighly lower (being a house in the first home owner bracket of the market). However when we are travelling for our year long return to Australia, we will not be tied financially to anything, except some money sat waiting for our return.
In your situation if there is no financial equity sat in the property i would say based on my experience
a) you dont want the hassle of having a tennant whilst your away
b) shipping money back to cover mortgage shortfalls impacts on your ability to enjoy the money you make in NZ on what you are there for - travelling.
c) if the property market doesn't move upward in the next 5 years (unlikely on 99% of peoples opinion) then you would be in the same position as now except for the hassle of securing a loan again when you return (consider that you will need to rent for around 9mths to a year to get any big lenders to lend)
Hope that gives you some help from my experience in a similar situation
Maybe go get some professional advice by way of a financial advisor or acccountant etc.