Tag Archives: recession

Leaving the Property Ladder – What’s the Big Deal?

So finally. The second part of my big revelation. We are selling our house! If you follow my Instagram stories you’ll know that already. So if you are a regular visitor of my social pages you will remember me declaring last month that I am feeling really positive and optimistic. An exciting next chapter is beginning in our lives and I’m full of hope. Focusing on the hope and possibilities of a situation helps me remain excited and not get stressed. The first reason I told you all about here.

property

The property ladder is constantly something pushed to us but what’s the big deal?! Since I can remember, society has forced the idea upon me that it’s the be all and end all to own your own property. I totally get that there is security in owning your own home.

Hearing buzz phrases like “you need to secure your future for your retirement” are heard from a young age. But times are not what they used to be. People are living differently to how they used to back in the day.

ladder

As a society we are travelling more, some of us living on the move for quite some time. But to the older generation I think the thought of not having some bricks and mortar to come back to is a scary prospect.

It’s September 2018, with a deal still not agreed for Brexit, there is a potential for the housing market to crash and property prices to drop by up to a third…or so I’ve read. Although this is of course speculation but it seems like a good a time as any to sell up. George isn’t getting any smaller and we’d love to add to our family.

Myself and hubs are stuck on an interest only mortgage, stuck in a house that’s no longer fulfilling our needs, our life jackets are on and we are full heartedly jumping ship. When I say we are stuck, trust me, we are. We’ve consulted financial and mortgage advisors. Without blacklisting ourselves the only way out is to sell.

I don’t particularly wish to divulge the detailed ins and outs of our financial situation or how we ended up in this position. In short we purchased our house with a 105% mortgage just before the last recession back in 2007. We had no deposit, no bank of mum and dad and wanted to consolidate debts.

Some of our debt had been accrued through putting commute expenses on credit cards as hubs was working within London but not earning enough to pay the expenses. Such is life at times. Having a job doesn’t mean you are thriving. So many in this country work damn hard but still struggle to pay for the essentials of life.

property

We were both raised by parents who didn’t really believe in not paying for things in full. They tried not to take out credit or “HP” as they call it. Hubs and I have always been of the mentality “you only live once, if you want it, have it”. I’m not talking silly things like Ferrari’s or Caribbean holidays. We only took staycations (aside from a med cruise we booked to celebrate my first pay packet). We bought a nice tele and simple things. If we saw some nice chocolate cakes we had them. We don’t own designer clothes or expensive handbags. We’ve lived within our means….or so we thought.

property

So we have reached a point where we have outgrown our house. We have potential to extend but no funds to do so. It could be years before we could. All the while our quality of life is affected. We are living on top of one another 24/7. Hubs needs a home office. We know we have a pretty decent amount of equity in our property because the housing market has reached ridiculous prices. So why not cash in on that and move into rental?

Yeah I actually said it. We are going to LEAVE the property ladder and join the RENTAL market.

We could never even dream of buying anything bigger than our 2 bed in our county. Not without moving to the type of area most people wish they could get out of. We are also at the stage where wherever we move, the schools have to be good for George.

But the rental market is a different ballgame. Not least because we will have more cash available on a monthly basis because we will be debt free. Using the equity from the sale of our property, we can clear our debts, all outstanding loans and start a fresh. We can rent a larger property whilst stashing a potential deposit in the bank or a limited access saver.

When the time comes where we are feeling it’s the right time, we can hopefully jump back on the ladder. It may not be in our current area. But by that point we may be better suited to moving away. The further north you go, the cheaper it seems to get. It’s crazy how much prices vary!

We have even considered buying in maybe years time in our potential desired area for retirement, Norfolk. We may then rent it out until we are ready to move in ourselves. No one knows what the future holds for either of us and the security of a roof over our heads is obviously paramount.

There are so many options. We can continue to build that deposit. This is an exciting time for us. For many though the ladder is the dream. It’s so hard to get on to. All you read in the papers is how hard it is for young people to get on the ladder. And here we are, willingly leaving it. Oh the travesty. But to us it has cons but right now, the pros outweighs the cons by a mile.

Do I worry that we will be retired with little or no income coming in and having to find money for rent or mortgage payments? No. Hubs has his finger in many pies. Although I’m self employed, my input to the business will grow as George starts full-time school next year, increasing our earnings further. It will all work out. I’m willing to return to my previous career if need be as I can join that back at the top-level I left it, with a little retraining. There are ALWAYS options.

Sometimes you can’t always do what’s right for the future. Sometimes you have to do what’s right for now.

Whilst I’d love to know your thoughts on this, we are so sure this is the right decision for US. We know our situation better than anyone so don’t try to convince me otherwise. I know many may frown upon this idea which is one if there reasons I’ve been reluctant to share the news for so long.

What next? Well at the moment we have to wait for the sale of our house to be around one month away from completion before we can look for a rental. Obviously the rental market moves a lot quicker than all the legal stuff involved in the sale of a house. Estate agents just aren’t interested in showing us rentals until we are further into the process of selling our house.

property

For many this is alien. People are asking me if we have “found anywhere to live yet”. Which I don’t mind because I wouldn’t expect people to understand this unusual process. But this is how it is. We wait for a potential buyer to make an offer on our house, once accepted we have to let the process evolve. When everything is looking good to go, then we can view rentals and hopefully get the keys before moving day. As long as we have exchanged contracts on the house so we don’t end up paying two lots of bills. That way we can also ease the transition of moving rather than it being all one big moving day.

Stay on the lookout for some more lighthearted posts from me on selling houses the Gorgeous George’s Mama way.

Have you ever left the housing ladder to join the rental market? I haven’t met anyone who has and would love to know your experience. Estate agents we speak to our surprised by our decision. They haven’t come across many people who do what we are. We have found a fabulous estate agents who are helping us through this process step by step.