Thought you’d never live in your dream home? Think again. Today’s maths means you can get closer to your ultimate des res with a “rent-and-sell” strategy.
For many people, living in their dream home is just that: a fantasy, and usually an unaffordable one. But current market conditions mean that homeowners taking the chance to rent, and sell an existing property, can often afford to live in their ultimate "des res" at a far lower cost than its owner could.
The phenomenon was noted recently – albeit at the higher end of the market – in an article in The Times which noted that, for the cost of a semi-detached house in Clapham, you could rent a three-storey Georgian townhouse in Marylebone, designed by the Adam brothers and a former home of architect and artist Edwin Lutyens.
London prices tend to skew the figures somewhat, but even so, the maths plays out elsewhere around the UK. For the cost of a mortgage on a 1970s two-bedroom house in on the outskirts of Tunbridge Wells, for example, you can rent a three-bedroom house in one of the most desirable areas. And you can rent a stunningly decorated Georgian flat overlooking York racecourse for the same price as the mortgage on a three- to four-bedroom terraced house on the other side of the city.
Rent and sell: south-eastern phenomenon
The trend to rent and sell is primarily a south-eastern one, though. The Times newspaper says, "The phenomenon of [rent and sell] is gathering pace in London and the home counties, according to estate agents, where house prices in some areas have surged by 50 per cent over the past 12 months."
And it isn't just house prices. To own the same stunningly decorated Georgian flat would involve paying a mortgage, mortgage insurance, buildings insurance, a building service charge plus other maintenance and repair costs, and ground rent. These could easily add a further £250 to your outgoings over and above the cost of the mortgage: by choosing to rent-and-sell instead of spend-and-buy for the same money you would suddenly find yourself able to afford to live in one of the most desirable properties in your area.
Rent and sell: short term
Of course, many people assert that ownership is preferable to renting in the long term – but most of the people choosing to rent-and-sell only see themselves doing it for the short term – six months to a year, two years at most.
The Times said, "Homeowners who believe the housing market is at a peak are selling their properties to lock in profits from the house-price boom. They are then renting in the hope that they can buy back into the market when prices fall."
In the mean time, they have a dream house to live in.
Rent and Sell with rentandsellltd.co.uk
If you're caught in a financial house-trap, rentandsellltd.co.uk can throw you a life-line. Rentandsellltd.co.uk offers a sell and rent back scheme for those who like living where they are and want to maintain stability but are facing mortgage arrears, repossession, bankruptcy and debt or concerned financial meltdown is looming. The rent and sale scheme is an alternative to selling up and moving, allowing you to stay put and find financial solutions. Rentandsellltd.co.uk will buy your home and allow you to continue living in it as a tenant. Find out more, call Rent and Sell Ltd. today on: 08000 255 966.