Whenever I write articles on the state of the economy, I receive a slew of emails asking the same question: “Should I sell my house?” Most people who write asking whether the time is right to sell their property, haven’t really thought all the issues through. Most are merely considering selling their house because money has become tight. Here’s a typical example:

My wife and I bought a £246,000 house on interest only mortgage with a high street lender for 3years. This period ended last month.

Over the last 4 months I have been unemployed and we have been struggling to pay this mortgage.We now have one and half month payment arrears.

We have also have debt about £46,000 on credit cards and loans to pay. This has also put a dent on our credit rating as we struggle to pay as well.

Our house is now valued at £350,000. Should we sell it to sort ourselves out of these debt or is there any way out of this hell? I don’t want the house repossessed but it is a matter of time. At the moment our monthly income is around £2,400 after tax.

The issue is not whether to sell the house, but how to manage their finances. Sadly, I receive way too many of these types of inquiry. However, I received the first sensibly written query yesterday:

My wife and I are concerned that this may be the top of the residential real estate market in our area. We have talked this over, and we think the equity in our home may be at a peak. We are both willing to rent. In fact, we have talked about moving to a region that has a much lower cost of housing. What do you think?

Such a note reflects a joint decision – which buying and selling a house ought to be. It reflects an awareness of economic options. It reflects an understanding that things are not as they seem. Here are a few reasons to consider selling your house now. Continue reading