Question about UK housing market and what do to with equity from sale. Please see below.?

Question

I am selling my house and moving my family into rented accommodation. I will have about £35 - £40,000 in equity. My plan is to buy a new house when prices hit rock-bottom and just before they start to rise again using the equity as a deposit. Thus having the smallest mortgage possible. When do you think prices will start to rise again (obviously no-one knows for sure but a best guess would help) and what should I do with the equity for now?

Answer 1

I think there will be several more price corrections in the next 18 months and there will be numerous 'bargains' in the last quarter of 2009 where there will possibly desperate sellers whom have been on the market for some time. The key element to look out for when the market changes is the first time buyer properties starting to buy in numbers. (as the market can only move from the bottom of chains...) As to what to do with the money... Safest bet is obviously the bank..(a high interest easy access account) but for a potentially greater (but more risky) option try trading in shares... or alternatively try the casino... all on black... you've got a 50/50 chance to double your money (he he he)

Answer 2

12 - 18 months, the market is just currenly correcting itself against the previous prices that were too high, within 12 months you will see prices rise. If you are a buyer, then it is a buyer's market until then

Answer 3

2010. Something like a 3 month notice deposit account. You need to be able to gat at the money quickly if necessary. Possibly a short dated gilt.