This might be more of an AAM type query, but am interested in views of all mindsets
I own a 3 bed semi in a very sought after estate, where houses still seem to be snapped up fairly quickly.
Paid €330k for it Sept '06 & have a €250k mortgage.
An identical house has just gone up for sale, asking price €345k. I will watch it closely, but supposing it goes for say €320k…
would it make any sense for me to flog mine, bank the profit, rent for 1 - 2 years (€800pm v mortgage of €1200) and buy something bigger / better as prices continue to go down?
Of course, getting a mortgage in 2 years time may be a bit of an ordeal.
Lots of ifs, buts & maybes, but anyone see any merit in this notion?
(Also of relevance I suppose is that I am quite happy where I am at the moment)
I have a mate who just sold their house, they had a mortgage of 400k, house worth 700K. They want to trade up but are going to rent for a couple of years and see what happens, but keep an eye on the market and be ready to pounce quickly if something they really like comes on at a good price.
If trading up then you really need to believe the prices will keep going down otherwise you might end up trading sideways at a loss. It’s playing futures on your home so it takes an element of stupidity/balls/whatever you want to call it
If you are happy to live there for another 4 years, I wouldn’t bother on those numbers. You’d be better off making sure you are on a repayment mortgage and building up equity for 4-5 years. If the mortgage was down to €200K, and the price down to €230K in 5 years, that 30K equity should be enough to let you trade up to a much nicer house, which might cost €300K then (but about 650K now!).
I think the higher end will drop much further than yer normal suburban 3-bed semi, which will always have some level of demand if in a reasonable location. “Trophy” houses will get crucified.
If your job is reasonably secure and you aren’t living on beans-on-toast, then yer probably better off sitting it out and paying off the mortgage + building up savings (and a good relationship with your bank) for 5 years, then pouncing on a very nice trade-up at the bottom.
However, if you are financially stretched to make the payments right now and aren’t 90% confident your job is safe, then get the hell out now. Drop to €290K and run.