Should I sell?

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’m no financial genius but given the numbers you’re talking about and it is your PPR why would you bother?

250k mortgage is affordable

You’ve said you’re happy where you are and yes getting a Mortgage in a few years time may be difficult

You also need to take into account transaction cost and stamp duty.

There is of course the possibility however remote that prices could go up.

You would be in effect speculating on the price of your PPR.

If you don’t sell then you will still benefit from falling prices though not as much.

If you bought for €330k and sold for €320k as you indicate that other house might go for, where is the profit?

Sorry, should have said bank the surplus (over mortgage).

Anyway, thanks for that reply Ewd3.

It does amount to an unnecessary gamble really, doesn’t it?

If you’re happy where you are

in my view yes.

you can plan based on your current mortgage.

You may well come out financially better off if you did it than if you didn’t but the hassle.

If you were struggling with the mortgage or felt you were going to come under pressure that would be different.

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

Have you included transaction costs, stamp duty etc in your calculations?

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.