Should I stay or should I go now?

Hi Folks,

I am returning to that great fountain of knowledge and opinions within the Property Pin for your advice and opinions of whether I should sell my home and rent or hold onto it……

I have a 3 bed semi in Lucan which was worth 425k to 450k in the height of the madness in 2006. At the moment those that are selling are doing so around 290k. If I sold at that price I could realise about 100K. So the question I’m asking is if I sold now and rented for a year or 18 months could I get a similar house plus all expenses for a cheaper price? I figure I might invest some funds in shares.

We have heard a lot about price drops and various experts giving opinions about the percentage level of propert price drops but are we reaching the bottom or is all this talk of “green shoots” just pre election guff…Also, if it is to be further drops how further might prices drop?

My situation is that my job is secure although a further pay cut is probably on the horizon. My OH is secure until the end of this year but after that who knows… all contributions welcome…thanks…

I take it that means you have a mortgage of about 180k remaining?

If you’re happy living there and it’s suitable for you it’s probably not worth it. I don’t think the Irish market is anywhere near the bottom but calling the exact schedule it’ll follow is impossible with all the meddling the government is doing.

With interest rates currently low I’d think your best bet is to pay down your mortgage as quickly as possible.

I don’t think you will sell for 290k - 63 similar properties under 300k, a lot of them under 270k. 10 under 250k, all over Lucan and some very nice ones.
If you are looking to sell and maybe have a deposit set aside for a new property then I’d market at 240k and accept any offer within 20k.
Rental in Lucan for similar is 900pm upwards, although you could negotiate I’m sure.
Just my opinion if I were in your position.

Just for clarification there are cheaper house but like every other area there are reasons why some places are cheaper than other. Also, some of those you quote are not comparable to mine some are apartments townhouses etc… but thank you for your opinion

Yes, the mortgage is in that area all right. I will have to do the figures on repaying the mortgage but I’m not sure as the family expands, as we plan to do, whether we will have enough space.

Put it on the market and see what sort of offers you get
I would be very surprised if you got 290
Why would someone buy a 3 bed Semi in Lucan when you can buy plenty in Castleknock/other suburbs closer to town for that price ??

The unfortunate reality is you might have to reconsider whether you can afford the family size you’d like.

A few upsides though:

  • Your current accommodation is reasonably suitable for at least some sort of family life.
  • It’s unlikely you’ll end up in negative equity so you’re not “stuck” there.
  • Your remaining mortgage is pretty small by Irish standards.

What would your house be comparable with?

A big consideration is what kind of mortgage have you got ?
(Tracker + ?, std variable with whom, etc)
Figure out your “cost of housing”.
Yes prices are dropping, but if you’ve a sweet mortgage deal and particularly with your family plans the smart play might be to sit tight.

I would get this property on the market asap, slash the price, pay off mortgage, clear bills put the rest away in a good dep/savings account, rent a decent 3 bed in an area I’d like.
In 12 months he will have a significant cash deposit and a great choice of family homes in his desired area and the market will have stabilised a bit more.

It makes sense to sell up in a falling market if you’re looking at trading up. You might be getting less for your property, but the property your trading up to will be even cheaper.

Mine is a 3/4 bed as against some that are 2 beds which are in that lower price bracket you quote…

The only way to know for sure is to put it on the market and see what the reaction is. You’re in a great position anyway and can make your decision based on the offers you receive.

The entry ( in your case reentry ) cost is quite high .

a €200k house will cost you about €12k between solicitor and stamp duty .

storage of furniture say €2k over that time.

€3k for necessary decorating when you move in .

Thats 10% of the cost of the house …nearly .

And you will pay 3% interest on a mortgage even if the base rate is the same more if higher …what do you pay now ??

2 pack made some great points above, if you found an un-furnished place thats one problem solved, maybe alot of the profit will be eaten up to reenter the market. And is what ever profit you make worth the stress, do you really like where you are living, maybe you need to face up to the fact your house will not be the cash cow youthought it would be but at least its your home.
If you ask me we are heading for a deep recession, Id estimate 65% fall in house prices in some areas from peak… but Lucan may be different.

personally Id prefer two beds rather than three quarters of a bed but maybe thats just me… :smiley:

Your undoubtebly in a tough spot, looking to expand your family, your OH job may not be secure, you sound like you want to make money as in any profit from the sale you will reinvest in shares (thats kind of irresponsible if that money is really intended to buy your next house).
That tells me you dont have much savings as otherwise youd be using that todo same, similarily you still have a hefty mortgage left, have you had the house a long time. Are you going to be losing mortgage interest relief, rent you can claim for. As others have said whats type of mortgage have you.

Put the house on the market asap… ring some of the EAs who are selling the other houses in the area,if they have any offers on them, maybe you could steer/steal one of those offers to your house which you say is better quality.
Even if you sell at 240k, thats still isnt a 50% drop on the peak prices, Id expect all houses to drop 50% from peak, Lucan
If you wife lost her job, would you be considering moving from Lucan to another area… renting is also a chance to try another area, maybe even get rid of one car.
We are all strange here, I mean strangers, put up some more figures on your situation and people can better judge what you should do, but put it on the market asap, theres cash buyers out there, but theres a limited number of them im sure.

I mainly driven by a concern that I am gradually owning less and less of my home. When I bought it in 2006 it was a 60/40 split in my favour but as property value drops my percentage ownership drops and I am concerned that I am back to a 100% mortgage situation and after working for 20 years that ain’t too cool. I have a variable mortgage with EBS. In relation to the investing in shares I had picked out a couple that I thought were worth investing in but I didn’t have the funds to back up my intuition, Ryanair @ €1.80 was one I was very keen on, plus a few others. Interested to know why you think Lucan might not drop by 65%?. Thanks for all comments to date…

Lucan has houses , not shoebox flats in dysfunctional complexes with scammers in charge of management

Lucan is relatively close to where the work is unlike the outer commuter belts like Offaly and Carlow and Longford and Wexford .

But fall it will albeit not by as much as some places