My situation is as follows:
I live in your bog-standard 3-bed semi in Lucan which I own outright. I would like to move to Dublin 4 or 6. I have about 250k in saving so hope to have little or no mortgage. What should I do?
A. Sell and buy now.
B. Sell now, rent, buy in 6months (would not like to rent longer as I have a small baby)
C. Hold off for 6months? a year? 2 years?
D. Put my house on the market at an ambitious asking price if it sells, fantastic, if not I’ll have tested the market.
But back to my original question, how much lower than current asking prices do you think I would have to accept to actually sell it at all???
Thanks, yes, I know in my heart it’s the right option but also the most stress! The baby only affects my decision in relation to the additional upheaval, she has so much STUFF!!! Then agian if it ment a saving of 50 or 100k I reckon I could put up with the hassle.
So if I go for option B, will I be able to sell? and for how much?
Here is a house similar to mine:
Sell ASAP and then rent. Prices are only going lower with no recovery for a at least a decade.
Although whatever you think you can sell for, drop that by 25% or more.
Drop back and let yus know how you get on.
That’s what I was afraid you’d say
So do you reckon 25% less than those asking prices, maybe 235/240? Surely not? Though they were up to 370k at the height of the market so I suppose that would “only” be a 35% drop.
…now to convince my husband to sell NOW!!!
I’ll let yis know!
You do realise that if you hang onto the place you have and your house drops in price then the house you wish to buy will also be dropping in value. This means the gap between houses is narrowing all the time. So the extra you need to pay for a house in D4/D6 after selling you present gaff is getting smaller.
There is a case for just sticking with you own house for the moment and watching prices drop. Then sell your house for less and but the new house for proportionatly even less.
I would only sell and rent if I was in it to make money. If you just want to upgrade I’d sit tight for a year.
Yes, I am aware the gap is narrowing. I have been waiting many years for it to happen, for the last 10 it has been growing and growing.
One of the houses I viewed is asking 675k, I’m thinking 500k?
So 240 for mine plus my 250k leaves me with a shortfall of 10k plus stamp duty, happy days
BUT… still leaves the question, if I sell mine now, put the money in the bank for 6-12months, the interest would pay my rent and maybe my purchase house have dropped significantly further.
The million dollar question!
How far down the dropping scale have we gone? If you reckon my current house is only worth 240k now, it has already dropped 35%. There have been wide-spread predictions of 40%. ARE WE THERE YET???
You can get at least 6% interest at the moment, if you fix for a year but obviously I couldn’t fix as I would need to be ready to move, Northern Rock are giving 5% though and Anglo 5.5 for up to 100k so I could get about 16k net of dirt. And if I really wanted to I could stay with my parents (they have 4 empty bedrooms) and not pay any rent
There are two questions you need to ask yourself before you do anything.
Are you absolutely sure that you do not wish to remain in the Lucan house?
Would you rent for maybe up to 3-4 years while your D4 house comes down in price?
If the answer to these questions are yes, then you should sell your house and ride out the crash.
The reason why I’m suggesting a 3-4 year time frame is because there is no magic bullet that will cause house prices to collapse overnight. Since Autumn 2006, we’ve pretty much seen prices being chipped away at on a consistent basis.
To be honest, it sounds like staying put would be the best solution for you right now.
You’d be mad to sell the house you’re in at the moment.
Why not hang on to it and rent it out?
Split your 250k into 5 x 50k deposits and buy 5 apartments in some up-and-coming area. I hear the cubes are doing great.
Then in 3-4 years time, cash in on that untapped equity to buy your Dream4 home.
You’d be mad to put all your capital into one house. You could be sitting pretty on top of 7 properties if you play your cards right. Then release 80% of the value locked in your Lucan home to snap up a few overseas properties.
Disclaimer: The value of your investments may go upper as well as up
Having a baby would definitely influence my decision to rent…(a) the place you rent has to be suitable for baby-turning-into-curious-toddler and (b) the landlord needs to be flexible in terms of you babyproofing the rental property - i.e. drilling holes in walls for stairgates and windows for window catches. As mother to a 17 month old, I would not rent a place until he was a bit older.