AH.. Should i get out now???

M

mel26

Registered User
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I bought an AH in Cork in 2007.

The market value then was €380k. I bought from the Council for €240k. The current market value is €235k.

My question is, if I sold up now for €235k would I be right in thinking I would not owe the Council anything?

By selling up now and buying a property for the 235 I would at least maybe years down the line have the opportunity to make a profit, where as, someone who stays in there affordable home will always ( well for 20 years) have the clawback.

Also what is stopping people in my position from selling to say a friend tomorrow for €235k then buying it back a month later for €235k minus the clawback?
 
If i stayed, and in 10 yrs time the house is worth say 300 and i sell then, i would owe the Council thousands.
If i go now and buy a house for 235 and sell that in 10 years for 300. then i would not owe the Council anything.
 
I think you don't owe anything if you sell for a loss. However if you sell you have to factor in costs such as legal fees, auctioneers fees etc. You also have to make up any shortfall between the sale price and outstanding mortgage.
Even if you sell to a friend, that friend will have to pay legal and auctioneers fees as well as govt. taxes on purchasing a house. So it's not that simple !
Are you happy where you live? Does the house meet your needs? Did you buy it as an investment or home? You have already been in the house nearly 4 years so there's alot of the clawback period over at this stage. Think seriously about this.... I've only highlighted a few downsides to your plan. If you are happy in your home and it meets your needs, stay put.
Best of luck with it.
 
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