Keep Negative equity or Savings

[jambo.ie]

But if you sell your €300K house & only get €250K

It's not a 300k house, it's a 250k house, in 6 months time it might be a 225k house. Anchoring your perceptions to bubble values will give you a distorted view of the market.

 

[aristotle]

But if you sell your €300K house & only get €250K

& you buy a house, previously worth €400K for €325 in a good location,

then, thumbs up you win, negative equity cancelled out.

It doesn't work that way. If you sell the a house with a 300k mortgage remaining on it for 250k then you have to pay the 50k difference yourself.

Then you buy the 325k house with a new loan and\or your savings. The previous price of the house at 400k is irrelevant.

 

[dandecombine]

Interesting and thought-provoking thread. I'm in a very similar position. Savings are enough to deal with negative equity redemption on sale of a house (probably 50-70K) and income is sufficient to get a mortgage on a new house, never affordable in 2006, but affordable now.

But I can't shake the feeling that I'm repeating the Irish obsession with owning...

That hit in negative equity could, if spread out, rent a hella-nice place for a few years.

On a quasi-related point, I note that revenue don't allow (the site says) expenses against rental income on "uneconomic rents". Does anyone know if this covers situations where, say, the mortgage out is 1500 and the rental in is 900?

 

[Ailesbury]

Sounds like you may want to consider first whether you really want to move. Your equity gap could be worse. Some considerations; if you pay off some of the mortgage pay the variable piece first not the tracker, renting sounds easier than it is, if you rent you may be liable for clawback of stamp duty, this could be significant this depends in the time you bought the property, check out revenue.ie, prices may fall further and the quity gap is likely to increase, and the cost of you're mortgage is likely to increase. If you plan to move eventually if you can sell the house factor in further proce reductions on both sides, if the price of the house you buy is higher, you might get an advantage, but beware of catching a falling knife, its safer to buy on the way up than on the way down.