To sell or not to sell

C

CJPC

Registered User
Messages
34
Hey,

Bought my house in late '06 for 240k. They eventually went up to 262k a little bit later.

Now at 210k, but then that's advertising so who knows what they would actually let one go for if anyone was feeling brave, you would imagine a good bit less.

My mortgage (Ulster bank Tracker - 40 years) is just under 215k. So it's great for me at the moment with the interest rates.

Put a lot of time and effort (and well over 30k) into the house and it's very well finished. Which hopefully will stand to me.

However, with budget, prospect of all mortgage interest relief (even for the first time buyers like myself) being abolished eventually and, in particular, my own employment circumstances, things are looking dodgy. When interest rates begin to come up again I could be in big trouble.

Anyway I'm contemplating offloading it for around the 200k mark and taking the hit now to protect myself from a much bigger hit in the next couple of years.

Now I'm well aware that no-one might touch it with a barge pole, but let's just say they would, what do people reckon?

Am I throwing the baby out with the bath water? It would be a calculated risk at best I suppose.

Also how much will I be handing over to the State in tax on any prospective sale?
 
You do not explain the options. Are you thinking of moving to rented accommodation if you sell or what is the plan. Selling now would be silly in the extreme. There are various alternatives to this including an interest only repayment if your circumstances get tricky or even a mortgage holiday which some lending institutions are offering for those who have become recently unemployed. Selling now in this environment is plain ridiculous.
 
Thanks for the reply.

Yes, the plan would be renting for a while and paying off my debts. Apologies for not explaining fully.
 
If you bought your house in late '06 for 24k you'd probably only get about 150k at the moment. Would this affect your decision to sell?
 
A lot depends on where the house is located. Depreciations vary from place to place.
 
Both those last two posts are related. The answer is Waterford city. And I'm fairly sure I would get more than 150k. How much more I don't know.
 
extopia said:
If you bought your house in late '06 for 24k you'd probably only get about 150k at the moment. Would this affect your decision to sell?
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I don't see where you have come from with this figure. I realise that there are certain properties that have nose dived but there are plenty more besides that have not. I have recent experience of properties in Limerick selling for 15-20% less than 2006 prices and some at shorter drops than that again. You cannot take a swipe across the nations prices and treat the market as one size fits all.
 
MrMan said:
I don't see where you have come from with this figure. I realise that there are certain properties that have nose dived but there are plenty more besides that have not. I have recent experience of properties in Limerick selling for 15-20% less than 2006 prices and some at shorter drops than that again. You cannot take a swipe across the nations prices and treat the market as one size fits all.
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Regardless, the OP should probably still plan for the worst case scenario, given the way things are going. If you get more than the plan, well then that's a bonus!
 
Bob_tg said:
Regardless, the OP should probably still plan for the worst case scenario, given the way things are going. If you get more than the plan, well then that's a bonus!
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You should allow for that of course, but you should start out with a sensible plan. If your sale price is more than 10% off your asking price then you have gotten it wrong in most cases.
 
It still doesn't address the core of this issue: is it wise for him to sell in this current environment? Taking a big hit on his property and the paying rent for new accommodation sounds quite bizarre to me
 
Do you have any dependants?

If you do sell, you will have to rent. Will you have to rent a house, or a room?

Is it possible that in the worst case of you losing your job that you would qualify for social welfare assistance with the mortgage?

Could you rent out a room/rooms? What would the potential rent be if you rented out the entire house as opposed to the mortgage? Have you looked into fixing your rate at this point in time for a few years to see what the market will offer?

If you do not plan on leaving the area I'm not sure I see much merit in your plan to sell. I'd be considering alternatives in your shoes.
 
MrMan said:
You should allow for that of course, but you should start out with a sensible plan. If your sale price is more than 10% off your asking price then you have gotten it wrong in most cases.
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I think that's bad advice. What you're suggesting to the OP is that they only drop their price by a small amount. Well, there's people with houses on the market for 24 months who have been doing that - continually dropping their price by small increments - just enough to stay behind the market, never enough to get an advantage on other sellers. Death by a thousand cuts, I believe they called it in ancient China. You can see many examples by using the Property Bee property price history tracking plugin for Firefox - an invaluable tool for buyers:

http://www.property-bee.com/

Recently I saw a house for rent, which was way overpriced (the photos were misleading and the place was a lot smaller than expected). When I checked the history of the house, turns out they'd actually been trying to sell it for the past 2 years. If they had dropped their price initially by a reasonable amount, they probably would have sold it.
 
charliemacck said:
I think that's bad advice. What you're suggesting to the OP is that they only drop their price by a small amount. Well, there's people with houses on the market for 24 months who have been doing that - continually dropping their price by small increments - just enough to stay behind the market, never enough to get an advantage on other sellers. Death by a thousand cuts, I believe they called it in ancient China. You can see many examples by using the Property Bee property price history tracking plugin for Firefox - an invaluable tool for buyers:

http://www.property-bee.com/

Recently I saw a house for rent, which was way overpriced (the photos were misleading and the place was a lot smaller than expected). When I checked the history of the house, turns out they'd actually been trying to sell it for the past 2 years. If they had dropped their price initially by a reasonable amount, they probably would have sold it.
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Perhaps people (homeowners) cannot afford to sell at what you may call reasonable prices as they have large mortgages which may not be covered by these reasonable prices.
I dont think there are many people out there who would want their house on the market for 24 months unless it was a very bad no choice situation for them.
I feel for some most of these young people and feel genuine sorrow for the way they will be left paying for these overinflated properties for 35-40 years of their lives due to unfortunate circumstances.
 
charliemacck said:
I think that's bad advice. What you're suggesting to the OP is that they only drop their price by a small amount. Well, there's people with houses on the market for 24 months who have been doing that - continually dropping their price by small increments - just enough to stay behind the market, never enough to get an advantage on other sellers. Death by a thousand cuts, I believe they called it in ancient China. You can see many examples by using the Property Bee property price history tracking plugin for Firefox - an invaluable tool for buyers:

http://www.property-bee.com/

Recently I saw a house for rent, which was way overpriced (the photos were misleading and the place was a lot smaller than expected). When I checked the history of the house, turns out they'd actually been trying to sell it for the past 2 years. If they had dropped their price initially by a reasonable amount, they probably would have sold it.
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Just to clarify, you think that starting out with a sensible plan and pricing your property correctly is bad advice? At least now I know that no matter what I say you will disagree with it.
 
Vanilla said:
Do you have any dependants?

If you do sell, you will have to rent. Will you have to rent a house, or a room?

Is it possible that in the worst case of you losing your job that you would qualify for social welfare assistance with the mortgage?

Could you rent out a room/rooms? What would the potential rent be if you rented out the entire house as opposed to the mortgage? Have you looked into fixing your rate at this point in time for a few years to see what the market will offer?

If you do not plan on leaving the area I'm not sure I see much merit in your plan to sell. I'd be considering alternatives in your shoes.
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Thanks for the input.

I'm going to see how much I would get for renting a double room alright, that would help and as I'm away a few nights a week would be no bad thing anyway.

Haven't looked at fixing yet, would be in no hurry to do that just now, despite the stability it would offer and the low base rate.

House is a good drive from where I work too, which I should have mentioned. I would look to rent there if I sold up, what (house/room/apartment) exactly I'm not sure.

Would probably move home with folks for a while first (also closer to work - and wouldn't be a problem for me or them).

Suppose I don't want to sell, I just don't want to end up losing it. Hopefully I won't. If I can get by I'll hold on, but as prices continue to drop by time I may be in trouble (and forced to offload) it would be worth far less.
 
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