# recently lost job



## valley (16 Nov 2008)

Age: 30
Spouse’s/Partner's age: -

Annual gross income from employment or profession: unemployed
Annual gross income of spouse:-

Type of employment: IT, but want to try something new
In general are you spending more than you earn or are you saving? Not when i was employed, but I will be now that I have lost my job

Rough estimate of value of home 195000
Amount outstanding on your mortgage: 150000
*What interest rate are you paying? 4.83% fixed for 1.5 more years*

Other borrowings – car loans/personal loans etc.. no other loans


Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card? 

Savings and investments:6500

Do you have a pension scheme? yes but have not paid in , and it is worth only 3500 at the moment when I hit 65 

Do you own any investment or other property? yes

Ages of children: no kids

Life insurance:yes

My main problem now is unemployment I think I can go a year unemployed if it happens after that the debt will start coming,
I just want to ask people do they think I should sell up of try my best to hold on to my properties


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## MrMan (17 Nov 2008)

If you think that you can go a year without falling into financial trouble i would be more inclined to hold on to the property. You are not in a position that you have to sell and without making predictions about the market I'm presuming that you bought the investment property as your pension or towards it so then I say stick to your guns.


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## Mr DT (17 Nov 2008)

Out goings €420 a month and €300 for a property where the rent falls short on the monthly mortgage. 

So €720 with €6,500 savings is about 9 months before your savings have gone. This assumes all other living expenses can be paid by benefits you receive.

I'd say you are in a very difficult situation if you can't get a job shortly and i would sell your second property *as soon as possible.*

Mr Man, i really don't understand how you believe in this situation keeping a property......that doesn't pay for its self..... is an option!


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## MrMan (17 Nov 2008)

Mr DT said:


> Out goings €420 a month and €300 for a property where the rent falls short on the monthly mortgage.
> 
> So €720 with €6,500 savings is about 9 months before your savings have gone. This assumes all other living expenses can be paid by benefits you receive.
> 
> ...



Because he is looking at the long term, the rent sounds very low on his investment property so there maybe room for a hike there but I think that if he sells now he is taking a further hit in transaction costs and obviously a slumped market, whereas if he can comfortably hold onto it the outlook may be rosier in a few years, it is a gamble. Its difficult to assess without knowing the area in question or size of property.


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## Kemo_Sabe (17 Nov 2008)

MrMan said:


> Because he is looking at the long term, the rent sounds very low on his investment property so there maybe room for a hike there but I think that if he sells now he is taking a further hit in transaction costs and obviously a slumped market, whereas if he can comfortably hold onto it the outlook may be rosier in a few years, *it is a gamble*. Its difficult to assess without knowing the area in question or size of property.


 
Op, I think you should be very careful in attaching any weight to the opinions of an estate agent (like MrMan).

Personally, I think you should try and sell both properties and cash in what little equity you have left in them, it's crazy subsidising a loss-making 'asset' when you are unemployed


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## MrMan (17 Nov 2008)

Kemo_Sabe said:


> Op, I think you should be very careful in attaching any weight to the opinions of an estate agent (like MrMan).
> 
> Personally, I think you should try and sell both properties and cash in what little equity you have left in them, it's crazy subsidising a loss-making 'asset' when you are unemployed



Kemo Sabe, your opinions differ to mine imagine that, therefore mine are obviously blatantly talking up the market or some other ill thought out notion. If I was talking in the capacity as an EA then would I not say 'sell the house just be prepared to take a hit' wouldn't that make more sense to a VI? 
You have annoyed me today and that makes it all the worse because I generally don't take insult from the posts on site but I am posting as an individual with an opinion and not as an auctioneer which is my profession not my dna make up.


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## coppers (17 Nov 2008)

The rent on the second property probably covers the interest (a property that pays for itself completely after three years is unrealistic).

Selling may take longer than you think and the leftovers may be a lot less than 190k minus 150k.

€720 is not a huge sum of money. How bad is the job situation? What part of the country are you in? There are employee's working in McD's with bigger RENTS than that.

However, you could find yourself under pressure if the house became vacant for a while (I wouldn't consider a rent hike in this climate as mr man suggested), so your focus should be on gettting your next job asap

Talk to your bank about your situation - interest only or a complete mortage holiday for a few months might be an option.


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## Mr DT (17 Nov 2008)

Hand bags at 3 paces guys!!

Look, this guy has just lost his job, he's after some advise not an arguement. 

To the OP, Good luck I really hope you find a job soon and all works out but if not i really think the extra property has to go!

I really don't see how you can justify keeping an investment property, that's being subsidised, when you sre unemployed. Rents are falling not going up. As long as you are not in negative equity surely you should sell! In the long term you could look to get back in when your future is more certain. 

If you face negative equity then other ways to get income will be key. Rent a room of yr current house, get the person you share with to buy you out, get a job any job to help you through an uncertain period.


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## valley (17 Nov 2008)

Thanks for the replies, really appreciate everyone taking the time to post, I am in Donegal, the thing is the 2 types of property I have bought have not gone up in huge amounts, there has been big drops in prices up here also but they generally seem to be houses that are worth 250 or more.  so at the moment they have not really dropped in price either, If I am unemployed for a year (I hope not) I will get welfare payments of around 10000 for the years so that plus my 6500 is 16500, so if my other house stays rented out, (I have spoke to them and they want to stay another few years). I will have to pay 720*12=8640 leaving me around 7500 for others things, I can live off that, if I have to, I am generally good with money. 
The way I look at my property is that I busted my ass to get it, so I don't want to give it up without a fight, I could sell now but I know I probably won't get back on it again later, It is an investment and I  am looking at least another 20 years before I sell it, so to me if it drops some money now I am not too bothered, as in 20 years it will be payed off and I can sell it or make income from rent.

I just want to hear people's opinions on my situation , I don't want to work all my life and have nothing. I am prepared to take a bad patch for a few years, if it means when I hit 50 I can take life a bit easier, if that happens, it will all be worth it for me
  .


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## Mumha (17 Nov 2008)

I agree with you, Valley. Don't give up those houses unless/until you have to. Have you considered working in Derry/Belfast or further afield (UK mainland ?). Mr DT also made a good point renting a room out in your current house. Could you move back with your family to let out an extra room ?


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## Mr DT (18 Nov 2008)

I have an issue with you using tax payer money to hold on to your depreciating property portfolio. I could morally not do this, but hey ho each to thier own.


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## MrMan (18 Nov 2008)

Mr DT said:


> I have an issue with you using tax payer money to hold on to your depreciating property portfolio. I could morally not do this, but hey ho each to thier own.



He could argue that he has been contributing to the tax system aswell and is merely managing his own pension.


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## valley (18 Nov 2008)

Mr DT said:


> I have an issue with you using tax payer money to hold on to your depreciating property portfolio. I could morally not do this, but hey ho each to thier own.



   I have an issue with a government not creating jobs in my area, when the economy was booming the rest of the country were all reaping the benefits,
in the last 10 years off my life I’ve had to work abroad, work anywhere I can get it.

so I couldn’t really give a damn what you think, I'm only trying to make a life for myself which I think I deserve, I work hard and always have,

My last employer would not pay a pension so this is what I have to do.


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## Mr DT (18 Nov 2008)

valley said:


> so I couldn’t really give a damn what you think, I'm only trying to make a life for myself


 
As i said each to thier own.


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## mainasia (10 Dec 2008)

Mr DT said:


> As i said each to thier own.


 
Why don't you look for a job outside IT or get a job somewhere else?


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## CorkJack (10 Dec 2008)

Sorry to hear about your situation. I was in a somewhat similar situation a few years back. To be honest it looks more daunting than is actually the case. Given the information you have provided I would consider the following:

1. The chances of you being unemployed for 12 months are low. You seem to be willing to work and my belief is even in a downturn like we are experiencing there is work but you must look hard.
2. Keep both houses. Selling now when the market is depressed will cost you and is something you will regret. If by the 7 month you are still unemployed then consider looking for a mortgage holiday. You are young with good prospects for the future, banks will work with you.
3. See how you can reduce expenses (Mobile phone, cable, sky, etc.)
4. As was suggested renting out a room in your house could give a decent boost to the finances. 
5. Stop listening to the radio. The amount of doom and gloom is depressing and will only erode you confidence. 

Best of luck.


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