# advice want to move from apartment but is it financially possible?



## cara mc k (26 Nov 2009)

Dear AAM,

I would like your advice on trying to move from my apartment.

Mortage is 138,000 balance, one wage is 63K permanent job, other person is  on jobseekers benefit approx 800 per month.  No loans or debts. 

savings of approx 100K


apartment when bought was 275K would love to move from the apartment to a house due to many reasons.  Not sure if we would get any mortgage due to one wage earner, and if we can sell the apartment for a reasonable price or is is better to rent, but then you have the hassle of this.

What do you think are best option is, would be reluctant to use all savings due to one person not working.

Many thanks
Cara Mc K


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## sadie (26 Nov 2009)

Sounds like you should sell first, then rent, then buy another property. 

Bank of Ireland calculator is saying a single person earning 63k can get a mortgage of 315k. 
Funnily enough, if you are jointly applying using the same calculator where person A earns 63k and Person B earns 0, you are only eligible for 283k of a mortgage. Obviously you would have to have sold your other place first. 

Would 283k plus a portion of your savings buy you what you want?

What are other similar apartments selling for. Have you rung a local estate agent to ask?


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## chlipps (26 Nov 2009)

I agree with sadie..sell first and then rent.. as you will have to sell to buy as wont get mortgage for apartment and house at same time

Also, rents are competitive at the moment so spend plenthy time picking your dream home... BTW.. have you children also to consider in the move?


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## jack2009 (26 Nov 2009)

Sell your apartment, then buy a house. Maybe even rent or if you can move in with relative/friends for a few months and save some money as house prices are going down and down for the immediate future for sure.


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## Bronte (27 Nov 2009)

This one is easy, sell, rent, buy.  Well done you on savings, mortgage level and good job.  Don't overstretch when you buy but I don't think you will.


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## gianni (27 Nov 2009)

jack2009 said:


> Sell your apartment, then buy a house. Maybe even rent or if you can move in with relative/friends for a few months and save some money as house prices are going down and down for the immediate future for sure.


 

Beware of advice from people who are certain which way house prices are going...


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## STEINER (27 Nov 2009)

cara mc k said:


> Mortage is 138,000 balance, one wage is 63K permanent job, other person is on jobseekers benefit approx 800 per month. No loans or debts.
> 
> savings of approx 100K
> 
> ...


 
It is important to do what you actually want to do.  To live in a house you will have to sell the apartment and presumably take a hit on the price, but this is what you need to do.  Don't spend the next 5 to ten years living in the apartment waiting. Jobseekers benefit won't last indefinitely, but savings of 100k and one permanent job of 63k is a decent cushion to approach any mortgage lender with.


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## Setanta12 (27 Nov 2009)

Would the maximum the OP be entitled to for a mortgage not be reduced by the level outstanding on the other mortgage ? Ie if he was enttiled to (say) 400k on the basis of earning/repayment capacity but then he had 150k outstanding on another mortgage, he would get a 250k mortgage ?


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## cara mc k (1 Dec 2009)

Thanks to all for your replies, my concern is that if selling we would have difificulty selling the apartment or have to reduce the price by a huge amount, what do others think of this.

thanks again 

Cara Mc K


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## sadie (1 Dec 2009)

It's a case of, if you need to sell then reduce the price to a price someone will buy it at.
You won't get another mortgage if you haven't sold the apartment so you've no choice really. 
The apartment market has the most overhang of for sale and unsold units, so a continued plentiful supply over the next few years will mean continued competition amongst people selling theirs. 

The only way you'll know is to put the apartment on the market.


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## Buddyg (1 Dec 2009)

gianni said:


> Beware of advice from people who are certain which way house prices are going...


 
Well everybodies net income is going to be at least 5-10% down in the next 6 months so I think you can take it as fact which direction house prices are going.


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## rmelly (17 Dec 2009)

Buddyg said:


> Well everybodies net income is going to be at least 5-10% down in the next 6 months so I think you can take it as fact which direction house prices are going.


 
That's the first I've heard of this...


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## Firefly (23 Dec 2009)

Could you rent your appt? A mortgage of 138k would be approx 700pm - if the rent  could cover this, you may still be able to buy a house with your 100k depending on the PP of the house you have in mind.


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## Buddyg (23 Dec 2009)

Don't factor jobseekers benefit into things either. That will end soon enough.


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