Extend or move

we are in our home 1 year now - love the area (rural but only 20 mins to city) and love the house. our neighbours are wonderful and we have settled in really well. there is only the 2 of us for the moment and suits us 100%

We have recently been offered a larger house that needs a little tlc but is closer to the city for a great price... it is a family home that i do have a sentimental interest in.
I know the area and do like it but i dont particularly like one of the neighbours..

our dilemma is - the house we are being offered is in a great area, although house prices have come down of late they are still much higher then we could ever afford, however the house that we have bought has already in the year that we have lived there has gone down 70,000€ - leaving us in negitive equity on a 5 year fixed with no chance of changing to variable

do we stay put and just extend if and when the time comes? even though any money we put into it we probably will never get back

or

move to larger house (that inevitably will be for life) and start again hoping that it will work out? with the security that even if we sell the house we will get back at least what we put into it???

if we leave it too long the house will slip away into the open market and we would never get the chance of somewhere like that again?

You should check if you can sell your existing house first.

Put it on the open market and see if you have any bites. Then you can make the decision as to what to do based on if it will sell and how much you will get for it.

In my opinion, there's no point look at properties until you can secure a sale on your own as properties outside towns are not selling and couples who might be interested in your home may not be able to secure a mortgage as the bank don't seem to be giving loans for anywhere other then city centre properties.

LovelyHome said:

You should check if you can sell your existing house first.

Put it on the open market and see if you have any bites. Then you can make the decision as to what to do based on if it will sell and how much you will get for it.

In my opinion, there's no point look at properties until you can secure a sale on your own as properties outside towns are not selling and couples who might be interested in your home may not be able to secure a mortgage as the bank don't seem to be giving loans for anywhere other then city centre properties.

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Agreed.

In future, I will not be looking to buy a house until I have mine sold (I will rent for awhile if I have to). It just makes things so much more easier and as a bonus it gives you great bargaining power with people looking for quick sales as you can negotiate a better deal when you can get money quicker (that goes for most sales as for the next few years, the buyer is king and holds all the cards).