Leaving the market

Afternoon all,

just wanted to run a scenario by your good selves.

We currently own our house, and are looking to move and have had offer accepted on house of choice. Sill waiting to sell ours though.

One of the reasons for the move is to clear some debts and move to a location near wife’s family.

As I am now self employed, with only 1 years books to show, my mortgage company, and high street lenders wouldn't even talk about it, let alone take application further. So Broker led us to Start Mortgages. And we are now mortgage loan offered.

But as you are all aware, high interest rate, and a charge of €1800.00 for the privilege of taking mortgage with them. All of this, coupled with the fact that a high street lender may not take me back in a couple of years as I had been with a sub prime lender!

So we are now thinking of selling our house and renting. This way we would clear our debts, and have nr 100K in the bank. Plan would be to rent for a year or 2, then to buy once the property market has sorted it’s self out. We would then be cash buyers so can be in an advantage when offering, and needing a smaller mortgage due to house price decrease over the time period.

The 100K would sit in a high interest account, and would be added to over the 2 years.


My queries are:
The money we would make from the sale of our house, would that be subject to tax in some way. We are owner/occupier BTW.

What are the disadvantages to leaving the property market?

This sounds a good idea, but I'm sure some one will be able to rain on the parade with some doom and gloom on tax or something sinister.

Thanks in advance,


Flip

Any one any views?

If the property has been your Primary Residence for over one year there is no Tax to pay. Leaving the market is normally a bit scary but in this present market there should not be too many worries. As for the future if and when it turns, who knows ?? If you end up holding cash make sure that you are not tempted to treat yourself which in the long term temptation will become something like a disease.

Thanks a million for the reply.

We hoped it would be along thoes lines.

I know what you mean about the temptation side of things. BUt the Porshe will be going on the long finger. We would be living our lives as if it wern't there.

Kind regards,

Flip

There's only one problem - you haven't sold your house. What makes you think you can sell and clear 100k in a market where no one is buying?

Price to sell my good freind.

In the current market in our estate, house are selling. We have a benefit of lots of improvments, large extension, extended drive ect . I take the hit and sell for a fraction over the going rate for a standard 3 beds that have sold in our estate. and we clear the nr 100K. We brought before the big rise, so have done very well, even with the falling house prices.

If I were to sell at its valued price, then we would be way over the 100K. But as I say, priced to sell.

Okay the market is not as hopping as last year, but houses are still being brought and sold. There are 2 Sold signs in our area in the last few weeks.

A few more people like us, and I recon the whole world would start to turn again. Oh wait a sec, it didn't stop turning.

Thanks or concern though, but we're just in a lucky position. Yer, I could hold out and make another good few grand. But the way I look at it, is take a hit on the valued price, we still come up on top.

Its the reverce of a house is only worth what you are prepared to pay for it.

"Priced to sell" was all you had to say.

It wasn't clear from your original post. Best of luck with it!

one thing not to do is find yourself paying interest at a subprime rate

Based on your current circumstances and bearing in mind no one can predict future prices but taking into account the current market it is a good idea to sell and rent. And you are so right to stay away from subprime.

Bronte said:

Based on your current circumstances and bearing in mind no one can predict future prices but taking into account the current market it is a good idea to sell and rent. And you are so right to stay away from subprime.

Click to expand...

Agree wholeheartedly

I think you are making the right decision.

I have seen houses on Daft and Myhome that are marked "priced to sell". I don't really understand what that means....does it mean the seller won't drop the price any further? TBH the houses i've been looking at are still on the market so i don't know if they really were priced to sell.

Good Luck with your sale.Get the right price and you will sell.
It would be great once you have sold if you could let us know how you got on, it could give people a good idea of whats going on at the momment.

Thanks for all the replies.

We sat and had a long chat last night and are very upbeat about it.

Sub Prime is a no go. End of story. I think we were just a bit fazed that we had a mortgage offer, and hadn't really looked at the long term, ie; If we couldn't get out of Sub Prime after 2 years.

I will indeed keep you posted on how we get on.

Regards,

Flip

It is possible that you would be selling at, or near, the bottom of the market.

Just a thought.

eamonn123456: Do you mean, Am I selling at the lowest rate I can?

I would definitely stay away from sub-prime. If you do manage to clear €100k or whatever stick it in a high interest account and lock it away for a while. Move to the location where you want to be. These days there is plenty of good quality rental accomodation available. If and when you decide to buy again you will have a good cash deposit to negotiate with.
If you weren't actually moving area and for a good reason then I don't think I would say the same thing.
I think that eamonn123456 might be warning that if you sell at the bottom of the market what happens if prices go up by the time you want to buy again? Who knows where the market is at the moment but it is worth considering.

Yeah, what Marg said.

Thanks guys for responce.

I see where you are coming from. But is we do see an unlikly increase, we shouold still be in a strong position as cash buyers. Well that would be our theory anyway.

I'll keep you all posted as to how we get on.

Flippedout, would you mind giving me the details of your lender. I'm self-employed myself, with just 1 year's accounts and have not been able to get a mortgage through the normal channels.

Any luck selling the house yet?