Sell or continue to rent out?

fader123

Registered User
Messages
1
Hi all,
Trying to decide what to do, any advice/comments would be appreciated.

We bought in Dublin 7 in 2008 for €390k. Bad timing as we almost immediately went into negative equity. Our mortgage was with First Active initially, then UB, fixed for 5 years and now a tracker.

For the last while we have had an arrangement with friends whereby we are renting/housesitting their larger house elsewhere in Dublin at a very good rate while they are temporarily abroad for work. Meanwhile we are renting our house to another friend who is paying us just enough to cover the mortgage. We *could* get a lot more (probably 50%) on the open market but obv would have to go thru all the usual hassles and formalities. Also I'm concerned we could lose the tracker with UB.

Now our friends are considering coming back home and we're trying to decide what to do:
- We could probably sell now and get what we paid. After all expenses we'd make >€40k. We have the option of staying with my parents to save money, but realistically we'd have to wait for a fall in the market to buy in Dublin again. We would consider buying a cheaper house in Wexford/Wicklow.
- We could move back in to our own house and wait to see if the market climbs further before selling (we don't want to live there long-term).
- We could live with my parents and continue to rent out the house, either at the mate's rate as currently, or on the open market.

We're a married couple, no kids, both around 40, no real savings for various reasons. I suppose the big question is what will happen in the property market, we very much feel like we got burned before!! Thanks for any advice.
 
You say you do not want to live in Dublin 7 long term, but where do you want to live long term? I think that would be the first question to answer, then could rule in (or out) other parts of Dublin, Wexford or Wicklow. Personally I would very much avoid moving back in with anyone's parents at 40 years old.

We have no idea of what will happen to property market, and speculating on house prices are not allowed on AAM.
 
We have the option of staying with my parents to save money, but realistically we'd have to wait for a fall in the market to buy in Dublin again.

If staying with your parents is a viable long term option, thats one thing. But staying until there is "a fall in the property market" is not a serious plan, that may never happen.

We would consider buying a cheaper house in Wexford/Wicklow.

Well if that is what you want to do, get cracking on making that happen.


We could move back in to our own house and wait to see if the market climbs further before selling (we don't want to live there long-term).

This is not a plan either. If the market rises, everything else will rise too and you will be no better off.

We could live with my parents and continue to rent out the house, either at the mate's rate as currently, or on the open market.

If you decide to live with your parents for a limited time to save some money to buy again, then no more mates rates. You need to build up savings as fast as you can to get moving.
 
Are you tax compliant for your rental income?

I'm not too sure why you feel that you were burnt by buying your existing property as you now have the ability to sell it and walk away with €40,000.

If it was me I would make up my mind where I wanted/could afford to live and sell my existing property and buy a different one at the same time. This way you will be exposed to the property market and do not run the risk of an increase if you sell existing place and move in with your parents.
 
As the others have said decide where you want to be and work towards that.

Also consider the place might be somewhere you retire to.