Selling home to buy another -

D

deco87

Registered User
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I was just seeking some views on this circumstances.... Re selling a home and perhaps, part buying another.... Circumstance as follows......
Woman got divorced, as a consequence the family home with her ex wife was split 50/50.

An apartment mortgage free was purchased.

Roll on a few years, she decided to buy a bungalow out the country...

However this has ended up as a bit of a financial disaster. Now up to 70 k on debt... To buy this bungalow..... and throwing good money after bad.. Will still cost more as time goes on.....

Her adult child and his partner and a young baby are now all living in this bungalow. Minimum wage job.....

If she was to sell this bungalow... And pay off the debt... And use the balance to assist the her adult child to get a mortgage... Thereby housing the adult child his partner and baby and herself living there, can the house be bought in like a 50/50 ownership....

Pitfalls, and any opinions much appreciated as she is concerned about her own independent financial future as she is just short of 60.

Thanks

Deco
 
Confusing post and lacking some essential details necessary to give useful feedback...

How much is the property worth/likely to sell for?
What mortgage amount and term is outstanding on it?
Is the €70K debt separate from the mortgage?
What are her earnings?
What are the earnings of the couple?
What is the rationale for buying a different place with all 4 people still living together? More space or something?
If she's considering gifting half a property to her son and partner then there could be Capital Acquisitions Tax implications but they may be within exemption limits (for the son at least).
 
1. 200 k minimum likely more.
2. No mortgage
3 two loans.... Post office and credit union over 5 years or so.
4.Earning 475 after tax weekly
5. Adult child 40 k
6. Adult child partner 500 per week after tax
7.rationale... Would be moving to facilitate adult child to get mortgage (300k) the couple income likely to increase with partner starting new job... Start 35 k..... To allow the 70 k to be paid off.

She ( mother) in a difficult financial situation... Only a thought at this stage, pro/cons of course if this was the road they hoped to go down.... Thank you for your reply
 
So the idea is to sell the current property for €200K and buy another place for less than that (as selling and buying costs will have to be paid also)?
This doesn't sound like a great idea to me given the info posted so far.
It probably really needs a Money Makeover to make sense of it and to offer useful feedback.

Key Post - Basic information required for the "Money Makeover" forum

It can be difficult, but please try to use a meaningful title in your thread For example "27 year old with mortgage arrears". You will get a much better and much more coherent answer if you give as much information as possible in your first post. For example, if you give your mortgage rate, it...
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Hi deco

Still very hard to follow which will limit the responses you will get as most people won't try to decipher it.

I suggest setting out the figures in tabular form. And leaving out extraneous information. Not sure that her divorce settlement is relevant?
 
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