Still unable to sell house - should I take it off the market for another year

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Could be and you imagine. Seems speculative. At the moment the property is costing money, has no rental income and losing capital value. So while it has appreciated considerably in the last 6yrs, that trend has reveresed this year, and the OP circumstances have changed and is trying to make lifestyle changes. What are the OP long term intentions here, considering her other threads? Be a landlord, speculate on property? Downsize, and concentrate on the kids?
 
what are the current offers on the house? if you can't stand the hassle of being a landlord then sell it, simple as, and just accept the highest offer. problem solved.
 
True, as you "imagined", it "could" be worth more. But to balance that out, I'm imagining that it could also be worth less. And given that we are now at the tail end of the largest property boom that this country has ever had, would you not agree that the highest premium this type of property will reach is to be found at the moment (and that's even if I imagine that it's price hasn't dropped in the last 12 months)?
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Yes I am being speculative, because that is the nature of the beast. So far the posts seem to indicate that the market will only go down and get out now while you can. At least I'm offering an alternative because saying the market will only go down is also speculative.

what are the current offers on the house? if you can't stand the hassle of being a landlord then sell it, simple as, and just accept the highest offer. problem solved.
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Thats a nice rose tinted view, if it were that simple I doubt it would have been posted here.
 
Camry said:
I suspect you have very little exposure to, or experience in, finance. The facts, which are indisputable are as follows:
  • This is current a dead asset, sitting there.
  • It has an unknown current price in the market
  • Within the range of prices at which a sale would be coneivable at present the yield is less than cash and even more less than sovereign bonds (i.e. less than a risk free rate)
  • The yield on this property (or conceivable range) is far below long term averages
  • Relative asset prices in residential property are far above long term averages
Add on top of this the OP declaration that they don't want to be a landlord (read this to mean it is highly unlikely that they can run this as profitably as an investment as it should be to justify its price) and this screams out to be sold at the earliest possible point in order to reduce what at the moment is:
  • Unwanted risk
  • Uncompensated risk
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How is an asset that has a return in the form of rent a dead asset?
Deposit accounts and bonds are not risk free - inflation erodes the nominal returns.
The op never mentioned the profitability of the investment. Her essential reason for wanting to sell is that she doesn't want the hassle of being a landlord.
Return compensates for risk. At the moment the op has a rental stream and there is the potential for rent rises and capital appreciation over the long term.
You also said earlier
It is literally costing you more than €1,000 every week you wait. Even if you rent it at current yields you will in effect be losing money.
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Explain.
 
Assuming the property is not being rented as it is for sale.
Take 90% of the current asking price as a more likely current market value. Deposit rates on this sum c. 4%. Opportunity cost is lost interest of c €1,000 per week (after DIRT).
 
swiftee said:
Assuming the property is not being rented as it is for sale.
Take 90% of the current asking price as a more likely current market value. Deposit rates on this sum c. 4%. Opportunity cost is lost interest of c €1,000 per week (after DIRT).
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The property is being rented out if you go back and read the op so your calculations are wrong. In any event I have no doubt that Camry was referring to accounting as opposed to economic costs.
 
the OP states in the thread title that she is 'still unable' to sell house. this is not true, she is unwilling to sell the house at the price offered. these posts have been going on for 2 years. the OP is stressed about being a landlord yet won't take the simple step of agreeing a price on the house, she has mentioned previously cash flow problems etc all this will be solved by selling the house, i would be fairly certain that the price being offered now is significantly less than would have been offered 2 years ago.
there's only so much advice that can be given to someone that won't listen. it must be borne in mind there is no mortgage outstanding on the property and from previous threads maintenance costs are significant and likely to reappear.
so get rid of the house!
 
dereko1969 said:
the OP states in the thread title that she is 'still unable' to sell house. this is not true, she is unwilling to sell the house at the price offered. these posts have been going on for 2 years. the OP is stressed about being a landlord yet won't take the simple step of agreeing a price on the house, she has mentioned previously cash flow problems etc all this will be solved by selling the house, i would be fairly certain that the price being offered now is significantly less than would have been offered 2 years ago.
there's only so much advice that can be given to someone that won't listen. it must be borne in mind there is no mortgage outstanding on the property and from previous threads maintenance costs are significant and likely to reappear.
so get rid of the house!
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I would have to agree, reading the threads the seller wants the pie in sky 2006 price or close to it but the market is way below that now. They also need to spend significant money on maintenance in the short term. Sell the house, if they have €1m in the bank after the whole lot then thats still serious wedge. Consider anything more a bonus.

It looks like they were being greedy and now are paying the price.
 
Hi! everyone, thanks again for your replies. I have set a time limit of end of May for selling the house. I am now back working in Dublin following a significant promotion. I have secured places for my children in a loalish school - Stillorgan - for next Stweptember. I would like to buy a house nearer to their schools, but if this doesn't happen I will have to keep with my old period house for a couple of years. So no more renting after June, as tenant's lease is up. Also, in relation to Mr. Keane's post, I am not being greedy, I tried to sell the house in April last but couldn't. Previously I had incredibly difficult tenants who refused to leave despite being given four month's notice, and who eventually only left when their backs were against the wall. I asked them to leave to carry out maintenance in the kitchen, which everyone initially thought was dampness, but turned out to be two leaking pipes under the floor in the kitchen. I have reduced the price, but I can't afford to drop it further as I am a single mum, with two young children, and not very good health, so my assets will have to work for me for a very long time. Anyway, thanks again to you all for once more helping to give me some clarity on the situation.
 
Camry said:
A gross yield less than the cost of capital.
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The property in question is mortgage free so telling the op that the property is costing her €1000 a week is wrong just as several of your "indisputable facts" above are inaccurate as I have shown - and you are the one who suspects that I have little exposure to, or experience in, finance - roflol. When astute investing allows you to pack in the day job at 38, like I did, come back and talk to me about finance.
 
Astute investing allowed me to pack in the day job at 37, so obviously that makes me right on this issue.

:rolleyes:
 
outspann said:
Astute investing allowed me to pack in the day job at 37, so obviously that makes me right on this issue.

:rolleyes:
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The " astute investing comment" was made solely to counter Camry's assertion that I had " very little exposure to, or experience in, finance ", which is rubbish anyway, and wasn't made to support any view that I might have on this issue so get your facts right.
 
Camry said:
In the poster words:
So no more renting after June, as tenant's lease is up
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To have a sum of capital sitting around doing nothing. It is called "out of the market", whatever market that might be.

A question for you. Do you know what "cost of carry" is?
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The June date was introduced by the op after you told her the property is currently costing her €1000 a week which is wrong.
Yeah I know what cost of carry is though interestingly you have already erroneously tried to explain your €1000 a week loss claim by saying it results from
A gross yield less than the cost of capital
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Forums work best if you prove your point by weight of argument on the thread. Off thread claims aren't useful. They drag a thread off topic, diminish your credibility, and get everyones back up. Thats the nature of the forum medium in my experience. YMMV. This is an interesting topic, especially in current market conditions, it would be nice if we could all stick to the subject in hand, so that it doesn't get closed. I've very little experience in finance and personally I get a lot out of these threads, seeing how others with experience approach such situations.
 
elainem,
why, oh why, do you insist on talking about such highly personal issues on a public forum? You did the same thing a year ago or so and your still doing it! A quick search on the internet finds your house and any perspective buyer now knows your personal financial situation inside out! They'd have you over a barrel during any negotiation!
 
Simply fact. Unless rental yield is more than about 5% presently, this is costing the owner money.
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This is wrong in this case as there is no financial cost of funds as I have already pointed out. You have failed repeatedly to back up your claim that the op is losing €1000 per week by having this property.

I just try and provide the benefit of some of my training and professional experience for people at risk of getting dodgy advice from strangers on the interwebby
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Agree, the op should be very vigilant about paying heed to advice such as;
A period house in D4 with a rental stream is a dead asset.
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You are losing 52k a year holding this property.
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Bonds are risk free.
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Wow, they're all quotes from you Camry !
 
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