Headachecity
Registered User
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So you could be losing €20K+ excluding transaction costs on the original purchase, sale of this property and purchase of the new one? Sounds like a significant hit. If the properties that you are looking at are not new builds then you may also be liable for stamp duty on the purchase.Well to be brutally honest, the house is probably going to go on the market for €390k and with the way the market is we are lucky if we can get that or maybe I am being too pessimistic.
FTB and non FTBs are exempt from SD on new builds under 125sqm.If you sell now at a loss you will find it very hard to buy another place as you wont be exept for stamp duty
Well based on the information posted so far you are almost certainly going to lose money so I guess that's that?Must show hubbie this so!. There is no way in hell will I sell this house if we are going to loose money.
Please could you elaborate on this? Surely if you buy for €X and sell for €X-Y, you are losing €Y?You will not "lose" money from:
A lower selling price for your house, which is reflective of the general decline in market prices to date (say 15%-20%).
Yeah - I don't get Camry's comments either. The original poster paid €380K (€320K mortgage and €60K of their own cash) and then spent a further €30K which is a total of €410K. They have paid €90K of their own cash and owe €320K to the lender (well - less any equity purchased in the meantime). They also paid interest on the loan to date. They estimate that the property might sell for €390K which would mean a loss of €20K. This is apart from any other "losses" due to trading costs etc.Please could you elaborate on this? Surely if you buy for €X and sell for €X-Y, you are losing €Y?
Original purchase:I can't see how any money has been "lost" here.
Let's just get one thing clear. These are ways in which you would "lose money" from trading on:
1. transaction costs (legal, survey, etc.)
2. taxes and duties (stamp duty)
3. poor selection (i.e. you overpaid for your specific house at the time, or you are going to overpay on the new house)
4. You bought too much house and need to trade back down (i.e. you only wanted or needed a smaller house)
The fact that they are buying another property is a bit a red herring. They are independent events.....and then they buy a house which is now cheaper because prices have fallen.
They are selling up to buy on. Show me where my simple calculations are wrong.
FTB and non FTBs are exempt from SD on new builds under 125sqm.
No they're not - they're €20K down as I outlined.Then explain to me how I get my result. Excluding transaction costs they are in exactly the same financial position whether they:
b) trade on
Yes - I should have pointed that out. Apologies!And there are further exemptions for houses over that size (depending on certain criteria)
Sorry - your logic makes no sense to me. I have dealt in hard figures. You are dealing in seemingly nebulous concepts and inappropriate analogies (e.g. comparing houses to cars).Refer to my posts above. I address this fallacy in full.
Yes - I should have pointed that out. Apologies!
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