To buy or sell or release equity

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elainem

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My house didn't sell at auction in April, small, Georgian house in Donnybrook. Worth E2 million then. Now another auuctoineer (brother of friend of family) says he has two buyers for it, one with an offer of E1.8 million, the other slightly lower. This is inherited property on which I have no mortgage. Unsure whether to just sell. I hate being a landlord, find it very stressful, but don't want to be stupid either. I have a mortgage on a tax break property of E115,000. No other mortgage currently. Other property worth about E1.4 million. Very low income from Georgian property which I now have an offer on - rental income E2500 per month, but upkeep expenses very large, as it is such an old property. I work as a nurse, but on temporary yearly contract, salary E43,000 per year, but large childcare expenses currently. My question is should I hang on to the property or should I sell. I need to do a course to become a specialist nurse, which is very expensive E8,000 per year, but which would give me an extra E14,000 on my basic salary. I was thinking of releasing some equity to fund this course, and decrease my hours by one day per week, and also to cover some maintenance and repair costs on the properties over two years, starting next September. I was looking at releasing equity of E70,000, and was thinking of taking the mortgage down very soon in case interest rates go up again. Any advice really appreciated in relation to my rather convoluted story.
 
Property in D4 and surrounds seem to have dropped around 10% from last years high. Gut feeling is take the 1.8M which seems about right, it might be less next year!
 
by the sounds of it you would generate more income from a deposit account - (without considering the capital appreciation potential).
Even in a deposit acc (e.g. rabo) this sum would be generating you around 50k per year.

Can you clarify are you living in a second property valued at 1.4m with a mortgage of 115k or is the 1.4m a 3rd property?

either way by your own admittance you don't like being a landlord so just sell - 1.8m vs 2m is not worth the stress - 1.8 still is some pension!

for these sums you should consult an independant financial advisor.

Paddy
 
Hi! everyone, thanks for the advice. I think the best option would be to sell - just hope the offers are genuine as I don't want the hassle of being messed around- I don't know which is more stressful - the selling process or being a landlord.

Paddyodoors - the mortgage of E115 is on a tax break property in the north west.. In addition to this I own a mews house in Donnybrook - which was valued at E1million last year, but if looking at a 10 or 15% would now be valued at E800,000 (it' a two bed mews house with parking). I also own a house in Waterford worth about E450,000 and a house in the midlands worth about E300,000. It is all inherited property/wealth.
 
elainem said:
Hi! everyone, thanks for the advice. I think the best option would be to sell - just hope the offers are genuine as I don't want the hassle of being messed around- I don't know which is more stressful - the selling process or being a landlord.

Paddyodoors - the mortgage of E115 is on a tax break property in the north west.. In addition to this I own a mews house in Donnybrook - which was valued at E1million last year, but if looking at a 10 or 15% would now be valued at E800,000 (it' a two bed mews house with parking). I also own a house in Waterford worth about E450,000 and a house in the midlands worth about E300,000. It is all inherited property/wealth.
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If I was in your shoes I'd sell the whole lot!
Selling all your properties would generate over €2,000,000. You would be able to live off the interest and not worry about being a landlord
 
I think I would sell up and buy a nice house by the seaside and take it easy. You could live off the interest if you wanted to as long as you didn't go nuts buying "things"
 
Thomas22 said:
If I was in your shoes I'd sell the whole lot!
Selling all your properties would generate over €2,000,000. You would be able to live off the interest and not worry about being a landlord
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& not worry about getting an extra €14k a year with huge childcare costs!
 
Hi Elaine,Correct me if I'm wrong but I think you might have posted about this earlier this year. The question of what to do is obviously still bothering you and I'd echo what the other posters have said about selling the Georgian house if you can get any kind of a reasonable offer for it. You are working as a nurse, you've children to worry about and childcare arrangements to keep in place - you just have enough on your plate without being a reluctant landlord too and worrying about the upkeep of that house. Really you are in a good position with your properties (regardless of all the debate about the current state of the market) but it is causing you stress. If you think getting rid of the Georgian house would ease your worries and more importantly allow you to have a tidy sum of money to do your course and cover living expenses, then you should definitely do it. I don't know if you inherited from a close family member or not but don't let any sentiment hold you back from selling it. It's not worth the stress if you ask me!
 
elainem, you've posted several times over the last year about this situation and I agree with the other posters above who suggest that you should sell the Donnybrook property. You're already heavily exposed to the Irish property market and there is no logical reason for you to hold onto a supposed 'investment', which causes nothing but headaches and provides a very limited return.

Speak to an independent financial advisor and discuss what to do with the proceeds from the sale. You have too much wealth (over €3M based on the above figures), not to have it managed properly. Your investments are currently not performing well and are totally undiversified.

There shouldn't be any real headaches involved in a financial situation such as your's!
 
Hi! everyone, thanks again for your replies. Paddyodoors, I am separated (ex partner), and two small chidren - so loads of baggage!!!!

Really appreciated the advice. However, looks like the guy with the highest offer is looking at another house in Donnybrook. If there isn't a signing of contracts within next few weeks, should I keep the house on the market. It wasn't officially on the market, but my relatives, one of whom is an auctioneer, are saying that the market could be worse next year, and to put the house officially back on the market (board outside etc.) if both of the current offers fall through - any thoughts? Again, and comments much appreciated.
 
Elaine

bite the bullet and sell it - tell the potential purchaes you will make a quick sale for the 1.8m - and push to close asap - otherwise indicate you will put on market officially.

Then the only baggage for you family is the suitcases full of cash!!

Paddy
 
paddyodoors said:
Elaine

bite the bullet and sell it - tell the potential purchaes you will make a quick sale for the 1.8m - and push to close asap - otherwise indicate you will put on market officially.

Then the only baggage for you family is the suitcases full of cash!!

what to do with the cash? i know someone with a similar quandry
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Hi! everyone, thanks again for your advice. It looks like the offer of 1.8 mill is firm. Deposit to be paid by end of week. So definitely will sell. Thanks again.
 
elainem said:
Hi! everyone, thanks again for your advice. It looks like the offer of 1.8 mill is firm. Deposit to be paid by end of week. So definitely will sell. Thanks again.
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congrats elaine, interesting thread,
make sure you have a nice holiday before you start that course:)
 
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