to move or not to move...that is the question!

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Frank2

Guest
I live in Dublin city, and am looking to move to larger home nearby but worried by the uncertainty in property market. I have no mortgage/loans (current home worth approx €290k) or less and have approx €200k savings. what would be best way of achieving aim. selling first before buying or buy first (if bank approves mortgage) before selling.....or do I just wait?
 
If you want to move I would put the house on the market, have a look around and buy something with no mortgage. I would love to be int he position of owning a house with no mortgage. Don't get yourself in debt. Buy something for max 400000 and keep the rest in savings. You will get a good house for that amount int he current market and if you are paying cash will be able to negotiate a good deal.
 
worried by the uncertainty in property market
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I don't think that you need to be too worried. You are well off, so you can handle any further drop in prices.

As a general rule, it's better for you to sell your own home first. You will then have cash and you will know how much you have to spend.

Don't be afraid to sell it cheaply for a quick sale. Any "disount" you give, you will probably get back in the purchase of the second house.

If you are worried about the uncertainty in the property market, there is nothing to stop you renting for a while.

Brendan
 
Thanks for your advice above.....I understand that by selling my own home first and renting, the benefit is I could close a sale quicker on a new home having cash in hand. My fear is that if I choose this option, I might end up in a pool with similar people and get caught between a rock and a hard place. Am I being too cautious?
 
You have two options as I see it.

1) Sell your house first and then buy the new house
The risk here is that house prices may take off before you buy your new house. That seems low risk and as you have cash , you can move quickly.

There is the small problem of renting in the period between selling and buying. But that should not be a huge problem. It's a timing issue.

2) Buy first and then sell your old house
You might be unable to sell your old house and you could be stuck with it for a long time or have to take an awful lot less than you are expecting.

There is also the hassle and cost of borrowing while you are waiting for the proceeds of the sale.

I might end up in a pool with similar people and get caught between a rock and a hard place
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The only pool you will be in is the pool of cash buyers which is very small in proportion to the number of houses for sale.
 
Frank2 said:
Thanks for your advice above.....I understand that by selling my own home first and renting, the benefit is I could close a sale quicker on a new home having cash in hand. My fear is that if I choose this option, I might end up in a pool with similar people and get caught between a rock and a hard place. Am I being too cautious?
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I don't understand wat you mean by this. What pool? What rock/hard place? It is considerably more fraught to manage a sale and a purchase at the same time than it is to do them separately. Also coming as a cash-in-hand buyer and not being in a chain (i.e. dependent on the sale of your house to release funds) puts you in a better bargaining position. The disadvantage obviously is you have to move twice, once to the rental and once to your new property.
 
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