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Guest107
Guest
NOBODY EVER lost money taking a profit !
No one could see the very sharp and fast rise coming last Spring..but it did! As to your lump sum:- 350K - 245k-3k(EA)-Adverising-Legal Fees. The amount you're left with can be put on deposit or invested. You should look at other threads to see where you can invest a lump sum. The picture might not be as rosy as you think. Bear in mind that inflation is running at about 4.2% so whatever you decide to do, you'll only be keeping abreast with inflation for the bulk of it.
Why wouldn't you use these increases to pay off some of the mortgage and bring down either the term or the repayments?
With that amount 400, I imagine you're getting the small room!! You're also helping to buy an apartment for your friend, while you are dependent on him or someone else for a roof over your head.
Ok here's another scenario. You sell up and bank the money. Lets say it's earning a bit above inflation. The room you now inhabit doesn't go anywhere near to holding all the stuff you've accumulated while you were an owner. Neverthless you shoehorn yourself into the space every night, happy in the knowledge that you're earning interest. Your friend has some odd habits, he picks his nose and scratches his a$$ while only wearing boxers and then proceeds to drink your milk from the bottle in the mornings. You thought you'd enjoy the carefree, single life but his idea of it and yours are not the same. He brings people home nearly every night of the week, and you're used to having a quiet time whenever you want it! You take to your room every so often when there's company and the friend begins to think you're antisocial. You give that up because you can't sleep or hear the telly anyway, if you can't beat them, join them!!
Your friend falls in luuuvvv...Thank God for that, things quieten down a bit. It's ok for a while but then she starts to turn up every night and you can hear them tittering and giggling all night long. You feel like an outcast in your own home. Things go from bad to worse. You're the one living in the shoe box and they have the ensuite so why are there knickers and tights drying in the communal bathroom?? You have to wade through a mountain of make-up, cotton balls and perfume to find your razor in the morning!!
You complain to your friend..you like Mary but....He stares icily. Are you making derogatory comments about the love of his life?...or at least the woman who gives him regular sex and occasionally strokes his ego? Nevertheless, he says he'll have a word. Next time you meet her, you're greeted with a stony silence....you begin to feel like a stranger in your own home. But it's not your home is it? Its his, soon to be theirs. You walk in on her in the bathroom one night while she's giving herself a bikini line wax. She's mortified....you're mortified, the friend is not impressed......it's a territorial thing you know!
You think you better move out and leave them to it. Friend not to happy as he's now paying mortgage on his own. Girlfriend is ecstatic. You look at Daft till you're blue in the face but nowhere can you find an apartment to rent ALONE for 940 a month!!
Just food for thought!
NOBODY EVER lost money taking a profit !
I'm a bit sketchy about shares. I always thought they were a risky bet. Although my hands are up, I know nothing about the stock market??Its hard to advise but you should also take into account that if you did sell you could invest your gains in shares (5-7 years miminum term) etc as you really are too young to be putting that sum on deposit.
Eh, no pension I'm afraid to say. It was just something that never seemed important to me to be honestLowering your monthly repayments may make it easier for you to increase (and if you dont have one please start) your pension contributions
Yes I agree. Whoever let me take a 40-year mortgage should be fired!! But yes, I'm either going to trade-up and reduce to a 30 year term, or sell-up and start renting for a while and guage the market.and as regards sharing; rent apparently is falling (stock is increasing) so you wont necessarily have to share if you dont want to. But regardless you should do something about your 40 year mortgage.
buttermilkja (i picture Heidi saying that!)... if you get to travel with Peter around Austria (or was it Switzerland?)
Did you sell for the same reason, just to get your hands on the accumilated profit, or for a different reason? How did it work out for you, are you renting now or planning on getting straight back into the market? Any advice...?I would take the chance, in fact I did and will soon be in possession of my nice lump sum.
Yes it will probably be worth a few grand more... but I can't see people bidding higher against each other. It's just a normal 2-bed apt in a suburb so no special interest I reckon.Just one thought on your figures: You said it was "valued" at xxx euro, by the time you go to sell it will probably be valued at more,and then the bids may start to come in higher again (we got 50K higher than the already ridiculously high valuation). Best of luck...
Well, I'm already a STB now whatever happens so yes Stamp Duty will be an issue (unless I buy new). I couldn't justify spending €500k on an apt though. It would have to be a house and hopefully that would be with a significant other!! therefore splitting the cost. But I know what you mean, even on a house of €500k it's still a hefty sum you need up front.Dont forget that buying back in WILL mean stamp duty in many cases as you are an STB not an FTB . Be very sure that your next purchase will be in a better area than where you are now with a shorter commute and better lifestyle or its not worth the hassle.
You would be better off keeping most of that profit in a war chest. Assume that the 100% mortgage will go with the fairies by end 2007 and that yoru war chest will have to cover
1. 10% deposit in cash from a verifiable source
2. Stamp duty is 5% or 6% up front to B Cowan .
thats 16% of the purchase price of your next gaff in cash. If its a €500k apartment in Dublin you will need to have €150k or so to hand by my reckoning.
You see, I'm now thinking that if I sell, I could land a windfall and then use half of it to get straight back into the market. That's €50k for a deposit (which I think is plenty to get another 2 bed apartment) and €50k for me! Not bad. If I go the route of releasing equity that's just basically getting a loan for my own money! No-way am I doing that.
This doesn't make sense. If you want an extra €50k for yourself, equity release is more efficient that selling and buying another 2 bed apartment. You still end up borrowing an extra 50k either way.
Option 1 - Equity release:
new mortgage 300k, 50k for yourself
Option 2 - Sell and buy again for same value:
new mortgage 300k, 50k for yourself
But with option 2 you also have - selling costs, buying costs, stamp duty and market risk. You still end up owing the same amount of money, in fact probably more with the additional expenses! I would go with equity release if you want to stay in the property market or just sell if you want the 100k and exit the property market.
Unless the OP can buy a better property in a better location, then it may be a good move.
So he would be trading up - he would have to take on a bigger mortgage in order to keep his 50k.
Sorry, it probably doesn't makes sense the way I explained it actually. I didn't think about it that way. But what I should have said is that I want to move from where I am. I don't really want to stay in [owning] a 2-bed apt in suburbia. I'd rather own a 3-bed semi that would always be in demand no matter what happened to the market. Or bank my profit and rent a 2-bed apt in suburbia. There's too many apartments & townhouses springing up everywhere and I don't want to be left owning one of these overpriced dolls houses when interest rates go sky high and the market freezes.This doesn't make sense. You still end up owing the same amount of money...
Yes, this is what I would aim for if I traded-up.Unless the OP can buy a better property in a better location, then it may be a good move.
There's too many apartments & townhouses springing up everywhere and I don't want to be left owning one of these overpriced dolls houses when interest rates go sky high and the market freezes.
I don't really want to stay in [owning] a 2-bed apt in suburbia. I'd rather own a 3-bed semi that would always be in demand no matter what happened to the market.
That's €50k for a deposit (which I think is plenty to get another 2 bed apartment) and €50k for me.
This doesn't make sense. If you want an extra €50k for yourself, equity release is more efficient than selling and buying another 2 bed apartment. You still end up borrowing an extra 50k either way.
Option 1 - Equity release:
new mortgage 300k, 50k for yourself
Option 2 - Sell and buy again for same value:
new mortgage 300k, 50k for yourself
But with option 2 you also have - selling costs, buying costs, stamp duty and market risk. You still end up owing the same amount of money, in fact probably more with the additional expenses! I would go with equity release if you want to stay in the property market or just sell if you want the 100k and exit the property market.
ride out any storms in the market
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