liteweight
Registered User
- Messages
- 1,678
Never thought we'd hear you stay that kind of thing liteweight
Well, I usually have a tendency to keep my breath to cool my porridge!! Damn, cat's out of the bag now!!
Never thought we'd hear you stay that kind of thing liteweight
Ok, fair enough I was somewhat contradicting myself there, but I meant a trade-up to a 2-bed closer the city centre which would hold its' value a bit more should the market wobble.I was going on what you said earlier:
Far from it, although I can see how it might look!! This is something I really want to investigate purely to see if I can make things work a little better. Yes it's great to have a property. Yes it's great to see its' value rise dramatically. But what if there was a way to make this increased equity work harder for me. It'd be a shame to see it sink away in a deflating property market (should it happen of course ).Kid in a candy store?
This is pretty much the situation as I see it too. I'm really trying to see if I can be proactive rather than reactive to prevent this opportunity disappearing in the future.He's a STB so stamp duty will always be an issue unless he buys new. This cost will be there when he decides to buy again, whether he takes the 100K and runs or not. His mortgage is over a 40 year term, so when releasing 50K equity over such a long term, interest becomes punitive. However, also on his wish list is to reduce this term. As I see it he has an opportunity to trade up now, reduce his mortgage term, buy a PPR for the next 10 years and possibly ride out any storms in the market. He may not have a full 50K left in his pocket but his term will be reduced thereby saving in interet and his car loan will be paid, giving him more disposable income. Am I missing something???
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...?
Wow, glad to hear that!! It certainly worked out well for you. Hope it continues to do so.not exactly, I have 3 kids and my husband is French so we'd always planned to live in France at some stage. with our house increasing in value by the day we decided to release the equity to buy the house in France, rent out the Dublin house as we moved over (just in case) and have now decided to sell the Dub house 2 years later. It's worked out very well as the value continued to increase over those 2 years, but the rent we got paid both mortgages. But I got antsy and wanted the money in the bank. As soon as it is (any day now ) we'll be living rent/mortgage free with a healthy lump sum in the bank - and a great lifestyle to boot!
but, your situation is different, you could certainly sell up, bank the 100K and rent, then travel, then rent some more. but it may be very difficult to buy back in again. if you wanted to buy/live abroad however, you could do so easily. but not everyone wants that.
I think you'd have to be prepared for the "worst case scenario". You sell, bank 100K (nothing bad about that), live it up for a good few years, invest badly and lose it all, you end up back where you started. Renting. No chance of buying. At least not for a while, but you're still young, still have great employment opportunities....
then there's the "best" case scenario:...................
Wow, glad to hear that!! It certainly worked out well for you. Hope it continues to do so.
As for me, I know what you're saying about 'worst case scenario' but I don't think it will ever get that bad. The reason is this. If I was to sell altogether and bank the €100k, the interest each year (appx €4k - €5k on a regular deposit a/c at the least) would almost cover what I plan to pay in rent. If rents rise, that will be because of mortgage interest rate rises which in turn would increase savings interest rates, so no danger there.
Therefore I wouldn't have to 'dip into' my lump sum (unless of course I decided to travel). I could simply use my monthly salary, which is now free of all bills/loans, to fund any new lifestyle changes I acquire. Also, I could save a lot more of my salary if I wanted to, so who knows in 2 years time I may even have €130k in the bank.
I don't know, maybe I'm being too simplistic about it all but I really can't see any real danger in that situation I've just described. Like I said, maybe I'm not looking at it objectively enough. That's what you guys are for (and thanks for it too!)
Well, true. But I'm not planning on doing any risky investment. I'm just planning on taking out the money so the property market can't dictate whether I get to keep it or not.If you do not have plans on how/where to invest the property, I feel you are still better off. My reasoning is, any investment is gambling barring the standard govt ones where you wouldnt get a big profit. A money just lying around will loose its value.
Is it though? This is what I'm trying to decide. I'm young and single, I don't think I need a home... just somewhere to live. I hear what you're saying, when I need a home I may not be able to get one. And therein lies to $64,000 question.Circumstances will change in everyones life, when I was a kid i dint need a house, but now I do , I feel when I have kids, I'll need it again too... if it was a car or some other luxuary I would have completely agreed. Home is a necessity...
I don't mean to sound bad when I say this, but I'm not worried about 'everyone' being affected. I'm concerned about what's the best option for me right now....If property bubble bursts everyone will be affected its not just you...
Sure I agree. I was just pointing out that any money I spend on rent would be offset by interest so the lump sum would theorertically remain untouched.I understand your outlook however if you do sell i would not 'live' off your deposit interest. You need to invest that lump sum and even if you just buy the ten top shares and look on the medium you'll (all things being equal) be fine.
Oh god, why does that word always make me break into a cold sweat. Probably because I haven't started one yetIf you do sell and do find yourself with more disposable income you really should max your pension aswell.
A property crash would certainly erode it quicker.Even if the lump sum remains untouched, it will be eroded by inflation i.e. 100K today will not have the same buying power in 2 or 3 years.
the interest each year (appx €4k - €5k on a regular deposit a/c at the least) would almost cover what I plan to pay in rent.
Don't forget DIRT at 20% on any interest income.
How so? Was it largely based in the stock market? This is what I'd be afraid of. Pumping money into a fund that may not be worth much in the future, kinda like all those endowment mortgages 20/30 years ago. Or is a pension pretty much a solid investment?...We started our pension when I was about your age and it fell through the floor!...
Oh yeah, I forgot about that! Bloody taxes everywhere you look :mad:Don't forget DIRT at 20% on any interest income.
Oh yeah, I forgot about that! Bloody taxes everywhere you look :mad:
It'd be a shame to see it sink away in a deflating property market (should it happen of course ).
You should read this thread before making a decision:
http://www.askaboutmoney.com/showthread.php?t=31710
How so? Was it largely based in the stock market? This is what I'd be afraid of. Pumping money into a fund that may not be worth much in the future, kinda like all those endowment mortgages 20/30 years ago. Or is a pension pretty much a solid investment? :mad: