To sell or not to sell?

Howitzer said:
Kid in a candy store?
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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 ).
 
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.
 
ButtermilkJa said:
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...?
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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!)
 
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.

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.

Good that you are already on the ladder so why do u want to get off? If property bubble bursts everyone will be affected its not just you correct?

Your idea looks great, but if it was a car or some other luxuary I would have completely agreed. Home is a necessity [thats what I'd like to think], not sure money can equate it. ...my 2c
 

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. If you do sell and do find yourself with more disposable income you really should max your pension aswell.
 
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.

cnu said:
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...
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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.

cnu said:
...If property bubble bursts everyone will be affected its not just you...
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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.

I've been argueing back since the first post against everyone who tries to tell me it's a bad idea but that's just so I'm sure all areas of discussion are covered. I'm starting to think now that with so much opposition, maybe it's not quite the masterplan I thought...
 
phoenix_n said:
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.
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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.

phoenix_n said:
If you do sell and do find yourself with more disposable income you really should max your pension aswell.
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Oh god, why does that word always make me break into a cold sweat. Probably because I haven't started one yet
 
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.

As to pension, at 27 it's very difficult to see yourself ever needing one but..... We started our pension when I was about your age and it fell through the floor! Luckily we have another one and a small third. The hard fact of life is that we all get old and you should take this into consideration in any financial plan. However, I would not recommend sinking money into a pension until you had PPR sorted out.
 
liteweight said:
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.
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A property crash would certainly erode it quicker.
 
liteweight said:
...We started our pension when I was about your age and it fell through the floor!...
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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?

Sherman said:
Don't forget DIRT at 20% on any interest income.
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Oh yeah, I forgot about that! Bloody taxes everywhere you look :mad:
 
I think, patience will pay.

If this is what people in foxrock, ballsbridge, or other hotshot areas thought to cash in then, they probably wouldnt be able to afford in the same place. With time there will be developments around the property. As it becomes older it becomes golder . You'll get new bus routes, luas, express ways, schools, business parks, such other factors that will drive up the house price too. Surely the present 1 bed, studio or 2 bed [in distant places] home owners would want to own the apartment that you live in, hence your present apartment will always be in demand for them ...atleast

If there is a slide-down, there would be an slide-up again [obviously the market will not be stable always], and vice versa holds good too. When there is up, you cash in and know a better place to invest which is a definate growth, I cant see why you should not.

If there is no concrete plan other than getting some meagre 4 to 5 % interest, its worth to have the apartment, as it not only serves as your investment but also a shelter.

I've only realized very recently your lifestyle expands to your pocket. While you can live happily with your small savings and can live happily with 100K too, but with 100K you will always think all those things you can buy like holidays, cars and what not ...

I like the way you opened this topic to people because, I thought being young you wouldnt be open to others ideas . Its nice that you are putting things black and white.

Its nice to see others also giving their ideas.

Good luck with your decision!
 

Yes the stocks performed badly, but as some kind person pointed out to me (AAM) it was tied in to an insurance policy which was eating up quite a bit of our payments every month!! Still haven't sorted this out. Have letter, email and phone calls in pipeline to Provider but haven't heard back yet. Bear in mind however, that this was over 20 years ago and there was no transparency!! Your pension is something that should be, and these days, can be researched thoroughly.

Whathome, I'm with Conor on this, Buttermilk will either lose the will to live, top himself or become completely confused if he starts at the beginning of that thread!!
 
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