Will I ever afford to build

Hi all

Im just married and my husband and I have a mortgage for the last 5 years. We still have 175,000 to pay on this mortgage and last week we found out the house is only worth 180,000.

We have a site out the country and really want to build. Problem is we only have 3 years left on our planning.

We wont get a mortgage because we already have one and we both have personal loads adding up too 80,000. We are struggling very hard to pay off our debts and will do it no matter how long it takes.

I just wonder how long will it take for house prices to go up again? We will really need to sell the house we have and make a profit on it over the next 3 years.

I also have a debt to a family member of 65,000 and we have a contract signed that this has to be paid back by late 2012. I should have considered this more as I thought I would sell my house by then and make enough equity to clear that debt.

Hi fedup,

Many people dreams have been put on hold during the current financial climate. Don't think you're alone - you're not. For some associated with the building industry the future's so bleak they are considering selling up for what little they can get and emigrating.

You at least seem to have an income and you're addressing managing your debt. Many of us are seeing our life's savings going keeping us afloat in the hope the economy will recover enough to generate paying work again.

My best advice to you is - don't let unfulfilled dreams blind you to what you already have - a working relationship, family, youth, good health, a fine education and the ability to communicate.

Stay focussed on paying off your debts, improving your financial position and looking out for bargains when NAMA or some oher agency or company comes to sell off house sites.

Its not much to go on but I hope this helps.

ONQ.

You can always reapply for planning on the site in two to three years time. If you got planning first time round you should be ok again in a few years. It might bide you some time...

fedup said:

I just wonder how long will it take for house prices to go up again? We will really need to sell the house we have and make a profit on it over the next 3 years.

Click to expand...

No one knows when house prices will go up again, but if you consider house prices were based on having a property bubble, it is quite likely they won't be going back up for quite a long time. Why? Because we'd need to create another property bubble (which is a very bad idea) for that to happen.

If you throw unemployment, emigration, NAMA, and bad debts into the mix, things look even worse. And if you consider how poorly built most new houses/apartments are, it's possible new builds could become a thing to be avoided in 10 years when they start falling apart!

So if I were you I wouldn't bet on your house having increased in value within 3 years.

Sorry to sound so negative, but I think I'm being realistic.