Bad time to sell good time to buy

B

BICIP

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So we've outgrown our lovely little house in d12 and are looking at moving....now I know prices are rock bottom and we are being fleeced on the sale...but on flip side house we buy will be great value...Question is - are we mad to be selling at the bottom of the market? House is on a tracker and rent shortfall would be around 100 eur per month. Any thoughts?
 
no your not mad, good time to upsize.. less of a gap between the house you are selling and the price of the new one
 
Depending on when you got financed, probably a massive difference in the cost of money though? Have been checking this out myself recently and the best buys for mortgages are seriously more expensive than the ecb+0.59% deal I have. I suggest you put this through Karl Jeacle's mortgage calculator and see exactly what you would be giving up (ie. the difference in the total amount of interest that will be paid on the new deal as opposed to the current one) - and factor that into your decision.
 
Thing is though, if you've outgrown your home then you need to move, and there's no way of doing that without losing your tracker.
 
We don't allow speculation about house prices on askaboutmoney.

There are two separate questions you have to answer.

Should I sell?


Should I buy?


You can't buy until you have sold your house and got the money for it. So that is the main question for you to ask.

The fact that you have a low cost tracker is a huge disincentive to sell or a huge incentive to postpone the decision as long as possible.

Brendan
 
I wasn't speculating on house prices!

There is the option of holding onto existing house as a rental property until it regains some value. That mortgage calculator spits out some sobering figures though
 
You should consider the relativities of the cost of losing your tracker versus the cost of renting at a shortfall.

It may be cheaper to rent your house at a loss and rent a bigger house for your family than to sell and have to buy with a more punative interest rate.
 
Stop looking at your house as a financial investment. Look at it as your home. If you need to move, then move. It's no comfort having a lovely low-price tracker if you can't fit your belongings into your house and your kids are six-to-a-room. If you can afford to move and it suits your needs, then those should be the two defining factors when making your decision. If you hold onto it in the hope the price rises (when you don't need to hold onto it, and you've already bought another house) then you're getting into house price speculation. Amateur speculators can get badly burnt, as anybody who bought an investment property during the boom will now tell you.
 
BICIP said:
Any thoughts?
Click to expand...
I was recently faced with the same decision. I sold and am renting in the area I wish to buy, while saving and looking out for a right house. I had no interest in owning two houses or being a landlord. I didn't let my very low Tracker act as financial handcuffs (admittedly my mortgage wasn't huge so it didn't pain me unduly).
 
Perhaphs the OP has a big family or is planning on same. However, I'd be more inclined to stay put if at all possible if (as the OP has already checked out - the difference in actual interest that will have to be repaid is 'sobering').

Someone mentioned the idea of an extension - and that might be a good option. Attic conversion would be another. Bear in mind that its also a great time to do either of those - as if you can't get satisfaction from small builders now, you never will.
 
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