Hi askaboutmoney. Long-time lurker, first-time poster looking for some advice.
I have a tracker mortgage worth about 215 on a 3-bed semi in West Dublin, which we purchased in 2004. An estate agent just valued it at roughly E165-170, which is about E30 less than the asking prices of similar houses in the area. We have two kids.
We saw a nice 4-bed house in a good location for E260 (asking price). If we moved there, we'd happily live there forever! So, a bit of a dream house.
We have 80K in the bank (inheritance).
I'm really not sure what to do here. That E80K gives us some options. As I see it we could:
1. Sell the house, pay off the negative equity (E50K if we get E165K), use the remaining E30K to cover the deposit for the new house and take out a mortgage for roughly E230K. However, that mortgage wouldn't be a tracker and we could stand to lose our TRS. It could cost us an extra E400 per month and we'd have no savings left.
2. Sell the house, pay off the negative equity... then rent until houses like the one we like drop significantly in price. We'd have the E30K in the bank for when we feel the time is right. We'd want to rent in an area, near the kids' school, where 3-bed houses are about E200 pm more expensive than our current mortgage (which will change with ECB hikes anyway). This might be the best option, but we'd like to avoid moving house twice (into the rental and then into the eventual purchased home) if possible.
3. Rent out our current home and take out a mortgage on the new one (reluctant landlords!)... I don't like this idea at all.
4. Stay put... possibly for decades
None of these are attractive options. Are there any other options I haven't considered?
Thanks.
I have a tracker mortgage worth about 215 on a 3-bed semi in West Dublin, which we purchased in 2004. An estate agent just valued it at roughly E165-170, which is about E30 less than the asking prices of similar houses in the area. We have two kids.
We saw a nice 4-bed house in a good location for E260 (asking price). If we moved there, we'd happily live there forever! So, a bit of a dream house.
We have 80K in the bank (inheritance).
I'm really not sure what to do here. That E80K gives us some options. As I see it we could:
1. Sell the house, pay off the negative equity (E50K if we get E165K), use the remaining E30K to cover the deposit for the new house and take out a mortgage for roughly E230K. However, that mortgage wouldn't be a tracker and we could stand to lose our TRS. It could cost us an extra E400 per month and we'd have no savings left.
2. Sell the house, pay off the negative equity... then rent until houses like the one we like drop significantly in price. We'd have the E30K in the bank for when we feel the time is right. We'd want to rent in an area, near the kids' school, where 3-bed houses are about E200 pm more expensive than our current mortgage (which will change with ECB hikes anyway). This might be the best option, but we'd like to avoid moving house twice (into the rental and then into the eventual purchased home) if possible.
3. Rent out our current home and take out a mortgage on the new one (reluctant landlords!)... I don't like this idea at all.
4. Stay put... possibly for decades
None of these are attractive options. Are there any other options I haven't considered?
Thanks.