What to do? Sell?

O

Oops

Guest
I'm looking for a bit of advice please...

Myself and my partner moved into our AF home at the beginning of this year (so we are in it about 7 months now). We love the house etc but it is a fair bit away from where I grew up and now since we have just recently had a baby I'm finding it increasingly difficult living so far away from my family and friends. I have it in my head now that I really need to move closer to where I grew up but I don’t know how visible that is. Not sure if we could sell? Particularly as the area we are in has loads of houses for sale that aren't moving! What about clawback, etc also how hard is it to get another mortgage? Was even thinking if we could build a house at the side of my parents. But I don't think the bank would loan us the money now! We really like the house but now with a baby I can't see us bringing her up here. How ideas change once you have a baby!

Has anyone any advice or ideas PLEASE?
 
Re: What to do??Sell?

lots of questions here. Firstly can you actually afford to sell? If there are alot of properties for sale in your estate you will have to put yours on the market for less than the rest. Does that then leave you with negative equity taking into account whatever the clawback may stand at now? Also considering you bought affordable housing initially, can you afford to buy near your family now that you also have the added expense of the baby?
 
Re: What to do??Sell?

Oops,

I'd agree with what deedee said, you need to assess financially will you come out with anything if you sell your house now. I'm sure you have put a good bit of money in to your house with flooring, furnishing, etc. If its possible to build a house on parents land then work out how much that would cost, and then approach a bank/mortgage broker.
Also given that you are only in your new neighbourhood a short while maybe you should give it a bit longer. Try to get involved in local community activities, clubs, etc and maybe you'll feel a bit more involved.

Hope things work out for you!
Eims
 
Re: What to do??Sell?

Hi there, I agree with the above poster in that you will have put flooring etc down and will therefore loose out on this investment if you decide to sell. However, with Affordable Housing, you cannot go into negative equity, the worst case scenario is that you walk away with no equity. The council have told me that they will accept the sale price whatever this may be. This has been covered on the forum already. So in theory you could sell now for whatever price it takes to sell, therefore you have an advantage over people who bought on the open market, the council will take the loss.
I bought under affordable housing four years ago and I was so glad to own my own home that i didn't fully realise the failings of the scheme, I now have a growing family in an apartment which is too small. I certainly wouldn't advise anyone to buy an apartment under this scheme, it's easy to get into but sooo difficult to get out of (land registry issues and council inefficiencies, i won't bore you all and go off topic).
So if you are obsessed with getting out of it, you could sell for a really low price now and walk away from it, you will only have lost what you put into it in terms of finishes and ofcourse the legal/administration fees to the council. As an aside I have been paying my mortgage for four years and I have only paid 15k off the principle, shockingly low! I may as well have been saving all that time and waiting for property prices to fall, which they are now thankfully. Peronally I'm not going near the property market for at least two years, it still has to sink into the public conscience that property prices are nose-diving. This will happen in time, mark my words...
 
Hey...

My OH has been wondering this recently...its miles from his house and although there is no baby involved, this would be a good time to do it (because of the no-negative-equity clause in the scheme)...We do love the house, and we don't plan to move, but he just wondered if we are going to move before the 20years is out,then now would be a good time..

However one thing I did think of, was that as you are no longer first time buyers, you will incur stamp duty on your next property, which could be substantial - couple this with the lower mortgages been approved at the moment (aswell as floors and stuff mentioned above) and there could be problems... Plus, are there some kind of implications if you sell your FTB house within five years (on the tax/sd side), or am I imagining things?!

PB
 
Phibbleberry, re your point about stamp duty, the following is an extract from revenue.ie
'The transfer of a site from a parent to child is exempt from stamp duty where the site transfer is for the purpose of constructing a house which will be the child’s main residence. Under the Finance Act 2008, the threshold for the site value in relation to this relief has been increased from €254,000 to €500,000 for instruments executed on or after 5 December 2007. The area of the site must be less than .4047 hectare (1 acre) exclusive of the area occupied by the house itself.'
Also re selling your house within five years, i think you are confusing this with the clawback of stamp duty if you rent your home out after it was your PPR wen you bought it, it has been changed to 2/3 years in the last budget, not sure which. It wouldn't apply to the OP therefore.
 
Hey,

Thanks for all your replies. A few things to think about there i.e. funds!! Haven't looked into anything serious just yet. Thanks Anna Lee for the info re stamp duty if building on parents land.

Oh this grown up business! Joke.

Thanks again all.
 
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