bought new house dont know what to do now

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ocean

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i bought a new house 2 years ago for 196k, at themoment its for sale at asking price around 230k but there are no offers after 7 months, the house is in a large north cork town. i am paying intrest only mortgage about 900 a month which i can afford.some people say i should rent it but to be honest i want to sell it new and i dont want hassle of renting etc.somwone also told me the council might buy it do anyone kbow anything about this.
what i want to do is get rid pay off mortgage and make a bit of profit.
any help appreciated
thanks
 
what i want to do is get rid pay off mortgage and make a bit of profit.
You bought in 2006 at what was pretty much the peak of the property bubble. Now, in an uncertain market where the majority of properties are falling in value, you're hoping to sell the property for 17% more than you paid.

Have you compared the price you're asking for to similiar properties in the area?

Obviously we don't have the full details, but unless you picked up the house at a bargain price, or carried out a redevelopment of the property, I would suggest you need to look at the asking price if you wish to sell at the moment.
 
Is staying put, living in it and servicing some level of annuity/repayment (capital and interest) mortgage not an option? While availing of the owner occupier rent a room scheme if necessary? On the other hand if the house is already up for sale then I presume not. Remember that you need to factor in the buying and selling (e.g. agent and legal expenses etc.) as well as the original purchase and selling prices when working out how much you have made/lost. Just curious - how come you bought at that time and are so keen to sell up now?
 
i bought a new house 2 years ago for 196k, at themoment its for sale at asking price around 230k but there are no offers after 7 months, the house is in a large north cork town. i am paying intrest only mortgage about 900 a month which i can afford.some people say i should rent it but to be honest i want to sell it new and i dont want hassle of renting etc.somwone also told me the council might buy it do anyone kbow anything about this.
what i want to do is get rid pay off mortgage and make a bit of profit.
any help appreciated
thanks

This strikes as a bit of a no brainer.
  • Priced at a large premium to a 2006 purchase price.
  • People aren't even making offer (indicates people think it worth a far far less than the asking prce so don't bother with offers)
  • You are paying mortgage interest at around 5%, but you could rent in Ireland for 3-4% of the market value.
  • Property prices are still falling
What you don't say is whether you are living in it. You post reads as if you have a vacant house. In which case you should really cut you losses ASAP on this one.

Drop it to €150k and see waht happens.
 
A quick calculation suggests that the outstanding mortgage is greater than this.

He might get some bids going on it and bring it up closer to what he paid.

There is as much chance of it being worth 50K less in 12 months as there is of it being worth 50k more (without wanting to discuss future house prices of course)
 
Drop it to €150k and see waht happens

Why not give it away altogether? The thing to do is don't panic. What some investors like to preach is the bottoms falling slash your prices and be thankful when somebody offers you considerly less than your house is worth, guess who lies in wait to benefit from this scenario.
You bought it for €196k as a shell I presume so you had to fit it out. Add on what this cost was and transaction costs and try sell at that price maybe round €210,000. you don't mention if there is an EA involved or if your going it alone? Is there many others for sale close by, what is the local market like? Is it advertised online, are the pictures doing it justice, Have you it presented well, are there unfinished jobs to be done. There are loads of options to improve your chances, you can't simply put it up for sale and wait for the punters to come running.
 
yes, he (and pretty much anyone who bought on high LTV in the last 3 years) is in negative equity, what's your point?

A bit general is it not, I wouldn't have thought that the majority that bought in 2005 would be in negative equity now.
 
What some investors like to preach is the bottoms falling slash your prices and be thankful when somebody offers you considerly less than your house is worth, guess who lies in wait to benefit from this scenario.
The house is 'worth' whatever you can sell it for.

It might be a better option than losing €900/month indefinitely.
 
Add on what this cost was and transaction costs and try sell at that price maybe round €210,000.
Why would the costs incurred by the OP have any impact on what price anyone else is prepared to pay for it today?
 
Add on what this cost was and transaction costs and try sell at that price maybe round €210,000.

thats still 7% more than he paid 2 years ago and even VI constructed indices indicate that property prices are down over 10% since then (and most non VIs think more). Btw how do you know what his property is worth (seeing as you're suggetsing not selling for less than its worth)? He hasn't had any interest at the current asking price for 7 months, this would indicate to anyone with more than 2 brain cells that the property is not going to sell at that price, and hence the market doesn't think its worth 230k (even if it was worth anywhere near that someone might have enquired and made a lowball offer by now)

The OP sounds like someone who wants something for completely nothing (as most property 'investors' thought over the last few yrs) and really should wake up and smell the coffee. Looking for a quick 17% profit in a depressed market is sheer lunacy
 
i bought a new house 2 years ago for 196k, at themoment its for sale at asking price around 230k but there are no offers after 7 months....what i want to do is get rid pay off mortgage and make a bit of profit

OP, you do understand that you bought at the peak of the bubble?

And do you understand that property prices have dropped since you bought?

And does 7 months on the market not tell you that the price is too high? Could I ask in all seriousness what other possible conclusion you could draw?

And do you believe that making money is as easy as simply borrowing a mortgage, waiting 18 months and then bingo, out of nowhere you suddenly have a profit? Is that how you think markets and money-making work?


I'm sorry, and I don't want to get banned for flaming, but just about everything about OP's post reeks of the entitlement culture we have in this country now, where people assume that making profits out of thin air is this easy. OP, sorry, I don't want to be personal, but you will be lucky not to lose money on this house if you sell it at any point in the coming years. Hold onto it for 10 or 15 and you might make a profit. But now, 7 months on the market and no offers tells you everything you need to know.
 
Why not give it away altogether? The thing to do is don't panic.

There is a difference between putting a price tag resulting in a sale and giving it away.
If I tried to sell the gaff for 7 months and pay 900 Euro interest each month (that is already 6.000 euro WASTED money) than I think it is probably about time to get moving - not saying panicking.

And again: "not selling for less than it's worth". It's worth what someone will pay for it, and not a penny more.
 
Why not give it away altogether?

If €210k is going to find some potential offers then €150 will find a pile of them. Then see where the price ends up.

Or, just hold it for another year on the market at €230k. €10,000 kerching, another year goes by €10,000, kerching. Lucky that mortgage money going out every month ins't rent, otherwise it woulld be dead money.

Two years or more on the market? There is a good few examples of such experience around right now.
 
If I tried to sell the gaff for 7 months and pay 900 Euro interest each month (that is already 6.000 euro WASTED money)

There's nothing in the original post to say he/she isn't living in the house, so how is this wasted money? What about rent if he wasn't living there?
 
There's nothing in the original post to say he/she isn't living in the house, so how is this wasted money? What about rent if he wasn't living there?

it's interest only, it's just as much 'dead money' as renting would be
 
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