Bought small 2 bed in South Dublin for 600k in 06 which is now for sale as I now want to trade up. Current mortgage is down to 440k but getting offers at around 350k mark which means that I'll need to pay approx 100k before I can sell. Mtg rate is ECB tracker + .5
Wife and I both on good money (combined 200k) in very secure jobs and as well as getting down mortgage to current level, have also amassed savings of 250k, mostly for house move.
Cost of new house around 600k but if we pay off the neg equity on the mortgage we will only have 150k left to go towards buying next house. Stamp duty will also decimate these savings further and banks seem to be only giving 80% LTV.
Because of above and the losses we've already sustained with current home, am wondering if it would be better to hold onto it, use all savings to go towards buying new house, in effect avoid taking the negative equity hit? Could rent it out and while we'd have to contribute a few hundred a month at least it's better than paying out 100k all at once (we've already paid off an additional 160k dead money too). As its on such a good mortgage rate it seems preferable to let the loan run its course or at least sell a few years down the line when mortgage on the new house has been reduced even further.
Trying to adhere to Warren Buffet's maxim of 'Never Lose Money'
Wife and I both on good money (combined 200k) in very secure jobs and as well as getting down mortgage to current level, have also amassed savings of 250k, mostly for house move.
Cost of new house around 600k but if we pay off the neg equity on the mortgage we will only have 150k left to go towards buying next house. Stamp duty will also decimate these savings further and banks seem to be only giving 80% LTV.
Because of above and the losses we've already sustained with current home, am wondering if it would be better to hold onto it, use all savings to go towards buying new house, in effect avoid taking the negative equity hit? Could rent it out and while we'd have to contribute a few hundred a month at least it's better than paying out 100k all at once (we've already paid off an additional 160k dead money too). As its on such a good mortgage rate it seems preferable to let the loan run its course or at least sell a few years down the line when mortgage on the new house has been reduced even further.
Trying to adhere to Warren Buffet's maxim of 'Never Lose Money'