Is it possible to achieve this trade up?

[Severne19]

Age: 31
Spouse’s/Partner's age: n/a

Annual gross income from employment or profession: 54,000 (+ overtime/bonus - not as great as used to be)
Annual gross income of spouse:n/a

Type of employment: private industry

In general are you:
(a) spending more than you earn, or
(b) saving?

Saving

Rough estimate of value of home maybe €250,000
Amount outstanding on your mortgage: €212,000
What interest rate are you paying? not sure but on tracker, pretty low

Note on this - I am not living there at the moment so it is currently an investment property. Rent is paying mortgage - taking into account insurance etc this property is earning approx €100 per month (before tax)

Other borrowings – car loans/personal loans etc None

Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card?

Savings and investments: €30,000

Do you have a pension scheme? Yes

Do you own any investment or other property? See above


Ages of children: none


What specific question do you have or what issues are of concern to you?

I would like at some time in the relatively near future to buy a property that I would see myself staying in long term. Currently there are a number of suitable houses in the area I want on the market for €350,000

Obviously prices are subject to change and speculation disallowed here, but what would be the best way to achieve what I want?

Thanks

 

[Brendan Burgess]

To buy another home, you would have to sell your present investment property. So you should put this on the market immediately and see what you get for it.

When you have contracts signed, then you can start looking for another home.

There are a few problems with this strategy though.

You have a cheap tracker mortgage, and it's unlikely that you will get anything as cheap again.

You will have a deposit of €70k or so. Will the bank lend you the €330k you need to buy the house? Do you want to take on such a high loan?

If you sell now and prices fall further, you will be in a good position.

If you sell now and prices start to take off again, you could find your deposit not going very far. However, this is a much lower risk than buying now with the intention of selling your existing home.

If you are making voluntary contributions to your pension, you should stop so as to maximise your deposit.

Brendan

 

[chlipps]

It wont be easy to sell a rented house ... whilst tenants are in it, it will be difficult to stage it properly. But seeing that the current tenants cover the mortgage, then i would be slow to move them on until you are clear on the house you want.