Is now a good time to sell?

A

ainec

Guest
Not sure if this is the right place for this post but......

I bought an apartment in Dublin City Centre in Jan 02 for 76k. It has recently been valued at 230k by one agent & 240k by another.

I am living & paying the mortgage on my own & am getting to the point where I would like some flatmates again! So I considering selling up, investing the profit (which is not inconsiderable) and getting back on the ladder again in another 2/3 years.

What I am wondering is, will there be any stamp duty implications & is it a good time to sell - am I mad???
 
> What I am wondering is, will there be any stamp duty implications & is it a good time to sell - am I mad??

No stamp duty (clawback) or CGT implications if you sell your PPR and decide to rent. Whether or not it's a good idea or this is a good time to do so is difficult to say and largely dependent on you own personal circumstances and needs. This topic might be of interest:



What Brendan says in this topic about whether or not owning a house is advisable might also be of interest.



If you crave flatmates why not take one or more in under the rent a room scheme and collect up to €7,620 p.a. rental income tax free (and with no SD or CGT implications) while retaining ownership of a valuable asset in your PPR?
 
Just wondering ainec, how did you manage to get an apt. for 76k in 2002?

I would have thought that the average price at that time was far higher than that.

Just curious, what area of Dublin is it?
 
..

Don't forget the stamp duty you'll have to pay when you buy your next property.

If you thought it was bad on 76K, calculate the liability on the price of what you would be likely to buy in a couple of years time.
 
Replies

Thanks for replies folks.

Renting a room out is not an option as it's a 1-bed.

Purchase price was 176, not 76 (apols) but there was no stamp duty as ftb & under the threshold.
 
Apartments in Dubln

For what it's worth I believe that prices of apartments in Dublin will drop significantly over the next 12-18 months. The amount of supply coming on stream is ridiculous and there are no investors out there.

Rents have dropped, the buy to let lads are getting caught short having assumed it was easy money. In particular the apartmentswhich are not central in Dublin will suffer.

MAC
 
Construction Website

I'd agree, I've heard a few say the same. They're even talking about falling prices on the UK Construction Industry website.

It's not like developers & builders to talk about falling prices!

[broken link removed]
 
Apartments..........

Interesting link Bubble,

I think that apartments are more at risk than houses although there will be a knock on effect. Invariably people will be buying an apartment as a 1st step on the ladder but most move on to the house scenario at the family formation stage so I think in Dublin (and by this I mean within say 5 miles of city centre) houses will remain pretty insulated but the volume of apartments coming in stream does not augur well ie. more supply than demand leading to falling rents --- but to let landlords who borrowed 100% jumping ship (even at a loss) and overall drop in prices for apartments.

I actually do know someone trying to sell an apt. at present - no joy! Ouch!

MAC
 
Apartments in Dubln

> For what it's worth I believe that prices of apartments in Dublin will drop significantly over the next 12-18 months.

> I think that apartments are more at risk than houses although there will be a knock on effect.

No offence MAC but these are simply opinions based on some vague generalisations. Ultimately nobody can predict the future. In relation to the original question "is now a good time to sell" this should be less an issue of market timing and more an issue of whether or not the property holder needs to liquidate the asset to use the cash or else to invest somewhere else where s/he anticipates getting a better return. All this guff about what might happen in so many months, years, decades irrelevant and futile. Timing the markets is a mug's game. Buy when you need to. Sell when you need to.
 
investors don't do that

A lot of the "real" property investors have cashed in.
Its like the shares investor, its the amateurs and small investors that get caught when the bubble bursts, the serious ones have left or hedged their bets.
If prices fall back 10% thats €30-40k at minimum loss (it takes a bit of saving to actually save that out of your net salary.

I'm not saying it will happen but ther is always that chance.

0]
 
investors don't do that

> Its like the shares investor, its the amateurs and small investors that get caught when the bubble bursts, the serious ones have left or hedged their bets.

Serious investors can no more accurately predict the future than small ones. One person's bubble bursting is another person's downward fluctuation on the way to higher longer term gains.
 
look at the cycles - boom & bust

Everything moves in cycles -
the mutual funds in the US now have 40% in cash viz 5% in 2000.
the retail investor sat and watched his shares fall (some to 0 like baltimore) or to 1/20 of original value. the serious investor would have been out at 15% taking his loss and buying back in near the bottom.
How many big investors were caught in Eircom?

My point is, the serious investor moves at different time in the cycle than the amateur who are usuallt caught.

Most values return to the mean.
 
look at the cycles - boom & bust

-"Serious investors can no more accurately predict the future than small ones."-

But that's why stockmarket "professionals" are paid such large salaries, they're expected to make expert predictions based upon their experiences of the past - amongst other things.

If small investors are just as accurate at predicting future market variations then it would be a good idea for stockbroker companies to employ amateur investors at 1/10th the salary.
 
look at the cycles - boom & bust

> But that's why stockmarket "professionals" are paid such large salaries, they're expected to make expert predictions based upon their experiences of the past - amongst other things.

Doesn't matter - they can't predict the future regardless of whatever analysis of fundamentals or past performance that they do. Actuarial analysis of the relative risks of one investment over another is a different matter though.

> If small investors are just as accurate at predicting future market variations then it would be a good idea for stockbroker companies to employ amateur investors at 1/10th the salary.

Or child labour

www.arachnoid.com/stocks/index.html
 
look at the cycles - boom & bust

Interesting one-off experiment.

Though if this were conducted several times I wonder what the outcome would be?

If professional stockbrokers are no better at selecting stocks than 5 year old children, then why pay the huge salaries and bonuses?

The investment banks should be cutting costs and hiring staff on minimum wage.
 
interest rates

4% by end of year will sort this argument out.
keep you cash dry, there will be bargains to be had
 
Euro Zone interest rates on way up, says BoI economist

[broken link removed]
 
auctioneer speak

Why do auctioneers advertise property as if it is food. One add I have seen which says the price is 'mouth watering and sandwich between' . Houses is not food and should not be described as if you are eating it!

I expect it will not be any advantage for auctioneer to advertise a house as have Oil centeral heating anymore because of the huge high price of oil, unfortunately most of homes in Ireland heating with Oil this will put a big strain on homeowers with bills as will as the predicted interest rates going up shortly in the Euro Zone.
 
You must log in or register to reply here.
Back
Top