Is selling my home now a good idea?

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bonnie1

Registered User
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Hi

Bought home in 2006 (trade up). I had a good job and was in good health, although I probably borrowed far too much. Nice house, hate the location (just outside Dublin but feels like the middle of nowhere to me). Im a single parent, on invalidity pension and I feel trapped.

At the moment Im paying interest only and even with mortgage interest supplement, I cant afford it. The bank say Im probably in a very small bit of negative quity. I thought about renting it out and renting in the area I want to be in (where I was brought up) but thats not financially viable.

Im strongly thinking of selling up and just cutting my losses but I mentioned it to a couple of people and they said I would be 'mad to get rid of it.' But why? Ill never be able to afford the full monthly repayments for the next 35 years on a house I really dont want.

Just looking for some feedback and a question - if I sold would I be able to rent somewhere and get rent allowance / supplement?

Thanks.
 
Without knowing your financial and other circumstances it's difficult for anyone to give a definitive answer re rent supp/allow., though the few facts you've given (no job/invalidty pension/ child/ren) would suggest that you would receive rent help.

On that subject you needs a proper talk with SW with full facts.

Regarding selling your house....
Absolutely you should sell it. You don't want to be there -you're unhappy. Paying another 35 years till you're old or dead is crazy. Life is short. Move back to your area and rent a place.

Your main problem is the bank. Will they let you sell it if it is still in N.E. ? Of course, logic dictates the bank should let you sell it ,recover the money and forgo the small NE. But banks are not logical.

Just as you should start planning with SW about rent allowance , you should also now start talking to the bank and telling them you must sell.

Have you seen the prices of similar houses in your area? There has been some movement in and around Dublin and maybe your NE is smaller than you think.

As much as I'm a property freak I cannot understand why your friends tell you that "you'd be mad to sell".
Sometimes it makes much more sense to rent - in your case, eminently so.
 
In order to avail of State assistance with housing, either RA or social housing, you will need the Bank to supply a letter saying the mortgage was unsustainable, otherwise you will be seen as making yourself homeless, and you might not get on the housing list for your preferred area.

Some Banks are very reluctant to supply such a letter. You need to talk to the Housing Officer in the area you wish to move to. Getting on the list is the key to assistance, and to your bank.
 
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