Pros, cons and pitfalls of selling on 3 months later

M

maxjam

Registered User
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hi all,

Myself and herself purchased a house back in November as First Time Buyers, its nice but its not what we expected now we get on fine together so thankfully thats not an issue!!

But the house is causing us problems, for a start, shock horror,its a bit big,its only 3 bed terraced but when theres only 2 of you, we use kitchen sitting room and 1 bedroom/ensuite. We dont want to rent out a room so thats not an option, its also in quite a built up area and were looking at selling it on and buying something smaller in a quieter area.

we bought for 325K we reckon we can get same or 330K and we're looking at spending 300K.

What are the possible money issues we need to consider, eg stamp duty, fees, etc.

Would we be better to buy a new build?

Either way we lose money considering we had to come up with 12K on top of the 325 including stamp duty (even tho FTBs it was over the 317500 limit) and solicitor fees.

your advice is much appreciated.

regards
Max
 
Bit puzzled by your post TBH, without wanting to sound smart-assed, I'd put more thought into your next step than you seem to have put into your first one. Firstly I'd be careful about what price you can get now, prices have been pulling back. Secondly interest rates have been creeping up, assuming you got approved to the max (like most FTB's ?), you may no longer qualify for the same amount. Good luck!
 
Not smart ar$ed at all.

We moved into a standard house like the rest of our friends, they find theirs okay, its not like weve moved into a castle, its not huge, just a bit too big, i guess when youve come from a home with brothers, sisters, mums, dads, etc then theres suddenly just you me and the echoes, it can be a bit unsettling, but even after a couple of months, we just find it a bit clinical and over sized, it feels empty and soulless even though weve been there a while. We've seen a few similiar houses, and viewed one or two smaller properties and they just seem like much happier places to live.

Am I making any sense at all here? Just looking back at my original post, Im not saying we intend to move out right now, but im wondering that should we decide we've had enough, what costs are to be considered? And also as above, I realise we are losing a ton of cash by doing this, but id rather be happy even if it means incurring costs like this.
 
If the house is too big you could avoid stamp duty this time around by buying a new build less than 125msq!

You will have to pay estate agent fees on you sale (most likely & these have gone up since Christmas) and you will have to pay solicitors fees on both your sale and purchase.

I would think long and hard about your decision, you could stand to loose alot of money and you need to be sure this time around, I mean that in the kindest possible way!! It's not exactly the same as buying a top on a Thursday evening and returning it Saturday because you've gone off it, there's alot of costs involved.

Best of luck with your decision.
 
Agree with tiger - things have changed a lot even over the past few months and you could be stuck for months trying to sell your house.

Apart from all the monetary considerations - and I am assuming that living in the house isn't unbearable due to damp or excessive noise or other problems - you really should give your house a bit more of a chance! Three months is not long at all - you paid a lot of money for this place and should try to make a go of it. It takes a good long while to get your own place the way you like it, whether that's more bookshelves, comfy couches or whatever, or just changing the lights or things like cushions and curtains - things that make it feel like your home. I was in my lovely lovely (rented) apartment for about a year before I had everything the way I wanted it. Lighting is a big thing, so are personal possessions - my apartment finally felt like my own when I put up bookshelves and had all my books and our dvds filling the walls!

If it feels too big to you maybe you just need time to adjust. Spare bedrooms might be a dumping ground for now but what about when you have people to stay? Or maybe you bought a bigger place because you were thinking about the future and having a family, in which case the rooms aren't much use until the kids come along but will be very necessary then!

Don't rush into anything - buyer's remorse is a terrible thing when it happens with something as expensive as a house!
 
Hi Sounds to me like you are still just seeing it as a house and not a home! when I first moved into my home I was thinking like you bit big for me here on my own . Now I'd love a sun room or an extension and I'm still on my own. Give it time and try and put your own stamp on the place. Before too long you might find your glad of the extra rooms. Have a dinner party, let people have a few drinks and stay over and you will see how the extra rooms can be used,
I think you would be throwing alot of good money down the drain just to down size. Also why not turn one of the bedroom in to a mini gym or office.
Good Luck
 
Unusual case of buyer's remorse.
I would guess that most cases of Irish house buyer's remorse are because of

1. The buyers feel they borrowed too much and are concerned about repayments
2. The buyers feel the house and the location are inadequate for what they paid.

But you're saying you got too much house for the price? They just ain't makin' houses that big in Ireland !!!

But you also said your house is in quite a built up area and desire something quieter. Is current location more of a problem?

Could this be a case of convincing yourself to sell the house on for positive reasons e.g. "loads of space - too much for us" - rather than
the house being in a built-up and noisy estate ??
 
Why not use the rent a room scheme to rent to some lodgers and collect up to €7,620 in tax free rental income? That way you will (a) have more company (b) use up more of the space and (c) boost your finances.
 
I agree with Niceoneted and harlequin - if you have moved into a second hand home, then it is someone elses decor - easy to fix. If you have moved into a new build, then it is probably magnolia throughout - start slapping on the paint and feeling like you own the place - buying your first house is a scary thing but it is also a hell of an achievement.

SOme grerat suggestions re converting one room into a gym, office whatever, but also think about what would happen if you hear the pitter patter of tiny feet in the future - it will not seem big then.

The only real issue would be if you do not like the area - then perhaps you are right to make a decision now rather than waiting, but any other reason would appear to be throwing away a lot of money that you might even regret very soon again - look at Clubman's suggestion - you could start to save for your next move by taking in a tenant.

Best of luck!
 
While i understand that you think the house has too much space, I cant understand why you would think of selling three months later?

How much too big is it, Is it too expensive and you're wanting something smaller, cheaper, if thats the case then sell now regardless of what you'd loose in short term, if not consider financailly what you would actually be loosing.

1. First time buyers status, loss of high rate TRS reflief on mortgage interest
2. duplicated solicitors fees
3.estate agents fees
4. Reapply for mortgage, with non FTB status, unlikely to get 100% mortgage or even 95%

Would you not let the house, and rent something smaller yourselves and see if what you now think suits would suit. You would loose your TRS on mortgage interest but you may find a smaller house is actually small when youve lived in a bigger one.

good luck.

PS we bought a 3 bed semi detached for 218k last august and now wish we had gone to 245K for a 4 bed and there's just two of us too.
 
deem said:
1. First time buyers status, loss of high rate TRS reflief on mortgage interest
Click to expand...

Incorrect ... you have FTB status for seven years even if you do buy other properties.

And to maxjam — I think you'd be crazy to do it — an absolute waste of money on a solicitor, estate agent etc.
 
deem said:
1. First time buyers status, loss of high rate TRS reflief on mortgage interest
Click to expand...
You don't lose the high/FTB first seven years rate of TRS even if you buy again as a non FTB. You qualify for this relief for a total of 7 years regardless.
 
Interested, ClubMan, in your post. I bought a house with my (now) ex, and we claimed FTB 'high' mortgage tax relief. When we split and I bought my own place, I claimed and got the 'lower' tax relief. Is this right?
 
You have 7 years of FTB relief on a PPR regardless of whether your remortgage or move house during that period.
 
ClubMan said:
You have 7 years of FTB relief on a PPR regardless of whether your remortgage or move house during that period.
Click to expand...

Yep, I can confirm this. Bought 3 years ago as a FTB, sold 1 year ago and bought again this year, so it is still my PPR and I qualify for full TRS on new house.
 
Yep, I can also confirm the 7 year FTB rule for TRS — the only valuable tid-bit of info I've really managed to contribute to this site, which also managed to prove ClubMan wrong at the time ... a rare occurence

See: http://www.askaboutmoney.com/showthread.php?p=240475#post240475

Lipstick — are you sure you're on the lower rate, and its not just the fact that you're no longer getting the 'double' TRS amount because you're now single?
 
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Well we still plan to sell the house, things havent improved in the past few weeks. Generally were unhappy quite a bit of the time, even getting in and doing the place up provides only temporary satisfaction.

If we now decide to sell on, the place cost us 325K, what costs are we likely to incur? We hope to sell it for 330K - 335K. Average house prices in our area are around that now.

We are currently looking at new builds to avoid stamp duty in the region of 300K - 325K but will consider second hand houses. We will remain in the house probably until the end of the summer. Weve even considered moving back in to our respective family homes and saving the mortgage amount in a high interest savings account for 6 months or a year before moving out again, if we cannot find a suitable location.

Your advice as always is appreciated.
 
Hi maxjam,

My partner and I bought a new apartment in Jan last year and moved in last October. The apartment is great and all but I have never settled since I moved into it. A major factor for me is that its too far away from friends and family but also there is the space issue. In our open plan apartment we are basically cooking, cleaning, eating, watching tv, drying clothes....basically doing everything together in the one room. When I left my parents house even though there was a lot more people there, I had my own space which I really miss now, space to even just potter around on your own if you wish, or watch a different programme on the tv! We have two bedrooms so it is a big enough apartment but I find it quite claustrophic doing everything in the one living space. We have a decking, no garden, which we would love. We can't even was the car outside if we want. If you have never lived in an apartment or somewhere smaller I would think twice before feeling it is the answer to your problems. If this is your first home together and you lived with parents previously then this is more likely to be the issue. It is very hard to make a new house a home in such a short space of time, it may take you over a year. You may even find that it doesn't feel like what you are used to and that turns you off it also, but this is very common when you make the big move and it is rarely down to the house being too big. I personally don't feel that moving somewhere smaller and away from friends is the answer, I would advise to ride this one out but all I can do is advise.

I really hope it works out for you.
 
To be honest, the main problem is the area,its extremely built up and we just arent happy, we would be willing to buy a similiar house but in a much less density populated area. This is the kind of place we are now actively looking for. So again, what costs will be incurred if
A. we sell for 335K and buy a new build for 325K ?
B. we sell for 335K and buy a 2nd hand for 325K ?
 
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