The thing is that most likely one or other of you will want to buy again with or without someone else. Having an existing mortgage will reduce your borrowing potential.Also, i know keeping a long term financial investment would be unusual for a separated couple but i must stress we are on good terms and always intend to stay in close contact.
Otherwise this advice is 180° wrong. The economy will inevitably grow once Covid restrictions are lifted when the population is vaccinated.Her friends advise her that a recession is imminent
no offense intended but your wifes friends dont know whether or not a recession and property downturn is imminent anymore than expert economists do ,
this advice is 180° wrong. The economy will inevitably grow once Covid restrictions are lifted when the population is vaccinated.
Her friends advise her that a recession is imminent and the house will certainly drop in value again.
I know a recession is not imminentHi Galway, the Coyote knows!
How do you know?I know a recession is not imminent
I said nothing about property prices if you had read carefully.
Because a fifth of the economy is forcibly shuttered and won't be in a few monthsHow do you know?
Hi Brendan, thanks for the reply.Hi lofty
This is very complex, but I will try to entangle it.
1) The first thing to look at here is whether you should try to retain this as your home.
Where are you living now?
A mortgage of €230k @3% interest would be about €600 a month interest.
If the repayment is €1,300 , it means that you are repaying capital of about €700 a month. This is a form of saving.
I presume you could not rent a house like this for €600 a month or anything near it.
So it would make huge sense for one of you to try to retain the house if you need it for accommodation.
Where does your ex intend to live?
Will she be renting or sharing?
Again, it makes no sense to sell a property if it suits your housing needs and you can afford the mortgage.
2)
We do not allow speculation about house prices on askaboutmoney.
But no one knows whether house prices will rise or not. For everyone who will tell you that "house prices are definitely going to rise" you will find someone to tell you that "house prices are definitely going to fall." The truth is that no one knows.
I don't think you should base your decision on keeping this house in the expectation that house prices will rise.
You should base the decision on the current price, the current interest rates and the expected rent.
Do you have a tracker mortgage? If so, this would be a very profitable investment. The rent will be way higher than the interest paid.
3) Back to your own housing needs.
If you and/or she has an existing mortgage, it will be more difficult to get a new mortgage.
So, for example, if she has a new partner with whom she wants to buy a house, she probably has had her mortgage application declined as she already has a mortgage of €230k.
4) Emotional issues
If there is no compelling issue to keeping the house e.g. that one of you needs it to live in, it might make sense to sell it and break all ties with the other person. If you can't buy her out, but agree to take over the mortgage, you are still connected. She might want a clean break, and she would probably be right.
Even if the house suits her needs, it's possible that she might just want to move out of it as she doesn't like the baggage that goes with the house.
Yes that would be somewhat of a concern for me, but ultimately as long as the council agree to hand back our house in the same condition as we gave it, i would be happy enough. I would have more of a concern if they put 'problem tenants' in and I ended up having to deal with them throughout the course of the lease.the council use those long term lease schemes for problem tenants , not official policy but it happens a lot and is perfectly logical from their POV , gets rid of problem cases for a long time . , they are a good reliable income stream if you are willing to look past that . ive one myself though it only cost me 72 k to buy ( not in dublin )
someone a lot smarter than me will advise you here on the financial pros and cons of retaining rather than selling , no offense intended but your wifes friends dont know whether or not a recession and property downturn is imminent anymore than expert economists do , a lot of people were sure prices would drop due to covid and it didnt happen.
Hi!The thing is that most likely one or other of you will want to buy again with or without someone else. Having an existing mortgage will reduce your borrowing potential.
If you had a tracker I would say thing twice but it looks like you don't.
Can one or other of you buy the other out? You will both need a roof over your head. Otherwise I think you need to sell up.
Otherwise this advice is 180° wrong. The economy will inevitably grow once Covid restrictions are lifted when the population is vaccinated.
Yes that would be somewhat of a concern for me, but ultimately as long as the council agree to hand back our house in the same condition as we gave it, i would be happy enough. I would have more of a concern if they put 'problem tenants' in and I ended up having to deal with them throughout the course of the lease.
I will need to get in touch with them to find out the finer details of any agreement but i am a little concerned as a few people have told me the council are changing the terms of these leases. Whereas before, the owners would hand over the house and have nothing to do with it until the end of the lease, now it seems the owners will be responsible for dealing with the tenants and sorting any problems that may arise! If that is in fact the case I may have to reconsider this option.
That said, I know my partner will not agree to renting it out privately through an agent as this option carries the risk of the mortgage not being covered in periods where we had no tenants. She is not prepared to take the risk of us having to cover the mortgage as well as our respective rents which is fair enough I suppose.
It's probably more the case that there are different types of leases, and some require the owner to manage issues with tenant. There have always been multiple different lease types, depending in the scenario and needs of the particular council.a few people have told me the council are changing the terms of these leases
It's probably more the case that there are different types of leases, and some require the owner to manage issues with tenant. There have always been multiple different lease types, depending in the scenario and needs of the particular council.
I have moved to Sligo where I have cheap longterm accomadation available to me
I am a chef so will never earn the 70,000 salary needed to take over the 230,000 mortgage
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