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Yes - but even when the property is mortgaged the householder normally owns at least a portion of the equity.
You seem dead set on this course of action so there's probably not much point in me or others giving you some alternative and counter views. Personally I don't think that this is a very prudent step in most cases and arguably evel less so if you have kids. I certainly wouldn't chance it myself. I don't think that you are looking at this dispassionately and objectively which might increase the risks of you making a bad decision. But good luck with whatever you do.
...Don't forget the significant transaction and ancillary costs in selling and then buying again later (e.g. easily €5K in total and quite possibly even higher especially if as a non FTB you have to pay SD).
If you are going to buy again in about a year and plan to buy in the same area, then property prices would have to have dropped a lot to make it worth your while to pay all of the expenses involved in selling and buying.
On the other hand life is not all about money.
....In terms of my child, the 6x2 foot balcony of the present property or the garden of a rented house...........definitely the garden...
Bear in mind that after DIRT and inflation are accounted for your money will proabably be losing real value in the meantime even at the highest deposit rates on offer.
The Irish Independent reports that house prices are falling rapidly across Ireland, the latest house-price index reveals.
As a Dub myself I do not understand the Irish fascination of having to own your property, look at London and Paris.
The rental market is determined by supply and demand, not interest rates.
So lower interest rates means we'll have more property for rent (or would it be less)? I'm sorry, can you explain what you mean here?and supply is determined by interest rates to a ceratin extent
I would have thought that higher interest rates = less development of new rental properties = eventual shrinking of numbers of rental properties = less choice for tenants = sellers market for landlords = higher rents.
The opposite should apply when interest rates fall.
Hi Seller,
... For example, there are many funds in the UK that regularly make 20 to 25% pa. ....
Doesn't it depend on whether you are willing to rent for eight to ten years or not as to whether you invest the money or not? I am hoping to buy a house or apartment when interest rates hit the top of the cycle, perhaps a year or eighteen months away. At that stage those with large cash deposits should be able to get a better deal. I guess it is using the Buffet dictum of buying when others are selling, and selling when others are buying. If I were to invest my deposit now I might risk having access to it when I want to buy, and therefore I put it all in a high interest earning deposit account. I know that this is a very conservative strategy but it guarantees me a good interest payment at least at the end of every year. Aren't equity values also possibly somewhat stretched at present times? The possibility of increased interest rates may affect both property and equity values.Personally, I consider it wasteful to have large amounts of money in bank deposit accounts
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