Trading up

[Auriol]

Advice needed on the principles of trading up!

I purchased a one bed apartment off plans in 2004 at a cost of €247,500. Today the guiding price is c. €330,000. I currently owe about €215,000 on the mortage, (currently) repaying €1,056 pm. I am considering trading up, and do not want to increase my mortgage repayments significantly. If I was prepared to put any gains from the sale of my current property towards a new property, and want to stay roughly at the same remortage payments, what kind of price range should I be looking at for the new property?? Should I go directly to my bank for advice?
Thanks

 

[Howitzer]

Well since every other property has also increased in value by a similar amount you would actually need to trade down (or to a cheaper location) in order to keep your payments the same (assuming same mortgage term). You would need to pay stamp duty on your next property (assuming not new).

 

[ClubMan]

If I was prepared to put any gains from the sale of my current property towards a new property, and want to stay roughly at the same remortage payments, what kind of price range should I be looking at for the new property??

Presumably c. €330K assuming you take the mortgage at the same term as your current one - i.e. c. €115K profit on your current PPR plus a c. €215K mortgage leaving you with the same repayments as now. This does not factor in additional selling/buying costs etc.

Should I go directly to my bank for advice?

Information - maybe. Advice - no! If you need independent, professional advice don't seek it from somebody with a vested interest in selling you something.

 

[woods]

Well since every other property has also increased in value by a similar amount you would actually need to trade down (or to a cheaper location) in order to keep your payments the same (assuming same mortgage term). You would need to pay stamp duty on your next property (assuming not new).

This is totally right. By the time that you have paid legal and agents fee you will not be trading up unless you are prepared to increase your monthly payments or move to Limerick.