Hi, sorry to hear things are so frustrating for you. Having spoken to several estate agents myself recently, (I am also selling my home), they have all told me the same thing; people are viewing but no one is buying until after the election. If it makes you feel any better, at least it will be done and dusted in four weeks at the most.Dos anyone think that things will improve after the election?
You haven't detailed anything about your changed circumstances so I'm posting a bit blind here...At this stage due to my changed circumstances I'm just about making my mortgage payments with no money left over for fun. I'm totally fed up with the whole process.
I'm still not too sure that shifting it is the best solution for you. Probably your only surefire way of selling it in the current market is to drop the price dramatically. I'd imagine that that would be very painful though as there can't have been much capital gains in the property since last June when you bought.Has anyone any suggestions what I could do to shift this house?
No, I'm afraid I can't see any great improvement after the election. Interest rates are still rising and as it stands we've got a full years supply of second hand houses on the market for sale. It'll take awhile to clear that backlog.Dos anyone think that things will improve after the election?
But that will only if you're selling a new build surely?No, I'm afraid I can't see any great improvement after the election. Interest rates are still rising and as it stands we've got a full years supply of second hand houses on the market for sale. It'll take awhile to clear that backlog.
Not always the case.The rent is always more than the mortgage repayments.
again there is no rule to say this is the case and as you can see yourself you house has already depreciated. some folks will only buy new - even if its a lesser size house than your own - it honestly amazes me.the value of your house will have appreciated
The rent is always more than the mortgage repayments.
Why don't you go into Daft.ie and see what the rent is for a similar house in your area. The rent is always more than the mortgage repayments. Therefore, if you were to rent out your house for a year, you will cover your mortgage repayments plus have enough money to probably rent somewhere smaller for yourself.
In that years timespan, the value of your house will have appreciated and your personal circumstances may have come full circle.
It means that you'll be able to keep the house, should you wish to return to it in due course and if you don't, it will at least have appreicated somewhat, so that you are not at a loss and also in competition with a brand new without stamp duty equivalant.
I know it's not ideal, but neither is being at the loss of so much of your hard earned money.
I've seen somone do this before and they are now back living in the house they left for a year.
We were in a delima last December with our house in Dublin. Husband got transfer and couldn't sell house. Everyone recommended to rent but after all that I'm not sure we did the right thing in renting the house. I so hard to know what to do. So many people feel that the market is going to change but do you not think that it's a circle. If people ie Estate Agents, Market investors etc say that nobody is buying then anyone who was thinking of buying won't! Does this make sense! At the start of the year everyone was so weary of buying or selling but nothing has really changed or has it?This is terrible advice.
1. The day you rent the place you will become liable for stamp duty clawback at the rate that an investor would have paid on your property. This could run to 10s of thousands of euros.
2. You will no longer be eligable for mortgage interest relief. This will INCREASE monthly mortgage repayments.
3. You will become liable for CGT on any gains when you eventually sell.
4. IF, and this is a really big if, but IF your rental income exceeds your mortgage interest payements then you will be liable for income tax at your marginal rate (41%) on this profit.
Failure to pay these tax liabilities will result in significent penalities and interest, irrespective of whether your mate down the road has done this.
The best route in these cases is always to avail of the rent-a-room scheme and stay within the bounds of the tax breaks available to you.
CGT is paid on the profits from a sale. The money to pay the CGT would be collected from the sale so it's not a huge problem.Howitzer you also have other costs if you decide to sell ie Capital Gains Tax so weither you sell or rent your caught in every direction. I'm not very up on this there are probably more than that!
CGT is paid on the profits from a sale. The money to pay the CGT would be collected from the sale so it's not a huge problem.
SD Clawback is due on the date of rental. So for the OP the clawback of SD alone could have huge financial implications, putting them in a very tough position for the short-medium term (they have no sale proceeds to cover the cost so have to come up with the SD Clawback from personal funds - obviously only an issue if SD wasn't paid at the time of purchase).
To compare the two is a bit of a waste of time.
In the case of the OP, they appear to be selling at a loss from the figures given, so CGT won't have an impact.
Additional fees will be paid on selling (EA costs, Solicitor costs etc.), but these are covered in many other threads.
As for whether you should rent or sell. It all depends on your personal view of the property market and the situation you find yourself in. For the OP, selling does seem the best solution. As others have suggested, consider getting a new EA if you're not happy with the service/performance. Other than that, best of luck with it. It might/will be hard to sell this side of the election, but who knows what'll happen after that.
(I seem to remember before now it was waiting for the budget.... and before that it was.... there's always a reason!)
Batty
See what I mean, its hard to know if EA is workin for you or not! Do u ever think that if you keep droping your price or if it's on the market under value in comparrison to other properties that buyers might b put off, ie they might think problems. If u honestly think your house is worth more look into other EA. if u have any hesitations do what i said earlier get someone to ring them see if they are recommending your house. It only takes a phone call! Did you see that Prime Time show!
Charlie
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