When to sell? Advice needed

S

Sanparom

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I bought current home (2 bed duplex in North Dublin) in 2005. Fast forward 12 years and I'm now stuck here with a husband and 2 young kids.

There is just under €170k left on the mortgage (variable rate). We estimate current value to be around 260k, going by similar properties in the area.

After selling, we would have a sum of money left, but, after paying legal costs and all other costs associated with selling a house, we wouldn't be left with enough for a deposit on the type of property we would like (we're not too fussy - a decent 3 bed semi with a garden would do us for life!). So, we have a bit of a dilemma... Do we sell anyway and rent for a while and try to boost savings (we think we could save around €500 a month after paying €2000-2200 in rent) and wait for house prices to fall or is this totally unrealistic? Are they going to come down at all at any time in the near future.

Our age is also a factor to consider. We are 40 and 41 years old.

We have circa €10,000 in savings.

The major problem here is that we are trying to raise two children in a house that's really only fit for a couple. First world, problems, I know, but ours, nonetheless.
 
Sanparom said:
I bought current home (2 bed duplex in North Dublin) in 2005. Fast forward 12 years and I'm now stuck here with a husband and 2 young kids.

There is just under €170k left on the mortgage (variable rate). We estimate current value to be around 260k, going by similar properties in the area.

After selling, we would have a sum of money left, but, after paying legal costs and all other costs associated with selling a house, we wouldn't be left with enough for a deposit on the type of property we would like (we're not too fussy - a decent 3 bed semi with a garden would do us for life!). So, we have a bit of a dilemma... Do we sell anyway and rent for a while and try to boost savings (we think we could save around €500 a month after paying €2000-2200 in rent) and wait for house prices to fall or is this totally unrealistic? Are they going to come down at all at any time in the near future.

Our age is also a factor to consider. We are 40 and 41 years old.

We have circa €10,000 in savings.

The major problem here is that we are trying to raise two children in a house that's really only fit for a couple. First world, problems, I know, but ours, nonetheless.
Click to expand...

how averse would you be to moving outside dublin to somewhere like meath ? , i cant see what you propose working out if you relocate to somewhere else in dublin
 
Without speculating on what's going to happen to house prices.

So you have c. 90k in equity and savings after costs.

That'd let you buy up to 500k with current LTV rules. You'd need a combined income of about 115 for that.

But that would leave you with 400k Mortgage. Assuming you could get a 25 year term, your mortgage repayments would be about 1900 per month.

What kind of budget have you got in mind (based on current prices)? I note your previous posts re credit history, so I assume you're trying to keep LTV as low as possible?

If you don't buy now, I think you should keep you place until you plan to. If house prices continue to go up, yours will also but not by as much, but at least you're not going to be caught with all your money in cash and prices getting out if you reach. Similarly if prices fall, the price of what you want to buy will fall by more than your place.
Just keep putting away as much as you can each month to build up your cash savings so you have the deposit ready.

Anything else and you're just gambling in my opinion.
 
Hi Sanaprom

Do you have a cheap tracker?

The advantage of a cheap tracker is that most of your repayments are actually capital, so you are "saving" more than you are.

As such you should stay where you are as long as possible. In a few years, you will be able to move because you will have built up a bigger deposit.

Brendan
 
Thanks everyone. Unfortunately, we don't have a cheap tracker. Mortgage repayments are currently just under €960 a month on what was originally a 200k mortgage.

We have a combined income of 123k. I was worried about being tied in to a huge mortgage over a short term, but 1900 a month over 25 years would be manageable.

You've definitely given me food for thought. Going to scrap the rental idea.
 
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