Is this too risky?

Fingers Mcginty

Me and the fams are in a 3 bed detached house. It's a lovely house in an exclusive setting. Problem is we need more space and there ain't really any scope for an extension. It's not really an option so i think a move is on the cards. Have our eye on a nice 4 bed with plenty of space but the asking price is a good bit beyond our budget. We're ..rather I am thinking of selling our gaff...clearing the mortgage and putting the equity in the bank and renting until the summer and then come along as a cash buyer to make an offer on the 4 bed. House prices hopefully will have fallen quite a bit???Your thoughts please

Ste.phen

Looks like your strategy is to hope nobody buys the house you want in the current market, but you're assuming someone will want to buy your current 3 bed.
You could be stuck trying to shift your current house, or accept less than you'd hoped, with no guarantee you'll get the house you want

Gurgle

Fingers Mcginty wrote: »

House prices hopefully will have fallen quite a bit???Your thoughts please

First thought - What can go wrong?
1st - You can't get the price you want for your house.
2nd - You can't rent a decent house for what you thought you could
3rd - You can't buy the house you want for what you hoped to spend.

So:
1 - No problem, nothing happens.
2 - Doesn't take too much advanced planning
3 - Be realistic, don't base your plans on the assumption that the bottom will fall out of the market.

And you'll be fine.

astrofool

What % drop do you need to occur for this plan to work out?

mastermind2005

Sounds fine in theory,

Your idea is based on profiting from the house price crash... :rolleyes:

Victor

Potentially you are going from a position of relative safety to gambling over whether you have a roof for your family. Be very careful.

Fingers Mcginty wrote: »

Have our eye on a nice 4 bed with plenty of space but the asking price is a good bit beyond our budget.

Many properties aren't getting their asking price. What if you offer, say 15% below.

sarahhurray

we were thinking something similar though our space needs are not optional, we have a baby in a one bed apt, we need to move whatever happens in the market. Plus we can afford a two bed but would prefer a three bed so we have options.
You must feel very certain prices will not go back up, do you have a backup plan if they do? Will you be able to stretch to buy the house you want or would you be faced with buying a house similar to the one you've sold plus stamp duty or stuck renting?

Supercell

In a housing crash, usually only the best houses sell, this is why most (poorly built) apartments in Ireland will depreciate massively in the coming years.
If your house is at a good price, in a good condition in a good area it will sell and you may be able to get your dream house ..

However the same applies for it too.

Fingers Mcginty

Longfield wrote: »

In a housing crash, usually only the best houses sell, this is why most (poorly built) apartments in Ireland will depreciate massively in the coming years.
If your house is at a good price, in a good condition in a good area it will sell and you may be able to get your dream house ..

However the same applies for it too.

Longfield... you echo my sentiments exactly. My house is in a good, small estate, <21 houses, and the houses here rarely come on the market. There has only been 3 houses for sale in the last 7 years we are here and they were snapped up quickly. I know the market has changed but i still feel i would sell this house quicker than the guy who's selling the house i want to buy in the nearby town ...remember it's been on the books for the last year.

Sarah...I'm not certain of anything but i feel it in my bones that the market will depreciate another bit for this comming year. I'm no economist but all the messages are on the negative side.

Victor...i hear what you're saying mate. I don't think it's that big of a gamble...i should have said initially i suppose my mortgage is quite small <90K

Mastermid...i know what you're saying. I could be totally delusional in thinking i might sell my gaff at the price i'm hoping for

Astro...please ellaborate

Gurgle...thanks

Igy...I suppose my strategy might hold up because these good folk who have their 4 bed up for sale have it on the market for the same price for nearly a year and i know from a good source there has only been 2 viewings.

astrofool

Assuming you get within 10% of your sale price, what percentage would the property you have your eye on need to drop for you to afford it?

sarahhurray

why not go in now with an offer that you're happy with, if they are trying to sell for a year it might be accepted and you coul avoid renting altogether.

Fingers Mcginty

astrofool wrote: »

Assuming you get within 10% of your sale price, what percentage would the property you have your eye on need to drop for you to afford it?

12%

Fingers Mcginty

sarahhurray wrote: »

why not go in now with an offer that you're happy with, if they are trying to sell for a year it might be accepted and you coul avoid renting altogether.

yes i have thought about that alright...I think i'll put mine one the market soon to test the water.

astrofool

You should have sold 24 months ago, then you'd be there already

Seriously, I think the timing of your own house sale will be the biggest determinant, and also in having the family agree to rent in the mean time. At worst in my opinion, you should be able to get back into the market at the same level as you sell, prices aren't going to rise again any time soon (above inflation), and will likely keep dropping. However, it's a hard bet to make when your family's future depends on it, no matter how "safe" it seems.

The house you are looking to buy, have you looked into getting a house in less than pristine condition and taking it on as a project? Make it livable and expand from there, doing parts of it at a time.

Either way, good luck, hope it all works out well and you get the house you want at the price you're willing to pay

antoinolachtnai

It's an extremely risky strategy. It would be expensive and awkward to move your family twice, too.

It would be fine to do this if you owned fifty properties, or if you were single and were prepared to stay renting for a few years. But this is really risky when it's your only property and it's the roof over your head.