Advice Please?

ytareh

Im one of the thousands ,Im sure, of people who bought a 'nicer' house and kept the 'old one' for the investment /rental income etc in the last ten years ...
Now typically Im concerned .We are about 5 years into a 25 year mortgage (in late 30s).Perfectly happy living in the 'nice' house(just 'up the road') but wondering if the second one should be sold asap at any cost .We borrowed 405k in a remortgage deal paying for both houses and are in a nice fixed rate which will expire in about 18 months /2 years and leave us having to find a good few hundred extra a month .Now it appeared up to a couple of years ago that we would be able to sell the rental house and clear the mortgages in a few years time .Needless to say thats not gonna happen now ...

This is LIKE the house we have rented out ,same location etc ,but ours is a lot 'tattier' and would probably go for the bottom end of the market value (in my opinion 200-250k???)

http://www.myhome.ie/residential/search/brochure/41-cedar-park-leixlip-kildare-co/JNEGV366132

With the world economy appearing more like its trying to revert to The Great Depression every day and our local property market looking grim should I ???


A Hang tight ...prices will surely rise again even if it does take 10 years !!!I will kick myself when these are making a million !!!(But worried I may not always have lodgers/maintenance costs on old house high etc ....)


B Stick it on the market with auctioneer and see if theres any interest ....BUT would spook lodgers who seem sound enough ...hassle with them needing notice to quit in event of sale (compensation payable etc ???)

C Advertise privately (cost?) and only offer viewing to buyers with SERIOUS intent to deal.

D SELL AT ANY PRICE NOW !!!These are going to be worth under 200k soon and perhaps even be unsellable ....???

Im REALLY sorry I didnt sell to the last lodgers at the 314k(?) stamp duty cut off price they were gagging to give me a couple of years ago!!!

Thanks v much for reading and any opinions /advice...

(I feel even sorrier for the poor buggers who have just paid big money in last 2 years to move into apartments when they could be living in 4 beds for same money today )

AARRRGH

Is the rent covering your mortgage?

ytareh

Yes.(For the rental house not our own residence also)

gamer

remember you are liable for 20 percent CGT tax on any rise in the value if you sell the rental house.depending on how long it was rented,my advice would be to sell it as because if interest rates go up,in say 3 years time ,plus the value is likely to go down in the next 3 years ,that would leave you in a difficult financial situation.Best to sell it and pay of the loan,200k approx,and abit of your 2nd mortgage.
.lets say it go,s up by 50k in 2020, very unlikely, that rise wont even cover the extra costs incurred by paying interest on 200k.
YOU,LL save at least 50k,probably more by selling now,the houses thatll go up in ten years time are in citys dublin ,cork,etc not a standard 3bed in a standard country,estate , as people are realising the true cost of commuting,time,petrol,tolls etc,its gonna take 3 years for the housing market to stabilise,houses,s like yours will either go down or stay where they are now.
in dublin the average 3bed private house has lost 35k value in the last year .
AND a potential buyer now needs 25k savings ,or 10percent to get a mortgage from any bank,anywhere in ireland.you,ll be lucky to pay off your loan,by selling quickly.

ytareh

Bump for any more opinions /advice thanks

The_Conductor

A - Hang tight. You need to sit down and work out the finances- can you afford to keep it? Look at where its possible interest rates may be when you come off your fixed rate- can you afford it? What happens if you're between tenants for a couple of months (not unheard of- rental supply in the area is high).

B - Stick it on the market with an Auctioneer. Do you mean an estate agent? If you do mean auctioneer- I'll tell you now- don't bother. Over 90% of all property in Dublin City and County year-to-date has failed to sell. If you do stick it on the market at the moment with an estate agent- you have to accept that you are chasing the bottom of the market. If you want to sell, you have to make it more attractive to a purchaser than any other similar units in the area. This might mean spending a few grand on painting it and doing minor work on it so you are presenting it in as attractive a manner as possible. If you do want to sell it- do it though. First Time Buyers are spoilt for choice, a tatty 3 bed is not going to attract much attention- unless its at a startling price, and even then buyers will be turned off, even if its only a lick of paint that it needs.

C - Sell Privately. Its a buyers market- do you have a selling point that makes it attractive to someone to approach you privately? How do you decide who is a genuine buyer and who are time wasters? Its trouble- a lot of trouble, take my word for it. Much as I detest estate agents- they certainly have their uses and are earning their wages these days (for the first time in a long while!).

D - Sell at any price. Do you need to? Can you afford to keep it? Do the sums add up? If you cannot sit down and look at the figures without allowing emotions become involved in the decision- and make it add up- then sell. People develop strange attachments to property. Its only a house, and you're not even living in it. If you can't afford to keep it- don't keep it. But be blunt about making your decision- don't listen to the sheep bleating their "sure as houses" crap.

Personally I'd be surprised if it went down below 220- it is a 3 bed in Leixlip after all, irrespective of the condition its in. If you need to sell it- be realistic about your expectations- and don't be afraid to spend a few bob on getting it repainted and cleaned properly. A lick of paint and a half day from a professional cleaner could be the best money you've ever invested.......

gurramok

Leixlip is still a commuter town, below 220k is possible. They 'should' be priced below the likes of Lucan even with its chronic traffic problems so point is any price is possible in this long drawn out recession and i wouldn't be surprised if 170k was the asking price in a few yrs.

The only thing helping matters out there in attracting workers is Intel/HP, otherwise its just another country town within commuting distance of the capital.

the_syco

Is the house you're trying to sell in Cedar Park, or not?

If it is, it's across the road from the schools, which would be a plus factor for anyone with kids.

Oh, if your house is in Cedar Park, is it facing the main road? If not, you may get a bit more, as some of the fronts open into the "rectangle" bit of grass.

As someone has said, do you need to sell it badly, and if so, I'd say start at the €270,000 mark, giving yourself some "haggling" space.

Here's a few other Cedar Park houses:
http://www.daft.ie/1391586 €325,000
http://www.daft.ie/1402287 €315,000
http://www.daft.ie/1397935 €280,000

You get a range from 280 to 325, so don't leave yourself too short.