Selling her home

kevin99

Was having Sunday lunch with some friends when one said she was having to sell her home because she is out of work, and has gone through all her savings.
She sees no other option but to sell.Says she will rent an apartment and invest the money and start living again.
She's single, no kids, likes a nice lifestyle. Worked in the alternative health area. Business is gone.
Just wondering what other posters here think. I didn't say too much 'cos she seemed to have made up her mind.
I think it is a last resort having to sell her home that she invested so much in. Now she is not thankfully in negatve equity and says she should get about €400k and she owes about €80k. So she will net about €320k.

The others at lunch asked her if she cant get a job elsewhere or if she could borrow money from family or the bank to tide her over for a year rather than sell.

I would like to ask what people here think.

Is she right to sell and to rent for the foreseeable future?
Is renting becoming a much better option these days?
Do people hope to still own their own homes?

Elbi

You might think this is a silly idea but she could rent out her home, hopefully get enough to cover the mortgage and then she could maybe rent somewhere alot cheaper? Or would she consider renting out a room maybe? Could she talk to her mortgage people and get a reduced rate ?

I am in a similar position, I was cut down to working part time, I i did cut down loans and got my mortgage cut down to interest only but no things are getting worse, my mortgage has gone up 3 times what I was paying interest only and these days I'm lucky to get my wages at the end of every week so I have decided for the next year to rent out my home and move back to my family home just until I can get on my feet again.

seamus

Moved from PI

robd

kevin99 wrote: »

Was having Sunday lunch with some friends when one said she was having to sell her home because she is out of work, and has gone through all her savings.
She sees no other option but to sell.Says she will rent an apartment and invest the money and start living again.
She's single, no kids, likes a nice lifestyle. Worked in the alternative health area. Business is gone.
Just wondering what other posters here think. I didn't say too much 'cos she seemed to have made up her mind.
I think it is a last resort having to sell her home that she invested so much in. Now she is not thankfully in negatve equity and says she should get about €400k and she owes about €80k. So she will net about €320k.

The others at lunch asked her if she cant get a job elsewhere or if she could borrow money from family or the bank to tide her over for a year rather than sell.

I would like to ask what people here think.

Is she right to sell and to rent for the foreseeable future?
Is renting becoming a much better option these days?
Do people hope to still own their own homes?

Is it really any of your business? Sounds like you're really over stepping here.

There's way way more to life than this crap Irish mentality of having to own property.

From an investment perspective property is completely toxic at the moment. Circa 50% falls still to come.

€320k cash in a recession is gold. She should take the money and live a good life. Given she worked in alternative health area sounds like she knows a thing or two about how to remove stress from her life.

kevin99

Relax and chill poster. Looks like you need to chill out. I am her friend and I was merely musing on what people here think of her predicament.
Maybe you are jealous of her equity.

robd

kevin99 wrote: »

Relax and chill poster. Looks like you need to chill out. I am her friend and I was merely musing on what people here think of her predicament.
Maybe you are jealous of her equity.

Hardly. Sold my place before crash and am sitting on considerable sum myself.
What I have is called perspective.

I find the property ownership mantra that's still going on somewhat nauseating.

Also, you need to attack the post not the poster.

kevin99

Congrats to you.

the_syco

kevin99 wrote: »

Now she is not thankfully in negatve equity and says she should get about €400k and she owes about €80k. So she will net about €320k.

I have no idea what the house looks like, so I'm going to guess that this was pre-crash price. Thus, she may only get €250k or €300k for the house, and then you minus the €80k

Although robd has a point that selling is good, selling when you get a small percentage of what you paid for it is bad.

ricman

Prices are going down ,shes better off selling soon,the negative equity will just increase in the next year.

magneticimpulse

^ agreed with the above. we are just seeing the beginning

Graces7

kevin99 wrote: »

Was having Sunday lunch with some friends when one said she was having to sell her home because she is out of work, and has gone through all her savings.
She sees no other option but to sell.Says she will rent an apartment and invest the money and start living again.
She's single, no kids, likes a nice lifestyle. Worked in the alternative health area. Business is gone.
Just wondering what other posters here think. I didn't say too much 'cos she seemed to have made up her mind.
I think it is a last resort having to sell her home that she invested so much in. Now she is not thankfully in negatve equity and says she should get about €400k and she owes about €80k. So she will net about €320k.

The others at lunch asked her if she cant get a job elsewhere or if she could borrow money from family or the bank to tide her over for a year rather than sell.

I would like to ask what people here think.

Is she right to sell and to rent for the foreseeable future?
Is renting becoming a much better option these days?
Do people hope to still own their own homes?

She has made a decision she is happy with.

So few here take into account that when you rent, the maintenance is taken care of. That means a lot for a single person, And takes a weight of worry away also.

The_Conductor

Graces7 wrote: »

She has made a decision she is happy with.

So few here take into account that when you rent, the maintenance is taken care of. That means a lot for a single person, And takes a weight of worry away also.

It depends- legally a landlord is obliged to maintain the exterior of the building, along with the structural integrity of the building. Its far from unusual for contracts to specify a tenants duty of care towards the property (which legally may include any of the duties legally ascribed to the landlord- such as ensuring the property and grounds are kept in a reasonable state of repair- which might include a schedule for lawn mowing etc). If a tenant signs a lease with these articles- they supercede the legal obligations a landlord has towards the maintenance of a property (this has been tested in court recently).

The_Conductor

kevin99 wrote: »

Is she right to sell and to rent for the foreseeable future?
Is renting becoming a much better option these days?
Do people hope to still own their own homes?

Is she right to sell? Certainly- if circumstances dictate this is the better course of action for her. However she should investigate the market properly- regardless of what any estate agent tells you- it is difficult as hell to shift property- potential buyers quite simply are unable to access the finance needed.

Is renting a much better option- than owning your own property? Its not possible to answer yes or no to this one. Renting suits some people- other people like the security of owning their own property. The Irish in particular have some sort of a love affair with property- that is unique to the Irish as a nation. There is nothing inherently right or wrong with owning your own property or with renting- different models suit different people at different stages in their lives.....

Do people hope to still own their homes? I own my own home. With interest rates going up- my standard of living has only got one direction to go- downwards- and downwards rapidly. Personally- I have absolutely nothing against renting- and I could probably afford to rent somewhere a lot nicer than I could afford to buy. It all depends.......