Sell now?

katiekara14

My parents had planned to sell their house which is in a quite sought after area in Dublin. They had planned to buy a home most likely in the midlands giving them a nice nest egg. The plan was to do this in the next 2 -3 years but my dad is thinking of bring this forward to this year fearing a bounce.

I think he is panicking a bit because I don't see any movement in the areas they are looking to buy.

Last year a house on the road sold for a low on the register for 200k, last house sold on the road in march this year for 460k, he reckons putting theirs on the market for 500k in September and reaping the rewards of the panicked CGT investor/buyers before it closes.

I reckon he is being a bit rash but what do I know.

any advice appreciated, I know you probably need a crystal ball but what is the general consensus? I've read a lot in newspapers recently that prices will probably keep going up for the next few years in Dublin due to the housing shortage

Eldarion

Timing the market is this instance isn't too crazy important as you say they're intending to buy after they sell. Any increases they would have missed out on the selling price could be argued would also have increased the buying price. I think we've already seen the big surge in Dublin prices, I can see the rest of the country gradually starting to increase now, so maybe now would be a good time for them to make their move.

murphaph

My tip is to not get involved. If you try to persuade them to hold out and prices collapse again you'll be public enemy number one. Nobody knows what's going to happen and a bird on the hand...

katiekara14

murphaph wrote: »

My tip is to not get involved. If you try to persuade them to hold out and prices collapse again you'll be public enemy number one. Nobody knows what's going to happen and a bird on the hand...

I just want to see my parents comfortable and bringing forward plans they had made over a feeling things might not be as rosy next year in Dublin as this year is silly when everything seems to pointing the opposite way and where they want to retire to seems to be totally stagnate...

but you are right I think I will just leave them to it I probably won't be thanked!

TheDriver

also comparing houses on the road is not as easy as it seems. You might see nothing wrong with your folks home but it might be gastly old fashioned to the rest of us. It might have problems. It might have issues.
Also are they prepared to move out of the home? I know older folks who have the same idea but when it comes to moving out and maybe renting while you look to buy is not appealing all of a sudden. Are they moving for financial reasons? because its a big change moving down country.
Keep well out of it, parents will happily blame their kids for mistakes......

MouseTail

I agree, keep out of it. Your dad sounds astute enough, he didnt sell last year. Let him time the market.

Villa05

Sounds like they are cashing in on a significant 12 month gain. Playing it safe if the rest of the country was as smart as your parents the imf would have never came.

gaius c

Timing the market is for mugs.
If they get a good price now and have enough of a nest egg for a comfortable life in the midlands (and to leave you a good inheritance), why get greedy?
It'll be their call and even if you turn out to be right, your parents will probably resent the intrusion. I know mine did when I suggested that they offload Irish bank shares.

katiekara14

TheDriver wrote: »

also comparing houses on the road is not as easy as it seems. You might see nothing wrong with your folks home but it might be gastly old fashioned to the rest of us. It might have problems. It might have issues.
Also are they prepared to move out of the home? I know older folks who have the same idea but when it comes to moving out and maybe renting while you look to buy is not appealing all of a sudden. Are they moving for financial reasons? because its a big change moving down country.
Keep well out of it, parents will happily blame their kids for mistakes......

The house is tip top, my mother is very house proud and most of my friends comment on how well kept and in good taste it is. The house has a large extension and attic conversion but its just a little big to manage now after my mother had a serious illness.

They seem pretty determined to move. They want out of a housing estate and want to look out there window and 'have a view not somebody looking back across at you' but I do worry that they will only have each other and god forbid but that could easily change.

Financially they are sound, no debt maybe a little on the credit card I'd imagine but dad is semi retired after mums illness and the money coming in covers bills but nothing to enjoy themselves with.

gaius c wrote: »

Timing the market is for mugs.
If they get a good price now and have enough of a nest egg for a comfortable life in the midlands (and to leave you a good inheritance), why get greedy?
It'll be their call and even if you turn out to be right, your parents will probably resent the intrusion. I know mine did when I suggested that they offload Irish bank shares.

I wouldn't say greedy, I just know they will need this money for the rest of their days and would just want them to be comfortable and to maximise any profit to give them that. The rest of their days can easily be 20+ years these days


Maybe investing in an apartment in the city maybe a good idea giving them an income and somewhere closer to home if things didn't work out?

Feels like I should have went to the personals with this post now but I'm just nervous for them

katiekara14

MouseTail wrote: »

I agree, keep out of it. Your dad sounds astute enough, he didnt sell last year. Let him time the market.

Villa05 wrote: »

Sounds like they are cashing in on a significant 12 month gain. Playing it safe if the rest of the country was as smart as your parents the imf would have never came.

Dad would love you guys!

I do trust his judgement maybe its the big change and their decision to isolate themselves is the part I'm not so sure about...

ixus

If he thinks he can realise the price he had hoped to sell for in 2/3 years, why not sell now? There's a saying; "Always take windfall profits".

Another way of looking at it is that your parents home should, in theory, rise in proportion to the intended home in the midlands. The more they both go up, the more cash left over. Vice versa on the way down.

200K to 500K is some stretch.

MouseTail

katiekara14 wrote: »

Dad would love you guys!

I do trust his judgement maybe its the big change and their decision to isolate themselves is the part I'm not so sure about...

Tbh, that's the part I would be concerned about as well, moving away from family, friends, networks etc. Once they exit the Dublin market, it will be very difficult to buy back in. But again, I don't think its something you can get too involved with. Wishing them the best.

jmayo

katiekara14 wrote: »

My parents had planned to sell their house which is in a quite sought after area in Dublin. They had planned to buy a home most likely in the midlands giving them a nice nest egg. The plan was to do this in the next 2 -3 years but my dad is thinking of bring this forward to this year fearing a bounce.

I think he is panicking a bit because I don't see any movement in the areas they are looking to buy.

I am of the opinion that it is the prices in Dublin that will have the movement and it aint going to be upwards.
At the moment some reckon there are more Dublin asking prices dropping than increasing. Of course that can mean they were too crazy to start with.

If anything the prices in most of the Midlands are not going to be going up.
There isn't the work there and too many people got bitten the last time with the mullarkey of commutting from the ar** of nowhere to work in greater Dublin.

katiekara14 wrote: »

Last year a house on the road sold for a low on the register for 200k, last house sold on the road in march this year for 460k, he reckons putting theirs on the market for 500k in September and reaping the rewards of the panicked CGT investor/buyers before it closes.

I reckon he is being a bit rash but what do I know.

If he is going to sell at some stage isn't he better off getting out now when he may get 450k/500k rather than hanging on to squeezing maybe another 20/30k.
The key is to not get too greedy, because you may be burnt if you wait too long.

Ultimately the decision is theirs.
Often it is best to stay stum unless of course you think someone is making a total reckless decision.
Even then you are often not thanked.
For instance see all those people who thought prices would increase forever and would not listen. :rolleyes:

katiekara14 wrote: »

any advice appreciated, I know you probably need a crystal ball but what is the general consensus? I've read a lot in newspapers recently that prices will probably keep going up for the next few years in Dublin due to the housing shortage

Stop believeing the bullsh** you read in newspapers, the same newspapers who earn a large chunk of revenue from propery advertising.
Isn't Myhome.ie still owned by Irish Times ?

Just ask yourself who are going to be able to afford the continuing house price rises.
Afteral there are now less banks around to throw money at purchasers.

Barely Hedged

katiekara14 wrote: »

My parents had planned to sell their house which is in a quite sought after area in Dublin. They had planned to buy a home most likely in the midlands giving them a nice nest egg. The plan was to do this in the next 2 -3 years but my dad is thinking of bring this forward to this year fearing a bounce.

I think he is panicking a bit because I don't see any movement in the areas they are looking to buy.

Last year a house on the road sold for a low on the register for 200k, last house sold on the road in march this year for 460k, he reckons putting theirs on the market for 500k in September and reaping the rewards of the panicked CGT investor/buyers before it closes.

I reckon he is being a bit rash but what do I know.

any advice appreciated, I know you probably need a crystal ball but what is the general consensus? I've read a lot in newspapers recently that prices will probably keep going up for the next few years in Dublin due to the housing shortage

An asset increases by 20%-25% in one year and you can sell that asset and buy an asset in that same asset class without the 20%-25% increase. Whats to debate, regardless if the asset is property or not.

Barely Hedged

jmayo wrote: »

At the moment some reckon there are more Dublin asking prices dropping than increasing. Of course that can mean they were too crazy to start with.

Daft and MyHome publish price drops aswell as price inreases. However estate agents rarely publish or update their ads with price increases so its just a note to beware of. They will however definitely publish price drops.

Let your father place the property on the market, he can consider any offers as they come in. I wouldn't encourage him to hold on to the property if he is thinking now is a good time to sell.

I do think the CGT 2014 situation might be resulting in some increases in property at the moment but not at the 400/500k side of things.

Mr.McLovin

katiekara14 wrote: »

Last year a house on the road sold for a low on the register for 200k, last house sold on the road in march this year for 460k, he reckons putting theirs on the market for 500k in September

that's quite a jump!