Cork property - should I sell - moving to Dublin

NEWBIEGRL8

I would really appreciate if someone could advise me on my predicament:
I own a house in Cork (suburbs) and am returning to work in Dublin where i am from originally and i intend to stay there.
The house is rented and its in negative equity (but not massively-circa €40-50k)
Ideally i would like to sell this house and buy a house on the outskirts of Dublin before the prices start rising up again.

I would be selling the Cork property at a loss and effectively be dragging with me to another mortgage but i dont see myself returning to Cork and i'm wondering is it too much hassle keeping the house rented in Cork for the next few years?

I am afraid that the prices will keep on rising in Dublin whilst the market in Cork won't pick up for another few years.
Alternatively i could keep the house rented in Cork but then have to pay high rent in Dublin which is dead money.

Any advise on this would be most appreciated

Michael D Not Higgins

This is something you'll have to sit down and do the sums on. The house in Cork may be negative equity now but is the rent covering the mortgage? How much does 50k encumber you on your next mortgage, e.g. if you're looking for something for 200k, it's going to be a more sizeable chuck of the mortgage than on a 400k mortgage. There will be pluses and minuses on both options and the risk of the market down the line may factor into your decision ultimately.

draiochtanois

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TheDriver

And most buyers will run a mile if there is neg equity unless you have your stuff sorted prior to sale.

pwurple

TheDriver wrote: »

And most buyers will run a mile if there is neg equity unless you have your stuff sorted prior to sale.

How would a buyer even know?

TheDriver

A) buyers generally ask when viewing.
b) contracts take ages or special conditions about pending bank consent.

my solicitor hounds vendors for contracts which weeds out the truth quickly. If u don't get contracts in 4 weeks i usually walk as i have done because there are financial issues. Read the neg equity thread here, its an eye opener

NEWBIEGRL8

Thanks for input everyone.

The rent is covering the mortgage at the moment.
Its a tracker mortgage and i got the max amount of years i could get at the time, 7 years knocked off it so far.

I do have a sizeable tax liablity every year on the rental income i receive and its getting bigger each year.

No i can't write off the capital gains against any capital losses.

Property prices are indeed recovering in Cork in the the more upmarket areas such as rochestown, douglas, Blackrock. My house is 25 minutes outside of the suburbs, in a coastal area, whilst very pretty, its not the coveted areas above.

I did write to the bank last year asking if they would w/down anything if i sold the property.

The bank said No.. they said that they would send a valuer to value the house and they would decide the selling price, and the negative equity would remain as an outstanding loan at the tracker rate.

A friend told me that if i did the hard sell they might w/off some of it to get rid of the loan off their books but they wouldnt.

Should i write another letter and see if they reconsider?

Re poster above - i never thought about going in with the option of giving €20k shortfall and they w/off the rest.
The problem is i need to keep that towards a deposit for another house.
I dont want to be left with nothing in the bank.

I have a permanenet job and i would get another mortgage but i was told outright i wouldnt get it with this house currently hanging over my head.

TheDriver

In theory the tracker rate should go as its now a rental property.
the unfortunate reality is the banks do not care, they prefer u to pay your debt and their books look good with a performing loan.

JeffKenna

TheDriver wrote: »

And most buyers will run a mile if there is neg equity unless you have your stuff sorted prior to sale.

Why so?

TheDriver

Go read the neg equity thread. Generally it can become delay after delay while consent is sought from the bank. Advice from those dealing with buying a neg equity house is run..quickly. Friend bought a neg eq house and was waiting absolutely ages for bank to say yes for the seller to proceed.

rightoldpickle

We are actually doing the opposite to you but pretty much still in the same boat.
We have a house on the outskirts of Dublin, currently 70k neg equity. Rented it out for now and it gets a high enough rent but just covers the mortgage. We have moved to east cork, house prices and rent in general is lower but we are still unsure what to do.
Our main issue would be selling our house in neg equity - do read the thread on here. It threw up issues that I never knew about. We are currently renting and tied into a12 month lease so we have until February to decide. Our house is very rentable so it's not the end of the world if we don't sell it. We are currently using a EA to manage it and have had no issues to date

NEWBIEGRL8

I have rang an EA in Cork and got him to view the house and he is going off to check a few things out to see whats out there on the market in E Cork similar to mine to put a definiitive value on it. He reckons i could sell it no problem as its a detached house in a cul dec sac in a lovely area but i need to get enough to clear the mortgage so that i can buy outright on a new house.

Looking at the rents in maynooth and they are off the wall for anything decent.

Michael D Not Higgins

NEWBIEGRL8 wrote: »

I have rang an EA in Cork and got him to view the house and he is going off to check a few things out to see whats out there on the market in E Cork similar to mine to put a definiitive value on it. He reckons i could sell it no problem as its a detached house in a cul dec sac in a lovely area but i need to get enough to clear the mortgage so that i can buy outright on a new house.

Looking at the rents in maynooth and they are off the wall for anything decent.

What kind of place are you looking for, and what kind of budget are you looking at? Rents in Dublin have been climbing higher and higher but I would have thought Maynooth would be less affected by that.

TheDriver

NEWBIEGRL8 wrote: »

but i need to get enough to clear the mortgage so that i can buy outright on a new house.

that's something i hear quite a bit, be careful that it doesn't set the bar so high that your asking price is a joke. EAs are v good at letting buyers know that its for sale but wont sell due to seller stuck on a price.....

zef

Maynooth properties are as expensive as most parts of Dublin, renting or buying.
Strong student market, great transport links, nice town with pretty much everything on it.

draiochtanois

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NEWBIEGRL8

I'm looking for a 3 bed semi with a garden.
I'm a professional and i'm looking for a nice house that i can rent for about 2years.
I dont want to live in an apartment, just have to have that bit of greenery or be able to sit out in the evenings in a garden.
As the poster said above, great transport links and a nice town hence my reasons, plus i have friends near there.

I did see a house, unfurnished @ €1,600 pmth(crazy price) on an EA website, when i rang it was gone.
And she was rude and arrogant to boot when i asked if it was already gone what was it doing still up her website.

I rang about another place, only a 2 bed, nothing fancy but in a quiet estate, i was told that there were 2 open viewings and he had 30 people on the list already!!!