Should we try and sell now?

UsBus

We bought a house at the lower end of the market, a 4 bed semi for 110K. Our plan was to live in for a few years and save. If we saw something else, i don't think it would really have fallen too much below what we paid.
Now that we have renovated the house, new floors, new kitchen, rads & boiler upgrade & repainted, i am wondering if we should try and sell before the central banks guidelines come into play.
Not looking to make a profit, just break even would be ok, wondering if our market may be limited if buyers need around 25k deposit to buy our house if we sell next year..?

Any advice appreciated..

earlyevening

http://www.independent.ie/business/personal-finance/property-mortgages/first-time-buyers-to-benefit-from-central-bank-uturn-on-20pc-mortgage-deposit-scheme-30728787.html

UsBus

Thanks earlyevening, i wonder will this mortgage insurance scheme be ready to go in January as well..? Could it make the mortgage application process even slower..?

TheDriver

Depends on location

spin777

UsBus wrote: »

We bought a house at the lower end of the market, a 4 bed semi for 110K. Our plan was to live in for a few years and save. If we saw something else, i don't think it would really have fallen too much below what we paid.
Now that we have renovated the house, new floors, new kitchen, rads & boiler upgrade & repainted, i am wondering if we should try and sell before the central banks guidelines come into play.
Not looking to make a profit, just break even would be ok, wondering if our market may be limited if buyers need around 25k deposit to buy our house if we sell next year..?

Any advice appreciated..

Hi OP, when you say lower end of the market do you mean location or lower end being the time you bought it the prices were low i.e. end of 2012/early 2013

The_Conductor

I'd echo the above- it really depends on location more than anything else........ If its a good location- the new central bank rules aren't going to matter one iota. Keep in mind- just under 40% of buyers are still cash buyers- so there is a significant chunk of the market who aren't going to be impacted by the proposals, come what may.

Idioteque

The_Conductor wrote: »

I'd echo the above- it really depends on location more than anything else........ If its a good location- the new central bank rules aren't going to matter one iota. Keep in mind- just under 40% of buyers are still cash buyers- so there is a significant chunk of the market who aren't going to be impacted by the proposals, come what may.

Out of interest, which report/site has the latest breakdown saying 40% are still cash buyers?

I wonder how many of those cash buyers are investors and when the CGT exemption ends on 31st of Dec, how many will remain investing in Ireland.

Everyone should read that article linked above as while the jounro's are saying "Central Banks proposed u-turn on controversial proposals", that's not what Mr Honohan said, if anything I read it as something that he may listen to and could potentially work but while calling out potential pitfalls...far from the central bank 'proposing' a u-turn on anything.

Finally, OP it would be good to find out what is happening with people who have mortgage approval now, as most banks are giving 6 months so it could be a case that people with approval won't be affected either way by the 20% as long as drawing down before end of 6months.

TLDR; lots of factors at play so hard to call for anyone what will happen to prices next year and even at that, if they will change again mid-year etc.

My opinion, put it on the market now to at least see if your valuation of what the new property is worth, is what the market is willing to pay. Then at least you'll have some guide of what your walking into next year should prices fall, stagnate, rise...

UsBus

The_Conductor wrote: »

I'd echo the above- it really depends on location more than anything else........ If its a good location- the new central bank rules aren't going to matter one iota. Keep in mind- just under 40% of buyers are still cash buyers- so there is a significant chunk of the market who aren't going to be impacted by the proposals, come what may.

Thanks for everyone's replies.
When i say lower end of market, i mean €110K as opposed to 200-300k.
Also, we did buy in the last year, plan was to stay put for a couple of years but the central banks plans got us thinking.
Location is commuter town to Galway city, 30mins approx. Rental houses in this estate are getting €700 a month.

gaius c

UsBus wrote: »

Thanks earlyevening, i wonder will this mortgage insurance scheme be ready to go in January as well..? Could it make the mortgage application process even slower..?

UsBus
The link above is discussed elsewhere but be aware that there is some debate about the "weight" being attributed to Honohan's comments as his cautious quoted comments don't appear to match with what the article claims.