opinions on house sale at the moment

sunnyday1234

Hi everyone

I am an accidental landlord and want to eventually sell my first house (4 bed semi) in a commuter town in Cork that is currently rented.

If i sold now i would clear the mortgage and have probably 10k left over.

I have no desire to stay as a landlord and hate the risk profile of being a landlord so i will be definitely selling the house. I have to spend 200 a month to meet the mortgage plus the rent

I am just interested in hearing peoples opinions on the market and when to sell.

Would it be better to sell now or wait another 12 months ?

Bigus

I'd say sell it now , cuts out a lot of potential risk, Brexit , oil price turmoil or whatever.

Sleeper12

sunnyday1234 wrote:

Would it be better to sell now or wait another 12 months ?

It's never certain but house prices aren't slowing yet. I live in Dublin so don't know the Cork market. In Dublin I'd certainly wait another 12 months or more.

It unlikely that prices will just stall or even fall so long as there is an under supply. I'd be expecting another 10 percent inc in the next 12 months

sunnyday1234

Sleeper12 wrote: »

It's never certain but house prices aren't slowing yet. I live in Dublin so don't know the Cork market. In Dublin I'd certainly wait another 12 months or more.

It unlikely that prices will just stall or even fall so long as there is an under supply. I'd be expecting another 10 percent inc in the next 12 months

This is my current thinking and another 10% would mean i would have around 35-40k left over after the sale. I have no intention trying to time the top of the market and just want to get out in a rising strong market with a quick sale

My current thinking is inform tenants of sale in november 2018 and put on market march 2019

sunnyday1234

according to the daft report , prices will increase for the next 3 years but as we know from past experience, no one can predict what will happen

Henbabani

sunnyday1234 wrote: »

according to the daft report , prices will increase for the next 3 years but as we know from past experience, no one can predict what will happen

you can find the same articles from 2006, a moment before the recession

seamus

A bird in the hand...

Yes, prices will probably keep rising in the medium term. There's no credit bubble, no oversupply. A global recession could certainly constrain credit and cause prices to reduce, but while demand outstrips supply you won't see the massive snap back we saw previously.

But at the same time you have this house hanging over your head, which you don't want. No doubt you've been tickling away at it for a decade now dying for the day that you'd be out of negative equity. And now you are.

Sit on it till next Spring, pain in the hole trying to sell now anyway. Then sell it and move on with your life.

Radio5

Agree Seamus. I would go for it in the New Year.

The OP mentions having about 10k left after paying off the mortgage, I presume that factors in any Capital Gains Tax that may be due from sale. Also, as I understand it from friends who have recently sold, the property tax needs to be paid up to date before you can complete a sale. You may have already thought of these issues in any case.

Roger_007

I am in the same situation as OP. My tenants have just moved out and the house is empty. I have just finished paying off the mortgage a few months ago.
I have zero intention of reletting the house. It just isn't worth it. I have just done my tax return for 2016 and discovered that when all expenses and taxes are paid for the year, I am left with a 'profit' of €2500. It's just not worth the hassle.
I am lucky that I bought the house a couple of years before the peak so the CGT will be minimal.
There are plenty of reports in the media about rents going up and up. Of course, that only applies to fresh properties coming on the market. Existing rented properties are subject to the rent cap, even if the tenancy is new.
I intend to put my property up for sale next Spring and leave it empty in the meantime. I don't want the complication of asking tenants to leave.
I would advise OP not to leave it too long to put his house on the market. I can't see how prices can increase much more. Once the limit of affordability is reached, prices will stop increasing. It doesn't matter what the supply or demand situation is. If the price becomes unaffordable, sales will stall.

Henbabani

Roger_007 wrote: »

I am in the same situation as OP. My tenants have just moved out and the house is empty. I have just finished paying off the mortgage a few months ago.
I have zero intention of reletting the house. It just isn't worth it. I have just done my tax return for 2016 and discovered that when all expenses and taxes are paid for the year, I am left with a 'profit' of €2500. It's just not worth the hassle.
I am lucky that I bought the house a couple of years before the peak so the CGT will be minimal.
There are plenty of reports in the media about rents going up and up. Of course, that only applies to fresh properties coming on the market. Existing rented properties are subject to the rent cap, even if the tenancy is new.
I intend to put my property up for sale next Spring and leave it empty in the meantime. I don't want the complication of asking tenants to leave.
I would advise OP not to leave it too long to put his house on the market. I can't see how prices can increase much more. Once the limit of affordability is reached, prices will stop increasing. It doesn't matter what the supply or demand situation is. If the price becomes unaffordable, sales will stall.

you damn right

Xterminator

no , not right.

the rate of increase will slow perhaps, but people will get top up loans, money from relatives; bigger deposits etc. and prices will continue to creep up.

This is a dysfunctional market where demand outstrips supply many times over.

sunnyday1234

interesting comments - thanks
There is no CGT on the sale as it will be selling for less than the purchase price. This is life in Cork County im afraid. I dont think it will ever get back to the purchase price but it might, who knows for sure.
Myself and my wife basically agreed that if we got 250k then it would be sold and its currently prob worth 230. So with the 3 months needed to evict tenants and a few weeks to clean up and put on market then it will prob be next summer when we pull the trigger
Of course i already have people saying im mad and the boom will go on until 2025! but we made our decision that if we got 250k then it would be sold and we arent going to be greedy.
If we got 250k then that would leave a nice bit after mortgage is paid off - change a car and put some away for my sons education etc

dudara

Make sure that you follow the procedure for giving the tenants correct notice. They, understandably, won't be crazy about being asked to leave, so give them as much notice as you can, and do everything 100% correct.

pajoguy

Similar situation also. But probably still around 20k in negative equity. Tenants moved out last week and we have new people ready to move in but its a lot of hassle. Spent 2 weeks cleaning and painting the house. The got a cleaner in apparently. I hope they didn't pay them much. I was so angry I was going to put it on the market and try to finance the hit somehow. But hopefully in 12 months the 20k negative equity might be nearer to 5-10k and will leave the new tenants there until they want to move on. No matter how much you screen people there is no way to guage peoples hygiene standards.