Selling Our House Shortly After Buying

Hi all,

Apologies if this isn't the correct area for this discussion. Just looking for some advice if anyone has experienced a similar situation.

My partner and I completed the sale of our first house six months ago. Due to a number of circumstances, we're now looking at selling it. The house is in decent condition as we completed a number of works based on the surveyor's report. It's a 3 bed semi-detached just outside a village and 10 minutes away from the nearest big town so good for schools and shops. However, this location just isn't working out for us in terms of our families.

So far we've confirmed with our mortgage provider that there is no breakage fee. We are going to arrange some valuations from different estate agents this week. We've worked out how much we need to sell it for so that we can pay off the mortgage and necessary fees. Obviously if we can sell it for more again then we'll have more money to play with for a deposit on our next house.

I'm wondering if anyone else has had a similar situation from buying to selling again in a short period of time and how difficult was it? Did you take much of a hit in terms of how much you bought the house for vs. how much it sold for? I'm aware it probably looks strange for potential buyers, but life happens and I'm sure others have done it successfully (I just don't know anyone personally).

We're hoping to buy again and ideally this process would happen in line with the current house selling. I'm assuming we should be applying for a new mortgage quite soon if that's the case so we have Approval in Principle when looking at potential houses. Any general advice around this process would also be appreciated. Thanks!

Bridget Clarke

If I were in the business of buying a house (which thankfully I'm not), I would see such a quick turnaround as a massive red flag.

SteM

https://www.boards.ie/discussion/comment/120405574#Comment_120405574

One that can be easily explained away by the estate agent as a change in family circumstances. It shouldn't put off any serious purchasers.

Dolbhad

We bought around 2.5 years ago. Looking to sell as we want to be closer to family. In this market it’s not a red flag and you have an explanation. You do have auctioneer and legal costs so if you can sell it for a bit more, you can break even.

The issue is on the buying side. We are finding vendors don’t want to entertain us unless we are at least sale agreed on our house. It’s hard to go sale agreed when we don’t have a closing date in mind and don’t want to string along any purchasers. So your issue won’t be selling the house but instead securing something suitable.

Work in your approval in principle asap. We are finding the increase in interest rates are a killer so beware of that. Even when you bought, rates were lower. Then what’s your plan - do you need to balance or can you sell and have somewhere to go.

Claw Hammer

If you sell within 1 year you might have a capital gains issue. It will only arise if you make a profit above your outlay and expenses but it is something to watch.

walterking

https://www.boards.ie/discussion/comment/120405920#Comment_120405920

no you won't as they can show it was their pdh.

For the OP, prices have fallen a little in the past 6 months. Yep, the "official" figures still show price up in the past 12 months, but in the last 6 months here's be virtually no movement and in the last 3 months most areas have seen a slight fall.

I'd list at the same price as you purchased it.

If you were in a bidding war originally, then you may not get that price.

The near certain losses are legal fees (buying and selling), any upgrade works, moving costs and estate agent costs. So probably about 10k-15k before any difference in sales price v purchase price

RichardAnd

You'll probably make a loss if you sell within a year, but then if personal circumstances have change, one doesn't have much of a choice. I don't think that it would be a major red-flag to any buyer, though prices certainly have stabilised a little in the last year.

I hope it works out for you, regardless of what you do.

https://www.boards.ie/discussion/comment/120405920#Comment_120405920

Principal private residence, no capital gains tax applies.

If they used help to buy however there will be a clawback.

Dslatt

https://www.boards.ie/discussion/comment/120406091#Comment_120406091

you have to be living there at least two years I think

Leg End Reject

https://www.boards.ie/discussion/comment/120406124#Comment_120406124

There's no minimum time period.

I really don’t see this as an issue on the buyers side beyond the fact that the purchase of your house may be delayed by you both not wanting to move out until you buy a new house. Ideally what you should do is try to cover your outlay with the sale, and sell it as soon as possible. You may not get all your money back, and may take a hit, but you have to accept that the mistake was yours and suck it up. If you wait to long for a higher price, there is a risk that prices will drop and more money will be lost.

That may necessitate moving in with family for a time as trying to line up the sale of one home with the purchase of another will be nigh on impossible. I suspect any buyer who learns that you will not move out until you have bought a new home, would be put off.

Del2005

https://www.boards.ie/discussion/comment/120405594#Comment_120405594

Nobody believes estate agents and if a house had major problems then "Family circumstances" could be a good BS exucse for a quick sale.

SteM

https://www.boards.ie/discussion/comment/120406437#Comment_120406437

If a house has major problems then they would be highlighted in a survey. If it has major social issues around it then a visit to the property outside hours - which everyone should do anyway if they're plonking down a small fortune - will highlight those.

Del2005

https://www.boards.ie/discussion/comment/120406718#Comment_120406718

Surveys are only visual. A lot can issues will only come to light when you start digging into the fabric of the building.

I've friends who moved into a lovely rental cottage, after a few weeks the place was full mould due to no damp proofing.

https://www.boards.ie/discussion/comment/120406788#Comment_120406788

What did their survey show up before they moved in?

Thanks for all the replies. From researching, I don't think Capital Gains Tax applies as it's our primary residence and we don't own anything else. We didn't get the Help to Buy so don't have to worry about being in the property for the specified amount of time. Thanks again.

https://www.boards.ie/discussion/comment/120405732#Comment_120405732

Thanks for your reply and sharing your experience. It's definitely tricky and I hope you get it all sorted in the end. We'll get the Approval in Principle then and at least it'll be one more thing done. Yes, just doing some calculations and we're really going to feel the higher interest rates. Ideally we would have somewhere new lined up but I imagine we'll face something similar to yourself. We'll probably end up moving back with the parents if there's nothing suitable. I don't want to hold the process up on our side so at least we can do that and leave the new owners move in if required. Thanks again.

https://www.boards.ie/discussion/comment/120406236#Comment_120406236

Thanks for this. As they say, you live and you learn. At this point we will settle with taking a hit. We really just want to cover the mortgage and fees. Anything else is a bonus. I would imagine we will end up moving in with family at this rate because we won't want to delay things for the buyer.

https://www.boards.ie/discussion/comment/120405984#Comment_120405984

Thanks for the advice here. We were led to believe we were in a bidding war but who knows. Could've been bidding against ourselves. We'll be getting a few different valuations over the next while so will be interesting to see what they suggest.

https://www.boards.ie/discussion/comment/120406057#Comment_120406057

Thanks for this. I appreciate the kind words.

Redlim

Might be worth checking if you can port your existing mortgage to a new house if you manage to find a place suitable. That way you'd get to stay on a lower rate.

From switcher.ie :

Mortgage porting: If your mortgage is portable, you can transfer it to your new property in a process known as porting. You can apply to ‘top up’ if you need to borrow more or redeem part of your mortgage if needing less.

jonnybravo

Also if you are buying another house you'll need a 20% deposit as far as I know unless you get an exemption.

SteM

https://www.boards.ie/discussion/comment/120407267#Comment_120407267

That changed on 01/01/2023.

https://www.bonkers.ie/blog/mortgages/central-bank-announces-big-changes-to-its-mortgage-lending-rules/

Second-time and subsequent buyers or 'movers' can still only borrow 3.5 times their gross income. However the deposit requirement is being reduced to 10% from 20%. 

https://www.boards.ie/discussion/comment/120407190#Comment_120407190

Thought this was a thing alright but the person in AIB said it wasn't possible as the mortgage is legally tied to the property. A new one has to be taken out on a new property. Would be very happy if we could port it as there's quite a rate difference now. Thanks for your reply.

Redlim

https://www.boards.ie/discussion/comment/120407343#Comment_120407343

Ah ok, that's a pity. I'm not sure what AIB's policy on it is generally, but might be worth double checking or speaking with somebody else just in case. Could potentially save you a lot if you could keep your current rate, so might be worth pushing it with them a bit.

ApeEvolved

https://www.boards.ie/discussion/comment/120405594#Comment_120405594

This is a naive comment.

"One the can be explained away". Any serious buyer will see it as a red flag and know that its the job of an agent to explain such things away.

Id be straight away worrying about things like neighbors, defects.

mykrodot

deleted

manniot2

Just on the point around bringing an interest rate with you to a new property- it can certainly be done with BOI, so long as you sell and buy within 6 months.