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Reselling a house after 6 months?

  • 27-10-2015 12:07am
    #1
    Letree
    Registered Users Posts: 1,005 ✭✭✭Letree


    My sister bought a house in May but has since been told her job is being relocated to another town. She wants to sell the one she bought and either buy or rent in the new location.

    Is there any issues with putting a house back on the market so soon. Are mortgage companies OK with it.


Comments

  • #2
    Archaeoliz
    Registered Users Posts: 142 ✭✭Archaeoliz


    Depends largely on her mortgage. A fixed rate is more likely to have higher penalties and charges for repaying it and getting out of the tie in period than a variable rate. She'll have to look at her mortgage paperwork but... nope in theory, other than paying get out charges there's nothing stopping her selling up and redeeming her mortgage whenever she wants.


  • #3
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    I dont, think they care ,as long as the sale price covers the mortgage.
    They might charge a few extra grand for paying off the loan early .


  • #4
    ted1
    Registered Users Posts: 23,233 ✭✭✭✭ted1


    They really don't care as long as they are paid , If she makes a profit she may be liable for CApital Gsins Tax as it wasn't her PPR long enough


    Edit: if it's a fixed mortgage there be a breakage clause if 20k or more


  • #5
    Letree
    Registered Users Posts: 1,005 ✭✭✭Letree


    ted1 wrote: »
    They really don't care as long as they are paid , If she makes a profit she may be liable for CApital Gsins Tax as it wasn't her PPR long enough


    Edit: if it's a fixed mortgage there be a breakage clause if 20k or more

    How long would she need to own it to avoid capital gains. The likelihood of a profit is very slim i think. She spent a few grand doing it up and she will have to pay out selling costs too.


  • #6
    antoinolachtnai
    Registered Users Posts: 9,773 ✭✭✭antoinolachtnai


    The issue is that she is going to lose a lot of money. Moving house will cost you around 4 percent in professional fees and maybe another percent or two in other fees like movers and handymen. In addition it is very disruptive in your life and that also has a cost. You want to hold property for at least 5 years to make it worthwhile as an investment and probably 10 or 20 years ideally.

    If it is definitely why she wants to do she should go ahead but she should seriously consider renting her next accommodation for a while to make sure things work out.


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  • #7
    Byron Most Guppy
    Posts: 0 ✭ Byron Most Guppy


    Is the other town commutable from where she bought the house. Might be the best option for the first while anyway if it is.


  • #8
    dearg lady
    Closed Accounts Posts: 2,091 ✭✭✭dearg lady


    Letree wrote: »
    How long would she need to own it to avoid capital gains. The likelihood of a profit is very slim i think. She spent a few grand doing it up and she will have to pay out selling costs too.


    There is no minimum time. As long as it has been her PPR she is not liable.


  • #9
    Letree
    Registered Users Posts: 1,005 ✭✭✭Letree


    Yeah its not an ideal situation. She doesn't want to rent out the house in case it gets wreaked and she will be out money. On the other hand she is going to lose a lot of money on selling fees anyway.


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