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Dusted

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Long time lurker...

We bought our house in 1997, three bed semi, garage with a small garden. I've been overpaying for a quite a few years and only have about 3 years mortgage payment left at current rates.

Due to family circumstances we now need a bit of extra space, have an 18month old child and 'er indoors wants a room for some reflexology she does from home at the moment in the spare bedroom which isnt ideal. The garden is also a big factor in that we want a bit more space for the wee one.

We have had the house on the market from last August (145K) and have dropped the price to a level which we think is currently reasonable (115K) given that we want to keep a sensible difference between the price we sell at and the price of larger (sensibly priced) 4 bedroom houses. We are interested in a turnkey 4 bed new build at 155K. Doing the figures if we sell at the asking price and purchase at the selling price our new mortgage would be about 2X my salary.

We havent had a viewer since the house was put on the market but have had 3 in the last month (we dropped the price around 3 months ago). Yesterdays viewer fell in love with the house and offered the wife 106K after about 10 minutes. She is coming back tomorrow to have another look. Ideally we would like £110K and I think we will get that. The house we are looking at is at least 6 months away from completion so we will be renting for the next while.

Basically I need a bit of moral support, I love this house but it is time to move for the family, however, I am naturally cautious and dont want to make the jump if the market is about to rise again. We havent made an offer on the new build and dont want to be left in the situation where we have lost out because of market moves.

Is this the right time to sell? What would you do?

I think(know) by selling I'm doing the right thing but hey a bit of support goes a long way...

Dusted

oh the new format stinks imo :)

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Long time lurker...

We bought our house in 1997, three bed semi, garage with a small garden. I've been overpaying for a quite a few years and only have about 3 years mortgage payment left at current rates.

Due to family circumstances we now need a bit of extra space, have an 18month old child and 'er indoors wants a room for some reflexology she does from home at the moment in the spare bedroom which isnt ideal. The garden is also a big factor in that we want a bit more space for the wee one.

We have had the house on the market from last August (145K) and have dropped the price to a level which we think is currently reasonable (115K) given that we want to keep a sensible difference between the price we sell at and the price of larger (sensibly priced) 4 bedroom houses. We are interested in a turnkey 4 bed new build at 155K. Doing the figures if we sell at the asking price and purchase at the selling price our new mortgage would be about 2X my salary.

We havent had a viewer since the house was put on the market but have had 3 in the last month (we dropped the price around 3 months ago). Yesterdays viewer fell in love with the house and offered the wife 106K after about 10 minutes. She is coming back tomorrow to have another look. Ideally we would like £110K and I think we will get that. The house we are looking at is at least 6 months away from completion so we will be renting for the next while.

Basically I need a bit of moral support, I love this house but it is time to move for the family, however, I am naturally cautious and dont want to make the jump if the market is about to rise again. We havent made an offer on the new build and dont want to be left in the situation where we have lost out because of market moves.

Is this the right time to sell? What would you do?

I think(know) by selling I'm doing the right thing but hey a bit of support goes a long way...

Dusted

oh the new format stinks imo :)

If you can afford it and your needs dictate it, go for it

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Long time lurker...

We have had the house on the market from last August (145K) and have dropped the price to a level which we think is currently reasonable (115K) given that we want to keep a sensible difference between the price we sell at and the price of larger (sensibly priced) 4 bedroom houses. We are interested in a turnkey 4 bed new build at 155K. Doing the figures if we sell at the asking price and purchase at the selling price our new mortgage would be about 2X my salary.

We havent had a viewer since the house was put on the market but have had 3 in the last month (we dropped the price around 3 months ago). Yesterdays viewer fell in love with the house and offered the wife 106K after about 10 minutes. She is coming back tomorrow to have another look. Ideally we would like £110K and I think we will get that. The house we are looking at is at least 6 months away from completion so we will be renting for the next while.

Basically I need a bit of moral support, I love this house but it is time to move for the family, however, I am naturally cautious and dont want to make the jump if the market is about to rise again. We havent made an offer on the new build and dont want to be left in the situation where we have lost out because of market moves.

Are you being asked to buy off plan and sign up to a contract?

Sounds reasonable now, but the housing and mortgage market could be very different in 6 months time. You could try buy it now, but the lender may not allow that, being incomplete. If you agree to a contract now and cannot get the finance later you will lose everything and have to declare yourself bankrupt. 2x salary sounds easy enough and with your £106K deposit should be favourable to banks, in the UK finance is not hard to come by at the moment if you have a good deposit to cover the banks loses as house prices drop. But if you look at S.Ireland, I am hearing people in good jobs with 60% deposits are not getting mortgages easily at the moment.

If you can rent and wait for the house to be finished, the price will probably come down significantly, although it sounds pretty cheap at the moment. I didn't think you could buy a 4 bed house for £155K with a garden etc.

Have you been inside a similar house if this one is not build? sounds too cheap for current market to be an upgrade, are your really getting more?

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Dusted,

As long as you've crossed the t's and dotted the i's with the new house i don't see any reason not to. I can't imagine finance for a 2x salary 60% deposit house being a problem but obviously i'm not a mortgage advisor. I mean even if it was a problem, surely that would mean that prices would fall far enough for you to buy a better place with cash. Good luck whatever you do.

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Someone I know went to investigate mortgages with a view to selling/moving. He owns his terraced house outright, with around £110K valuation. A mortgage advisor told him he would not be able to get ANY mortgage because he was earning less than £25K/year.

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Someone I know went to investigate mortgages with a view to selling/moving. He owns his terraced house outright, with around £110K valuation. A mortgage advisor told him he would not be able to get ANY mortgage because he was earning less than £25K/year.

Seriously? :blink:

Well that would be one way of keeping house prices high - only give rich people mortgages :angry:

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Seriously? :blink:

Well that would be one way of keeping house prices high - only give rich people mortgages :angry:

It doesn't make alot of sense to me, I can't get my head round it. I need to double check, but apparently if you goto a bank with £100K in your hand, but earn less than £25K you can't get a mortgage. .. Like suddenly above 25K you can borrow 5x your and your partners salary?? Why would they do that?

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I am naturally cautious and dont want to make the jump if the market is about to rise again. We havent made an offer on the new build and dont want to be left in the situation where we have lost out because of market moves.

You have answered your own question here. If the market moves (I for one don't think it will yet), then the price of the house you are going to buy will also go up. As it is a more expensive house it will probably go up more in cash terms than you will get by holding on to yours for a while.

Make an offer on the house you want to buy. Make it for £5k less than you would have if you had gotten £110k for yours. Also try to split the difference with your buyer, maybe suggest £108k.

Bottom line you have someone willing to buy at only 3.6% less than you want. Try to push them up but don't lose the buyer.

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You have answered your own question here. If the market moves (I for one don't think it will yet), then the price of the house you are going to buy will also go up. As it is a more expensive house it will probably go up more in cash terms than you will get by holding on to yours for a while.

Make an offer on the house you want to buy. Make it for £5k less than you would have if you had gotten £110k for yours. Also try to split the difference with your buyer, maybe suggest £108k.

Bottom line you have someone willing to buy at only 3.6% less than you want. Try to push them up but don't lose the buyer.

Yes if the market is rising again its not so much of a problem after you have bought, in fact you want as much property for as long as possible if the market is rising, so buy (or agree to buy) first and as early as possible then sell your old house as late as possible (obviously if finances allow). However the much bigger risk is if property crashes again, and being a bear I think that it will. Signing up for an off plan contract could be extremely hazardous if you are relying on a mortgage to fulfil your end of the contract. In that case its much better to sell first, rent for a while and then buy, you will be a much stronger buyer with no chain, be able to move faster and be attractive to a bank with cash up front.

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