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Any Advice On This

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  • 09-10-2009 8:46pm
    #1
    baz6679
    Closed Accounts Posts: 14 ✭


    Hi
    I posted last week as regards to selling my home with a special offer. I really would appreciate any advice on the following. I have been sponsored by an australian employer to go out there in Jan/Feb. For personal reasons we my wife and i have decided to sell our home in Donegal. We felt the need to offer something more in the current over saturated market. Our house has been put on the market at 220,000. however we decided to add a sweetener whereby we would offer to pay the mortgage for the new owners for a period of 2 years( although in the previous post i said one year:o). Obviously this offer would be subject to certain limits and would be a fixed amount paid each month to a nominated bank account of new owners. Does this deal sound appealing or dos it make any sense?
    I would be grateful for any comments or thoughts of anyone on this matter.
    Thanks alot
    Barry:)


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    #2
    emty
    Closed Accounts Posts: 385 ✭✭emty


    No,sorry,it doesn't make any sense.The only way you are going to sell in the present climate is to lower your price to a level below all the others on the market in your area.
    Best of luck with your move,btw.


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    #3
    beeno67
    Registered Users Posts: 1,218 ✭✭✭beeno67


    Seems pretty pointless. It would save buyer more for you to reduce the sale price by the equivalent of 2 years mortgage. By doing it your way the only people to gain are the banks.


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    #4
    wyndham
    Registered Users Posts: 2,284 ✭✭✭wyndham


    As has been said, it would be a pointless arrangement and would not appeal to me if I were a potential purchaser.

    - There would also be not insignificant costs associated with drawing up and administering the agreement. Soilicitor on both sides will cost money.

    - There are also crazy tax implications/complications, that I couldn't be bothered working out. A tax advisor would be required on this and it would raise eyebrows with Revenue.

    - You would still be linked to the house for at least 2 years. I don't know you, but if it were me moving to Australia, I wouldn't want this kind of tie. I wouldn't want to hear about any problems the new purchasers may be encountering, or how they are getting on with the neighbours, or whether the boiler has broken down. I would want a clean break, with the johnny cash in my pocket.

    - For the sake of argument a mortgage of €190,000 over 10 years would involve repayments of €1800-€1900 per month, obviously depending on rates, and a few other variables, but that will give you a ballpark. Interest rates may rise also within 2 years of a sale and they may or may not fix the morgage, after all, why bother fix if they are not paying it. €1850x24mths = €44,400.

    I don't know your reasons for selling, but if it were me, I would rent it out if at all possible. RAS scheme would be very nice if you could get on it. Leave it on the market while it's let. That way, the house is there for you if things don't work out in Australia.

    Are there any family members who might be interested in purchasing at a decent discount? Brothers/sisters/cousins/etc?


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    #5
    Gurgle
    Closed Accounts Posts: 5,064 ✭✭✭Gurgle


    baz6679 wrote: »
    Our house has been put on the market at 220,000. however we decided to add a sweetener whereby we would offer to pay the mortgage for the new owners for a period of 2 years
    Mortgage repayments on €220k will be around €1200 to €1500 per month.
    Why not just cut your price by €30k?


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