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Job Offer in Norway - what to do with house?

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  • 30-08-2010 10:33am
    #1
    rorymcgrory
    Registered Users Posts: 267 ✭✭


    .


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


    Is there net equity in the properties if they were sold?


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    #3
    jelly&icecream
    Registered Users Posts: 477 ✭✭jelly&icecream


    You really don't want to be leaving a big mess like that behind you. Its Norway you're moving to, not Timbuktu! It will probably come back to haunt you at some stage. Surely the mortgage on the 90's property is very minimal? Are you sure that if you sell everything you wouldn't just about break even or have a small shortfall that you could pay off in installments?? Or sell the 90's property and pay a large chunk of the negative equity mortgage and rent it out via a agent to make (or close to make) the repayments?


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    #4
    helimachoptor
    Moderators, Science, Health & Environment Moderators Posts: 21,655 Mod ✭✭✭✭helimachoptor


    Sell the 90's property and use the money from it to pay off the 07 one. Or as suggested i presume the repayments on the 90s are pretty low, rent it out and use that to help with the 07 one.


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    #5
    rorymcgrory
    Registered Users Posts: 267 ✭✭rorymcgrory


    Thanks for replies guys.

    If I managed to sell houses i'd prob be out 50k (maybe more) Problem is nothing is moving and I need to act fast!!!


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    #6
    Dymo
    Registered Users Posts: 1,561 ✭✭✭Dymo


    The only option then is to rent out both properties and get some from of income in on them. Go to a management company and see what the net income you will have on the properties. Your insurance and mortgage repayments will probably increase.

    Walking away is really only going to hurt your self in the long run, wait till your settle in Norway a couple of years before you decide this.


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    #7
    triskellion
    Closed Accounts Posts: 37 ✭triskellion


    Talk to a good agent in your area. See how much you will get net from the pair of houses in rent. The older house may well help bridge the gap on the 2 mortgages.
    Don't forget that the income is taxable but management fees, maintainance is tax deductable. You'll also have to factor in €200 a pop annual property tax & €75 per letting PRTB charges.
    If the rent is not sufficient, if might be worth meeting your bank manager & coming to an arrangement (interest only period etc). They don't want you defaulting so it's in their interests to work with you.
    When you get settled in the new job you may well find that your income will enable you to make up the shortfall in the medium term.
    Walking away won't help because the bank can just chase you personally for the negative equity and your credit rating will be absolutely crippled.
    If you don't want to take the hit & need to move fast just hang in there.
    Do your research, get your figures right and if you don't have family nearby to manage the houses, it's essential you get a good property manager.
    Long distance relationship with tenants only lead to trouble.


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