80k negative equity, cut losses?

bacon?

I have a property I bought over 7 years ago. It has negative equity value of around 80k.

There's tennants in the house and they just about cover the mortgage, but there's still expenses that come with owning a house, plus it's a hassle when they move out, trying to find tenants these days is bloody hard... even though I'm charging way below the current rental rates for similar properties in the area.

I'm living abroad at the moment, and have no plans to live in Ireland in the future.

Is it common to cut your losses in this situation?

I'm guessing it will be around 10 years before I see any return for my investment.

Pablo Sanchez

The bank holds the deeds for your house, they can styme any potential sale. If they do agree for you to sell it for less than the outstanding loan they will still persue you for the shortfall.

syklops

First off, it is in 80k negative equity now. That could change in a few years time.

What do you mean by cutting your losses? Do you mean move house and not leave a forwarding address?

Not a smart idea. In this computerised world, the record of what you own/owe will lie around and come to bite you in the ass some day.

If by cut your losses you mean sell up, you could do that, but you will immediately lose that 80k plus various other monies for various fees.

If I was you I would find a friend or relative who has some time on their hands and employ them as a manager for the property(cheaper than a management company), when people move out, let them take care of all the necessary.

You say it wont be profitable for another 10 years? Think about it another way round, in 10 years you will own a house in Ireland and have a steady stream of income. And while you say now that you have no interest in living in Ireland again, your opinion might change, and having property there might come in handy.

I would say to you hold out for now.

ted1

If the value had remained.static or increased would you sell, its only negative if you sell . The mortgage is being covered. How many years left? Once its paid off you'll be able to sell the house for profit as some.one.else has paid your mortgage.

bacon?

Well ideally, I'd like to hang on to it, I've invested around 30k into it.

I'm reading other peoples stories on here and on askaboutmoney.com... it's pretty bad out there for some people, and my position could be a lot worse.

It's in a good location, close to city center and the dart, so I don't really see too much of a problem with filling the rooms, the mortgage is just about being covered now.

How long could it take for things to turn around with this?

Also, how long does it take to start making a dent in your mortgage... it's over 6 years and only 30k has been knocked off it.

syklops wrote: »

First off, it is in 80k negative equity now. That could change in a few years time.

What do you mean by cutting your losses? Do you mean move house and not leave a forwarding address?

Not a smart idea. In this computerised world, the record of what you own/owe will lie around and come to bite you in the ass some day.

If by cut your losses you mean sell up, you could do that, but you will immediately lose that 80k plus various other monies for various fees.

If I was you I would find a friend or relative who has some time on their hands and employ them as a manager for the property(cheaper than a management company), when people move out, let them take care of all the necessary.

You say it wont be profitable for another 10 years? Think about it another way round, in 10 years you will own a house in Ireland and have a steady stream of income. And while you say now that you have no interest in living in Ireland again, your opinion might change, and having property there might come in handy.

I would say to you hold out for now.

MagicMarker

You rent out a house, and the rent covers the mortgage?

I'm sorry, I'm failing to see the problem here?

chris85

i dont see the issue here either. You have rent covering the mortgage. If you sell you still owe the bank €80k and you would then have to start paying this.

Negative equity doesnt mean anything unless you are selling. If you dont need to then it has no relevance. You bought at the market price at the time so thats fair enough.

And the bank would not agree to let the €80k slide. Why would they? To be honest they wouldnt let you sell probably.

bacon?

Cheers for the feedback, I guess I'm just stressing over what if's.

amdublin

bacon? wrote: »

There's tennants in the house and they just about cover the mortgage, but there's still expenses that come with owning a house, plus it's a hassle when they move out, trying to find tenants these days is bloody hard... even though I'm charging way below the current rental rates for similar properties in the area.

Yep thats the life of a Landlord dude