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Becoming a "cash" buyer

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  • 01-11-2014 6:13pm
    #1
    Allsaintsday
    Registered Users Posts: 2 ✭


    Hi all, new on here, but have been following the boards for ages.

    My husband and I are looking to buy in an area that appears to have a huge demand, little supply and an endless stream of cash buyers / renters. We've made a few bids and have been dismissed since we have a house to sell.

    We have savings and mortgage approval, but combined they don't meet the cost of a house that we want to buy. So we need to sell our house to make up the difference ( difference being about 150k).

    We really don't want to go down the route of selling our current house before we find somewhere and having to and rent between houses so I'm racking my brains trying to think of ways to improve our position in the eyes of the seller. I plan on going to the banks next week to ask, but does anyone know if they offer an additional and temporary loan in addition to mortgage that would tide us over until we had sold the house? The outcome being we have available funds for house purchase but no pressure to sell house prepurchase and no chain.

    Sorry not sure if I'm explaining this very well! Any advice appreciated.


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    #2
    johnnyskeleton
    Moderators, Entertainment Moderators, Politics Moderators Posts: 14,505 Mod ✭✭✭✭johnnyskeleton


    You could remortgage your current home. Banks are not too keen on overlending or briding loans


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    #3
    pwurple
    Closed Accounts Posts: 12,449 ✭✭✭✭pwurple


    We sold and rented, put furniture in a storage unit. Yes, it was painful moving twice. But, it meant we didn't have to rush into buying something because we had to find somewhere to move to to make sales line up. We were in a better buying position when we were not in a chain. We got a better price for the place we sold because we were not under time pressure.

    We got a better LTV rate, ended up with a more reasonable mortgage.

    I'd recommended it.


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    #4
    Senecio
    Closed Accounts Posts: 971 ✭✭✭Senecio


    We were fortunate in that we sold to an investor then rented our own house back while we were looking for a new place.

    We had down our research on rental yields and targeted our listing towards investors.


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    #5
    Crumbs868
    Closed Accounts Posts: 438 ✭✭Crumbs868


    pwurple wrote: »
    We sold and rented, put furniture in a storage unit. Yes, it was painful moving twice. But, it meant we didn't have to rush into buying something because we had to find somewhere to move to to make sales line up. We were in a better buying position when we were not in a chain. We got a better price for the place we sold because we were not under time pressure.

    We got a better LTV rate, ended up with a more reasonable mortgage.

    I'd recommended it.

    How do you manage the issue of most leases being 1 year min? Do you pay a premium for a rolling 1mth lease or are you willing to forego a months deposit?


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    #6
    makeorbrake
    Registered Users Posts: 4,664 ✭✭✭makeorbrake


    Allsaintsday wrote: »
    We really don't want to go down the route of selling our current house before we find somewhere and having to and rent between houses
    It's totally understandable that you don't. However, perhaps the pain of that will be the lesser of two evils when trying to balance selling your own house and buying another. The timeline of that may not work out as easy as it may seem on paper. Furthermore, will that scenario compromise your buying decision i.e. what you are prepared to buy and what you are prepared to pay for it?

    What senecio suggested sounds like the ideal solution - if you can find a buyer who is up for that.


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    #7
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Bridging finance is available- Ulster Bank are definitely offering it at the moment- albeit at extortionate interest rates.......

    Go to a broker- ask around- what you're suggesting is not necessarily a non-runner or not available........


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    #8
    johnnyskeleton
    Moderators, Entertainment Moderators, Politics Moderators Posts: 14,505 Mod ✭✭✭✭johnnyskeleton


    The_Conductor wrote: »
    Bridging finance is available- Ulster Bank are definitely offering it at the moment- albeit at extortionate interest rates.

    Really? I asked them and they said they no longer offered it. Maybe you need to be a preferred customer first


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    #9
    Allsaintsday
    Registered Users Posts: 2 ✭Allsaintsday


    Thanks everyone for the interesting comments and perspectives. Definitely food for thought. I've put the feelers out to some of the banks as a first step and will take it from there. Sounds like I might have to take renting option more seriously.


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    #10
    pwurple
    Closed Accounts Posts: 12,449 ✭✭✭✭pwurple


    Crumbs868 wrote: »
    How do you manage the issue of most leases being 1 year min? Do you pay a premium for a rolling 1mth lease or are you willing to forego a months deposit?

    I was upfront with the landlord. I told them we wanted to buy in the area. Told him we would be renting for a minimum of 6 months, but possibly more than that. Signed a six month lease with option to extend. Ended up leasing for 10 months. I told them when we were sale agreed, told them our closing date, this was delayed another month, kept everyone informed along the way. Got full deposit back, less the cost of a daft ad to readvertise (which I offered as good will).

    Basically, we were good tenants. While we were there we tidied up the garden (cut hedges and grass, planted a few herbs). The boiler went belly up, we organised the repair people ourselves and sent landlord the invoice. Made everything very easy for him.


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