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Selling to Buy and having some money left over.

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  • 31-03-2021 6:55pm
    #1
    Plasandrunt
    Registered Users Posts: 858 ✭✭✭


    Hey.

    So I'm 33, own a mortgage free apartment worth about 230k and earn €42k a year. I'm planning on selling my apartment and moving into a small house as I want to have a garden and my own space. It's taken me a long while to get my act in gear and start saving for a continuous amount of time but I've finally started doing it and should be ready soon to put the place up for sale and look for a house with the aid of a mortgage.

    I'm planning on going to a broker soon enough but ideally I'd like to have some money left over after all is done. Say if I sell for €230k but want to box off say €30k for myself, put 200k plus a mortgage and savings of approx €160k towards a house. Will this be possible or will the bank query why I'm not putting the full sum total from the proceeds of the house towards my new place?

    Also I bought the place in 2016 for 175k, if I do sell it for 230k? Is it 30% Capitals gains tax on the profit I'll have to pay?

    TIA I'm kind of clueless on this.


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    #2
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    If it's your principal primary residence then no cap gains to pay.

    I doubt the bank will query it - you'll need a few quid in most cases to get it how you want it.


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    #3
    Plasandrunt
    Registered Users Posts: 858 ✭✭✭Plasandrunt


    great thanks for your help!


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    #4
    Baby01032012
    Registered Users Posts: 1,622 ✭✭✭Baby01032012


    Prices are at a 14 year high due to lack of supply. Now is definitely the best time to sell, no one knows what’s down the line once state support stops following covid.

    Would you consider renting for a while? Prices will probably fall but no one can guarantee that. I don’t want to pry into personal circumstances, you may meet your forever partner and location and size of property plus type of mortgage might take a different direction.


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    #5
    Plasandrunt
    Registered Users Posts: 858 ✭✭✭Plasandrunt


    Baby01032012 wrote: »
    Prices are at a 14 year high due to lack of supply. Now is definitely the best time to sell, no one knows what’s down the line once state support stops following covid.

    Would you consider renting for a while? Prices will probably fall but no one can guarantee that. I don’t want to pry into personal circumstances, you may meet your forever partner and location and size of property plus type of mortgage might take a different direction.

    I had thought about it but the cost of paying rent in a semi decent 1 bed apartment added to the amount I get from renting out a room in my current place would be 2k a month and that would almost negate any potential future drop in prices.


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