Who is selling?

Davesnave

Gwendo82 wrote: »

I think I am in the position of having to pay capital gains tax on my house, in 18 months if I don't sell my house. I could have sold in March last year for 210,000 but decided to get a very large morgage instead and let my daughter stay there with a couple of friends, while I moved to another house with the rest of the family. I know find myself losing money every month to keep my daughter and her friends in cheap accomadation, and the house is looking very tired. When I made some phone calls I am told by local agents I could expect to get 180,000, a drop of 30,000. Surely this can't be true. Is there anyone out there who can advise me? I really don't know what to do and I am tired of kicking myself that I did not get rid last year.

Firstly, stop beating yourself up about this. Last year most people had no idea what would happen to the housing market. Maybe you have been too kind to your daughter and her friends, but as bryanb says, now is the time to either set an economic rent or pull out. Bearing in mind the CG issue, probably the latter, but you need someone who's hot on tax for that one.

The drop of 15% is about right for shifting a house in good condition quickly. Obviously the area it's in comes into that too, but in the end, nowhere is going to be immune from the downturn. If, as you suggest, the house needs a bit of TLC, you might consider a larger drop. Sounds terrible, I know, but you need to price for completion time rather than now, otherwise there may be problems with the purchaser's mortgage valuation, or a lower offer at the last moment (known as gazundering.)

None of this is the sort of advice people want to give or hear, but you can be sure that this poster is in a similar situation as yourself, with a property currently at 16% below where it started. However, I'm getting viewings and smiling through gritted teeth! The only other advice I can give you is really research your choice of agent. There are good ones out there.....and there are the other kind who've never lived through a period like this before.

Good luck!