Difficult decision time. My bank told me my house was worth $600,000. I assumed this was undervalued, as that's what banks do. The valuation was thorough (not just a book one) so I placed faith in it. I'm not cross with the bank, just the stupid real estate market. I bought out my husband, taking out a mortgage to give him $300,000. Now, buyers are telling me my house is only worth $570,000. Maybe. If they are feeling generous. And my agent wants $15,000 of that.
So, if I sell for $570,000, and pay my agent $15,000, then I will get $555,000.
My share of the house then drops to $255,000. His stays at $300,000. I am $45,000 out of pocket (theoretically).
I'm not sure I can cop that. Or is that being bloody-minded? Maybe he'll give me $22,500 back? (kind husband, are you reading? xx)
Should I just cut my losses and move on? (Can I face moving anyway?)
I can buy a house down the road for $391,000. With stamp duty of $13,500, the cost of the house is $404,500.
So, I get $555,000 for mine and pay out $405,000 say. I clear $150,000. If I give all that to the bank, my mortgage (now at $310,000, borrowed extra for legals etc) drops to $160,000. But I need to spend about $20,000 on the new house, relevelling, fixing garage, repainting, maybe getting new kitchen in aubergine So, if I give the bank $130,000 (instead of $150,000), my mortgage drops to $180,000.
Repayments drop by $200 a week (over 30 years, mind! How can I have a mortgage at 75? what bank in their right mind lent me this money?) Still, that sounds very appealing, repayments at 20% of income rather than 33%. Especially given Fairfax job security considerations.
But wait, there's more. My second 30-day term (I signed a contract to buy new house conditional on the sale of my old house, no penalty) runs out on May 28. I have one buyer a little bit interested, but they need to sell too. I really just want a quiet life. Would someone please buy my lovely house.
As you can see, I'm not afraid to share my financials. I'd appreciate anyone willing to share advice. Someone might even check the maths :)
Or do I just say f*** it, I'm staying put. Get myself a pool boy and a gardener, send the children down the saltmines and the pets to do TV commercials? Take in ironing. Give up my shoe fetish. Buy home brand. Shop at Aldi. And continue to enjoy the thrill of mortgage stress like everyone else?
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