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Buying a second property in 2012

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  • 17-04-2012 5:11pm
    #1
    Rokc10
    Registered Users Posts: 8 ✭


    Hi

    i'm just looking for some input into my current situ of buying a second home in 2012. I'm currently in to minds based on reading other posts!

    The main reason we want to buy is to start a family so we would like to buy something bigger.

    We bought (myself & husband both 30) current property in 2007. We both have permanent (jobs and earn gross €110k per annum.

    Current mortgage is 249k 20years left, we hope to get €850 rental income a month this is based on current rental income in our development, its a two bed apartment. We have a deposit of €30k.

    We are currently awaiting mortgage approval but are looking at house prices around the 250-280k mark.

    Thanks


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    #2
    kennyb3
    Registered Users Posts: 6,724 ✭✭✭kennyb3


    Have you done a calculation on how much it would cost to pay back any negative equity loan (if you were to sell now) versus what it will cost you to keep the apartment rented.

    You ll be paying 52% plus on any rental surplus, NPPR charges, a property tax and god knows what else.

    You ll may end up funding the majority of the first mortgage from your own pocket.

    Froim what i'm seeing those holding onto rental properties are finding them eating their cash (repairs & maintenance, tax bill, government charges etc)

    Your other issue is going to be getting a bank to lend you the money for the second house.


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    #3
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    Rokc10 wrote: »
    Hi

    i'm just looking for some input into my current situ of buying a second home in 2012. I'm currently in to minds based on reading other posts!

    The main reason we want to buy is to start a family so we would like to buy something bigger.

    We bought (myself & husband both 30) current property in 2007. We both have permanent (jobs and earn gross €110k per annum.

    Current mortgage is 249k 20years left, we hope to get €850 rental income a month this is based on current rental income in our development, its a two bed apartment. We have a deposit of €30k.

    We are currently awaiting mortgage approval but are looking at house prices around the 250-280k mark.

    Thanks

    Just in relation to the mortgage aspect of your query, your combined income of €110k will be sufficient to allow you to purchase a second property at that level once you have a proven repayment capacity evident for the stressed repayment on both mortgages combined without reliance on the proposed rental income.


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