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€30-50k mortgage or personal loan or what?

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  • 10-11-2013 5:47pm
    #1
    Atlantic Dawn
    Registered Users Posts: 82,630 ✭✭✭✭
    M


    Looking around myself at buying a fixer upper home to potentially live in or rent out, not decided as yet. The value would be probably around the €50-70k, would banks provide mortgages for low amounts of around €30-50k on a property like this or is the value too low. Would it be a more realistic option to get a personal loan over say 10 years?


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


    Atlantic Dawn wrote: »
    Looking around myself at buying a fixer upper home to potentially live in or rent out, not decided as yet. The value would be probably around the €50-70k, would banks provide mortgages for low amounts of around €30-50k on a property like this or is the value too low. Would it be a more realistic option to get a personal loan over say 10 years?

    Most banks won't lend below €50k on a mortgage. A personal loan will be a much higher interest rate, maybe as much as twice the rate, so be careful with that route.

    Just by the by, it is a curious feature of the Irish property market that people selling fixer upper properties usually expect to gain the price of a fully done up property less a few euro. So it's hard to find many fixer uppers that the purchase price plus the refurb costs are less than the cost of buying it outright. In my opinion of course.


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    #3
    crackcrack30
    Registered Users Posts: 1,160 ✭✭✭crackcrack30


    Don't forget the 75% interest relief on the mortgage loan....pretty difficult to balance the books without it


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    #4
    Pawwed Rig
    Moderators, Category Moderators, Home & Garden Moderators, Recreation & Hobbies Moderators Posts: 22,380 CMod ✭✭✭✭Pawwed Rig


    johnnyskeleton wrote: »
    Just by the by, it is a curious feature of the Irish property market that people selling fixer upper properties usually expect to gain the price of a fully done up property less a few euro. So it's hard to find many fixer uppers that the purchase price plus the refurb costs are less than the cost of buying it outright. In my opinion of course.

    I have noticed that. It is a strange situation as in the UK there is money to be made on fixer uppers. There does not seem to be the same value in delapidated houses here.


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