Hope of owning family home

Stheno

stoplooklisten wrote: »

Why not look for a job in the area and relocate to one of the houses your partner has?


Job done, family home

OP has already said she doesn't want to move her children

lawred2 wrote: »

Your best hope here is to sell the apartment and apply for the mortgage on your own. Your partner's interest only mortgage are bad news really.

If they are married, I don't think this would be a goer, her partner would have to be on the mortgage application.

Butters1979

lawred2 wrote: »

Your best hope here is to sell the apartment and apply for the mortgage on your own. Your partner's interest only mortgage are bad news really.

If she's married she cannot apply for a mortgage on her own. The bank would insist on a joint application. And this is a good example of why they do.

Mrs OBumble

GenGenie wrote: »

The houses my husband owns are 3 hours away from where we are living.

Could you fit into one of those houses? Get jobs within commuting distance of one them?


if you think the others have been harsh, you're going to hate me:

You chose a partner who made financial mistakes. You had children with that person. Actions have consequences.


(FWIW, with my current partner, I don't have a hope of owning a property in this country. I'm well aware that sometimes people choose to let heart rule over head. But people who do that have to accept that it has consequences, and raise their children to be resilient to changes.)

pwurple

Most banks no longer count rental income as income. So if you can't offload, you might need to think of other options.

How is the apartment performing? Rents are way up, did you take the opportunity to raise the rent? (Sorry renters, but if you can't sell it, and you can't gain equity from it, then option 3 is trying to maximise the income)

How long did it take you to save that 39k? was it over ten years or shorter? If you had to save another 50, how long would it take? Could you get there faster in any way (ditching a car, taking on extra work etc)?

I know a couple who couldn't get a mortgage because they were self employed. They took their savings of 60k, and used 2 credit unions to borrow the remainder they needed as personal unsecured loans. Bought the house in cash (were able to negotiate for a lower price than with mortgage). He took a high paying job abroad for 3 years, sucked up the hardship of being away from the family and they paid the whole lot off in that time.

TheHillOfDoom

Are you saying that the rental income on the two houses your partner has an interest in is not covering the mortgage?

April 73

OP - If your joint salaries are €88k & you want to buy a house worth €170k with a 20% deposit then normally you'd be ok. Of course you mention children & the expenses associated with them have to be taken into account, but on paper those figures work.

You're coming unstuck because you have three mortgages between you & your partner. Your debt to income ratio is too high. You can't treat them as something separate to your family home as the banks will look at your total debt burden.

As things stand you're going to find it next to impossible to take out another mortgage. Your plan for a family home has to first start with unwinding yourself from the rental properties & prioritising the family home. It's not going to happen overnight but every journey starts with the first steps.

With your income & one mortgage of €136k you should be able to have a family home & a lifestyle. Take steps to exit the rental property game.

Tigerandahalf

Given that you are married would the sale money of your apartment not be chased by the bank which is owed money from your husband's interest only properties.
As a married couple your credit rating is probably very poor. Until your husband flogs his share in the other properties and has that debt sorted you are in difficulty.
A lot of people out there are caught because their partner bought an apartment that still is in negative equity. With years passing a mortgage may never happen for a lot of people.

nhunter100

JimmyMW wrote:

Can you go into more detail why you cannot sell either the apartment or some of the other houses?

I'm guessing negative equity.

stoplooklisten

How about the site your husband has in another county? Any chance you could sell it?

Damiencm

OP due to your husbands predicament I suspect you have little or no hope of securing a joint mortgage.

I expect your o/h will be on the buy-to-let mortgages on a joint and several basis i.e. liable for 100% of the outstanding debt not just half of it.

The interest only properties - is the interest only a long term contracted arrangement? Or is it reviewed annually? Either way the loans will need to be paid back at some stage.

Any mortgage provider will have great difficulty advancing funds to you and your o/h until all the buy-to-let debts are sorted out one way or another..

MarkAnthony

Ay chance of incorporating and handing off the mortgages to the company? Obviously seek proper legal advice. The upside for the other brothwer could be a lower tax bill.

Damiencm

MarkAnthony wrote:

Ay chance of incorporating and handing off the mortgages to the company? Obviously seek proper legal advice. The upside for the other brothwer could be a lower tax bill.

Due to company law, A newco could only buy the properties at their current market value. Therefore if the properties are in negative equity the brothers would be left with residual debt in their personal names... not a situation a bank is likely to assist with

the_syco

GenGenie wrote: »

Yes, its ridiculous that my husband and his brother are only on interest only but his brother is in a bad way financially (owns 10 rented properties!) so he cannot afford to go off interest only.

His brother should look at how much he'd stand to lose if he sold all of them, versus going bankrupt.

Stheno

I read through your other posts OP.

Your partner has a site he can build on, plus the properties he owns.

You have a profession which is well known for being mobile.

Perhaps look at living where you have a site/houses and reducing your debt?

quadrifoglio verde

Also out of curiosity is the 88K joint income including rental income on btls or not?

The_Conductor

OP- so your hubby has two properties on interest only mortgages- in completely and utterly unsuitable locations.

If you want to buy a 'family home'- you need to divest of your other properties and mortgages- and very possibly the site your husband has- and clear the decks.

Forget about the 'deposit' you've saved for your family home- you need to clear any and all outstanding debts.

The fact that your brother in law has 10 properties and is in a bad way financially- is not a good enough reason to drag you down forever after- but you need to realise that at the moment the two properties your hubby owns with his brother- and indeed, your own apartment- regardless of how they are performing- are millstones around your necks.

You need to forget about your 39k being a deposit- its a small lumpsum to enable you to clear the decks- and once you are clear of your debts- at that stage you can plan for the future (even if this means saving for another year or two to build up a fresh deposit for your 'family home'.

All your current debts- regardless of whether they are performing or not- are counting against you.

amdublin

Suggestion
Why not rent a "family home" for the next 20 years and when your kids are grown up and family home is not needed you and your hub move into you apartment (or one of his houses 3 hours away).

Like normally when people are renting I think but where will you leave when you retire (I. E. Bulk of your salary is gone). In this instance you have somewhere to live.

Just beaver away on the savings while enjoying a lifestyle also. If things change and you can sell some properties and buy then great but in meantime you have above as back up plan.

intheclouds

amdublin wrote: »

Suggestion
Why not rent a "family home" for the next 20 years and when your kids are grown up and family home is not needed you and your hub move into you apartment (or one of his houses 3 hours away).

Is that even possible to do in Ireland? No one would give such a long term lease and there is always the risk the landlord will decide he/she wants to sell the property. Or the rents could go so high as to be unfeasible.

I only mention it because I have some friends who have tried to do exactly that but 3 different rentals later they are now looking to buy because they cant keep changing the kids schools.

The rental market is too uncertain for families imo.

BabySlam

You already part-own three (assuming they are inhabited). Now you want a fourth.

amdublin

intheclouds wrote: »

Is that even possible to do in Ireland? No one would give such a long term lease and there is always the risk the landlord will decide he/she wants to sell the property. Or the rents could go so high as to be unfeasible.

I only mention it because I have some friends who have tried to do exactly that but 3 different rentals later they are now looking to buy because they cant keep changing the kids schools.

The rental market is too uncertain for families imo.

Apols on was not thinking of a specific house to rent for 20 years. I was saying can you not rent (albeit you may have to move some times) for the next 20 years.

lawred2

The_Conductor wrote: »

OP- so your hubby has two properties on interest only mortgages- in completely and utterly unsuitable locations.

If you want to buy a 'family home'- you need to divest of your other properties and mortgages- and very possibly the site your husband has- and clear the decks.

Forget about the 'deposit' you've saved for your family home- you need to clear any and all outstanding debts.

The fact that your brother in law has 10 properties and is in a bad way financially- is not a good enough reason to drag you down forever after- but you need to realise that at the moment the two properties your hubby owns with his brother- and indeed, your own apartment- regardless of how they are performing- are millstones around your necks.

You need to forget about your 39k being a deposit- its a small lumpsum to enable you to clear the decks- and once you are clear of your debts- at that stage you can plan for the future (even if this means saving for another year or two to build up a fresh deposit for your 'family home'.

All your current debts- regardless of whether they are performing or not- are counting against you.

Those mortgages with the brother are interest only

39k isn't going to help clear anything

Butters1979

"Hi, after 3 poor investments in properties and 3 outstanding mortgages including 2 we're not even paying off, I just can't understand why the bank won't let us go again"

Come on OP, you know full well why you can't get another mortgage but you seem to like to blame the banks. There's been plenty of good advice on this thread but you need a reality check. It's not 2007 anymore.

lawred2

amdublin wrote: »

Apols on was not thinking of a specific house to rent for 20 years. I was saying can you not rent (albeit you may have to move some times) for the next 20 years.

It's possible to rent for 20 years in the same house. Just sign a fixed term contract for 20 years.

If a landlord is happy to agree to it of course.

_Kaiser_

Butters1979 wrote: »

"Hi, after 3 poor investments in properties and 3 outstanding mortgages including 2 we're not even paying off, I just can't understand why the bank won't let us go again"

Come on OP, you know full well why you can't get another mortgage but you seem to like to blame the banks. There's been plenty of good advice on this thread but you need a reality check. It's not 2007 anymore.

Summed up perfectly in my opinion.

The OP and her husband have several properties (and land apparently) but none of those will do and she's bemoaning the fact that the banks are unwilling to give her another when they aren't paying off what they already have.

Agree with the other posters. Either sell the apartment, move into one of the other houses (kids are resilient - we moved several times when we were young, including to another country!) or rent that "family home" instead.

lawred2

quadrifoglio verde wrote: »

Also out of curiosity is the 88K joint income including rental income on btls or not?

Also - is it net income? Or gross?

rubberdiddies

mahoganygas wrote: »

With respect, I find it a bit insulting that you are looking for sympathy here, and worse - another mortgage!!

It's not a great situation to be in but why on earth would somebody buy an apartment if they planned on having several children?

I had the opportunity to buy properties back in 2005 buy I didn't. I wasn't greedy. Now I'm paying ridiculous rent and struggling to meet strict FTB requirements for my first home.

i never understand the people who say it was greed to buy a property during the boom. is it greed to put your money in a bank and look for interest on it? Just another form of investment. Are alll investments greed?

you say you had an opportunity to buy properties but you didnt....why not? why didn't you buy one instead of having paid the guts of €132,000 in rent since 2005 (€1000 per month). To some people it was sensible to buy a property. Not everyone can and should be put into the same bracket as the speculators who bought dozens of properties.

To the OP,
seriously look into selling possibly your apartment. The market is rising. Despite receiving high rent, I recently sold a property as it had come up to a sufficient level to sell it.

mahoganygas

rubberdiddies wrote: »

i never understand the people who say it was greed to buy a property during the boom. is it greed to put your money in a bank and look for interest on it? Just another form of investment. Are alll investments greed?

No, but borrowing to buy 3 to 10 properties is.
What collateral other than a modest income were these speculators putting forward?

rubberdiddies wrote: »

you say you had an opportunity to buy properties but you didnt....why not?

I had the opportunity to buy a shoebox apartment in the commuter belt.
I knew I eventually wanted to start a family in future. It was a no-brainer.

Macha

intheclouds wrote: »

This is just to inject a note of realism - the combined income here is low imo. Is it likely to increase in the future?

According to this Irish Times calculator, a household income of 88k with 2 kids means OP's income is higher than 90% of Irish households.

The mind boggles at the cost of living in Ireland.

OP, I think it's clear: you're going to have to offload some debt before a bank will give you more.

intheclouds

Macha wrote: »

According to this Irish Times calculator, a household income of 88k with 2 kids means OP's income is higher than 90% of Irish households.

The mind boggles at the cost of living in Ireland.

OP, I think it's clear: you're going to have to offload some debt before a bank will give you more.

Wow! Never would have thought that!

lawred2

Macha wrote: »

According to this Irish Times calculator, a household income of 88k with 2 kids means OP's income is higher than 90% of Irish households.

The mind boggles at the cost of living in Ireland.

OP, I think it's clear: you're going to have to offload some debt before a bank will give you more.

That calculator input is after tax income

Still haven't been told whether the 88k is gross or net