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I'd like to buy a 2 bedroom apartment in Dublin

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  • 01-06-2019 1:18pm
    #1
    letsgo2018
    Registered Users Posts: 367 ✭✭


    I currently live and work in Waterford. I'm not from here and would eventually like to live in Dublin . Would the banks have any issue giving me a mortgage for an apartment in Dublin if I wasn't living in it yet . My plan is to let it out for a year or 2 . I'm currently doing a course that will allow me to command big contract rates in Dublin however I realise the banks won't give me a mortgage if I got the contract job first but there's nothing to stop me doing it after the mortgage is approved, thoughts ?


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    #2
    Gumbo
    Moderators, Society & Culture Moderators Posts: 39,328 Mod ✭✭✭✭Gumbo


    letsgo2018 wrote: »
    I currently live and work in Waterford. I'm not from here and would eventually like to live in Dublin . Would the banks have any issue giving me a mortgage for an apartment in Dublin if I wasn't living in it yet . My plan is to let it out for a year or 2 . I'm currently doing a course that will allow me to command big contract rates in Dublin however I realise the banks won't give me a mortgage if I got the contract job first but there's nothing to stop me doing it after the mortgage is approved, thoughts ?

    Buy to let is a different type of application and mortgage process than buying to live in.

    Are you working now? How will provide proof of income to get the mortgage?


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    #3
    letsgo2018
    Registered Users Posts: 367 ✭✭letsgo2018


    Yes I work in Waterford. To be honest I don't really want to let . I want to buy it and move up as soon as I can


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    #4
    Fol20
    Registered Users Posts: 3,624 ✭✭✭Fol20


    A btl is a different type of application and will allow to do one if you are not living in dublin. Do you have any experience in the rental industry? You will also need to have a deposit of at least 30pc. You will also need to have a minimum amount of income to sustain yourself. This does not need to be a paye job.

    You mention you are doing a course that will command a high contract rate. Do you have any previous work history of commanding a sustained high contract rate. If not, then you cant assume it until you actually do the deed.


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    #5
    letsgo2018
    Registered Users Posts: 367 ✭✭letsgo2018


    To be honest I don't want to let . I'll only do that if I have to . My preference is to move up as soon I can


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    #6
    Fol20
    Registered Users Posts: 3,624 ✭✭✭Fol20


    In that case, you will need to rent in dublin, get a job in dublin, and then look.

    In terms of contracting, others will be able to give you more info on this however i suspect if your new to contracting, they may not be willing to give you loan. Its all about checking your work history and affordability.


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    #7
    letsgo2018
    Registered Users Posts: 367 ✭✭letsgo2018


    Fol20 wrote: »
    A btl is a different type of application and will allow to do one if you are not living in dublin. Do you have any experience in the rental industry? You will also need to have a deposit of at least 30pc. You will also need to have a minimum amount of income to sustain yourself. This does not need to be a paye job.

    You mention you are doing a course that will command a high contract rate. Do you have any previous work history of commanding a sustained high contract rate. If not, then you cant assume it until you actually do the deed.

    Do you need a paye job to get a mortgage for a place you plan to live in yourself


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    #8
    Fol20
    Registered Users Posts: 3,624 ✭✭✭Fol20


    letsgo2018 wrote: »
    Do you need a paye job to get a mortgage for a place you plan to live in yourself

    I was saying this from a btl perspective. If you have enough cashflow in rentals or other forms of income, they will take these on board.

    In your case do you have other revenue streams?


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    #9
    Del2005
    Registered Users Posts: 18,988 ✭✭✭✭Del2005


    If you rent it with the planned legislation being able to get your apartment back in 2 years might be impossible, with the current legislation you can be waiting 2 years to remove a non paying tenant.

    You'll struggle to get a mortgage in a permanent job if you are less than 6 months there and if contracting it'll be longer.


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    #10
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    IF you want to buy the apartment ,move to dublin,
    rent a flat,
    If you are self employed you,ll need to show proof of your income ,
    your savings to apply for a loan.
    Most people will have tax returns or or documents for at least 2 years from an accountant
    to show they have a steady income.
    You will need to have 20 per cent approx deposit to get a standard
    mortgage ,
    probably more to get a BTL investment mortgage.
    http://www.icsmortgages.ie/btl-mortgages

    go to a mortgage broker , he,ll give you more detailed info .
    They take info into account, your income, your savings ,your future rental
    income.

    https://aib.ie/our-products/mortgages/residential-buy-to-let-mortgage


    The Interest rate for btl loans is higher than the standard variable rate
    home loan.
    https://www.permanenttsb.ie/mortgages/buy-to-let-mortgage/

    say you borrow 200k,
    the interest on a btl loan could be 5 per cent vs 3.5 per cent
    for a standard home loan.
    That means a btl could cost you 35 per cent more at least per month ,
    than if you just borrowed using a standard variable rate home loan.


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    #11
    colm_c
    Registered Users Posts: 2,031 ✭✭✭colm_c


    OP, what magic course are you doing that will allow you to command big rates in Dublin?

    I am assuming it's IT contracting.

    Big rates are typically for either very niche roles or people with a lot of experience.

    Back to the topic on hand, you'll need to get a steady contract and rent for the first 6 months.


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    #12
    TimeToShine
    Registered Users Posts: 4,881 ✭✭✭TimeToShine


    Slightly OT but if OP is making €150k+ and has the deposit saved up but lives in Waterford are you all saying that he would be denied a mortgage? Why is his current living situation relevant?


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    #13
    GingerLily
    Registered Users Posts: 4,767 ✭✭✭GingerLily


    TimeToShine wrote: »
    Slightly OT but if OP is making €150k+ and has the deposit saved up but lives in Waterford are you all saying that he would be denied a mortgage? Why is his current living situation relevant?

    You have to buy within a reasonable distance of your employment to qualify for a residential home loan.

    Some posters on here have been refused mortgages as the bank assessed the commute too far before, they won't entertain a Dublin/Waterford distance.

    In this market OP I think you don't stand a chance, it's too much of a risk for a bank.


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    #14
    kippy
    Registered Users Posts: 18,584 ✭✭✭✭kippy


    letsgo2018 wrote: »
    I currently live and work in Waterford. I'm not from here and would eventually like to live in Dublin . Would the banks have any issue giving me a mortgage for an apartment in Dublin if I wasn't living in it yet . My plan is to let it out for a year or 2 . I'm currently doing a course that will allow me to command big contract rates in Dublin however I realise the banks won't give me a mortgage if I got the contract job first but there's nothing to stop me doing it after the mortgage is approved, thoughts ?

    Personally, I'd recommend a rethink of your rationale for purchasing/living in Dublin.


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