Buying house back in ireland

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louthguy

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hi im working in Australia the past few years and im looking at buying a house back in Ireland . I am looking to buy a house for 165k and pay 65k towards it with a mortgage for the other 100k. can anyone please let me know if this is a good idea or a risky move . I can get the mortgage from the bank and the rent will cover the mortgage fees. I know there will be some costs but I can cover those. thanks
 
louthguy said:
I can get the mortgage from the bank................................................
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Do you mean a bank in Australia will give you a mortgage for an investment property in Ireland ?

Or

Do you mean returning to Ireland, with a €65K deposit ?

If you mean the latter, your 40% deposit, on its own would not be enough to get a mortgage, you would have to meet all the banks other lending criteria.
 
Why are you buying a house in Ireland? Can you expand on your thinking on this.
 
thanks all for the replies. have got approval from bank in Ireland for 100k mortgage. I have money in the bank and would like to get a property at home to rent out and pay off the rest of the mortgage. the house im looking at is in a good area
 
Well from your point of view it's great you've mortgage approval. Now tell us more about why you want to buy there rather than in Oz?

Who is going to manage this house for you?

Do you realise the costs of being a landlord, the taxes etc. Post up rental figures and mortgage repayments please.

Do you know the strain it can be to being a landlord, not everyone is cut out for it.
 
im planning on returning to Ireland in next few years and don't see myself living in Australia. my brother lives close by to it so he manage it for me until I return. im aware there are taxes to be paid on rental income etc.

Rent at the moment in the house is 900euro per month . The mortgage would be 100k as i would pay 65k towards the overall 165k .Over 10 years the repayments are 990euro per month which I can cover the rest. I know it can be a strain as I also have friends who have done this.
 
louthguy said:
have got approval from bank in Ireland for 100k mortgage.
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It is very interesting that an Irish Bank would give approval for a mortgage to a person living in Australia, to buy a property in Ireland. Have I got this right ?

I have nieces / nephews living abroad who would be very interested in this, can you tell us more ? which bank ?

I’m sure there were many hurdles you had to overcome, all info appreciated.

My nieces / nephews always believed this arrangement was not possible.

Thanks.
 
ive been working in mining industry there for last 4 years and still save with my bank at home in Ireland. its aib.

im lucky to have a good job and a lot of savings. so you are saying expats cant get a mortgage in Ireland? my friend in UAE got a mortgage last year and has a house back in ireland
 
louthguy said:
so you are saying expats cant get a mortgage in Ireland?
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No, like you, I am looking for advice.

I was of the opinion that such an arrangement was not possible, obviously if you and your friend got approval then it is possible.

My nieces / nephews would be very interested in doing similar, particularly at what appears to be a very competitive investment rate of 3.5%.

I will direct them to AIB so, was it a difficult process getting approval while living abroad, any tips ?

Thanks.
 
louthguy said:
Rent at the moment in the house is 900euro per month . The mortgage would be 100k as i would pay 65k towards the overall 165k .Over 10 years the repayments are 990euro per month which I can cover the rest. I know it can be a strain as I also have friends who have done this.
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So we are already at a shortfall €1080. How much else will you have to contribute? These questions are not picking holes in your decision, just making sure you know what you are getting into. Will you be paying your brother and is he happy to take the job on. It's a good decision as it's what I do myself as I don't trust auctioneers to look after a property as well as I know my relations do. But I pay them. And treat it as a business transaction.
 
twofor1 said:
I was of the opinion that such an arrangement was not possible, obviously if you and your friend got approval then it is possible.

.
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It most certainly used to be possible but then for a while I think it became very difficult, and now it looks like it's once again not so difficult.
 
Bronte said:
So we are already at a shortfall €1080.
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I agree with above plus you will also have to provide for tax on the portion that you reduce the principle by. You have House insurance, repairs & renewals, Prtb which are tax deductible as will 75% of your Interest. You will have LPT, which is not tax deductible. Be careful that you do not get into a cash flow problem.
 
I was hoping Dermot he'd list those items so we could figure out if he knows what he's getting into !
 
Bronte said:
It most certainly used to be possible but then for a while I think it became very difficult, and now it looks like it's once again not so difficult.
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It would seem from the informative tread below anyway, that as recently as December 2015, Irish living abroad could get mortgages for property in Ireland, but with very strict lending criteria which effectively precludes most.

If you were a very high earner looking for a low LTV mortgage and the rental income, if taken into account at all must exceed the mortgage repayment, then you might be considered, mostly at the higher Buy To Let rate.

http://www.askaboutmoney.com/threads/non-resident-mortgages-for-irish-abroad.186930/
 
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