Mortgage amount

[louthguy]

Hi I am looking at purchasing a house in ireland .Im just wondering if anyone thinks its better to put a 100k euro downpayment on a 185k house with a lesser mortgageor just put down the deposit required and let the tenants pay the rest of the mortgage as planned?

 

[Bronte]

Are you in Ireland. Good luck with thinking the rent will cover the mortgage once you've all the other costs included. And it's better to have a larger mortgage as otherwise you'll pay more tax. Any chance of some figures you've calculated to see if this proposition makes sense.

 

[Joe_90]

I don't understand the view that it's better to pay €1,000 in interest because you don't have to pay tax of €375!

Net cost €625!!!

The question should be can I get a better rate of return elsewhere on the surplus than the after tax cost.

 

[louthguy]

I am living outside of Ireland at present and working. ive been told by mortgage lenders that if I put down 100k on the house as deposit and take 85k of a loan then I will pay around 840euro per month for 10 years.

if I put down the minimum of 35% of the house price that would be 64,750 euro with 120k left to pay and over 15 years it would be around 865euro per month. I don't want to have a 20-25 year mortgage.

by the way this property fetches around 900-950 euro per month. thanks