Best way onto property ladder?

A

amofeeney

Registered User
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hi some advice please..here is our situation.

parents own (mortgage free) an apartment valued at €310k
myself & partner are mortgage approved for €297,500k
house we want to buy is €440k

idea was for parents to sell and contibute €220k towards price and move in with us. We dont have problem living together as house is huge etc plus my parents are aging and the top floor apt is not going to be suitable very soon.
BUT>>>
i am wondering is there a way for us to work this out without having to dispose of the apartment? ie: would banks take rental income that would be gained from the apartment into consideration? or anything like that?

I was originally approved as self-employed (3 months ago) but am now about to start full time job with salary 31k.partner earns 30k.

what would the financial whizzes out there do?
 
amofeeney said:
myself & partner are mortgage approved for €297,500k
house we want to buy is €440k

...

i am wondering is there a way for us to work this out without having to dispose of the apartment?

...

what would the financial whizzes out there do?
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Personally I'd probably compromise on my ideal purchase and buy something within my own budget that met as many of my important criteria as possible.
 
on that budget in Dublin??!! plus only reason bank agreed to mortgage was that ltv was so low because of the big lump sum of cash being put up. (220K)
 
You could try buying jointly with parents, then their income and assets would be taken into account.

Personally I'd sell the apartment as that way you and your parents seem to be able to afford the house.
 
Have you considered an equity release from you parents home - assuming they agree?

There is definitely more than one way you can get on the property ladder
check out - [broken link removed]
 
amofeeney said:
on that budget in Dublin??!! plus only reason bank agreed to mortgage was that ltv was so low because of the big lump sum of cash being put up. (220K)
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I did a search on Myhome.ie for properties in Dublin for up to €300K and it returned 300 which is not even the full list.
 
Clubman, the word "property" does not equate to "house". Personally, I would like a house for various personal reasons. Within my budget which is sub 300K are one bedroomed apartments which don't fit my needs. On occasion a two bed apartment might show up. A budget of 440K gives you a lot more freedom of choice.

While not wanting to speak on behalf of the OP, I would have to say that it is disingenuous and insulting to tell him that what he wants is available at the price he wants to pay.

OP - rent for a while. There's actually nothing wrong with renting what you want to live in if it's not available to buy at a rational price. Personally I wouldn't be stretching myself to pay a mortgage if I can afford the rent and what you are describing doing sounds a bit convoluted for my liking.
 
Calina said:
Clubman, the word "property" does not equate to "house".
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OK - weed out the apartments and you get about 100 houses under €300K in the Dublin area.
While not wanting to speak on behalf of the OP, I would have to say that it is disingenuous and insulting to tell him that what he wants is available at the price he wants to pay.
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I never said that. I said that if he moderated his requirements a bit then he might find something acceptable within budget. If you find that disingenuous or insulting then you must be of a very, very sensitive disposition or something... :rolleyes:
 
Try and stick to what yous are approved for. The banks dont do it to be mean, they do it on affordability etc.
 
ClubMan said:
OK - weed out the apartments and you get about 100 houses under €300K in the Dublin area.
I never said that. I said that if he moderated his requirements a bit then he might find something acceptable within budget. If you find that disingenuous or insulting then you must be of a very, very sensitive disposition or something... :rolleyes:
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A bit defensive, are you?

Put it this way. You get 100 houses at sub 300KE in the Dublin Area. I don't know where the OP is, but the question is are those houses usefully accessible to his/her place of work? How do you know what is acceptable and what his or her needs are.

I'm not sensitive - I think your position is stupid and based on the "of course there are houses within your price range don't be silly" variety. There are houses in a lot of people's price ranges. But you don't know what their requirements are, or where, especially they want to leave.

Far too many people in this country bought houses that were within their price range who are now spending 4 hours daily commuting, who are spending a fortune on fuel commuting, and contributing to our carbon footprint in a meaningful way. Many of them have bought in places where facilities will be in place "in the future". On a regular basis on this forum and on the accom forum on boards are questions that go "I bought a house in [somewhere in the wilds of north county Dublin with an irregular bus service and occasional train service] and work [somewhere like Sandyford or Clonsilla] does anyone know the fastest way to get to work".

Far too many people bought woefully inadequate one bedroomed apartment so called starter homes which are now already starting to depreciate on the grounds that they could trade up...

The OP wants to buy a home by the sounds of things. I don't necessarily agree with the way he's going about it - personally I'd rent rather than do it - but at least he's looking at his overall needs, not just his "need to own a property at all costs no matter where no matter what" point of view.

The primary requirement he could moderate is the need to own it. He would have a far better choice of property in terms of location and utility than he would by moderating the amount of money he is willing to go into debt with.

But it's his decision and in terms of his question as to what other people would do I'd drop the idea for 12 months and rent.
 
hey, yes Calina you are right..it's a house i want. we are currently living in a one bed local authority property. but we want to start planning our family etc.
all the houses under 300k on myhome that are in Dublin are NOT places you want to be raising children.

Also nobody seemed to understand my point that the bank only approved the 300k on the basis of my parents putting the lump sum of 220k down!
 
Your circumstances have changed since the mortgage app - it might be worth seeing how they might be revised in light of new developments.

In any case, to your original question about keeping the apartment - the question would be "what for?" If you're planning to start a family, do you really want the hassle of being a landlord, and identifying the accompanying tax ramifications. Some people are okay with it...it's up to you.
 
amofeeney said:
Also nobody seemed to understand my point that the bank only approved the 300k on the basis of my parents putting the lump sum of 220k down!
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So you want to keep the apartment and take on a mortgage of over 7 times your combined salaries - plus you're talking about starting a family, so possibly one of you will have to take a break from their job or you'll incur child minding costs?

If the question you're really asking is "my parents don't want to sell their place and move in with me really, but I do want to buy a 400k house" then the answer is simply you can't afford it. You might want to look into affordable housing options, but even then you're unlikely to break the 300k barrier.

If the question is "I want to keep the apartment and rent it out because property will make me millions" then again you can't afford your house unless your parents manage to take out some loan on the back of their apartment - unlikely.
 
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