Buy out or not buy out

Hi all

May seem like a stupid question but I am looking for some advice. I bought an apartment with my partner 3 years ago for 174000. It is now going for 310000. The relationship hasnt worked out and we are going our separate ways. He has given me the option of selling and splitting the profit or buying him out. I am not really sure what to do? Can anyone advise? I earn 40K a year and our current mortgage is currenly €800 but would obviously rise if I have to remortgage to buy partner out. But then I am thinking of taking my 50-60K and going off and buying my own place, new, with no stamp duty.

Appreciate anyones thoughts on this

Thanks
D

Do you want to live there? Do you like the area? Financial considerations aside for a moment, splitting up with someone is very tough, you may want to avoid a stressful house move as well OR decide that a fresh start is just what you need.

A friend

hey, I like the area, but given the circumstances I think I would rather try and move back nearer to where I am from.... I hear what you are saying about not getting something similar to what I have now, but my ex changes his mind like the weather and one minute says I can buy him out but then there is always the possibility that he could change his mind, this is why I am thinking clean break....... My next question is can someone give me a rough estimate of what I would qualify for on my own with about €50K to put towards salary of 40K?

Hi deetah,

Soory to hear about things not working out. Nice capital increase on the apt. though. Anyhow, first off you'll not now be a first time buyer so be careful of stamp duty (esp. if buying second-hand).

If the banks stick to recommended guidelines you'll get 4 x 40K of a mortgage so thats 160K. If we assume you've paid nothing off the apt. then the increase is 136K and your partner is due 68K less any expenses in sale I guess. In reality he's probably due a bit more as you'll have paid something off the mortgage.

174K + 68K means you'll need a mortgage of 242K about 80K over what you'd typically get. However depending on your disposable income you may be able to get more and if you throuw in some rental income - whether you rent or not - then you may get up to this figure.

242K will cost about 1120 on a 30 year tracker with PTSB (for example) and excluding any expense you should be getting about 2600 take home monthly so thats ~43% of your take home in mortgage and rates are going up so expect another 100 or 200 p.m. on the 242K mortgage this time next year.

Finally I don't know if there are any stamp duty implications on buying your partnet out but I'm sure someone else here will help on that one.

Best of luck,

N.