Buy site for cash, will this count as deposit

F

Frank Underwood

Registered User
Messages
37
Can anyone advise. We need to move and we are looking at options. One option is to buy a site in east cork with unrestricted planning. So say we buy a site for cash for €80k, does that count as our 20% deposit? We are thinking we will buy a site with a few years to run on the planning. Put our own house on the market, we will have no problem selling. We are in a very popular estate. Houses always sell, so I would not worry at all about that. Then go back to the bank in 12-18 months and start stage drawdown of mortgage. We do need to get in front of a mortgage broker but I’m away a lot at the moment so we can’t do it for another month or two. Thanks for reading.
 
Frank Underwood said:
We are in a very popular estate. Houses always sell, so I would not worry at all about that.
Click to expand...

Hi Frank

You have to be aware that the market can change suddenly. Houses selling well today may be unmarketable next year.

All of these transactions have risk attached, and you should be aware of those risks and mitigate them.

Brendan
 
To the original question, yes your payment for the site counts towards the 20% to satisfy CBI rules.
 
That's good to know Red Onion.
On another note, can you tell me if a man who had bought an apartment when single and he and his wife now want to buy a house. Can she buy the house as a 1st time buyer?
 
noproblem said:
That's good to know Red Onion.
On another note, can you tell me if a man who had bought an apartment when single and he and his wife now want to buy a house. Can she buy the house as a 1st time buyer?
Click to expand...
Did the man have a home loan previously? That's the test for CBI - you don't need to be a first time buyer, but a first time Mortgagee.

If he had a Mortgage, then they need a 20% deposit (unless he's in negative equity).

The wording in legislation:
"Where the borrower under a housing loan is more than one person and a housing loan has previously been advanced to any one of those persons, none of those persons is a first-time buyer."
 
You must log in or register to reply here.
Back
Top