Hello, Ladies and Gents,
I'm seeking for opinions on my little story and, hopefully, I'll get some help in coming up with a good-value wise financial solution for my planned property purchase.
Originally I'm from Belarus. I've moved to Ireland 5 years ago and have a good credit history so far (haven't checked with the Credit Bureau, but there should be no reasons to believe otherwise). Now I think it's a time for me to buy some property and the place that I'd like to invest in is my home country. I'm planning to stay live in Europe and to have property in Belarus as an investment.
A nice large 2-bed apartment in Minsk City-centre costs around 70,000/EUR. I have no more loans or CC's to pay off and am able to save up to 800/EUR a month. At the moment I have very little savings, as was busy paying off my debts (regrettably, it was so easy to get into debt here).
I could come up of 3 possible ways of financing my purchase:
1) Getting a mortgage in Ireland;
2) Saving + getting a personal loan in Ireland;
3) Saving + getting a loan in Belarus.
Here is what I'm thinking about these solutions:
1) I have no property in Ireland to secure a mortgage for an oversees purchase. I've heard somewhere that one should have property here first before being approved for a mortgage for buying abroad... Is this actually true? I've googled this subject and couldn't find any more-less clear response.
2) I could save over 2 years, which would give me 20,000/EUR + I could borrow 50,000/EUR from my bank as a personal loan. I have an experience of having loans from BOI, but I've never borrowed such a large amount and not sure whether I'd be approved for such a loan. - -My take-home income is about 2,400 a month;
-I have no outgoings other than my rent, bills, grocery and closing, so
-800 a month could be paid toward the loan over 5 years;
-I am with my bank for the past 5 years (will be 7 by the time I'll be ready to borrow);
-Property market in Belarus is closed for foreign buyers at the moment and prices are quite stable, so I don't expect prices to rise more than 4% in next 2 years (their inflation is about 10% per annum).
Any idea whether it'd be easy to get a loan of 50,000/EUR for someone who doesn't have property to secure such a lone?
3) Using a property building scheme in Belarus, which looks like an expensive alternative:
(First of all, inflation there is 10% per annum):
-saving for 2 years in local currency with 10.5% interest rate (no DIRT deductible);
-after saving period they'll top-up the saved amount for up to 75% of the property price, the interest on such loan is 11.5% (all in local currency).
The advantage of this solution is that I have the right for an approved loan after 2 years of regular savings and they have no right to decline the loan, while there is no certainty of
whether Irish loan would be approved.
Thank you for reading until this point
I did a little bit of calculations and it looks like the cost of loan for No.3 would be around 4,000/EUR more than No.2 after I've adjusted for inflation in both cases, but knowing that I'll get my Belorussian loan gives my a bit of security.
I would really appreciate your, guys, opinions or information on Irish loans.
Thank you very much!
Alex
I'm seeking for opinions on my little story and, hopefully, I'll get some help in coming up with a good-value wise financial solution for my planned property purchase.
Originally I'm from Belarus. I've moved to Ireland 5 years ago and have a good credit history so far (haven't checked with the Credit Bureau, but there should be no reasons to believe otherwise). Now I think it's a time for me to buy some property and the place that I'd like to invest in is my home country. I'm planning to stay live in Europe and to have property in Belarus as an investment.
A nice large 2-bed apartment in Minsk City-centre costs around 70,000/EUR. I have no more loans or CC's to pay off and am able to save up to 800/EUR a month. At the moment I have very little savings, as was busy paying off my debts (regrettably, it was so easy to get into debt here).
I could come up of 3 possible ways of financing my purchase:
1) Getting a mortgage in Ireland;
2) Saving + getting a personal loan in Ireland;
3) Saving + getting a loan in Belarus.
Here is what I'm thinking about these solutions:
1) I have no property in Ireland to secure a mortgage for an oversees purchase. I've heard somewhere that one should have property here first before being approved for a mortgage for buying abroad... Is this actually true? I've googled this subject and couldn't find any more-less clear response.
2) I could save over 2 years, which would give me 20,000/EUR + I could borrow 50,000/EUR from my bank as a personal loan. I have an experience of having loans from BOI, but I've never borrowed such a large amount and not sure whether I'd be approved for such a loan. - -My take-home income is about 2,400 a month;
-I have no outgoings other than my rent, bills, grocery and closing, so
-800 a month could be paid toward the loan over 5 years;
-I am with my bank for the past 5 years (will be 7 by the time I'll be ready to borrow);
-Property market in Belarus is closed for foreign buyers at the moment and prices are quite stable, so I don't expect prices to rise more than 4% in next 2 years (their inflation is about 10% per annum).
Any idea whether it'd be easy to get a loan of 50,000/EUR for someone who doesn't have property to secure such a lone?
3) Using a property building scheme in Belarus, which looks like an expensive alternative:
(First of all, inflation there is 10% per annum):
-saving for 2 years in local currency with 10.5% interest rate (no DIRT deductible);
-after saving period they'll top-up the saved amount for up to 75% of the property price, the interest on such loan is 11.5% (all in local currency).
The advantage of this solution is that I have the right for an approved loan after 2 years of regular savings and they have no right to decline the loan, while there is no certainty of
whether Irish loan would be approved.
Thank you for reading until this point
I did a little bit of calculations and it looks like the cost of loan for No.3 would be around 4,000/EUR more than No.2 after I've adjusted for inflation in both cases, but knowing that I'll get my Belorussian loan gives my a bit of security.
I would really appreciate your, guys, opinions or information on Irish loans.
Thank you very much!
Alex