Considering a new Property Investment


Registered User
Age: 39
Spouse’s/Partner's age: 43

Annual gross income from employment or profession: €85,000
Annual gross income of spouse:

Monthly take-home pay

Type of employment: Me: Public Servant. Partner: Civil Servant.

In general are you:
(a) spending more than you earn, or
(b) saving?
Saving more than I earn.

Rough estimate of value of home: €650,000
Amount outstanding on your mortgage: €245,000
What interest rate are you paying? 2.3 fixed for 2 years.

Other borrowings – car loans/personal loans etc. No car loans/personal loans.

Do you pay off your full credit card balance each month? Yes
If not, what is the balance on your credit card? 0

Savings and investments:
Savings of circa €25,000

Do you have a pension scheme? Yes. Pre 2004 scheme.

Do you own any investment or other property? I own one investment property since 2003 - mortgage balance of €50,000 on a house worth €160,000. Tracker rate .6%.
I will inherit 50 acres of farmland valued at circa €300,000 within next 12 months.

Ages of children: none. Won’t be any.

Life insurance: salary protection plus mortgage protection insurance on reducing balance of both properties.

What specific question do you have or what issues are of concern to you?

An interesting property investment opportunity has come up for sale - repossession property. It’s an attractive listed property that has been divided into four one beds in a town centre location that I am very familiar with. Strong long term rental demand and Airbandb. The house is not planning compliant (sub division) and this has been the case for circa 10 years. There is no suggestion the Council has given notice re remedying the non compliance. Ive been informed the units are rented out for €750 each -€3K in total. This sounds low for the area. I haven’t viewed the property yet. It’s not clear if all the tenancies are registered. Purchase price: circa €200k. Thus, initial gross rental return before any improvements: 18%.

I am considering how I might fund this purchase. I presume it would be difficult to get an investment mortgage if it isn’t currently planning compliant? Can anyone advise how I might access the funding? I am open to selling my current investment property but would prefer to hold it for another few years as I have an excellent tenant and no problems. If I did sell, I would still have circa €100K to come up with.
Looking for guidance on funding the purchase here. I think this is a very good long term investment, if I can source the funding.
Many thanks


Registered User
Assume 160k is the reserve price? Is this an auction property or private sale? If auction I would assume the price would be bid up to bring the yield more in line.

With savings of 25k, you don't have enough to fund this purchase at the minute, for example KBC require a 30% deposit on BTL mortgages


Registered User
Its a private treaty sale. I wonder would it be possible/advisable to release some equity by remortgaging my own home? Or could I get a Credit Union loan to cover some of the purchase. The figures seem strong for a rental property.


Registered User
I’m guessing the “reason” is the property is not planning compliant as it stands and as a result, I am presuming not possible to get an investment mortgage on it. Hence, why I am seeking advice on other possible ways I could fund this purchase if after due diligence, it seems like a runner.


Frequent Poster
Releasing equity from your own home seems the logical and cheapest solution,IMHO. with your income and small mortgage it shouldnt be an issue. but the bank may ask what your releasing it for. Boi wanted all the details on a London property i wanted to release equity to buy, but i was releasing almost all of my equity. Taking out a credit union loan seems unnecessary given you already have cash sitting in your current bricks and mortar. Having said all that I personally would stay away from listed properties. The headache you might have trying to change anything even if you wanted / were required to do could be enormous.