need some advice - keep saving or try to buy

[rosecottage]

Hi,

hope i can get some help as very confused on what to do.

age: 27 partner 28
salary 27k partner same

I inherited a house in a sought after seaview location about 2 years ago and had to pay inher. tax, plus completely renovate the property which i have a mortgage of 140k costing €630 per month. House worth approx 500k.
The house location is not where i can live with work.

We are paying rent of 450 per month and saving 450 per month and have savings of 14k.
Planning now this year to rent out the property, not sure how it will work out with the economic climate.
have also considered selling not sure if this is the right option

Ideally want to buy but not sure what our options would be, not sure how much we would need to have saved for deposit??
Should we continue saving??
would a bank take into account the other property towards giving us a mortgage

 

[PaddyW]

If I were you I'd keep saving. Seaview location for rent, might get a decent price for rent, if you can keep it below the competitors. Use the excess after mortgage payments to top up your savings.

 

[rosecottage]

Thanks for that, do you think it would be a good/bad idea to pay interest only in the mortgage for a bit and save that way also??