A friend of mine in USA asked me about buying property in ireland as investment.
He was hoping to borrow as much as he can here, letting the house and perhaps in a few years, coming back to live/retire.
I have told him that there may be better investment oppertunities either in USA, the economy of which he should be familiar with, or elsewhere in Europe.
I have mentioned that he will have to pay stamp duty, as in my view he will not will not qualify as a first time buyer and anyway, he is buying for investment. I have also told him that the tenant/agent will have to deduct a withholding tax at source.
Finally, I mentioned that I felt the maximun loan to value he would get would be about 60% as he has no ties with Ireland, will not be living here and that if things went totally sour, he could walk away and the bank would find it hard to pursue him in USA.
Does anyone have any thoughts or other hints I can tell him?
He was hoping to borrow as much as he can here, letting the house and perhaps in a few years, coming back to live/retire.
I have told him that there may be better investment oppertunities either in USA, the economy of which he should be familiar with, or elsewhere in Europe.
I have mentioned that he will have to pay stamp duty, as in my view he will not will not qualify as a first time buyer and anyway, he is buying for investment. I have also told him that the tenant/agent will have to deduct a withholding tax at source.
Finally, I mentioned that I felt the maximun loan to value he would get would be about 60% as he has no ties with Ireland, will not be living here and that if things went totally sour, he could walk away and the bank would find it hard to pursue him in USA.
Does anyone have any thoughts or other hints I can tell him?