options available to property owner with no mortgage

  • Thread starter clonsilla201
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clonsilla201

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Hi,

first post here. Mods: Apologies if it is in the wrong forum.

I was gifted a property worth about 220K in D. 15 in 2009. There is no mortgage outstanding on the property.

The property (a 3 bedroom house) is in a good area for rentals.

I am thinking of renting out the house (rental value is about 900-1000 per month) and purchasing an apartment in or, at least nearer, to Dublin city for about 150K (if possible).

I don't have a deposit. My income is around 1000 per month.

My question is basically: Can I use the house as collateral (and/or deposit) to get a mortgage on an apartment? And can I then use the rental income from the house to pay the mortgage on the apartment? Would lending institutions go for an arrangement like that?

Or, with my low income and no deposit am I just not going to get a mortgage?

As you can probably tell, I don't know much about property, so if there are better options out there or better ways I could leverage the collateral offered by the house, I'd be very interested in hearing them.

Thanks!
 
"I don't know much about property" == key issue

"I don't know much about property"
You need serious advice that looks at your overall situation. Getting a house gifted is "good fortune", I would worry that you could end up over complicating your life.
Rental property and tenants require work (management), an accountant and Hassle (are you ready for a call for a leak at 10pm on a Saturday night? or times when it wont be rented due to no tenants or refurbishing between tenants?

Your income does not allow for mistakes/backup - I think.

There are more here that can give you more advice.

Tread warily and get advice.

m;)
 
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I wouldn't describe Clonsilla as being a good area for rentals, there's a serious over supply of property there.
You will be liable for income tax on all your rental income as you will have very little to offset against it as you have no mortgage interest so your 900-1000 will quickly become 700-800 or less.
You will have to register with the PRTB.
I think you'd be better off staying in the house.
 
and pay Property Tax (200 p/a at present but .....................up)
and Accountant Fees
and BER
and NPPR fees
and Apartment maintenance (1k p/a approx)
and if we head into Deflation - Cash will be king!!

Maybe get a good Deposit account???
 
While the rental market is still contracting I would advise you stay well away pool of good renters is small

This is the wrong time to enter the rental market tenants require a lot more high standards and you will have to pay their bin charges cut the grass cable TV etc tenants are king

dont buy anything my advice is simple sell your property and bank the cash
renting is the best way to live and probably for the next five years

I wish you well by the way I am a landlord....
 
pascal12 said:
dont buy anything my advice is simple sell your property and bank the cash
Click to expand...

Or you could sell the house and buy an apartment with the proceeds and still have a few bob left over.

I agree that having two properties does not make a lot of sense (it was that sort of thing that got us all into the state we now find ourselves in).

Homer
 
being a landlord is risky, can be hard work and an intrusion into your life, not something that should be done on a whim.

You could get into serious trouble, if a tenant trashes your place/stops paying rent, Do youo have other sources of income to cover mortgage or cost of repairs?
 
Live in the house or sell it and buy an apartment. Avoid having a mortgage of any kind.

For the moment anyway.
 
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