Property purchase funding options

C

Cork201879

Registered User
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Hi,

We have spotted a property that we're really interested in with a price tag of €960k and don't know how or if we could fund It's purchase.

The property has a number of complete units with potential rental income of €3k/month and a site that would be developed for our family residence with a further expenditure of €250k.

Assets
Our home value €530k with mortgage of €355k and hence equity of €175k
5 acres worth €100k
Investment 3 bed semi with no mortgage €250k (leased for €950/month with 8 months left on lease).
Investment apartment on tracker worth €250k mortgage of €220k
€15k savings

Income
Combined income of €165k plus €30k bonus plus pensions and healthcare. Outside of mortgage childcare for our 2 children is our largest expense of €1600/ month.

Plan
If we sell our family home and the 5 acres and then use the €275k as a deposit borrowing the remaining €685k, using our savings for legal fees etc. Would it be possible to get funding? And is there a bank people would recommend that would be interested in an investment/residential mix?
 
You would have to sell the family home, the investment property and the land to give you €525k. Then you would borrow €435 to buy the property and a further €250k to build the house.

I don't think it's on.

You might be able to buy it, but I don't think you could borrow the additional €250k to build.

How many complete units are there? Could you live in one of them while you are building up your savings again to get the money to build the house?

Could you buy it and sell one of the units to fund the building?

Brendan
 
Does the site have full planning permission?
I'm aasuming the investment are residential units?

If the purchase was split as 2 transactions - the site and the investment, what would split in value be?

How much would it cost to complete the remaining units, and what would gross rent be when completed?
 
Hi,

The 2 units are complete and residential with rental of ~3,500 combined.

The 3rd unit which is also residential is in poor repair but has planning.

There are also some commercial rental options but that may be subject to planning so these are presently being viewed as a potential bonus.

Each residential unit is worth around €250k and the land another ~250k

The plan is to rent one unit and live in the other using cash from the sale of the existing investment property which has no mortgage to complete the renovations.
 
Can the completed units be sold separately? If so, then you could do it.

A good basic principle is not to buy a family home just because it's a good investment opportunity. In other words, if the home you eventually build will be the home of your dreams, then go for it. But don't choose it because of the potential profit.

Brendan
 
Thanks Brendan, we are hoping to keep the entire and use the rental income to support repayments.

Agreed 're profit from home investment.
 
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