C
camcor
Guest
Hi All,
Myself and my wife own a 3-bed semi-D in Foxborough in Lucan and are looking to take a step up on the property ladder.
We have about €130,000 left on our mortgage and an estate agent has told us we may get up to €380,000 for our own property.
We were just going to sell our own and buy a 4-bed semi-D in lucan for anything up to €520,000 which would be €560,000 approx. with stamp duty. That would leave us with a mortgage of roughly €320,000 which we think would leave us comfortable enough to absorb any interest rate rises that may be coming.
However, a friend of mine suggested keeping our own house and renting it out. He suggested we could get a mortgage to cover both houses, so say €130,000 on our own plus €560,000 = €690,000
Then split this between the two houses, get an interest only mortgage on our original property of €345,000 and rent it out.
That would leave us servicing a mortgage of €345,000 approx on our new home which is about what we could afford and still owning 2 properties!!
This all sounds a bit crazy to me, is it possible? Are there lending institutions out there that would go for that arrangement?
Is it prudent? I suppose, worst case scenario, you could always sell the original property if you had problems renting or whatever?
Sorry about long winded post!!
Myself and my wife own a 3-bed semi-D in Foxborough in Lucan and are looking to take a step up on the property ladder.
We have about €130,000 left on our mortgage and an estate agent has told us we may get up to €380,000 for our own property.
We were just going to sell our own and buy a 4-bed semi-D in lucan for anything up to €520,000 which would be €560,000 approx. with stamp duty. That would leave us with a mortgage of roughly €320,000 which we think would leave us comfortable enough to absorb any interest rate rises that may be coming.
However, a friend of mine suggested keeping our own house and renting it out. He suggested we could get a mortgage to cover both houses, so say €130,000 on our own plus €560,000 = €690,000
Then split this between the two houses, get an interest only mortgage on our original property of €345,000 and rent it out.
That would leave us servicing a mortgage of €345,000 approx on our new home which is about what we could afford and still owning 2 properties!!
This all sounds a bit crazy to me, is it possible? Are there lending institutions out there that would go for that arrangement?
Is it prudent? I suppose, worst case scenario, you could always sell the original property if you had problems renting or whatever?
Sorry about long winded post!!