Hi,
I am looking to purchase a 2nd house which will be my new primary residence. I intend to rent out my current one.
The thing I am struggling with is should I borrow a lot and put 95%+ of my savings into this new house or buy a cheaper one. Most of the house I see around Kildare for less than 350k are not what I have in mind.
I am looking for a nice house on at least an acre and most of them are in the 450k price range.
If I was to pay say 450 then I would have to borrow 270 and put 180 into it myself, leaving me 10k in the bank.
I am thinking if I go for the 450k house then worst case I can always sell my current house if I need to (currently in around 20k positive equity on cheap tracker). My girlfriend (we have 1 child and another on the way) also has a house with 30k equity on cheap tracker so that too is another safety valve in the future if we need to sell that.
I know interest rates will go up over the medium term so the repayments on a new mortgage will go up.
Not sure what exactly my question is but is it silly to consider raiding the bank accounts to fund a purchase of a house I would like to live in long term or don't do that and buy a house I would not really be happy with long term?
With keeping the existing two houses they can be sold if we need to in the future. Also, my girlfriend is not working by choice (raising the family instead) so she will have an income in 5 years time or so.
Thanks
I am looking to purchase a 2nd house which will be my new primary residence. I intend to rent out my current one.
The thing I am struggling with is should I borrow a lot and put 95%+ of my savings into this new house or buy a cheaper one. Most of the house I see around Kildare for less than 350k are not what I have in mind.
I am looking for a nice house on at least an acre and most of them are in the 450k price range.
If I was to pay say 450 then I would have to borrow 270 and put 180 into it myself, leaving me 10k in the bank.
I am thinking if I go for the 450k house then worst case I can always sell my current house if I need to (currently in around 20k positive equity on cheap tracker). My girlfriend (we have 1 child and another on the way) also has a house with 30k equity on cheap tracker so that too is another safety valve in the future if we need to sell that.
I know interest rates will go up over the medium term so the repayments on a new mortgage will go up.
Not sure what exactly my question is but is it silly to consider raiding the bank accounts to fund a purchase of a house I would like to live in long term or don't do that and buy a house I would not really be happy with long term?
With keeping the existing two houses they can be sold if we need to in the future. Also, my girlfriend is not working by choice (raising the family instead) so she will have an income in 5 years time or so.
Thanks