Unusual Questions Re First Time Buying, Advice Sought

[blobert]

Hello There,

I've been thinking about buying a house as an investment in either Galway or Wexford. I live at home with my parents in Dublin and forsee being there for at least another 2 years. The plan is then to possibly sell this 2nd property and buy somewhere in Dublin in 2-3 years time.

Now on my current sallary (€25,000-30,000) a year I am not elegible for a mortgage of about €160,000 which is what I would need.

My question is this. Will banks take into account that (a) I will be renting the place I buy and (b) that I live at home thus have minimal expenses.

I wont be living in the place that I buy and will rent it which will cover most of the mortgage payments. Now I'd imagine that the banks view will be, "can you afford to pay the repayments if there is nobody renting for a while". And even with my low sallary I would be able to easily afford the payments while living at home.

Will the banks see it this way or just turn me down? Any advice would be much appreciated.

Thanks,
Robert

 

[CathyK]

Hi,

Have you factored in the stamp duty and that you will need a 10 - 15% deposit

 

[Molly]

What your proposing to do is buy an investment property, most lenders have a minimum income level of €40,000 for investment mortgages. You will incur stamp duty of 3% if its a second hand property and you will need a deposit of at least 10% as 100% mortgage is not available for investment mortgages. You will also require funds to pay fees and furnish the property for letting. Even if you have the funds available to cover deposit, fees and stamp duty if applicable, you will have a problem with your income as it does not meet the minimum income level for investment mortgages.

 

[ClubMan]

Please note the on posting in the appropriate forum. I had to move this thread from the Mortgages and Home Buying forum. Property investment queries should be posted in the Property Investment forum.