Advice: Apartment and Self Build

oneillj

Registered User
Messages
3
Looking for some advice planning ahead for the next few years

Current Situation

Me: €51,000 Private FT
OH: €52,000 PS FT

No kids atm, probably on horizon in 2-3yrs

Apartment bought 2014 (all savings no gifts)

Current Value 280,000 (bought €240,000 2014/15 PPR has same properties at 280 -290,000)
Mortgage (Recent switch KBC to UB) 209,000 remaining SVR 3.1%

Savings €840/month
Current Savings: €18,000

Our current plan is to stay in our current property for 2-3 yrs and move to a self build outside Dublin

Site: Gift
Construction Costs €200k (Estimate)
Value on Completion €300k (Estimate)

Decision is whether to sell up and make a clean move or try to retain apartment as investment

If we decide to retain as an investment I'm wondering if we would be in a position to get a second mortgage on a self build for say €180K (i.e. 20k cash into build and site) while hold the apartment as an investment (current rents €1400-1600). This in my estimate at current market would leave us at approx 380k (3.7ish LtI) of mortgage exposure against property "worth" 550-600k

I know nobody has a crystal ball but any advice/comments are appreciated
 
How much does the mortgage cost a month?

Are you cut out to be a landlord. The current high rents in Dublin might not always stay that way.

I've yet to see anyone build a house that was close to the estimate.

How far is the commute to work from the new build?
 
Current mortgage cost - ~€950/month

I'm comfortable with being a landlord but may go with an agency

Build cost estimate needs tightening but that in and around what we're thinking

Commute would be 1 hr- 1 hr 15m, job allows work from home 2-3 days/wk

I guess the real question is how the bank would look at our apartment as an investment and what way this may effect our 2nd mortgage application in terms of deposit (cash) needded, equity in apartment and equity in site?
 
i would suggest that you look at your construction costs closely first, 200k sounds very very light,

im guessing it will 2,000 sq feet or larger
 
Well the rent fully covers the mortgage so that's a good thing. Not sure if a bank will go for this. You're problem is you have to prove that your salaries cover the mortgage on two properties without taking into account the rent.

What is the mortgage term?

Also further to Balckrocks post, please don't build a McMansion. You'll regret it.
 
Well the rent fully covers the mortgage so that's a good thing. Not sure if a bank will go for this. You're problem is you have to prove that your salaries cover the mortgage on two properties without taking into account the rent.

What is the mortgage term?

Also further to Balckrocks post, please don't build a McMansion. You'll regret it.

rent will only just about (if that) cover the mortgage after tax, agents fees, maintenance etc. Also that assumes full occupancy. Also if it becomes an investment property and the bank realises the rate will increase.

Build a reasonable sized house properly, dont go for cheap size, but regardless, for a nice finish id wager 200 a sq foot finished is closer than 100
 
Not keen on a McMansion at all.

Remaining term is 28 yrs we re 29 & 30.

I was n't aware the bank would not consider rent in any fashion that's interesting.
 
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