# build and rent or stay put



## mario1 (17 Jun 2010)

Hi all

Im a 28 year old bought a house 3 years ago have €230,000 mortgage on it and pay €620pm at 2.75 variable, have a loan of €10,000 and pay €200pm on that, have €2,000 of savings, work for myself and take home €35,000 a year. 

partner works in the public sector has a income of €28,000 and has a lovely site her parents gave her and has full planning on it, she has just being approved for €200,000 mortgage in her name, we are hoping to build her house for €200,000 and move in rent my house for €700/€750pm then get my name added to her mortgage and pay that off together. the new house also has a garage and i was hoping to rent that off my partner for €150pm and put it true my company. should we build or just stay where we are and wait a few years?


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## Frank (17 Jun 2010)

It has to be a great time to build a few of my cousins have built and you get so much more for the money and they built a few years ago at the height of everything.

I know one house has more sq feet in the master bedroom than in my apt. well maybe not but feels close.

If you can afford it go for it.

Now where to put the Pool and bar


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## dmos87 (17 Jun 2010)

I'd go ahead. By the time the house is built hopefully the economy will pick up a little and finding renters wont be hard. Keep at your loan in the meantime.


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## chlipps (17 Jun 2010)

How secure is your work?

Note your combined rent will be 430K.. thats alot for couple on combined income of 63K considering jobs may not be secure. But if you are confident that ye both can retain income then go for it. Best of Luck


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## fizzelina (18 Jun 2010)

The site and build sounds fabulous and the mortgage is already approved (the hardest bit) so go for it now while the approval is in place and while there is good value to be hard with tradesmen etc. Good luck!


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## csirl (18 Jun 2010)

> partner works in the public sector has a income of €28,000 and has a lovely site her parents gave her and has full planning on it, she has just being approved for €200,000 mortgage in her name,


 
This doesnt sound right. Even at the height of the boom, the banks wouldnt give a mortgage of more than 7 times salary to a low paid worker.


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## chlipps (20 Jun 2010)

csirl said:


> This doesnt sound right. Even at the height of the boom, the banks wouldnt give a mortgage of more than 7 times salary to a low paid worker.


 
I think banks did give up to 7 times salary during the boom and looks like they are continuing. 

Maybe in OP's case they are using the value of the land to secure the loan?


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## TheBlock (21 Jun 2010)

Are people seriously telling a self employed person and his partner who combined take home €63K to take on €430K of debt and become a landlord in the middle of a property collapse. OP think twice if you can't work for any reason are you insured properly how will you contribute to the debt if not. 

If you really think the site is great sell your place and build. Theres a mountain of properties out there that people thought they could rent out and would cover their mortgage. Jaysus take a look on the Money Makeover Section.


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## Superman (23 Jun 2010)

Rule No. 1 would be not to get caught with 2 mortgages.

If it were me, I'd sell your first house now, rent and build the new house.

This presupposes that you do actually want to move to the new house.  If so, now is a good time to be building - construction costs are as low as they can go.


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## dmos87 (26 Jun 2010)

chlipps said:


> Maybe in OP's case they are using the value of the land to secure the loan?


 

They must be. I am in the same salary scale as his OH yet have only been approved a mortgage of 137,000.


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