# I want to upgrade to a house in 3 years, and general future planning



## JSnowWinterfell (19 Oct 2019)

Hi All,

Age: 32
Spouse’s/Partner's age: 31

Annual gross income from employment or profession: 130k, variable bonus ~15k per annum
Annual gross income of spouse: 90k

Monthly take-home pay: 11k

Type of employment: Private Sector

In general are you: 
(a) spending more than you earn, or
(b) saving?

 Saving, a little erratic at the minute due to some work on property, but on average around 3k a month.

Rough estimate of value of home: 510k
Amount outstanding on your mortgage: 440k
*What interest rate are you paying? *2.6% 2 yr fixed, current payments of 1,820 and overpaying 500p/m

Other borrowings – car loans/personal loans etc: Car Loan of  20k, 15k remaining and in process of paying the remaining balance over the next month from savings. This figure is not included in savings below.

Do you pay off your full credit card balance each month? No Credit Cards
If not, what is the balance on your credit card?

Savings and investments:

10k cash, 20k in stocks and ETFs. Spouse has some share options vesting in 2 years worth 20k post tax. 

Do you have a pension scheme? Yes

Mine: Employer contributes 10%, I make no AVC currently, current balance 15k. Pension from previous employment overseas ~120k. 
Spouse: Employer contributes 6%, balance ~10k. 

Mine: 15k, employer contributing 

Do you own any investment or other property? Investment property in UK, value 100k, mortgage 50k, rate 1.6%, long term tenant and rent covers mortgage and annual costs. 

Ages of children: No children

Life insurance: None but have death benefit with employer

*What specific question do you have or what issues are of concern to you?* 

We relocated back to Ireland one year ago, and are now trying to consolidate our finances for the first time and plan for the future. The main goal is to purchase a house in the dublin area in the next 3 years. The budget, is around 850k top end, or lower for a property which would require renovation. I know the costs of renovation and actually getitng a builder in Dublin is hard but of most of the sample properties I have looked at they require some work. The question is the best strategy to save for a house upgrade as a straight purchase of 850k (170k deposit), and a house purchase of 700k whilst rasing 150k for renovation work.

We purchased an Apartment in Dublin when we moved back as the economics worked better. The mortgage was roughly 700 euro a month less than rent in the same area we wanted to live in. The mortgage was 445k and I estimate that after 3 years with 500pm overpayment the mortgage will be 400k. This will provide equity of 120k. Initially I had considered keeping apartment as an investment, but the numbers do not work. My spouse was out of work for 6 months after relocation, and it has been a bit of a hectic year. I consider myself good with money, but I need some advice on the best strategy for the surplus monthly money in view of ur short term 3yr goal.


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## Cameo (20 Oct 2019)

Some questions...]

Has your budgeted 850k taken account of possible future plans to have kids? They’re(kids) expensive and might change plans as to how long both of you will remain working.
How long do you (and your spouse)plan to work for?
Is there potential to increase earnings over your(and spouse) future working lifetime? Do you plan to stay in the same sector or is there potential to switch or become self employed etc..
Are you missing out on some potential matching employer contributions if you made AVCs?


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## JSnowWinterfell (21 Oct 2019)

Cameo said:


> Some questions...]
> 
> Has your budgeted 850k taken account of possible future plans to have kids? They’re(kids) expensive and might change plans as to how long both of you will remain working.
> How long do you (and your spouse)plan to work for?
> ...



Thank you Cameo. 

1. Kids - We are currently trying for children. I have not factored in costs of childcare, and I expect both of us to continue working. However, a house worth 850k with a 20% deposit the mortgage should be 2,900 (3% rate). If child care is 2k per month, it should be affordable. My back up is the rental house can be sold to cover school, university costs etc. 
2. I'd like to have the option of stopping working in mid 50's, but I will always do some form of work.
3. Potential Earnings - Yes, we both have greater potential earnings. However, I may change sector for a new challenge which can result in a period of lower pay.
4. I am not missing out on matching power, Employer contributes 10% regardless of my contribution. I need to check Mrs Snow's pension. I understand I am missing out on Tax benefits of AVCs, but I want to assess options before making AVCs.


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## Cameo (21 Oct 2019)

I think it’s always best to work back from longer term goal hence most of the questions above, you should be able to comfortably afford house even if your expenses increase

I’d guess you should overpay mortgage on apartment (thereby getting a 2.9% or about guaranteed rate of return), on the basis you are planning to sell when buying the house in 3 years. you  should also definitely increase  pension contributions to maximize tax relief and make provision for the future, particularly if you plan to work less.

For what’s its worth, I am 49, have been earning a good income , have maxed out AVCs for years and have got the benefit of employer contributions of 10% or more for more than 15 years, I’m still surprised at how little my pension is worth


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## JSnowWinterfell (22 Oct 2019)

Cameo said:


> I think it’s always best to work back from longer term goal hence most of the questions above, you should be able to comfortably afford house even if your expenses increase
> 
> I’d guess you should overpay mortgage on apartment (thereby getting a 2.9% or about guaranteed rate of return), on the basis you are planning to sell when buying the house in 3 years. you  should also definitely increase  pension contributions to maximize tax relief and make provision for the future, particularly if you plan to work less.
> 
> For what’s its worth, I am 49, have been earning a good income , have maxed out AVCs for years and have got the benefit of employer contributions of 10% or more for more than 15 years, I’m still surprised at how little my pension is worth



I find it hard to predict what I will need in retirement, there are a lot of variables to consider. I have been disappointed by the Irish pension fund selection.


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## cremeegg (22 Oct 2019)

Just on the point of overpaying the mortgage on the apartment. If you intend to trade up in three years time, I wouldn't overpay. Yes you will loose out on the 2.6% interest on the overpayments but if you save the money I think you will be in a stronger position.

Overpay mortgage €500 a month and in 3 years the mortgage is €400k

Don't overpay the mortgage and the amount outstanding in 3 years is €419k, but you have €18k more cash. I suggest the flexibility of having the cash outweighs the interest saved (only about €700).


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## JSnowWinterfell (23 Oct 2019)

cremeegg said:


> Just on the point of overpaying the mortgage on the apartment. If you intend to trade up in three years time, I wouldn't overpay. Yes you will loose out on the 2.6% interest on the overpayments but if you save the money I think you will be in a stronger position.
> 
> Overpay mortgage €500 a month and in 3 years the mortgage is €400k
> 
> Don't overpay the mortgage and the amount outstanding in 3 years is €419k, but you have €18k more cash. I suggest the flexibility of having the cash outweighs the interest saved (only about €700).



Thank you. I have read a number of the money makeovers, the general consensus on advice has been to overpay the mortgage. I am aligned to your view given my goal of upgrading to a house in 3 years, overpaying is not the best strategy. I am overpaying currently as an interim step whilst I figure out the correct strategy. I overpay because of the mental aspect, I can't spend the money I don't have. 

What I have observed in the market in Dublin (south side), is houses that require renovation are sitting on the market or not selling. I assume this is because the cost of builders and availability is a problem. What I do not have experience of is how people fund large renovations in newly bought houses, it would be useful if advise could be offered?

It would not be viable for us to buy somewhere that needs a gut renovation, as we would have nowhere to post sale of apartment and house. Theoretically we could rent but that may be tight on the numbers. My aim is to buy somewhere that is liveable but needs an extension etc, again there would be a period I assume we need to move out. Not sure what people who do not have family in Dublin do in these situations? 

I have made the below example using a 10 or 20% deposit. Mortgage repayments are affordable in both cases, and I'd like to fund without personal loans as much as possible. It looks to me that getting an exception for 10% will put me in a more achievable cash position. 

I can work the numbers, it is the logistics and funding that is not clear to me. Any advice greatly appreciated! 


House Price                                700,000Renovation                                150,000Total Cost                                850,000Deposit20%​10%​                                140,000      70,000Mortgage                                560,000   630,000Apartment Sale Price510,000​Existing Mortgage400,000​Equity110,000​Funding Required (Ren + Dep)                                290,000   220,000Cash Required (Fund - Equity)                                180,000   110,000


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## Blackrock1 (23 Oct 2019)

cremeegg said:


> Just on the point of overpaying the mortgage on the apartment. If you intend to trade up in three years time, I wouldn't overpay. Yes you will loose out on the 2.6% interest on the overpayments but if you save the money I think you will be in a stronger position.
> 
> Overpay mortgage €500 a month and in 3 years the mortgage is €400k
> 
> Don't overpay the mortgage and the amount outstanding in 3 years is €419k, but you have €18k more cash. I suggest the flexibility of having the cash outweighs the interest saved (only about €700).



why is cash any more beneficial? if you have to sell to buy is it not all the same?


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## Blackrock1 (23 Oct 2019)

JSnowWinterfell said:


> Thank you. I have read a number of the money makeovers, the general consensus on advice has been to overpay the mortgage. I am aligned to your view given my goal of upgrading to a house in 3 years, overpaying is not the best strategy. I am overpaying currently as an interim step whilst I figure out the correct strategy. I overpay because of the mental aspect, I can't spend the money I don't have.
> 
> What I have observed in the market in Dublin (south side), is houses that require renovation are sitting on the market or not selling. I assume this is because the cost of builders and availability is a problem. What I do not have experience of is how people fund large renovations in newly bought houses, it would be useful if advise could be offered?
> 
> ...



just be realistic about what kind of renovation 150k pays for nowadays.


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## Brendan Burgess (23 Oct 2019)

Blackrock1 said:


> why is cash any more beneficial? if you have to sell to buy is it not all the same?



Agree fully.

The cash is only beneficial if you intend to retain your current house and you need the cash for a deposit.

You say 3 years. It might be more. Pay down your mortgage.

As your employer's pension contributions are not dependent on you making any contribution, then you should not be making any contributions at this stage.  You need to maximise your net cash.

Brendan


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## JSnowWinterfell (23 Oct 2019)

Blackrock1 said:


> just be realistic about what kind of renovation 150k pays for nowadays.



Got experience? It is hard to quote without providing exact requirements which I do not. I have lived in apartments in major cities for the last 15 years, I am accustomed to less space. Ideally the house would just need an extension to transform the kitchen into one of those large open kitchen / living spaces, a single story extension 10-20 sqm. My rough estimation is 4k per sqm in Dublin. 

There was a small terraced house in Dublin (D4) being gut renovated incl a 2 storey extension and that was coming in at 200k mark at the end of 2019.

Obviously at this stage my questions are more around the strategy to fund a potential renovation rather than the exact costs. Regarding cash, my udnerstanding is that if you buy a house needing work the bank prefer to see you have cash built up to fund the costs.


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## Brendan Burgess (23 Oct 2019)

If you are planning to trade up, you should do it now while house prices are reasonably stable, while you both have good jobs and before you have kids which might affect the amount you can borrow.

Sell the UK property as the cash would be very helpful.

This leaves you with the following figures:

House price : €850k

Deposit required 20% =  €170k

Irish house equity: €110k

UK house equity: €50k

Investments: €50k

Available: €210k

Mortgage €640k  (€850k - €210k)

This is about three times your income, so it should not be a problem.

If your wife takes time off to have kids and your income falls, you might not get this level of  mortgage.

Brendan


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## Brendan Burgess (23 Oct 2019)

JSnowWinterfell said:


> Regarding cash, my udnerstanding is that if you buy a house needing work the bank prefer to see you have cash built up to fund the costs.



This might be correct. But you are going to have to sell your house, so you will have the cash.  

Brendan


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## Brendan Burgess (23 Oct 2019)

I think it's important to sell the house in the UK. 

You do not want to be looking for an exception to the Central Bank rules - that might limit your choice of lenders. 

You want to borrow less than 80% anyway, as that is likely to be the cheapest rate. And the rate is cheaper on the whole loan. 

In the unlikely event that Corbyn  becomes the Prime Minister, they will give tenants the right to buy.  So someone else will determine the value of your property, and not the market.   A mortgage of 1.6% is attractive. But on a £50,000 mortgage the low rate is saving you "only" about £1,000 a year.  The access to the £50k is far more important for you.  

Brendan


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## Blackrock1 (23 Oct 2019)

JSnowWinterfell said:


> Got experience? It is hard to quote without providing exact requirements which I do not. I have lived in apartments in major cities for the last 15 years, I am accustomed to less space. Ideally the house would just need an extension to transform the kitchen into one of those large open kitchen / living spaces, a single story extension 10-20 sqm. My rough estimation is 4k per sqm in Dublin.
> 
> There was a small terraced house in Dublin (D4) being gut renovated incl a 2 storey extension and that was coming in at 200k mark at the end of 2019.
> 
> Obviously at this stage my questions are more around the strategy to fund a potential renovation rather than the exact costs. Regarding cash, my udnerstanding is that if you buy a house needing work the bank prefer to see you have cash built up to fund the costs.



for a small extension or if its a small property then 150k should cover but it all depends on your expectations on fit and finish, BER requirements, other works that need to be done to the existing property. Redecorating post renovation, furniture etc.

Its easy spend 150k.


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## Blackrock1 (23 Oct 2019)

Brendan Burgess said:


> This might be correct. But you are going to have to sell your house, so you will have the cash.
> 
> Brendan



exactly


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## Brendan Burgess (23 Oct 2019)

I did my figures based on purchasing a house for €850k.  Let's say you buy your house for €700k and spend  €150k on renovations. 


With renovation - no exception Without renovations - exceptionHouse price€700k€850kMaximum mortgage - 80% €560k€765Deposit required €140kCost of renovations€150kCash required in total €290k€85k Irish house equity€110kUK house equity€50kInvestments€50kTotal cash available €210k 

The first example suggests to me that you will be short even after selling the house in the UK. 

The second suggests you have plenty of money 

I don't know, but if you renovate the house, I doubt that the bank will give you more than 80% of the fully renovated cost.  

So again, to maximise your flexibility and choice, you should sell your UK house now.

Brendan


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## JSnowWinterfell (23 Oct 2019)

Brendan Burgess said:


> I did my figures based on purchasing a house for €850k.  Let's say you buy your house for €700k and spend  €150k on renovations.
> 
> 
> With renovation - no exceptionWithout renovations - exceptionHouse price€700k€850kMaximum mortgage - 80%€560k€765Deposit required€140kCost of renovations€150kCash required in total€290k€85kIrish house equity€110kUK house equity€50kInvestments€50kTotal cash available€210k
> ...



Thanks Brendan, I agree on a 10% basis I can afford but I also agree banks will be hesitant to lend 90% of a house needing 150k renovation. Note I was approved an exception of 10% deposit very easily for the purchase of the apartment via broker. In fact I met with a bank and was shock to see them using an excel spreadsheet to calculate affordability. It was made worse by the fact that the mortgage advisor was using it wrong. 

What this is showing me, is that I should just go down the route of a house that does not need major renovations. Or at least put down 20%, overpay for 2 years then get a mortgage top up to do an extension. 

What I observed is that there is a discount in houses needing works in Dublin at the minute. If I could access the cash required to do the work, there are bargains to be had. 

I agree it is time to seriously consider selling the UK property, note it is in Belfast and close to my family. There are tax implications on the sale both in the UK and bringing the cash into Ireland. My idea was to keep it until the mortgage is paid off (13-15 years), and then sell up to fund any school / university fees.


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## Easel (23 Oct 2019)

JSnowWinterfell said:


> What I observed is that there is a discount in houses needing works in Dublin at the minute. If I could access the cash required to do the work, there are bargains to be had.



The problem with this is that you don't actually know how much it will take to renovate a house just by looking at pictures on line. Similarly with houses that appear to not need any work, this may not be the case in the medium term. You will always want to put your own stamp on a house which depending on your taste can be quite costly. There are also a lot of hidden costs with refurbishments. One major one being short term accommodation whilst the work is being done. It is also a very stressful process that will only be increased with children on the scene. 

I was looking in the 750-850k region this year with quite a narrow search area. In the end we compromised on a house that is perfect for the medium term with a few cosmetic upgrades but we envision that we will want to do a significant enough job (estimate 100-150k) in a few years. This has enabled us to live in the house to see what exactly we want. How you wish a house to function will change considerably if you do have children. It has also given us time to save for the planned upgrades.

At 20% you would need a deposit of €150k to purchase a house worth €750k now. You have the deposit through savings and home equity in both properties. A couple with a monthly net pay of €11k should easily be able to save €5,000 a month assuming mortgage costs of €2,500 p/m on €600k . In 2 years you will have saved €120k and will have the vested shares of €20k and an additional €15k from the after tax bonus paid twice. In theory you could purchase this home by summer next year and be in a position to do your renovations after 2 years.


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## Blackrock1 (23 Oct 2019)

JSnowWinterfell said:


> What I observed is that there is a discount in houses needing works in Dublin at the minute. If I could access the cash required to do the work, there are bargains to be had.



we bought over 2 years ago now but my experience was that a new build was cheaper than an older house with a renovation (at a bit above the price range you are looking at but comparable id imagine) 

we got quotes for a few difference places that needed what i considered to be not extensive works and it was above 200k each time with professional fees vat etc.


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## Brendan Burgess (23 Oct 2019)

JSnowWinterfell said:


> My idea was to keep it until the mortgage is paid off (13-15 years), and then sell up to fund any school / university fees.




No, no, no.

The best way to fund university fees is to pay down your mortgage and get a guaranteed , tax-free return of 2.6%. 

Brendan


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## Cameo (23 Oct 2019)

Having an extra. 50k mortgage on your main residence is costing you 1300 per annum. You should allow for that when assessing how well the rental property is doing

I mean that you could reduce your mortgage by 50k by selling the Northern Ireland property..

Your basically gearing which means your amplifying how well or badly the investment does.

I agree having extra cash would  put you in a better position if you are buying something that needs work. 
In theory a house needing work should be better value but in my experience whether this is true varies over the housing market cycle. Probably not as r4levant as in the past but sometimes prices are bid up if builders and people in the trade are more active in the market or people with money to lose (from a tax perspective) are. 

I’d still be thinking of diverting some cash to a pension as well to start building a more substantial pension pot too as you should be able to afford it and you benefit from tax relief, every €100 contribution is costing €67.5 if I’ve picked the right number


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## Brendan Burgess (23 Oct 2019)

Cameo said:


> I’d still be thinking of diverting some cash to a pension as well to start building a more substantial pension pot too



Hi Cameo

They are 32 , so they have plenty of time for pensions. 

They already have reasonable pension pots and their employers are contributing anyway. 

The priority now is to be in a position to buy a house and, if necessary, refurbish it.   The pension can wait. 

Brendan


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## JSnowWinterfell (24 Oct 2019)

Thanks for all the input. 

1. I'm going to pursue a house that just needs cosmetic work but has potential for extension. On that basis I'll work out the best strategy to save 170k (20% deposit). I'll do this via a mix of overpaying mortgage and some cash savings. 
2. At the moment I'm not going to sell the UK house. It offers a return that can't be matched. A gross 6.7%. Rents are stable, property is valued greater than purchase price. I'd prefer to keep it for now and let the tenant pay down the mortgage. Note selling it would likely net me only 20-5k after tax.
3. I'll look into AVCs at least a small portion of monthly salary.


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## Brendan Burgess (24 Oct 2019)

On reflection, this thread raises an interesting difficulty which suggests that you probably should hold onto cash rather than pay down your mortgage. 





__





						Manage Cash flow - selling and buying
					

We are selling our family home in order to purchase a larger home. We are sale agreed on our current home and hoping to have an offer accepted on our new home (2nd hand).  We have about 15k in cash but I am trying to work out now how we manage payment of deposits etc for the purchase when most...



					askaboutmoney.com
				




He has€15k cash and plenty of equity in his current home.
He is selling his current home.
He has put in an offer on a new home of €900k 
He will need to pay a deposit of €90k when exchanging contracts on the new home. 
But he won't have the €90k until his own home is sold. 

So Mr Winterfell needs €85k but most of this comes from the equity in his home. 
Assuming he does not sell the UK property, then he has only €50k in savings. 
So he needs to save €35k cash to give him the flexibility. 


Of course, he could sell his own home well in advance and he would then have plenty of cash for the contract closing.  But this might not work out and so I do think he should try to have €85k to €100k in cash available.

Brendan


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## Blackrock1 (24 Oct 2019)

Unless I am missing something most people won’t get a mortgage on a new house until the house they are trading up from is sold. That being the case it’s a moot point surely as to whether you have the cash or equity in the property to be sold .


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## Brendan Burgess (24 Oct 2019)

Hi Blackrock

If the person sells their own home well in advance of looking for a new home, then the issue does not arise. They sell their old home and get the net cash after paying off their mortgage. 

But many people try to synchronise both so that they can move out of their old home one day and move into their new home the same day or a few days later.

I think that a typical timeline is as follows:

Get mortgage approval in principle to buy a new home with a mortgage of 80% of the purchase price

Day 1 - Go sale agreed on existing home
Day 10 Go purchase agreed on new home and pay €5,000 holding deposit
Day 50 Exchange contracts for sale of existing home
Day 60 Exchange contracts on purchase of new home - 10% deposit required - say €90k
Day 80 Close sale of existing home and receive funds after the mortgage is discharged.
Day 90 Close purchase of new home

So the problem is that on Day 60, the buyer needs to come up with the 10% deposit to exchange the purchase.



Brendan


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## Blackrock1 (24 Oct 2019)

thanks brendan, can / should you close contracts on a new home before closing contracts on your existing? doesnt seem like a prudent course of action as you may lose that deposit if your own sales falls through.


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## Andrew365 (24 Oct 2019)

Brendan Burgess said:


> Hi Blackrock
> 
> If the person sells their own home well in advance of looking for a new home, then the issue does not arise. They sell their old home and get the net cash after paying off their mortgage.
> 
> ...



I have been wondering about this. I assumed it is just part of the process and why cash or first time buyers can have an advantage over a person in  chain. 

I assume day 60 would not happen. The seller gets the 100% of funds on completion. I assume that you just have to show mortgage approval and show deposit will come from the sale of existing house.


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## Brendan Burgess (24 Oct 2019)

Blackrock1 said:


> should you close contracts on a new home before closing contracts on your existing? doesnt seem like a prudent course of action as you may lose that deposit if your own sales falls through.



There are two stages 
Exchange of contracts at which stage both parties are committed.
Closing of the sale -the buyer pays for the house and gets the keys. 

It would be risky exchanging contracts to buy a house without having exchanged contracts to sell your house as your buyer might pull out.

While a lot of sales fall through between the offer and the exchange of contracts, it is very rare for a buyer to pull out after the exchange of contracts. The seller can keep the deposit and sue for completion. 

Brendan


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## Blackrock1 (24 Oct 2019)

sorry i misread your timeline,

practically speaking then, given that you have exchanged contracts on a sale, will there really be a requirement to lodge a 10% deposit at contract stage on the house you are buying?


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## Brendan Burgess (24 Oct 2019)

Blackrock1 said:


> will there really be a requirement to lodge a 10% deposit at contract stage on the house you are buying?



I understand that this is standard.  The seller wants a 10% deposit so that if you pull out, they can keep the deposit.  But I presume you could negotiate with the seller and ask them to reduce the deposit. 

All in all, I have changed my mind on this.  If you are trading up in the near future, you should make sure that you have at least 10% of the cost of the new house in cash.  You might not need it. But if you do, you will be glad you kept it.

Brendan


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## Bronte (24 Oct 2019)

If I were the OP there is not way I'd in hell I'd ever tell the bank about the property outside the country.  He's also hedging his bets on currency by being in two currency zones.


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## Sarenco (24 Oct 2019)

JSnowWinterfell said:


> A gross 6.7%


That gross 6.7% gross yield probably shrinks to less than 3% when you take out costs and taxes.  

That's a pretty slim return for a lot of risk and hassle when you could cash out the equity and get a guaranteed, tax-free return equivalent to the rate on your PPR Mortgage.


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## JSnowWinterfell (27 Oct 2019)

Bronte said:


> If I were the OP there is not way I'd in hell I'd ever tell the bank about the property outside the country.  He's also hedging his bets on currency by being in two currency zones.



That would be deemed fraud. If you have ever held a mortgage, you are not classified as a first-time buyer. In addition, you'd have to not disclose bank accounts, the bank would see mortgage and rental payments as part of the due diligence process. Currency hedging is not a factor here, my main currency is EUR, any benefit from GBP strengthening against EUR is nullified by paying 40% tax on any profit from the UK house I bring into Ireland.  



Sarenco said:


> That gross 6.7% gross yield probably shrinks to less than 3% when you take out costs and taxes.
> 
> That's a pretty slim return for a lot of risk and hassle when you could cash out the equity and get a guaranteed, tax-free return equivalent to the rate on your PPR Mortgage.



Where could I get a guaranteed, tax-free return of 3%? You should look at taxes for a UK non resident landlord, can you share your maths?


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## Brendan Burgess (27 Oct 2019)

JSnowWinterfell said:


> Where could I get a guaranteed, tax-free return of 3%?



That is the mortgage rate on your home in Ireland.

By paying down the mortgage, you are effectively getting this return, risk-free and tax-free.

Brendan


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## Sarenco (27 Oct 2019)

JSnowWinterfell said:


> You should look at taxes for a UK non resident landlord, can you share your maths?


If you are domiciled and resident in Ireland you are chargeable to tax in Ireland on your worldwide income.  So, the taxman will want roughly half of your net rental profits, even though you are taking all the risk of tenant default, etc.

I take the view that our tax code is so punitive that it rarely makes sense to invest outside a pension vehicle while carrying a mortgage.


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## Itchy (28 Oct 2019)

Brendan Burgess said:


> So Mr Winterfell needs €85k but most of this comes from the equity in his home.



Would it be an option for the mortgage bank to extend your mortgage in advance of a purchase for the purposes of providing a deposit to purchase a new property, all things being equal?


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