Advice on investment mortgage

I

IrishKuwait

Registered User
Messages
3
Hi all,

My wife and I live in the Middle East, we are both Irish and are now looking to buy an investment property in Ireland.
We do not want to buy to let as we would be living there for a 3-4 months every year, possibly more. So it would be a sort of holiday home.
Neither of us have owned property before so this is all new to us, I inquired with BofI and they are looking for 35% deposit. We would only be in a position to put down about 25% on a house costing about 250k.
Could someone please advise what other banks are lending to the likes of us, and also what are the tax implications? We are both non-resident?
We have no outstanding debts or loans and only left Ireland two years ago so the banks should still be able to see our credit history.

Thanks in advance.
 
If there is no rent there is no tax implication. I presume you have been keeping abreast of the property tax, and the current NPPR etc.

Do you really really think you will use it 3 to 4 months of the year. How will it be cared for when unoccupied? I presum you mean by investment that prices are low now and you are hoping for capital appreciation. Without discussing house prices (which are banned) you just need to confirm this is your thinking.

For a tricky situation like yours a broker might be advisable to source a mortgage. LDFergusun on this forum might be a good start. Search under 'members'.
 
Hi Bronte,

Yes am aware of the new property tax and NPPR. On the NPPR, as this would be our only home in Ireland, would we be liable for the NPPR, even if we are not their full-time?

Yes we are both in quite flexible jobs so would be spending quite a lot of time there, 3-4 months. My brother and nephews live in the same area we are looking at so they could keep an eye on things when we are not there.

It is first and foremost a house for us to hopefully move back in to in the next few years when things improve back home. Any appreciation would be a bonus if we had to upsize down the line.

I will look up LDFerguson, thanks for your advice.
 
I happened to be passing and I overheard my name being mentioned.

If Bank of Ireland have indicated that they would consider lending you 65% I'd pursue that as it's very difficult to get non-resident finance at the moment. Best we've managed so far is just over 50%.

Things a bank will want to see: -

  • Sufficient disposable income to pay the mortgage here AND cover all your day-to-day expenses in Kuwait.
  • Plenty of Irish connections - shouldn't be a problem.
  • Working for large, globally-recognised employers would be a plus.
  • Sought-after professions would also be a plus, e.g. doctor
 
Hi LDFerguson,

I just looked you up but have no idea how to pm you, so thanks for the bit of advice.

I have heard that AIB are now lending 75% for non-resident, and we are not looking for a huge amount, but it seems every net has been tightened in the last few years. Things are obviously tougher than I thought with the 50% ye got for a client. Do you mind me asking who that was with?

We tick most of the boxes in terms of what banks are looking for so fingers crossed.

Thanks for help.
 
IrishKuwait said:
I just looked you up but have no idea how to pm you,
Click to expand...

I think that's because you're new.

Yes you've to pay the NPPR. It will not be your principal residence. Just google it and you'll see the rules, some of the rules are on here in the key post on landlords.

If you're going to get relations to 'keep an eye' on it, it might be an idea to make it formal as in you pay them a fee to do so, no need for a legal agreement, but better to keep it professional. And you won't do better than family.
 
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