Apartment Purchase Scenario

Maynooth is a good town to have a rental in. As the daughter would be living in the house she can keep the rent to the tax limit. Also unlikely to have tenancy issues as they are not tenants when the owner is living there and the daughter would be in control of everything.

The OP might be able to get this loan if he goes guarantor. Now whether that's a good idea or not is up to him.
 
I'd agree with Bronte that Maynooth should be a reliable rental market plus it's an advantage having licensees rather than tenants. I'd just add that she might get lucky with one of the banks. I believe they have a certain percentage of cases per year where they're allowed to use their judgement to make exceptions to the normal lending rules. Anecdotally, they tend to front-load those in the first half of the year so if she applies in January for mortgage approval she might have a better chance of getting it then. Maybe someone else can speak to that.

If 14k tax free is enough to cover the mortgage, or near enough, she'd probably end up much better off after a few years, as long as the floor doesn't fall out of the rental market. Even if it did drop 25%, hopefully her earnings will have improved in a few year's time such that she has more capacity to make up any shortfall. That's assuming she can get the mortgage and you're realistic on how long she'd want to be there and the risks involved.
 
argolis said:
I'd agree with Bronte that Maynooth should be a reliable rental market plus it's an advantage having licensees rather than tenants. I'd just add that she might get lucky with one of the banks. I believe they have a certain percentage of cases per year where they're allowed to use their judgement to make exceptions to the normal lending rules. Anecdotally, they tend to front-load those in the first half of the year so if she applies in January for mortgage approval she might have a better chance of getting it then. Maybe someone else can speak to that.

If 14k tax free is enough to cover the mortgage, or near enough, she'd probably end up much better off after a few years, as long as the floor doesn't fall out of the rental market. Even if it did drop 25%, hopefully her earnings will have improved in a few year's time such that she has more capacity to make up any shortfall. That's assuming she can get the mortgage and you're realistic on how long she'd want to be there and the risks involved.
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Anyone out there any idea what are best banks to run this scenario by early in new year ?
 
Are you in a position to lend her the shortfall or mortgage your own house? Or go guarantor. I agree that logically buying a house when in her 20s is a good idea especially when she could obtain a 40+ Year mortgage. Problem is central bank rules. But no harm in asking the question!
 
My dad did that for my sister when she was 24 and on low salary but a good career patg... then property tanked, she couldn't pay him back, she couldn't sell because she could pay off neg. equity.

He feels bad for encouraging her to buy above her means, she feels bad for losing a good chunk of his life savings. My other sister resents my older sister for getting a leg up when she didnt and also for putting a lot of stress on my parents in later life.

All in all, a disaster.

Either give her the money as a gift or accept she can't buy right now, family loans/ going guarantor are bad ideas in my opinion.
 
Nicetoknow said:
My dad did that for my sister when she was 24 and on low salary but a good career patg... then property tanked, she couldn't pay him back, she couldn't sell because she could pay off neg. equity.

He feels bad for encouraging her to buy above her means, she feels bad for losing a good chunk of his life savings. My other sister resents my older sister for getting a leg up when she didnt and also for putting a lot of stress on my parents in later life.

All in all, a disaster.

Either give her the money as a gift or accept she can't buy right now, family loans/ going guarantor are bad ideas in my opinion.
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Thanks for sharing that experience.
 
Daddy Ireland said:
Thanks for sharing that experience.
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Indeed poster Nicetoknow has given you a very summation of how things can go wrong. And we have had a few cases over the years on here.

It doesn't actually matter if property tanks if the rent will cover the mortgage. And if the whole thing is structured in a way so as you are both covered in all the 'what' if' scenarios. I'm not advocating it though and only you know if it's ultimately a good decision.
 
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