Hi
I'm looking for advice on the best course of action regarding moving from my existing PPR to a home in a new area.
Current o/s mortgage 320k, value of home 220k, so about 100k in NE and I don’t want to crystalize this loss. I have a tracker and repayments are 1200pm. I’m currently working abroad on a short contract but still tax resident in Ireland. As I’m abroad I’m currently renting my house out and the rent I get meets the mortgage repayments. The plan is to come back to Ireland in a few months when project ends and try to get a mortgage of €270k to buy a new home for €350k (my income is 90k gross, I have 80k of savings, no other loans, age 40 and single).
So,
1) is it better for me to continue renting out my house while I move to rental accommodation in my desired area until I buy there? The logic is that I would be showing the banks that as I can cover existing mortgage and meet rental costs in the new area (c.1500pm) and save an additional €1500pm, I would be able to meet the second mortgage rate.
Or
2) would I be better off going back to existing property, kicking out the tenants and continue to save €1500-1800pm?
Renting a new place while I have an existing property probably seems foolish and an unnecessary complication but for personal reasons I would really prefer to move to the new area and start renting while I suss out which property to buy, and having got decent tenants for my place I would like to leave them there. So which option is best from a mortgage application point of view?
many thanks
Paulie
I'm looking for advice on the best course of action regarding moving from my existing PPR to a home in a new area.
Current o/s mortgage 320k, value of home 220k, so about 100k in NE and I don’t want to crystalize this loss. I have a tracker and repayments are 1200pm. I’m currently working abroad on a short contract but still tax resident in Ireland. As I’m abroad I’m currently renting my house out and the rent I get meets the mortgage repayments. The plan is to come back to Ireland in a few months when project ends and try to get a mortgage of €270k to buy a new home for €350k (my income is 90k gross, I have 80k of savings, no other loans, age 40 and single).
So,
1) is it better for me to continue renting out my house while I move to rental accommodation in my desired area until I buy there? The logic is that I would be showing the banks that as I can cover existing mortgage and meet rental costs in the new area (c.1500pm) and save an additional €1500pm, I would be able to meet the second mortgage rate.
Or
2) would I be better off going back to existing property, kicking out the tenants and continue to save €1500-1800pm?
Renting a new place while I have an existing property probably seems foolish and an unnecessary complication but for personal reasons I would really prefer to move to the new area and start renting while I suss out which property to buy, and having got decent tenants for my place I would like to leave them there. So which option is best from a mortgage application point of view?
many thanks
Paulie