Buying a second home

G

Gazzaman

Registered User
Messages
23
Hello All

Looking for some advice - Currently have a home worth about €250,000(bought for €205,000) with a mortgage left on it of about 35,000
My self and wife (both 45)are looking at a house worth about €350,000.
we have savings of about €250,000 and will try and get another €100,000 mortgage (think this is a non runner as i'm off work sick at the moment) or borrow from family.

What is out best way of working this out -
open to any ideas or suggestions which you think may help our be our best way of working this all out.
Should we rent our own home? if so can this income be used to help apply for a mortgage on second home?
Should we sell?
Can we remortgage property 1?
How much is CGT?
Any pit falls to keep an eye on?
any other ideas to try - can Local authorithy home loan be accessed?
 
Without knowing all your circumstances. If you 'need' to upgrade to a more expensive home, I would sell my current one (no CGT applicable), buy the second one for cash and have €115K in the bank.
 
TRS30 said:
Without knowing all your circumstances. If you 'need' to upgrade to a more expensive home, I would sell my current one (no CGT applicable), buy the second one for cash and have €115K in the bank.
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Ideally this would be good - but i would be fearful of 2nd house will go sale agreed before we would sell our own...
 
Hi,

Could your family comfortably lend you 100k? This would be the easiest option. Put current house on market, buy new house using savings + amount borrowed from family. Sell current house, clear mortgage and repay family loan. You wouldn't be subject to CGT as long as you plan on selling the current primary home.

Otherwise you could investigate personal loans from a credit union or investigate a mortgage.
 
Gazzaman said:
Ideally this would be good - but i would be fearful of 2nd house will go sale agreed before we would sell our own...
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Doesn't matter. You can still do the same. First buy new house with variable mortgage. Move in, sell current house and then pay off mortgage from proceeds. Remember not to let old house and do it in quick succession.
 
bish123 said:
Doesn't matter. You can still do the same. First buy new house with variable mortgage. Move in, sell current house and then pay off mortgage from proceeds. Remember not to let old house and do it in quick succession.
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Don't think we would get any mortgage to buy second house.
 
DublinHead54 said:
Hi,

Could your family comfortably lend you 100k? This would be the easiest option. Put current house on market, buy new house using savings + amount borrowed from family. Sell current house, clear mortgage and repay family loan. You wouldn't be subject to CGT as long as you plan on selling the current primary home.

Otherwise you could investigate personal loans from a credit union or investigate a mortgage.
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How come, I thought CGT worked on the premise of what I bought first house for and what I sold it for.... tax on the difference?
As I say, I'm not up on all of this!!!
 
Gazzaman said:
How come, I thought CGT worked on the premise of what I bought first house for and what I sold it for.... tax on the difference?
As I say, I'm not up on all of this!!!
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Assuming your current house has been your primary residency for the whole time you've owned it, any gains will be CGT exempt.

Principal Private Residence (PPR) Relief

This is an explanation of what relief on cgt is available for a Principal Private Residence (PPR)
www.revenue.ie www.revenue.ie
 
1) talk to your current lender. Ask them if they will give you an additional €100k on your current home. It is very unlikely but ask them anyway.

2) Talk to your local credit union. If it's a short term loan, they might well do it for you.

3) Talk to family. You might well have someone who has €100k sitting in a bank account earning nothing who would be delighted to help you out.

Brendan
 
Gazzaman said:
My self and wife (both 45)are looking at a house worth about €350,000.
we have savings of about €250,000 and will try and get another €100,000 mortgage (think this is a non runner as i'm off work sick at the moment)
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Is your wife earning?
 
Gazzaman said:
Ideally this would be good - but i would be fearful of 2nd house will go sale agreed before we would sell our own...
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You'd be right in the current market. There's hardly anything out there. Last one we bid on went 30% over asking.

I'm amazed you have not spoken to your bank already. Or a broker. To see the lay of the land.
 
Bronte said:
You'd be right in the current market. There's hardly anything out there. Last one we bid on went 30% over asking.

I'm amazed you have not spoken to your bank already. Or a broker. To see the lay of the land.
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My wife says they wouldn't entertain us at the min, I'm off sick, existing although a small mortgage, and 3 kids. 1 dog also
 
A combined income of €38.6k would be the minimum required to borrow the combined €135k you're talking about here. With such significant savings, you're also very likely to be able to show disciplined savings. If you don't ask the answer is always no, if you ask a good broker, perhaps the answer will be yes.
 
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