G
Greenleaf
Guest
Not really, same issues, high prices, unaffordable for one person to purchase on their own unless tiny one bedroom flat.
Buying an Apartment on Single Income
- Thread starter Growing Rates
- Start date
sigh.
London
Population c.9million
Majority housing stock predates 1945
Dublin
Population 1.3m (rounded up)
Majority housing stock postdates 1945
Would this be allowed to qualify for rent-a-room scheme?
G
Greenleaf
Guest
Of course. If you have a separate living room, get a sofa bed. What alternative have you got, if you short of cash. Hopefully you have space for an armchair and TV in each 'bedroom'. Not ideal but such are the times we live in.
This is slightly off topic but I have always wondered if you can rent out a 1br apartment under the RARS if you were to go travelling for six months.
Revenue guidance used to say it was possible as the property remained your PPR and sole place of residence for tax purposes for the period, but I noticed they removed these references in the latest guidance.
I have bought 3 1 bed apts over the last 20 years. You'll need about 5k to 8k for conveyancy, tax duty and general costs. It costs about €9 to get the management company accounts for the last year filed. Check this for sinking fund value (should look healthy) and check there's no large debtors.
Check the roof if you get access anywhere near but have a look and see if it's in good nick.
Maybe ask people who live there by waiting outside on an evening as well. You never know what you might pick up.
If the apartment is surrounded by others then it may be a noisy one so check walls for good solid thickness or better still get an end one. Top floor is usually quietest as sound seems to come from above in my experience.
Look online for any fire regulation problem with the block but your solicitor should check there are no issues anyway.
Check the roof if you get access anywhere near but have a look and see if it's in good nick.
Maybe ask people who live there by waiting outside on an evening as well. You never know what you might pick up.
If the apartment is surrounded by others then it may be a noisy one so check walls for good solid thickness or better still get an end one. Top floor is usually quietest as sound seems to come from above in my experience.
Look online for any fire regulation problem with the block but your solicitor should check there are no issues anyway.
Growing Rates
New Member
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Taking into account all the details I have revealed about my finances how likely would it be I could qualify for a mortgage exemption?
You mean from the normal Central Bank mortgage lending rules/restrictions? Didn't @Brendan Burgess address this earlier?
Growing Rates
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Yes I read that, but I have read also that you would need a really high salary to definitely qualify for it or is that incorrect?
Buying a second hand apartment with a mortgage may not be straightforward:
. . . "An investigation by The Irish Times has found that mortgage-approved buyers are unable to buy second-hand apartments that require remediation works – in some cases as simple as replacing out-of-date fire alarms – as banks are unwilling to lend on them due to uncertainty around a Government scheme to fix them.
Estate agents have said apartments built between 1991 and 2013 found not to be compliant with fire regulations or identified as having defects are being sold exclusively to cash buyers who have factored in potential future remediation costs, and can buy the apartments at reduced prices due to fewer buyers.". . . .
www.irishtimes.com
. . . "An investigation by The Irish Times has found that mortgage-approved buyers are unable to buy second-hand apartments that require remediation works – in some cases as simple as replacing out-of-date fire alarms – as banks are unwilling to lend on them due to uncertainty around a Government scheme to fix them.
Estate agents have said apartments built between 1991 and 2013 found not to be compliant with fire regulations or identified as having defects are being sold exclusively to cash buyers who have factored in potential future remediation costs, and can buy the apartments at reduced prices due to fewer buyers.". . . .
Overseas cash buyers snap up bargain apartments that first-time buyers cannot get because of defects
Banks are refusing to approve mortgages for apartments in Ireland with even minor defects - which is shutting out first-time buyers
Growing Rates
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What would you say is a reasonable cost in terms of management fees? I see apartments for sale and they can charge around €2500 for management fees.
That really depends on the services offered by the management company.
It's a function of the specific bank you intend applying to and the number of exemptions they have already granted.
The most 'bang for buck' action you can take is to increase your salary i.e. 4k borrowing capacity for every 1k increase in salary. I'd also be aiming for at least a two bed in order to utilise the rent a room scheme for a few years, a really valuable tax break! If you change job, you would have to complete your probation period (higher property prices in the future?) again but may be worth it for the i) a bigger property + 2) RAR use.
Dr Strangelove
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A friend of mine on a single income stretched himself to the max to buy a two-bed in 2017.
He had a friend lined up to rent the second room “for a while” and she’s still there. She’s basically paid the mortgage interest and he’s paid down the capital rapidly and his LTV is maybe 20% now.
It’s not for everyone but financially highly effective.
He had a friend lined up to rent the second room “for a while” and she’s still there. She’s basically paid the mortgage interest and he’s paid down the capital rapidly and his LTV is maybe 20% now.
It’s not for everyone but financially highly effective.
I would say about 1500 to 2000 max. unless there is something obvious being fixed currently
Really depends on the size and age of the estate. Insurance and bins have increased massively in the past few years. I am well aware of the costs in estate where I have an apartment and the current fees of €1500 are not enough to cover the basic. Then you have the long term expenses like painting, changing carpets...
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