Buying apartment for part-time letting?

[blis100]

I'm living 50 miles from work and have decided that it makes sense to look at buying an apartment in a nice seaside village closer to work (where I can stay once or twice per week) for around €100K. We have €25K for a deposit so would need a €75K mortgage. We have about €55K left to pay on our current tracker mortgage on the family home, 6 years left on that. I might consider letting the apartment occasionally using Airbnb as well to help pay the new mortgage. Our family will also use it as a holiday home now and again.

I presume I should just apply for a new mortgage and not necessarily with my current bank (PTSB)? Am I better looking at a fixed rate and who is offering the best deal currently for small mortgages (probably over 15 years)? We are due an inheritance in a year or so and we could use some of that to pay down the new mortgage (probably not the full amount however).

 

[dub_nerd]

Would it not make more sense to trade up to a family home closer to work? (Maybe not if you have other family near where you live). Just to mention from experience, living in two different places at the same time can get pretty tiresome and awkward.

 

[RedOnion]

Hi,

I think (not certain) that a 2nd property would be treated as an investment / BTL by the banks if you get a mortgage. So minimum 30% deposit to satisfy central bank rules. It would also be at BTL rates.

Another option to consider is to see if PTSB would do an equity release on your home to cover the amount you need. The extra would be at new business rates.

 

[Leo]

I might consider letting the apartment occasionally using Airbnb as well to help pay the new mortgage.

Keep in mind many developments specifically prohibit short-term lets. Using it regularly as such would require a change in planning.

 

[elcato]

What are the chances you will stay in the same employment over the next x years ?