First time buyer with site but no PP-advice?

[Highlander]

I've been reading these forums with interest over the last few months and have found alot of helpful information, but now I come asking for specific advice or even some pointers on where to get started.

I am wondering whether I can/should be looking at buying/building a house or must/should I wait longer. My circumstances are as follows:

1) I'm 22 years and am currently living at home with my family.
2) I have just been made permanant in my job (I work as a engineer with an American Multinational) where I'm earning E24,000pa + 20% Shift Allowance + overtime. Average after tax earnings are approx 530 - 550 per week at the moment.
3) I have cash savings in the amount of approx E23,000. Shares valued at approx E8,000. And some long term savings bonds which will mature over the next 1 - 3 years valued at E8,000+.
4) I have a site, which is in my mothers name (I think), but it may be difficult to get planning permission on at the moment.

My question I guess is, if I go to the bank looking for a mortgage with these details will I be laughed out of the place? I don't intend to buy either today or tomorrow. It could be up to a year before I do, but I would be interested to know, based on the info above where you think I would stand.

Houses in the area obviously vary considerably in price but looking at some in the papers and on the net are turning up ones I'd be happy with in the 220k - 260k pricerange. If I was to build I'd say I'd get a decent house up for under the 130k price tag.

Also, do you think it would be a better idea for me to buy or to build on my own land?

Thanks for any suggestions you may have.

 

[ClubMan]

2) I have just been made permanant in my job (I work as a engineer with an American Multinational) where I'm earning E24,000pa + 20% Shift Allowance + overtime. Average after tax earnings are approx 530 - 550 per week at the moment.

Are you sure that those figures are correct? Eur530 p.w. is equivalent to approximately Eur35,000 p.a. according to [broken link removed]. Are you sure that you're making up the difference between this and your base salary in shift bonuses and overtime?

4) I have a site, which is in my mothers name (I think), but it may be difficult to get planning permission on at the moment.

Why are you not sure in whose name the site is held? Why will planning permission be difficult to obtain?

 

[Highlander]

Hi Clubman,

The 530 - 550 euro is pretty accurate at the moment. The 20% shift allowance makes up E4,800 and I'm doing 9 or 10 hours overtime every week at the moment (there is shift allowance on top of this too), and its possible that for the next couple of months there could be even more OT.

I'm not sure who's name the site is in, in that its in either my mothers or my grandmothers name. It just hasn't been signed over to me yet, so I understand that I will have to pay CGT on this when it is transferred into my name.

Planning permission in my area is at the moment (and has been for a few of years now) difficult to obtain for one off dwellings. 10 years ago the area would have been considered almost rural, and was mainly agricultural. But, as the city has expanded and the subarbs have moved out, my area has been kind of engulfed by the town. The emphasis now in terms of planning in the area is on small/medium residential housing estates. Because of this people are finding it difficult to get planning for a single house on say your average .5 acre site.

Hope that answered your questions.

 

[ClubMan]

I'm not sure who's name the site is in, in that its in either my mothers or my grandmothers name. It just hasn't been signed over to me yet, so I understand that I will have to pay CGT on this when it is transferred into my name.

Actually I think that this CGT exemption might apply in your situation (see [broken link removed] for more information):

6. Transfer of a site fromparent to child

Section 603A Taxes Consolidation Act 1997 provides that Capital Gains Tax will no longer apply on the transfer of a site from a parent to a child where the transfer takes place after 6 December 2000 and is to enable the child to construct a principal private residence on the site. The site must not be valued at more than =254,000 to qualify for the relief. However, if the child subsequently disposes of the site without having occupied a principal private residence on the site for at least three years, then the capital gain which would have accrued to the parent on the initial transfer will accrue to the child. However, the gain will not accrue to the child where he or she transfers an interest in the site to his or her spouse.

 

[extopia]

You won't be laughed out of the bank. You are entitled to apply for a mortgage and from what you say you should qualify for what you are looking to build, assuming you put your savings into it of course.

The bank will of course not advance you a mortgage on a greenfield site with no PP so you need to get that sorted out first. Talk to an architect would be my advice.

 

[Unregistered]

22 with presumably qualifications f your an engineer,
€23k in savings
€8 in savings,
€8 in bonds !!!
The bankswill love you mate, play hard with them.

Ps. - How did u amass such a strong financial position at 22???

 

[Highlander]

22 with presumably qualifications f your an engineer,
€23k in savings
€8 in savings,
€8 in bonds !!!
The bankswill love you mate, play hard with them.

Ps. - How did u amass such a strong financial position at 22???

Kept an almost full time job through collage, convinced myself to live at home (was a bit of a pain at the time but I'm glad now I did), and had some luck with certain shares which have drasticly dropped in value over the last couple of weeks!


To ask another question though....would anyone recommend whether I should be looking at buying or building for my first house? I'd be leaning towards buying a second hand house, but I'm not entirely sure why. I know that would mean a little more saving for me though.

Thanks.