Mortgage affordability

[Ihana]

We are a newly married couple currently looking at options for a house. I have a site with a derelict cottage on it but am hesitant to take on the work to build our home there. I believe building to the standard we would want would be very expensive and the thoughts of not moving into our own home for another 2-3 years is offputting.
With that in mind we have looked for well finished houses in the area. We have seen one for 330000, with a separate annex that could be used for b&b or rented out. It has been on the market for a long time. However I am wondering if we would be mad to take on such a big mortgage. Our take home every month (combined) is 6200 and our current expenses are only 1000 euro per month (rent on two properties) so obviously we are quite comfortable at the moment. I just feel our jobs are pretty precarious and things can change quickly. We are far from dublin as well. We just about have the deposit saved for that amount.

Am I being overly cautious?

 

[Bronte]

I wouldn't describe someone in precarious jobs suggesting taking on a property of 330K as cautious.

Why are you renting two properties?

How much disposable income do you have. What is your salary, how much would a bank approve you for. Is there room for B&B business where you are, hotels are pretty cheap in Ireland now and as far as I know the B&B's lost out heavily to this sector.

By the way, why is 2 to 3 years wait for your dream home too long?

 

[Ihana]

We rent two properties because I work abroad and need to maintain an address there (and stay there). The rent on one is 450 and the other 550 so its not extravagant.

With respect to our disposable income it is pretty much everything after rent. We have no loans and no debts. We live quite frugally. Rarely eat out etc. I spend approximately 300 euro a month commuting (flights) and my partner the same (trains). Bank would approve us for 350,000.

Its not just the time for building, its also the effort. Going through planning process getting an architect etc. Id like to move in somewhere soon. We would want a smallish energy efficient house but I think build cost would be at least 200K. Site is quite complicated too (not greenfield or anything close to it). I will do it if I have to though.