Ok this is my sticky situation.
My boyfriend bought a 3 bed terraced house in North Dublin with his friend in Dec 2006 for 381k. The house 2 doors down with the exact same spec is on sale at the moment for 249k…if they even get that.
So they have huge negative equity and prices are predicted to fall even further. Their mortgage is 35 years, perm tsb, variable at the moment.
Myself and my boyfriend want to buy our own place next year, we’d be looking at starting a family in the next 2 or 3 years…I don’t want us to take over the house we are currently in because I’ll get stuck paying half a mortgage for a place I won’t even own when I could rent for a lot cheaper. The partner of the friend he bought with probably has similar feelings…so I can’t see either couple wanting to take the house over…and buying each other out is also not an option given the massive negative equity….
So that leaves renting it out, but rents have fallen a lot, so that probably means my boyfriend would have to subsidize half the shortfall between the rent and the mortgage payments….plus I’m not sure how stable the job of the person he bought with is…and her partner is also unemployed and trying to finish off his apprenticeship as an electrician…
These are our finances…he’s a permanent teacher, on around 45k a year, I’m in a more unstable profession, journalism, on 35k a year…hoping to be made permanent in my job in August, but not sure how much that means given the company I work for had redundancies lately and the sector is still badly hit by the recession.
My boyfriend has 40k in savings, I have only 2k but am saving 700 a month. I will prob get 10k from an inheritance this year, so if my savings stay on track I’m hoping to have 19k, by the end of the year. Plus I also have collateral from the same inheritance…legal aspect of it still being sorted but I will jointly own with my 4 brothers and sisters 3 (mortgage free) 2 bed houses in Kerry…problem is given the property market and the glut of property in the town in Kerry I’m not sure if or when we’ll be able to sell them (they’ve been on the market for a year and a half already) or how much we’d even get for them (180/200 MAX)…I also will get a site with a sea view, but given the Kerry C.C rules on planning permission it’s not really valuable to anyone besides me (you have to be resident to build on it, I think I would be able to get planning permission for myself as my sister’s site beside it got permission, but I don’t want to live in Kerry).
So will we be able to get a mortgage together or will his negative equity / outstanding debt make it impossible? Should he try and fix his mortgage on the current place, would that help our mortgage application? Should I just try and buy somewhere in my name…doubtful I’d be offered enough for what we’d want to buy though given my low salary / savings…..should we just rent the house out in a year, rent our own place and try and save for a point in the future when we could afford to buy??? Are we mad to contemplate taking on more debt in the current climate!!
Help!! Any advice on how to work around my de facto negative equity would be much appreciated!!
My boyfriend bought a 3 bed terraced house in North Dublin with his friend in Dec 2006 for 381k. The house 2 doors down with the exact same spec is on sale at the moment for 249k…if they even get that.
So they have huge negative equity and prices are predicted to fall even further. Their mortgage is 35 years, perm tsb, variable at the moment.
Myself and my boyfriend want to buy our own place next year, we’d be looking at starting a family in the next 2 or 3 years…I don’t want us to take over the house we are currently in because I’ll get stuck paying half a mortgage for a place I won’t even own when I could rent for a lot cheaper. The partner of the friend he bought with probably has similar feelings…so I can’t see either couple wanting to take the house over…and buying each other out is also not an option given the massive negative equity….
So that leaves renting it out, but rents have fallen a lot, so that probably means my boyfriend would have to subsidize half the shortfall between the rent and the mortgage payments….plus I’m not sure how stable the job of the person he bought with is…and her partner is also unemployed and trying to finish off his apprenticeship as an electrician…
These are our finances…he’s a permanent teacher, on around 45k a year, I’m in a more unstable profession, journalism, on 35k a year…hoping to be made permanent in my job in August, but not sure how much that means given the company I work for had redundancies lately and the sector is still badly hit by the recession.
My boyfriend has 40k in savings, I have only 2k but am saving 700 a month. I will prob get 10k from an inheritance this year, so if my savings stay on track I’m hoping to have 19k, by the end of the year. Plus I also have collateral from the same inheritance…legal aspect of it still being sorted but I will jointly own with my 4 brothers and sisters 3 (mortgage free) 2 bed houses in Kerry…problem is given the property market and the glut of property in the town in Kerry I’m not sure if or when we’ll be able to sell them (they’ve been on the market for a year and a half already) or how much we’d even get for them (180/200 MAX)…I also will get a site with a sea view, but given the Kerry C.C rules on planning permission it’s not really valuable to anyone besides me (you have to be resident to build on it, I think I would be able to get planning permission for myself as my sister’s site beside it got permission, but I don’t want to live in Kerry).
So will we be able to get a mortgage together or will his negative equity / outstanding debt make it impossible? Should he try and fix his mortgage on the current place, would that help our mortgage application? Should I just try and buy somewhere in my name…doubtful I’d be offered enough for what we’d want to buy though given my low salary / savings…..should we just rent the house out in a year, rent our own place and try and save for a point in the future when we could afford to buy??? Are we mad to contemplate taking on more debt in the current climate!!
Help!! Any advice on how to work around my de facto negative equity would be much appreciated!!