Own half house with family member; Want to buy with bf, take on additional borrowing?

[Reggie2]

I am currently living in a commuter area where I own half a house with a family member.

My bf and I would like to buy in Dublin as we are tired of the long commute.

We have a combined income currently of about 90k and I owe 115k on the house I already own which we would hope to rent out.

We are looking at a house in Dublin priced at 450k and would hope to get it at about 420k.

We have savings of about 50k.

Would we be mad to take on the extra debt?

 

[tenchi-fan]

Re: To Buy or Not to Buy???

Debt of 485k and no savings left after the deposit? Not to mention you'll have to pay stamp duty. No one knows when house prices are going to bottom out.

And when you say "I owe 115k on the house i already own" does this mean the total debt on this property is 230k (and your share is 115k?). not to mention if you rent it out you will be paying tax at the higher rate.

It wouldn't be for me personally. 90k is a pretty good joint income but do you think you could afford repayments on 2 loans if one of you was laid off?

 

[Billo]

Re: To Buy or Not to Buy???

Need advice.... I am currently living in a commuter area where I own half a house with a family member. My bf and I would like to buy in Dublin as we are tired of the long commute. We have a combined income currently of about 90k and I owe 115k on the house i already own which we would hope to rent out. We are looking at a house in Dublin priced at 450k and would hope to get it at about 420k. We have savings of about 50k. Would we be mad to take on the extra debt??

Is the house in negative equity ?

 

[Reggie2]

Re: Own half house with family member; Want to buy with bf, take on additional borrow

Thanks for replies. Great to get an objective view on it! The house isn't in negative equity no. We bought it before the peak.

 

[Bronte]

Re: Own half house with family member; Want to buy with bf, take on additional borrow

Would we be mad to take on the extra debt?

Not necessarily, a better question would be what agreement will you have with your boyfriend to ensure that any financial situation you get into can be got out of easily and painlessly should everything go wrong in your relationship.