Polish mortgage

M

matthew_bm

Guest
Hi guys, i hope i have posted this in the correct forum.

Anyway i guess i just have a basic enough question. I would like to invest in a foreign property but first of all i do not actually know if i will qualify for a mortgage or not. I have just turned 20 and am only earning a salary of 24k per annum so am pretty much priced out of most places in Ireland. I want to buy strictly as an investment with the view to renting the property out, and at present i am looking at a property in Poznan, Poland worth 90k approx. I see the investment as relatively long term (10 years approx) with a view to making decent capital gains on it in order to get a decent mortgage in Ireland a few years down the line.

I do not own any land/property here and as such do not have any collateral for a mortgage here in Ireland. I do not have any outstanding loans either, and have savings of 5k. I want to keep my liability (mortgage) and asset (property) in the one country ie. Poland, in order to avoid any currency fluctuations.

So i guess my question is this - can i even get a Polish mortgage in the first place?? i know AIB's subsiduary over there provide 85% LTV mortgages max, but would i even qualify for one??

Sorry for the amatureish question but any help greatly appreciated. Thank you.
 
Re: Polish mortgage?

Just go ahead and ask them; AIB in Warsaw do pre-approvals in priciple all the time. Send me a private message if you need their direct contact details.

80% LTV mortgages are the norm rather than 85%.

Other posts have pointed out that you will lose your first time buyer status if you buy overseas in your situation.
 
Have you had any luck yet Matthew?

Try Open Finance who use Noble Bank or try BPH who have good rates. I can give you contacts if you need them. You may need more than 5k cash to be honest though.
 
Thats a fair point worth keeping in mind Mathew. You will lose the opportunity to apply for first time buyers allowance by buying overseas first.

You should take to a mortgage advisor as I would imagine it may be a better idea to buy it in your parents name as they could transfer it to you as a gift without capital gains tax arising.

Seek more advice on this though
 
Keentoinvest said:
You should take to a mortgage advisor as I would imagine it may be a better idea to buy it in your parents name as they could transfer it to you as a gift without capital gains tax arising.
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This is the sort of thing you should be talking to a solicitor or tax advisor about-NOT a mortgage advisor.
 
Thanks for the help guys.

Yes i will definitely be seeking independent financial advice before even considering putting pen to paper on anything. I am travelling to Poland next month with my father who is going to help me out, and has offered to lend me the shortfall in cash (roughly 10k - 15k) that i may need (assuming i qualify for a mortgage over there in the first place). When we have seen the city and what it has to offer only then will we make any decisions on whether or not it is right for us. Can anybody recommend an independant financial advisor that is well versed on overseas investment? basically somebody reputable who can best advise me on the ins and outs of buying abroad and how it will effect my buying power in Ireland thereafter?

Bnage i haven't looked in any great detail at any lending institutions yet. But i would appreciate it if you could PM me with contact details you have in Noble Bank or BPH. Thanks.

Keentoinvest i did consider putting the property in my parent's name but would have thought that by doing do i would get hit with a steep "gift tax" when the property is transferred to me. Please correct me if i am wrong..

once again thank you for any help.
 
HI Mathew
A parent is allowed to gift you a few hundred thousand euro without having any tax penalty. As far as Im aware its just over 300k but again like ccovich advised chat to an accountant (possibly your fathers).

You dont want to lose your first time buyers allowance in ireland which is a consequence of buying overseas in your own name.
 
Hi,

My contact at Open Finance is Jakub Krol, I will PM his email address
 
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Keentoinvest said:
HI Mathew
A parent is allowed to gift you a few hundred thousand euro without having any tax penalty. As far as Im aware its just over 300k but again like ccovich advised chat to an accountant (possibly your fathers).
Click to expand...

[broken link removed]

The limit is over €478k. This is a lifetime limit, i.e. any gifts you tax now will have an impact on the tax free amount of gifts/inheritances received in the future.
 
CCOVICH said:
[broken link removed]

The limit is over €478k. This is a lifetime limit, i.e. any gifts you tax now will have an impact on the tax free amount of gifts/inheritances received in the future.
Click to expand...


Thanks guys.
Just so i am clear the deeds for the property can be written up in my fathers name and then when everything is cleared he can simply sign the property over to me as a gift and there will be no tax penalties in doing so? (as long as it doesn't exceed €478k which i can't see happening anytime soon ).

I'm just wondering now will the fact that i will be the one getting the mortgage have any impact on my first time buyer status? bearing in mind that i do not know if the mortgage will be foreign or irish as of yet

cheers
matt
 
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