Re-financing to invest

Glenbhoy said:

Keyser, your problem is more straightforward - why don't you start to make capital repayments towards your mortgage, interest only is for investors, not buyers. I cannot see a bank touching you unless your gf has a very large income. Why the rush to become a property mogul, the market is high, the fundamentals may not support much more. For further info go check the daily rants we all have on 'the great financial debates' section!!

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Well the original reason we bought back in September was because we felt that with the SSIA's coming out this year, had we postponed it, we would've had to wait another 2/3 years before I qualify ACA so we jumped onto the old property ladder to give it a try. Our gamble has paid off as the appreciation on the apartment was almost 20% since September.

So we thought if we could get another before the SSIA payments are in full swing that we may have the same fortune again. Yes it was going to be a risk and it was something that we've talked about in great depth but nothing has been 100% decided on and from what you're saying about the banks, I've a better chance of growing a 3rd testicle then getting another mortgate.

We're also aware that on paper, overall supply of housing is meeting demand, but in reality this is not true. It's great that X amount of houses were built last year, but there's alot of them sitting vacant down the country. The figures are technically right to the average person but you probably know that there are houses vacant down in the country and the only reason they were built was because of tax breaks available to the builders. Demand is still high in Dublin, with respect to both ownership and letting, so were we were thinking of buying as we felt that we would have no problem finding suitable tenants.

I understand what you're saying about capital repayments and that is another aspect we've talked about. Probably more of an option at this stage but we haven't ruled anything out as we're awaiting info from our lender.

We have not decided on anything, we were merely looking at our options were, or were not as the case may be.

And lastly, yes you were very short earlier but all is forgiven

Glenbhoy - i'm suprised, that was very constructive & enlightening. I appreciate your time.

Tell me this, do banks consider travel/Mileage allowance, say 25% + (after tax) on your net salary. total: €4000 p/m approx. Surely they have to consider this additional income, but to what extent is my question?

Furthermore, i'm sure applicants can be creative to make their application look better (without falsifying documents). Also, do your chances increase by dealing directly with your own bank manager, on a more personal level? If you sell yourself (to a bank) backed up by a well constructed plan of how you aim to achieve this goal (supported by resaonable income), could you close the deal?

I can be persuasive & creative!!! Com'on, think about it, it is possible!

flyer4 said:

Glenbhoy - i'm suprised, that was very constructive & enlightening. I appreciate your time.

Tell me this, do banks consider travel/Mileage allowance, say 25% + (after tax) on your net salary. total: €4000 p/m approx. Surely they have to consider this additional income, but to what extent is my question?

Furthermore, i'm sure applicants can be creative to make their application look better (without falsifying documents). Also, do your chances increase by dealing directly with your own bank manager, on a more personal level? If you sell yourself (to a bank) backed up by a well constructed plan of how you aim to achieve this goal (supported by resaonable income), could you close the deal?

I can be persuasive & creative!!! Com'on, think about it, it is possible!

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Isnt mileage just reimbursing you for incured expenditure and hence income neutral? or do you actually spend much less on expenses than the mileage allowance you receive?

bearishbull said:

Isnt mileage just reimbursing you for incured expenditure and hence income neutral? or do you actually spend much less on expenses than the mileage allowance you receive?

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For me I negotiated mileage as part of my employment, expenses are totally seperate. This mileage/travel allowance usually equates to €900 p/m Net ... Being reimbursed ... maybe? But consider this, I own my car so have no car loan. I would probably spend €250-300 p/m on Fuel; Tax & Insurance costs around €110 p/m. These are costs that most of the work force pay out on a monthly basis & banks do not consider this (except a car loan) on a mortgage appliaction, so why should this differ? The fact of the matter is that i pay for fuel & insurance like the next guy, but can also prove Salary + €900 per month, thats a mortgage payment covered.

Withoiut being naive this has to have a big influence when underwriters are considering an application? Any one else got ideas on the subject????

they will include it as income as long as you can prove it's being paid on a regular basis (ie show them the bank statement it's paid into) - it is however taxable presume you know?

Glenbhoy said:

they will include it as income as long as you can prove it's being paid on a regular basis (ie show them the bank statement it's paid into) - it is however taxable presume you know?

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Yes, all above board & noted as a line item on each payslip ... taxed relative to mileage incurred during the month.

Just an update, we've decided to stay put and not go for another place. Got told by a friend that we'd probably only get about 250k for our 2nd place so we're going to hold off.

Hold off and sell next year and try and move closer to D.14 which is where we grew up. There's a couple of developments going up close to there that we're considering but nothing is concrete as of yet