Releasing Equity on house to purchase another

[Voodoo]

Releasing Equity on house to purchase another
Hi all,

I am dappling with the idea of releasing some of the equity on my house to purchase an investment property - looking at a couple of areas outside of Ireland.

I am aware that there may be issues with getting a mortgage with an Irish finance house for a foreign investment. Is there anything I can do with this equity with a financial establishment in another country?

If anyone knows of someone I could talk to about this, I would greatly appreciate it.

Cheers

 

[asdfg]

Not exactly answering your query but I trust you are aware of the tax implications to Irish revenue in respect of profit on rental income on foreign property

 

[Hel_n]

You have two options:

1. You can release equity on your home in Ireland and use the funds released to purchase abroad. Most lenders here don't have any issue with this.

2. You can mortgage the foreign property in the country where you are purchasing. Generally, the leding criteria is similar to Ireland but you can expect to pay higher interest rates, typically around 2% higher and you have to fund a deposit as the loan to value ratios are around 75%. Its also likely that you will ahve to pay a fee for having your mortgage arranged.

Personally, I think that the first option is probably the best.

 

[Hel_n]

Sorry just to answer your last question, while having a house in Ireland might make your case appear stronger, I couldn't see it being of any great advantage - a house in Ireland isn't much use to a financial establishment in another country if you default on repayments with them.