I am currently letting out my only property to relatives at a discount-personal circumstances have lead to this. There is no quick way this would change over the next few years.
Your net seems low given the 67k gross / 5583pm.
Maybe you are making large pension deductions?
To my original question about saving or investing: I am disheartened to hear that no bank is likely to approve a mortgage/approve an unworthwhile mortgage. Is the fact that there are tenants covering the bulk of my mortgage payments taken into the account in the mortgage approval calculation by the banks?
If I was to get market rates in terms of rental income for my property, would this help my future application for a second mortgage? Or am I better off just selling my property altogether? The property I own has good rental potential… so could be a long term investment if I could get market rates in terms of rental income.
Not really. They take a percentage of the income, but the full outgoing, stressed at about 6% interest rate. So it counts massively against you as you've an ongoing commitment before your mortgage.Is the fact that there are tenants covering the bulk of my mortgage payments taken into the account in the mortgage approval calculation by the banks?
Age: 40
I contribute a significant percentage to my pension.
You have to be realistic here. If you want to buy a family home to live in, you have to sell your investment property.
This is madness. If you want to buy a home, then stop contributing to a pension until you have bought the home and sorted out the mortgage.
Most lenders charge lower rates for lower Loan to Values. By having a bigger deposit, you will save interest on the whole mortgage.
Brendan
With over €200k in available assets, I don't see any reason why the OP couldn't buy a house for €300 - €400k AND continue maximising her pension contributions.Otherwise, don't make any contributions. You can resume contributions at a later stage.
I would like to buy a small property for circa €300k,
The downside is that the small property would not be my preferred home, merely somewhere to live till my spouse is able to earn an income. This is likely to be in the next 3 years.
I strongly disagree.He has plenty of time for "time diversification".
You are also ignoring the "use it or lose it" nature of the tax relief on pension contributions.
Where you conceded that pension contributions should be the priority from around 40.I have referred you to the extensive discussion of it on the other thread.
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