need some advice...

rotary

hi,
i'm 19 years old, but i have been working for the past couple of years, so i have savings of approx. 15000euro. basically, i would like to buy a house, and rent it out, thus letting someone else pay my mortgage.
but is this feasible??
1. is that enough money to get a mortgage?
2. am i too young?
3. will the rent pay for the mortgage, or would i have to add to it?
4. what price range would i be in if i was approved a mortgage, what criteria is involved.

thanks!!

rotary

rotary wrote:

1. is that enough money to get a mortgage?

Think they would really focus on your income rather than your savings. The most important issue is your ability to repay.

rotary wrote:

2. am i too young?

That's something only you can know. There is no legal bar anyway.

rotary wrote:

3. will the rent pay for the mortgage, or would i have to add to it?

Would imagine in most scenarios it would not, certainly not around here, but the idea is to get them as close as possible.

rotary wrote:

4. what price range would i be in if i was approved a mortgage, what criteria is involved.

Main criteria is repayment. Everything else depends on the size of the mortgage.

Remember that, unless you qualify for the rent a room scheme, leasing the house could expose you to income tax and remove stamp duty exemptions.

LegacyUser

if you're looking to buy the house as an investor, you won't qualify for the stamp duty exemption, for houses under, €317,500

if you're an owner ocupyer, and get a house around the €317,500 mark, you'll need to be earning around €70/80k a year.

also, 15k aint gonna be nearly enough to cover your deposit and other fees, you're looking at around 35k.

Victor

Are you living at home at the moment? Have you any experience of renting / living with others?

Having the €15k certainly helps as it demostrates a savings ability (assuming they are savings, not gifts, inheritences, etc.).

I suspect the banks may be shy about your age, but there is no absolute bar. If you go back to study, there could be a big gap in payments early on.

I would suggest you get a 2-3 bed and go for the rent-a-room scheme.

gibo_ie

rotary wrote:

3. will the rent pay for the mortgage, or would i have to add to it?

Hey Rotary,
Depending on where you are in the country it may be possible to build a house and rent it our, the cost o build should be much less than the final value of the property and therefore make you money on selling or renting.
I have done this three times so far (i am 25) and rent pays over and above the mortgage.
go for it if possible!
good luck

cltt97

Rotary,

Where are you based? Age should not be a problem, some lenders will even give 40 year mortgages if applicants are under 24...
But as stated previously it all depends on your income. You can probably get 4times your income, maybe slightly more if you go for the "rent a room" scheme, where you have tenants in the house living with you.
If you give more details about income and location we can offer more advice..

Seany

The fact that you have 15k saved is a good sign and will stand to you (presume its accumulated) however typically a bank will not lend monies on a mortgage if the proposed monthly repayments are over 35/40% of your net monthly income (at a 1 or 2% increased/stressed rate).

Another point to bear in mind.... not many banks will offer a mortgage to a first time buyer who is purchasing for residential investment purposes.

If you declare you are looking for a homeloan, you are advising that you will be living in the premises.

You you declare that you are purchasing for investment purpose, you will be faced with a tougher time gaining mortgage approval and (more than likely) additional government stamp duty.

Some banks will allow a rent a room income to increase the level of funds you will be approved for.

Best of luck