buying another investment prob help

JackCharlton

Hi i live at home with my mother she is terminally ill and it has shelved plans for my gf and i to move out i have 2 investment properties together worth 700 and with mortgages of 500k with 1 year leases on them
the plan is to sell the property with the most equity in it and then use that to finance our own place ,but thats about 9 months off as yet , in the meantime i looked into buying another investment prop , but the banks i have contacted so far were hesisisant to giv me any more money
ive a good job , no loans and never misssed a payment on anything
all i need to borrow is arounf 200k .does anyone have any ideas on the best bank for investors ?

Blackjack

JackCharlton wrote:

Hi i live at home with my mother she is terminally ill and it has shelved plans for my gf and i to move out i have 2 investment properties together worth 700 and with mortgages of 500k with 1 year leases on them
the plan is to sell the property with the most equity in it and then use that to finance our own place ,but thats about 9 months off as yet , in the meantime i looked into buying another investment prop , but the banks i have contacted so far were hesisisant to giv me any more money
ive a good job , no loans and never misssed a payment on anything
all i need to borrow is arounf 200k .does anyone have any ideas on the best bank for investors ?

Not being a bear about the property market, but perhaps the banks reckon you are too leveraged already.
Perhaps the banks are hesitant as they may believe the property market is topping out, and don't think it's worth the risk to lend you the money.
You're asking to borrow the 200 which is all the equity you have left in the 2 properties you currently own - if anything were to happen in the property market, you'd be in a very vulnerable position.

ircoha

JackCharlton wrote:

....mortgages of 500k
no loans, i need to borrow is arounf 200k .does anyone have any ideas on the best bank for investors ?

Interesting, I am sure other people would like to think, 500k mortgage, but I have no loans:)

What kind of an investment property are u expecting to get for 200k, what is the rest of the financing?

JackCharlton

yes 500k mortgatge no loans
1 yr leases on both places
saving 1700 p/m

when i went to buy my first property i had 1200 Euro remaining on my car loan and it reduced what i could borrow by 70 k ?????
anyway thats off point,anybody have any helpful advice ??

conor_mc

JackCharlton wrote:

but thats about 9 months off as yet , in the meantime i looked into buying another investment prop

Can I just get this straight. You have two investment properties already. You want to buy a third but the bank says no. In 9 months time you want to buy your own home with the missus.

Why on earth would you want to push the matter on the third investment property? Even if you got it in the end, you'd only do yourself out of your own home until you got rid of at least one investment. Given the high transaction costs and slowing capital appreciation, why bother?

I think the bank are probably doing you a favour here.

Diarmuid

JackCharlton wrote:

Hi i live at home with my mother she is terminally ill and it has shelved plans for my gf and i to move out i have 2 investment properties together worth 700 and with mortgages of 500k with 1 year leases on them
the plan is to sell the property with the most equity in it and then use that to finance our own place ,but thats about 9 months off as yet , in the meantime i looked into buying another investment prop , but the banks i have contacted so far were hesisisant to giv me any more money
ive a good job , no loans and never misssed a payment on anything
all i need to borrow is arounf 200k .does anyone have any ideas on the best bank for investors ?

2 properties and you are looking for 1 more ... do you not think you are WAYYY over exposed to one type of investment?

If Irish banks are hesitant about giving you another loans I would be extremely wary about your position. They see you as a risk because increasing ECB interest rates will clearly hit you (700k in mortgages !!)

Saying your property is worth 700k is moot until you actually sell them for 700k.

Sorry I can't help you with your more immediate question.