what are our chances ?

th3 s1aught3r

My wife and I want to build a house. We already have a site, donated by my wifes parents and have got planning permission. We own a house which I inherited, its quite a small house and I cannot see getting more than 150k for it. The build cost for the new house is around 350k
We have 2 small kids, so my wife has quit working for the moment. I work part time, and my income is around 20k PA
If we sell our house for 150k and go to the bank is there ANY chance we could borrow the rest ? or what should we do

quozl

You're talking about borrowing 200k on a 20k salary.

That's ten times. There is no way a bank will agree to that nowadays.

Plus, with 3 dependants, I'd be highly dubious you could borrow 80k. That would still be 4 times your salary, and with two kids and a wife, you can't have much spare money a month.

I have no suggestion for you on how you are going to get a 350K property given the circumstances. I just don't think it's possible.

TBH, with an income of 20K PA, I'd suggest staying in the small house. It's rent/mortgage free, and that's important in your circumstances. I don't see what else you can do. At least you aren't currently struggling to pay a mortgage and at risk of losing everything. That seems to me to be what you're trying to get into.

royaler83

th3 s1aught3r wrote: »

My wife and I want to build a house. We already have a site, donated by my wifes parents and have got planning permission. We own a house which I inherited, its quite a small house and I cannot see getting more than 150k for it. The build cost for the new house is around 350k
We have 2 small kids, so my wife has quit working for the moment. I work part time, and my income is around 20k PA
If we sell our house for 150k and go to the bank is there ANY chance we could borrow the rest ? or what should we do

Can I ask what kind of a house you are building? sq feet etc

In my experience 350k would build a serious house considering you have the site for free.

You may need to downsize cos I can't see the bank giving you that mortgage. Unless you have significant savings?!

JoeyJJ

Have you calculated the build cost correctly? I was watching the consumer show on rte last night and they showed people how to calculate the rebuild price for taking up house insurance, and the example of the house type in the show was 270 euro a square foot or something.

It must be some house if your build price is 350k. My brother in law build a 7 bed house for 150,000. He put in a lot of work and project managed it but he done it.

RedXIV

Similar OP, my folks build a 5 bed house on an acre plot for a little under 200K, are you sure you've done the math correctly?

Kcboy

Might be worth have a look into something like this http://www.citizensinformation.ie/categories/housing/owning-a-home/help-with-buying-a-home/shared_ownership.
It looks like a good scheme.

th3 s1aught3r

RedXIV wrote: »

Similar OP, my folks build a 5 bed house on an acre plot for a little under 200K, are you sure you've done the math correctly?

Can I ask what the square footage of the house they built was ?