Qualifying for a mortgage after working abroad

grahamor

Hi,

I'm moving back to Ireland after living in Switzerland for 4 years. I've been employed full time the whole time i've lived away.

Would this employment count in applying for a mortgage or is it irrelevant because it was in another country ?

The mortgage would be for an apartment that costs 225k and i'd put a 1/3rd of the money upfront. (So the mortgage would be 150k)

Thanks for any info

the_syco

grahamor wrote: »

The mortgage would be for an apartment that costs 225k and i'd put a 1/3rd of the money upfront. (So the mortgage would be 150k)

Just to say that 225k for an apartment is fairly steep, esp as prices are still falling, and apartments are no different. Are we talking penthouse or ripoff apartment?

Sorry for no other help, but I think €225k is a lot to pay, for an apartment. I do take it that you have kept tabs on the falling house prices in the past while?

Unrealistic

Been in this boat myself. If you have kept up a relationship with an Irish bank while you are away you will be in better shape. If not you may need to re-establish a relationship for six months before they really believe you are back here to stay. Also the banks seem to be very wary about lending for apartments vs. houses. Especially in the price range you are looking at (seems very high when there are many decent houses out there in that range).

grahamor

Thanks for both replies i have received so far.

@the_syco : I've only been keeping tabs on Irish property prices in the last few months, it's amazing that things have changed so fast.

I'd like to live in Clontarf, this apartment popped up that i like - http://www.daft.ie/searchsale.daft?id=577714. It's out of my price range by about 50k. I imagine it's overpriced and i could haggle quite a bit. What would you think it's worth ?

@Unrealistic : I've heard the same about banks not lending for apartments, but i doubt i'd find a decent house in D3 for 200k. I'd expect min 2 bed's, a garden and a decent facing aspect. I dont think this is too much to ask ?!

Thanks for any more info.

Diddler1977

grahamor wrote: »

Hi,

I'm moving back to Ireland after living in Switzerland for 4 years. I've been employed full time the whole time i've lived away.

Would this employment count in applying for a mortgage or is it irrelevant because it was in another country ?

The mortgage would be for an apartment that costs 225k and i'd put a 1/3rd of the money upfront. (So the mortgage would be 150k)

Thanks for any info

Are you moving back to a job in Ireland?

Diddler1977

grahamor wrote: »

Thanks for both replies i have received so far.

@the_syco : I've only been keeping tabs on Irish property prices in the last few months, it's amazing that things have changed so fast.

I'd like to live in Clontarf, this apartment popped up that i like - http://www.daft.ie/searchsale.daft?id=577714. It's out of my price range by about 50k. I imagine it's overpriced and i could haggle quite a bit. What would you think it's worth ?

@Unrealistic : I've heard the same about banks not lending for apartments, but i doubt i'd find a decent house in D3 for 200k. I'd expect min 2 bed's, a garden and a decent facing aspect. I dont think this is too much to ask ?!

Thanks for any more info.

I'd start bidding at 190 for that apartment and not pay a cent over 230.

grahamor

I dont have a job in Ireland just yet, i expect to start contracting immediately and hopefully be full time in 1-2 months. I work in IT so i'm confident ill find something, even in these hard times.

@Diddler1977, that's interesting about the price, should i assume that i could offer around 30% less for all properties in this part of Dublin ?

Thanks

Unrealistic

grahamor wrote: »

@Diddler1977, that's interesting about the price, should i assume that i could offer around 30% less for all properties in this part of Dublin ?

The only thing that is certain on that point is uncertainty. Some sensible vendors are willing to negotiate a realistic price to secure a sale others are focussed on the price they bought at or the amount they still owe the bank without recognising that neither of these factors have any bearing on the current market price of their property. The latter properties are the ones you see sitting on daft for two years, slowly drifting down, but always just behind the market so they never make a sale.

Diddler1977

grahamor wrote: »

I dont have a job in Ireland just yet, i expect to start contracting immediately and hopefully be full time in 1-2 months. I work in IT so i'm confident ill find something, even in these hard times.

@Diddler1977, that's interesting about the price, should i assume that i could offer around 30% less for all properties in this part of Dublin ?

Thanks

Obviously the banks won't even begin to entertain you until you have a steady job to show them that you can pay back the mortgage.

Go to the
http://www.thepropertypin.com/index.php?sid=746f806de809c9271e6ef6043f7ae2ac
for more discussion on house prices.

grahamor

Thanks for the link, it's interesting reading.

How many months would i have to be working full time back in ireland before the banks would talk to me ? I'd want about 100 - 120k

Diddler1977

grahamor wrote: »

Thanks for the link, it's interesting reading.

How many months would i have to be working full time back in ireland before the banks would talk to me ? I'd want about 100 - 120k

I would imagine about 6 months.

Any chance you could stay in Switzerland for another 4 years and save another 75,000 - you'd probably be able to buy a place in Clontarf outright on your return!

grahamor

Diddler1977 wrote: »

I would imagine about 6 months.

Any chance you could stay in Switzerland for another 4 years and save another 75,000 - you'd probably be able to buy a place in Clontarf outright on your return!

Ha ha, the low taxes here are amazing, serious cash to be earned and saved too , but my circumstances have changed , so it's time to leave soon. In one way im delighted but ill definitely be poorer in the future :-(

robd

grahamor,

They're nice enough apartments. Rented in the complex for a few years. Big by Dublin standards and solid walls. Some small issues with fit out, mainly to do with really poor plumbing. Parking problems outside of allocated spaces.

Big problem is that the 2 beds originally sold for 330k+. Will be difficult to get one for much less. They fall into the sitting on myhome for 2+ years as big gap between sellers and buyers expectations.

IT is very healthy still here. You'll get a job no problem. Contracting in IT is not permanent employment though (from the banks perspective) and at the moment there is a large difference in rates/salary for the two. I can earn 50% more contracting job for job.

You'll be doing very well to get a mortgage after 6 months. 6 months is the minimum in a full time permanent job, but that assumes you were in full time employment before that and were also resident in the state for 2+ years previous. And that was in the good times. I suspect you'll set off all kind of red flags on your application. If I was you I'd plan to rent for the foreseeable future and apply for mortgage at 6 month intervals to see state of play.

grahamor

Thanks for the info Rob.

I'm happy enough renting for the foreseeable future, but i wouldn't want to miss out on a bargain if there was one to be had!

Before i left for Switzerland in 2007 all the property was 350k+ plus for houses/apts in suburbs. I'd never thought i could grab an apartment quite close to the city for under 200k.

robd

grahamor wrote: »

Thanks for the info Rob.

I'm happy enough renting for the foreseeable future, but i wouldn't want to miss out on a bargain if there was one to be had!

Before i left for Switzerland in 2007 all the property was 350k+ plus for houses/apts in suburbs. I'd never thought i could grab an apartment quite close to the city for under 200k.

You're looking at the wrong type of property if you're looking for a bargain. The apartments you linked to are primary stock in a primary location. They'll never be where the bargains are to be had. Thats not to say they're worth what they are or will sell for.

Bargains starting to appear in secondary locations. They're pretty much all refurbishment opportunities which are executor sales. Look at Donnecarney for example. Some examples below 200k. Even in Clontarf, the older in need of refrub apartments or 2 bed maisonettes are considerably cheaper.

Also 150k is fare price for a standard 2 bed apartment when the dust settles based on 7% rental yield.

You need to forget about peak prices. They were stupid (based on bumper sub prime mortgages) and bare no relation to where prices should be and will end up.

If you want to bag a bargain think cash.

magneticimpulse

The appartment you want, is very overpriced. You can now buy 4 bedroom houses for €60,000 across Ireland according to daft.ie.

I know that is not in Dublin...but I have been following house prices on daft.ie since 2007 (I live in France and since my studies are finished I might move back to Ireland this year.)

Since home's cost alot, I think its important to follow the market, not only in an area but the global context and look at Ireland as a whole. You have to look at what is the rock bottom prices...like I said you can get a lovely 4 bed detached house for €60,000 across Ireland as an asking price on daft.ie....this is a good indication as to the direction the prices are going in.

Also there is an abundance of appartments now, because people can afford houses for the same price. If you are thinking to buy, in hope to sell later on (as in 1st home)...I think it will be near impossible to do that in current situation. Houses are more favourable for 1st time buyers.

In France I have lived in an appartment and renting. After that experience, I would never like to actually pay for an appartment myself because here are considerations you dont have with house:

1) you have at least 6 neighbours if not more which can make noise and have parties at any given night (below, above, either side and even further below if noise travels. more chance to have crazy neighbours as well as oppose to a semi detached house.

2) if there is a leak/maintainence work its more hassle. plus might be hidden costs to maintain the appartment complex/building which wouldnt apply to a house.

3) no garden if you decide to have children/BBQ's, private parking/bikes storage (normally communal)

4) storage space is minimal...like for books/photos, personal stuff/clothes/tools/sports equipment

5) its quite limit for dinner parties etc. normally kitchen space/living area is a bit of a pain in the bum if you want to invite friends around for a dinner evening. also for appliances the area is minimum...fridge, oven, TV's etc. maybe no option for a seperate laundry room for washing machine/dryer (thou since you lived in Switzerland, your prob used to the once a wash time slot every 2 weeks...). maybe no option to hang clothes outside to dry in summer...therefore always having to rely on tumble dryer which is not so practical and expensive.

6) There are 3 bed detached houses within Dublin and a 10 minute drive from city centre going for €190,000 asking price on daft.ie (its a buyers market and you could put in a lower bid). These houses might not be in Clontarf...but are also just a 10 minute drive from the beach/coast.

7) alot of property have been on the daft.ie website for 100+ days if not the 800+ day mark (on the market since 2008). so take your time and dont rush into anything. You will not lose money if you decide to rent for a few months until you get settled back into Ireland and find a full time job. In fact, rent in the area you would like to purchase in, to see if you would like living there....as in make use of the bus/transport service etc. The time and money you spend while renting...will just be more time for the housing prices to drop further