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Going to contract on buying a house

  • 06-12-2011 12:39pm
    #1
    Registered Users Posts: 26


    Hi all...i've decided to take the plunge and am buying a 4bed house on the outskirts of Galway. I intend on living in it for a few years then renting it out and building on a family site after that period of time. Does anyone think the banks would have a problem giving me a second mortgage on the new build a bit further down the line?? I've asked the banks (boi) mortgage advisor and she gave me a wishy washy kinda answer.:mad:


Comments

  • Registered Users Posts: 32,803 ✭✭✭✭NIMAN


    Do you need to buy now?

    Could you not continue what you're doing now, and then build your new house whenever?

    Personally I think lumbering yourself with a house in the future that you have to worry about getting rented out is not wise.


  • Registered Users Posts: 7,667 ✭✭✭whippet


    the bank would be very whishy washy alright .. the reason being ...

    They really have no idea what the state of the property market will be like in a few years, more than likely you will be in neg equity this time next year if you buy now and it is almost impossible to secure a second mortgage when your current mortgage is in neg equity.

    What you are proposing to do seems like a bad move from the outset.

    You obviously want to self-build in a few years, why not rent until then. If you qualify for a mortgage now you will more than likely have no problem in a few years getting the finance for the self-build.


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