Where do I start?
First of all, you need to think about where you want to live and how much space
you need. At the same time, you should have a fair idea of how much you can potentially
borrow and how much you are prepared to repay (i.e., your monthly repayments). You
can do this by getting mortgage quote (approval in principle) from us click here.
You should also start getting together documents that you will need to support your
mortgage application, such as your last P60, bank statements and recent playslips.
For a more comprehensive list of documentation that you need to assemble, click
here.
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Things to consider.
First of all, figure out what you want from the property. If you are getting
married and plan to have kids, ideally you should plan ahead and look for property
that has adequate space to raise a family. If you are single and do not want to
spend too much time maintaining your home, consider an apartment where you can lock
up and leave and not worry about cutting the grass when you are away.
The location of your property is key, both for potential resale value and for your
own practicality when living there. If you drive, consider if there is adequate
or reserved parking. Consider how you will carry out your daily tasks when living
there, e.g., is there a reliable public transport link nearby that will serve your
work needs (this is also really important if you are considering renting out a room
in your property to a tenant).
You also need to carefully consider costs, both upfront and ongoing. Take the time
to prepare a budget listing all upfront costs such as stamp duty, legal fees and moving fees. Allow realistic amounts
for decoration and furniture. Your ongoing costs will include mortgage repayments,
insurance premiums (mortgage protection insurance and home insurance), service charges
(these apply in most apartment complexes) and utilities.
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FAQ
If you are purchasing a property to let out, the first thing you need to consider
is how your outgoings will relate to your rental income. Sit down and work out how
much your rental income will be from the rental. (Generally, you should allow for
voids or periods during a typical year when no rent will be received.) Consider
also how long it will take you to decorate/repair your property and rent it out
initially – sometimes this can take a few months. In your outgoings, be sure to include
less obvious costs like letting advertising and block service charges, as well as
your mortgage repayments.
As well as preparing a comprehensive “Profit and Loss” for your property, consider
practical things like having a lease drawn up, tax implications (see the www.revenue.ie
website for information) and ongoing management of the property.
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It is generally very important that you put in place a written agreement with others
to cover your joint interest in an asset and to outline what would happen if one
party wanted to exit the arrangement. Your solicitor should be able to draft up
an agreement to cover many eventualities. |
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Stamp Duty is payable by the purchaser of a property and essentially needs to be
made available to your solicitor at the time of purchase (your solicitor will then
pay the Revenue Commissioners). The rate depends on the value of the property and
whether or not you are a first time buyer. Most new properties do not attract stamp
duty (depending on the floor size). Click here for stamp duty rates.
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Good professional advice and guidance is invaluable. We would always recommend that
a solicitor’s advice is sought at the earliest opportunity. Click here for a list of recommended solicitors.
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For more information on all options available to you, contact one of our mortgage advisors today on 1890 462 462