Multiple Houses, advice needed any FA's out there ??

Thrugelmir

BurntOut wrote: »

Can this even be done or with all our current properties being in negative equity, would us purchasing a home together just be a pipe dream right now???

What's the future plan for the current properties ? As would appear that you are merely compounding financial issues that aren't going to magically disappear.

Given the state of the NI property market your existing portfolio is bound to come up on lenders radar.

qwert_yuiop

BurntOut wrote: »

Hi Guys

Not being very savvy in this field I thought I would ask this question to the more knowledgable amongst you all.

Myself and my partner are originally from opposite sides off N.Ireland, but we live in Belfast as this is where we both work.

I have a property in my hometown which is rented out through an agent.
My Partner rents a property in her hometown and owns the house we live in, in Belfast.

With a child on the way (and having no family in the city) we would like to move closer to one off our hometowns to be near family who could help with the child etc.

We where thinking of now renting the property in Belfast and buying a home together (first one together), closer to one off our hometowns.

How does it all work, we'd potentially have 3 houses on rent and one that we would want to buy together.

Can this even be done or with all our current properties being in negative equity, would us purchasing a home together just be a pipe dream right now???

I appreciate your help guys.

Thanks:beer:

Don't do it. Move into one of your houses. No one is going to lend you any money anyway.

qwert_yuiop

ACG wrote: »

To the above...

I they rent, then the money is dead money each month anyway. If they buy then atleast its paying off a mortgage. As the existing properties are being rented out then atleast theyre making a dent into the mortgage each month and at some point it will return then with a profit - unless something goes drastically wrong.

Something has gone drastically wrong, and continues to do so.

ACG

I would imagine TMS are definitely NOT the busiest.

I know one man bands that are probably busier than they are.

saverbuyer

But they are one of the biggest or biggest here in NI.

None of the IFA or mortgage advisors here will be busy. As I say transaction are 70% down and lending is down on 2011.

ACG

Biggest doesnt mean busiest though.

There are brokers earning more than a good wage though and its not just the odd 1 or 2. Im not going off any official figures so can only go off what im being told and i doubt theyre all lying. Business may be down on the highs but it doesnt mean nobody is doing any mortgages.

ognum

ACG wrote: »

To the above...

I they rent, then the money is dead money each month anyway. If they buy then atleast its paying off a mortgage. As the existing properties are being rented out then atleast theyre making a dent into the mortgage each month and at some point it will return then with a profit - unless something goes drastically wrong.

NI felt the recession in the housing market more than anywhere else in the uk i think. Any future purchases are unlikely to result in a loss

I just don't get this, I clearly don't have a mortgage advisors brain! So paying a mortgage on a house that is decreasing in value and soon will not be worth the siz eof the mortgage you have (eg in negative equity) is not considered by you throwing away money.

These people already own houses thay can live in, why oh why are you advising them to go further into debt.

ACG

Whos to say its going to decrease in value? House prices have actually gone up slightly in the last 12 months.

How am i advising them to go further into debt? I have said what they want to do is probably possible presuming they have atleast a 10% deposit - im not advising them on whether to do it or not.

As a mortgage advisor, its my job to ensure they can afford the mortgage and are aware of the risks and then find the best mortgage possible. If they were my client and i didnt think they could afford it or were over stretching i would tell them that and potentially refuse to help them otherwise it could result in a complaint down the line - which i really dont want as its my career in jeopardy.

ognum

ACG wrote: »

To the above...

I they rent, then the money is dead money each month anyway. If they buy then atleast its paying off a mortgage. As the existing properties are being rented out then atleast theyre making a dent into the mortgage each month and at some point it will return then with a profit - unless something goes drastically wrong.

NI felt the recession in the housing market more than anywhere else in the uk i think. Any future purchases are unlikely to result in a loss

Here you say 'at some point it will return to profit' and later you say 'Any future purchases are unlikely to result in a loss'

You have made a point of making house purchase appear positive and I simply cannot believe that owning several properties in negative equity is the way to go.

Yes it's OK if the rent keeps coming in but if/when there is a problem with a tenant or a prolonged void or unexpected maintainence what then.

I agree you are not being paid to give advice in this situation and none of us have all the facts, houses may well be selling in NI but probably not to someone who already owns several in negative equity.

ACG

- If the rent is coming in and its on a repayment or prices rise or both - then the house will return to profit.

Admittedly thats an assumption based on the fact that house prices are at close to their lowest prices in a long time - but in the last 12 months there has been a slight increase (0.2% according to nationwide).

You could argue that if you have a tenant who doesnt pay or work needs doing then it could lose you money but with rent guarantee insurance policies it reduces that risk and with rents close to their highest levels it shows there is a strong demand for rental properties.

In all honesty as you say we need a lot more information to make an informed decision - but im not here to make that decision, im here to help people with mortgage and insurance problems.