Dublin, Ireland · Member since 2017 · 8 posts · 1 vote
Hi guy's. I am saving up money for a down-payment to house hack. I live in Ireland so laws might be different, but I have heard that if you take out a mortgage and live in the property for one year you can then move out and rent it out. This is what I would like to do. However, I went down to my bank today and they said that in order to get a mortgage as an investment, you need to earn €70,000 per year, which I don't. I am just wondering if I get the mortgage out anyway just to live in the home can I eventually rent it out and if so, how long will I have to live in the property? The mortgage adviser wasn't very helpful and told me that I should just focus in generating the money for a down payment and then go from there. As someone who wants to invest I want to know every step I must take, both before and after I purchase my first property. Any advice would be greatly appreciated.
Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
9y
@Alan Byrne, are their income Rules different if you let them know the loan is to buy your Owner-Occupied home (rather than mentioning that you're trying to buy an INVESTMENT)?
AND, will they allow for any extra Rental you can get to be included in your income? Cheers...
Dublin, Ireland · Member since 2017 · 8 posts · 1 vote
9y
I can buy as an owner occupier as my salary fits the guidelines, but to get a mortgage as an investment the guidelines are different. I need to be earning twice as much.. If I get it as an owner occupier do you know if I can rent it out eventually. And if so after how long? @brentcoombs
I can buy as an owner occupier as my salary fits the guidelines, but to get a mortgage as an investment the guidelines are different. I need to be earning twice as much.. If I get it as an owner occupier do you know if I can rent it out eventually. And if so after how long? @brentcoombs
If you buy a property that you can live in AND partially rent out too (which is the BP definition of "house hacking"), then why would you need to wait? And, you always have to live SOMEWHERE.
I'm not aware of any Lender who would MAKE you pay off the owner-occupier Loan if after year/s of living there you decide to move without selling first (or sell at all) - even in Ireland!
Mind you, if you want to get one those owner-occupied Loans NEXT time too, you WILL likely have to refinance your first loan into Investment Loan terms, so either you'd better have better income by THEN (including a percentage of its rent return), and/or, its value better be significantly higher!...
Basically if you rent out room(s) in your primary home and earn up to €14,000 a year tax free. A converted garage will count as a room as long as there is a connection to your house (and not a standalone building) and also there must be a way to enter the room internally in the house. In other words there must be a door between the 'room' and the rest of the house, although this door can be locked permanently and be soundproofed etc.
I would follow @Thomas Downes advice and look at specific websites/services in Ireland that can help clarify the rules regarding house hacking and the owner occupier vs investor mortgage rules (and loopholes).
The BP site is wonderful for general advice and for expert opinion on US rules and regulations, but not for overseas laws.