Investment Mortgage

As property prices have undergone significant falls, we believe investors will return to the Irish Market within the next 12-24 months. (2011/2012). Recently rental yields have improved, see example below.

Assuming you purchase a 2 bed apartment in Dublin city centre for €200,000 and you are getting annual rents of €12,000. To calculate the rental yield, simply divide the annual rental by the property value. Eg 12,000/220,000 =5.45%.

It is difficult to raise finance for property investment in Ireland at present with most lenders not really interested and when they do say yes, they charge a premium for the risk. You generally need 20-25% of the property price as a deposit. Financial Architects can advise on who the best bet for finance is and how to best place the application for approval.

It is estimated that 25% of Pensioners in the UK rely on their `offspring` to provide financial support in what should be their golden years. The Irish Government made the purchase of property by investors less favorable in the budget of 2009 by reducing the amount of mortgage interest you can offset against rentals.

Portfolio Construction in short is a facility for clients with two or more investment Properties who wish to be able to borrow further funds by using their existing equity built up in existing properties. The funds can be used to purchase more investment properties.

Where a client already has investment property finance in place, it is very important to check how long does the interest only last, as it is not guaranteed to be reoffered at the end of the period.

Warning: The cost of your monthly payments may increase, if you do not keep up your repayments, you may lose your home.
Warning: The entire amount you have borrowed will still be outstanding at the end of the interest-only period.
Warning: You may have to pay charges if you pay off a fixed-rate loan early
Warning: This new loan may take longer to pay off than your previous loans. This means you may pay more than if you paid over a shorter term.