Vultures arrive to pick Canny McSavvys carcass
Interesting development. Irish banks won’t lend on the value of your foreign property, if you want to buy abroad you have to raise a mortgage on your Irish property, or else get a mortgage in the country in which you’re buying.
But surely you would only go down this new route if your capacity to release equity from your Irish property was exhausted, or you couldn’t raise a foreign mortgage - the rates from this service are likely to be higher than what you would get back here.
But I can see how it would be useful for cash-strapped Cannys with substantial foreign portfolios. A one-stop shop for liquidity. Like a foreign Irish Pub.
like pouring petrol on a fire to put it out.
what does it take apart from the biggest financial crisis in 70 yrs to snap the equity release brigade out of it???
we’ve just seen the consequences of taking equity out of ones primary home and now that can be made good by extracting imaginary value from the overpriced foreign muck built with a shovel and spade
I always liked the comparison of your house to your leg.
You need your house to live in. You need your leg to walk on. Both are valuable to you. You can release equity from both.
With a house you get an additional mortgage from the bank. If you don’t pay them back they take your house. It’s good collateral; people would rather pay the money back than lose their house, and if they don’t pay, the bank takes the house.
With your leg you borrow money from a loanshark. If you don’t pay them back they break your leg. It’s good collateral; people would rather pay the money back than lose their leg. If you don’t pay after they break your leg the first time, they’ll break it again, or break something else.
How many times did you ever hear of anyone “releasing equity” from their leg??
Correct me if I’m not getting this.
Paddy owns a house in Ireland and has 200K equity. Sees Eddie Hobbs on TV talking about Cape Verde, decides he’d like some Cape Verde.
Paddy releases 100K equity from his Irish house to buy Cape Verde place. He now owns a house in Ireland with 100K equity, and a place in Cape Verde with 100K equity.
Value of Irish House drops by 100K or more. Paddy now has no equity in Ireland. Has no idea how much equity he has in Cape Verde.
Some guy offers to give paddy 100K backed by his Cape Verde place at a fruity interest rate.
Paddy now has a house in Ireland in negative equity and a place in Cape Verde in negative equity. Both look certain to fall further in value. He has 100K cash that he doesn’t know what to do with, and he’s paying a tidy sum in interest.
Well, the first thing he should do is to declare his 100K to the Revenue so that they can take their fair share of whatever 4-5% interest he manages to squeze out on his lump sum.
If I were him, I’d head to Monte Carlo and put the whole lot on 13 black. That’ll seem rentirely reasonable compared to his behaviour in the past.
If I were Paddy, & someone offered me 100k for a property I paid a 100k for, I’d take the hand off him !
Its far more likely that someone will offer Paddy 10-20c on the Euro & tell to like it or lump it. I Ireland is overprized, CV is totally madness.
with that 100k sitting in a bank somewhere, the bank goes bust, he gets his 20k back from the govt.
He would kow what to do with that £100K…he would go and but 3 apartments off-plan in Sunny Beach, Bulgaria, with guaranteed rental, of course!
Septic you sceptic!
I enquired myself about acap having read the indo on tuesday. i suggest you ring them yourself and get the facts. as it happens, i have a house in cape verde and but main residence here. i rang them myself to find out. it works like this: if you want to buy a house in say spain, you use the house you are buying as security not your irish house and you can realease equity on your irish main residence or whatever too if you want. don’t knock something before trying it!
Sorry I’m not clear what is different between what you’re saying and what everyone above was implying other than it’s a good idea.
Essentially you are releasing equity in your Irish house by borrowing against it.