Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Is it time to be content with renting and not have notions of buying ?

Options
1234689

Comments

  • Options
    #152
    worded
    Registered Users Posts: 4,549 ✭✭✭worded


    Different accounts in different places may see you as a bit of a player, consider keeping one or two well established accounts open and active. I think one if the questions asked is how long are you with your current bank.

    When getting mort approval on a specific property it's a good idea to run with two banks and at the final moment you can decide who gets your business. Remember they are borrowing at approx 1% and lending to you at 4-5% making a huge profit. It's not a favour you are getting

    Every year mortgaged is a year less renting, you pay for a brick a month.

    It was the norm years ago to borrow from the credit union for the deposit. I'm not suggesting you do this! Also people got carpets in year two or three and sat on boxs for the first year.

    Get the biggest foot print in the best location. You can't change the aspect !

    Look after your relationship along the way


  • Options
    #153
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    There are very good reasons for having accounts in different banks as usually one bank cant offer you all the types of accounts you want. I have accounts in two banks, a building society and a credit union and not for any reason other than it suits me.


  • Options
    #154
    Bob24
    Registered Users Posts: 10,905 ✭✭✭✭Bob24


    Maeve Tiny Jeans wrote: »
    There are very good reasons for having accounts in different banks as usually one bank cant offer you all the types of accounts you want. I have accounts in two banks, a building society and a credit union and not for any reason other than it suits me.

    Yes there can be reasons to be a customers with 2 or 3 banks.

    But this is different from purposely spreading accounts across as many banks as possible to "build relationships" with them. I would agree with previous posters that it will not bring any benefit and will rather make things more complicated to put a mortgage application together.


  • Options
    #155
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    worded wrote: »
    It suits the land lord class to keep things stacked against the renter. No other asset class gets such market interference.

    It very much suits the government. I have a mortgage of roughly €600p/m I rent my apartment at an insane €1100 per month. I won't break even on an annual basis given tax, my wife and I earn less than €80k between us at the moment.

    It's very likely that both of us have the potential to break the 'high earners' threshold of 125K during our careers. Assuming it doesn't change it will prevent us from even claiming our expenses on the apartment.

    The 'landlord class' are generally in this accidentally or are misguided people running small businesses who'd have been much better off investing elsewhere. Some people do enjoy property speculation and have been successful at it. I'd estimate they'd be less than 5% of the market.
    worded wrote: »
    There is something wrong where a working couple like yourselves can't get on the ladder. The rent trap :-(

    If repossession of defaulters happened to increase supply and normalise prices that would help you but there isn't any appetite for this in post famine ireland.

    NAMA properties are being bought up by proper investment companies, only because the yields have good in Ireland. Would it have been better if these went to people trying to get on the ladder? Most likely yes, however from my observations people don't want to get on the ladder, they want to buy the forever house at 35.
    worded wrote: »
    Renters don't protest and are not listened to by political elite who themselves are landlords.

    That's hyperbole tbh.
    worded wrote: »
    I was in the same situation as you not so long ago.

    My advice - work like dogs, save like Germans, take cheap holidays and hopefully you can get a place.

    The problem is people need to understand that they need to start saving as soon as they graduate college. There's no excuse really Ireland doesn't have the debt associated with doing a degree in England and Wales. If one does not embark on 3rd level, it's imperative to start saving as early as possible. Even if it's a tenner a week the habit is the key.
    worded wrote: »
    Closer to a sale could your folks throw you a few 1000?

    Get a credit union account in case you ever need to borrow a few bob on the QT

    Best of luck

    Banks are wise to this. I was under the impression CU loans were now registered with the ICB.
    Maeve Tiny Jeans wrote: »
    There are very good reasons for having accounts in different banks as usually one bank cant offer you all the types of accounts you want. I have accounts in two banks, a building society and a credit union and not for any reason other than it suits me.

    Fair enough, just keep good records, it's a complete pain in the arse come application time.


  • Options
    #156
    bluemartin
    Closed Accounts Posts: 188 ✭✭bluemartin


    Renting is fine as long as people are working, it gets more difficult when retirement comes along and one's private pension becomes the rent money every month.


  • Advertisement
  • Options
    #157
    kippy
    Registered Users Posts: 18,465 ✭✭✭✭kippy


    Thargor wrote: »
    What will 100k get you though? Nothing. So Ill still be within 15-20% of the same mortgage people with no savings have to go for and then work for the next 40 years to pay it off, I would be very claustrophobic in that situation. I dont know what to do tbh, be miserable with savings in cash or be miserable with savings tied up in an apartment in this country seem to be the choices.

    I say shares cant be trusted because quantitative easing has inflated the markets and when that comes to an end there will be a downturn.

    Move outta Dublin.
    Simple as.
    Find a job down the country, be it 10-15k less than what you are on.
    I'd suggest Galway or Cork. I think, from another post, you have a link in Galway.

    Buy a 3-4 bed house within easy bus/walk of your place of work for not much more than your 100K and forget about that lifestyle of not experiencing life.
    The 3-4 bed house will suit your needs into the future most likely, and it'll become a home for you.

    You can afford to earn less outside of Dublin and having a cashpile of 100K would give you far better options in these cities that would see you into the future.

    I know it's extreme but it sounds like you are in the position where extreme choices are required. I'd call the way you've lived for the past 5 years extreme as well mind.


  • Options
    #158
    Monife
    Registered Users Posts: 3,014 ✭✭✭Monife


    Bit late to the party but my two cents:

    There is no way a renter could be content with renting with the way rental prices are now, they are extortionate. It is actually cheaper to own your house now.

    For example, €1,500 to rent a decent 3 bed semi in an average town would cost about €330,000 to buy, which is just under €1,000 for the mortgage per month. Take into account repair costs/depreciation costs etc and the fact that you have an asset at the end of it, it makes complete sense to buy. That is, if you have €70,000 in your pocket for a deposit which is impossible when you are paying extortionate rents!!!


  • Options
    #159
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    does a single person need to rent a 3bed house,?
    Still i think its better to buy now than rent,
    if you can afford a mortgage.And can save the deposit required by the bank.


  • Options
    #160
    bluemartin
    Closed Accounts Posts: 188 ✭✭bluemartin


    kippy wrote: »
    Move outta Dublin.
    Simple as.
    Find a job down the country, be it 10-15k less than what you are on.
    I'd suggest Galway or Cork. I think, from another post, you have a link in Galway.

    Buy a 3-4 bed house within easy bus/walk of your place of work for not much more than your 100K and forget about that lifestyle of not experiencing life.

    Don't want to dampen your spirits now but I doubt very much whether you will get a three or four bedroom house in Galway or Cork cities for less than a hundred grand.


  • Options
    #161
    kippy
    Registered Users Posts: 18,465 ✭✭✭✭kippy


    bluemartin wrote: »
    Don't want to dampen your spirits now but I doubt very much whether you will get a three or four bedroom house in Galway or Cork cities for less than a hundred grand.

    He had 100k saved. Possible to get 3 and some 4 beds in areas of galway for 120-170K. You can get for less but would need work or might be older/less desirable area. Was making the point that his 100 k would go a lot further. Check out Daft yourself. Not too familiar with the cork market so cant comment too much there.


  • Advertisement
  • Options
    #162
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    You can simply move to a small town,buy a cheap house,
    but theres a lot more jobs, in dublin, or cork,galway, with a better chance of promotion, or a higher wage .
    And living in a small rural town does not suit everyone,
    it can be abit boring.
    Speaking as someone who lives in dublin, i grew up in a small rural town.


  • Options
    #163
    Eric Cartman
    Registered Users Posts: 26,282 ✭✭✭✭Eric Cartman


    I think unless your in a career (not a job) that will continue to be in demand and will remit at least 30k (base)of todays money per year (and track inflation upwards) for the remainder of your days , you should give up notions of buying and stay renting.

    If you fit the bill of any of these below, or could end up fitting the bill of any of these below in the next 40 years of your life, do not buy or consider buying a house, stay renting.

    Part time
    flexi contracts
    0 hours
    retail work
    newly qualified people in sectors with low demand (journalism, english teachers, sociologists, anthropologists etc… )
    farm hand
    unskilled manual labour
    untrained static security guard
    food service below comis chef


  • Options
    #164
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    Depends where you live,
    you could buy a small cheap old house, that needs modernisation,

    english teachers, sociologists, anthropologists ,
    i thought these people would be on high wages ,if they can find a full time job.


  • Options
    #165
    Eric Cartman
    Registered Users Posts: 26,282 ✭✭✭✭Eric Cartman


    riclad wrote: »
    Depends where you live,
    you could buy a small cheap old house, that needs modernisation,

    english teachers, sociologists, anthropologists ,
    i thought these people would be on high wages ,if they can find a full time job.

    1 in 5 may get a secure job, and those qualifications are in oversupply, so theres little incentive to pay well.


  • Options
    #166
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    Eric Cartman wrote: »
    If you fit the bill of any of these below, or could end up fitting the bill of any of these below in the next 40 years of your life, do not buy or consider buying a house, stay renting.

    Part time

    Pleanty of part time workers in very secure jobs earning decent wages.
    Eric Cartman wrote: »
    flexi contracts

    Plenty of professions work to contracts.
    Eric Cartman wrote: »
    0 hours

    Don't exist in Ireland. Even if they did no one is going to loan on them.
    Eric Cartman wrote: »
    retail work

    Way off the mark here. Retail is low skill, highly paid and relatively secure for people that know how retail works.
    Eric Cartman wrote: »
    newly qualified people in sectors with low demand (journalism, english teachers, sociologists, anthropologists etc… )

    Standard I don't like arts degree nonsense.
    Eric Cartman wrote: »
    farm hand
    unskilled manual labour
    untrained static security guard
    food service below comis chef

    So if I was one of the above, or indeed anyone I'd be better off renting at around 33%-50% more than buying and be at the mercy of a Landlord that may chose to illegally evict me at a moment's notice rather than a licence lending institution that would work with me while I found another job?


  • Options
    #167
    Eric Cartman
    Registered Users Posts: 26,282 ✭✭✭✭Eric Cartman


    MarkAnthony wrote: »
    Pleanty of part time workers in very secure jobs earning decent wages.
    they're always the first ones out when times are bad


    Plenty of professions work to contracts.
    contracts yes, this "you get 15 hours a week whenever we want" lark no


    Don't exist in Ireland. Even if they did no one is going to loan on them.
    they pretty much don't, but for the people that believe they do


    Way off the mark here. Retail is low skill, highly paid and relatively secure for people that know how retail works.
    most retail is low pay, management or senior staff exempt of course, but floor staff in a clothes shop etc… no


    Standard I don't like arts degree nonsense.
    They don't translate to careers well, its nothing to do with not liking them.


    So if I was one of the above, or indeed anyone I'd be better off renting at around 33%-50% more than buying and be at the mercy of a Landlord that may chose to illegally evict me at a moment's notice rather than a licence lending institution that would work with me while I found another job?
    strawman argument with the "but de mortgage is cheaper" nonsense that got us into the mortgage arrears mess we're in.


    fact is not everyone in Ireland needs to own a house, the majority of landlords are good people , and for the people who aren't in an at least 95% secure position , renting is a better option.


  • Options
    #168
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    Eric Cartman wrote: »
    they're always the first ones out when times are bad

    No their not - they're the first ones kept due to flexibility. Besides there are plenty of Part-time people working in state and semi state jobs.
    Eric Cartman wrote: »
    contracts yes, this "you get 15 hours a week whenever we want" lark no

    they pretty much don't, but for the people that believe they do

    No bank would lend on this basis or the basis that you get paid in cash for working behind the bar.
    Eric Cartman wrote: »
    most retail is low pay, management or senior staff exempt of course, but floor staff in a clothes shop etc… no

    Again wrong. Good retail staff are always hard to find, they won't ever be paid very much but usually manage to keep their earnings up in the bad times. 15 years as a retail manager, I can tell you when you've had your staffing number cut in half, you get rid of the **** and do anything you can to keep your good staff.
    Eric Cartman wrote: »
    They don't translate to careers well, its nothing to do with not liking them.

    Plenty of flexibility in career choice. I was turning away way more Architects than sociologists during the worst of the downturn. My wife's primary degree was Sociology and Social policy, graduated during the downturn, never a day out of work.
    Eric Cartman wrote: »
    strawman argument with the "but de mortgage is cheaper" nonsense that got us into the mortgage arrears mess we're in.

    Oh you're one of them... Go on chuck us in some latin and some wikipedia links to how I'm doing it wrong in relation to arguing. My mortgage is cheaper and I'm not in arrears.
    Eric Cartman wrote: »
    fact is not everyone in Ireland needs to own a house, the majority of landlords are good people , and for the people who aren't in an at least 95% secure position , renting is a better option.

    Fact is not everyone needs to live off people renting. Jobs come and go, anyone who thinks they're 95% secure is working in the civil service, anyone else is deluded and probably not saving and making sure they're prepared for a rainy day.

    Some people are better off renting, from the council. No one is better off renting privately. Some may prefer it due to flexibility/perks but that's simply not the case here.


  • Options
    #169
    robp
    Banned (with Prison Access) Posts: 1,934 ✭✭✭robp


    MarkAnthony wrote: »

    Some people are better off renting, from the council. No one is better off renting privately. Some may prefer it due to flexibility/perks but that's simply not the case here.

    That is completely untrue for many workers. Buying ties people down yet many workers tend to move around especially young workers. Some of the highest paid are very mobile. And thus buying can prevent them fully reaching their career potential or prove complicated. If you are under 30 it is probably too early to settle somewhere.


  • Options
    #170
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    robp wrote: »
    That is completely untrue for many workers. Buying ties people down yet many workers tend to move around especially young workers. Some of the highest paid are very mobile. And thus buying can prevent them fully reaching their career potential or prove complicated. If you are under 30 it is probably too early to settle somewhere.

    There will always be a corp of workers that are better off renting. It was the career path I chose to be honest, 6 months here, 9 months there. Most of those are better off in house shares, normally early 20's getting started.

    Some people a bit older a bit more settled I, grant you, would probably want one and two bed apartments, well furnished, with professional, responsible landlords; not some lad that drives up from Cavan every two weeks to gaffer tape the leaky window and collect the rent in cash.

    All that said though at 20 I bought my first place in Scotland, when I moved and knew I wasn't going back I sold it. It's so much easier to deal with there than here, we have a really awful purchase/sale system. People here seem to want to walk into the forever house at 35, I just don't see how that's possible when you've been paying the massive rents in Dublin.


  • Options
    #171
    I swindled the NSA
    Closed Accounts Posts: 150 ✭✭I swindled the NSA


    There are a lot of hidden downsides to ownership which many people tend to ignore or gloss over but whether it makes more sense to rent or buy depends a lot on ones individual circumstances (and the state of the market at any given time). A of people tend to get very dogmatic about their particular lifestyle choices but unless one is a dyed in the wool communist a society with 0% home ownership is just as unrealistic and unworkable as one with 100% home ownership.

    That said for a lot of people the fascination with home ownership in Ireland is not so much down to it being such a wonderful thing as the alternatives being woeful to non-existent.

    In a society with a functioning housing policy (does Ireland even HAVE a housing policy -functioning or otherwise ???) The majority of the population would have a choice of four realistic options:
    1) Ownership
    2) Rental (short term) from private landlord
    3) Rental (long term) from private landlord
    4) Rental from local authority/housing association.
    In the real world many Irish people are forced to pick option one because the alternatives here are so crap


  • Advertisement
  • Options
    #172
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    IF you buy a house, you don,t need to worry about rising rent,
    at some point , your loan payment will be less than the rent you used to pay.
    You have the option of renting out 1 room tax free ,
    you can decorate,upgrade your living space as you wish.
    if you have bad neighbours , in your apartment block, there,s not much you can do.
    apart from complain to the management company.


  • Options
    #173
    I swindled the NSA
    Closed Accounts Posts: 150 ✭✭I swindled the NSA


    riclad wrote: »
    IF you buy a house, you don,t need to worry about rising rent.

    But you might have to worry about rising interest rates.
    riclad wrote: »
    if you have bad neighbours , in your apartment block, there,s not much you can do.

    Same goes for an estate.


  • Options
    #174
    Monife
    Registered Users Posts: 3,014 ✭✭✭Monife


    riclad wrote: »
    if you have bad neighbours , in your apartment block, there,s not much you can do.
    apart from complain to the management company.

    Sorry but that point is ridiculous. If you rent and have cr*ppy neighbours, you can move, if you own, you're stuck.


  • Options
    #175
    Chris_5339762
    Registered Users Posts: 5,858 ✭✭✭Chris_5339762


    riclad wrote: »
    IF you buy a house, you don,t need to worry about rising rent,
    at some point , your loan payment will be less than the rent you used to pay.

    From Day 1 it was for me. Best decision I ever made.


  • Options
    #176
    _Kaiser_
    Registered Users Posts: 28,739 ✭✭✭✭_Kaiser_


    Report today has some interesting ideas about the Government's (possible?) plans for the rental sector:
    Its authors describe the new proposals as a "multi-faceted approach" to providing more rental accommodation under improved circumstances for both landlords and tenants.
    Titled 'Ireland's Rental Sector: Pathways to Secure Occupancy and Affordable Supply', the report calls for:

    Longer leases, which should mirror European models to 10 or 20 years - as opposed to a maximum of four years and nine months, the maximum to which that an Irish residential tenant is currently entitled.

    Rules to prevent landlords from ejecting tenants when they plan to sell the property. Tenants would thus "accompany" the property in a sale, as they typically do in the commercial property sector.

    The beefing up of the powers of the Private Residential Tenancies Board (PRTB) to resolve disputes quickly .

    The introduction of "real" rent controls - this is likely to limited on the basis of a four-year average index, looking backward. The PRTB currently has an index which could help to provide the necessary figures.
    "Controlled incentives" for landlords - subject to them adhering to the property standards and terms.

    The report is not specific about this, but Dr Larry O'Connell, one of its authors, told the Irish Independent that this would be about "bringing conditions closer to those of commercial property landlords".
    This suggests providing residential landlords with full mortgage interest relief. At present they can claim 75pc as opposed to 100pc for a commercial property landlord.

    Sounds like something for everyone in there really. Rent control, security of tenure and long Euro-style rental agreements all good for tenants (and hopefully with a relaxing of some of the rules around what tenants can do with the place as long as it's restored to original/agreed condition at the end), and mortgage interest relief for landlords as well as beefing up the PRTB powers and shortening the dispute resolution times.

    Be interesting to see how much of this is actually implemented but it's good to see that it's starting to dawn on the Government that "getting on the property ladder" may not be the only solution anymore!


  • Options
    #177
    handlemaster
    Registered Users Posts: 6,003 ✭✭✭handlemaster


    the favourable tax rules to landlords would get more supply for social tenants but it would want to be good to get interest


  • Options
    #178
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    Landlord s get tax relief on mortgage interest,insurance,repairs etc
    but after paying loan and expenses ,a landlord can still be liable for tax,
    if the rent is higher than the expenses claimed for tax relief.
    ie you can make no profit at all and still be liable for tax,
    You cant claim tax relief on capital repayments on a mortgage .
    Theres a lot of landlord in negative equity ,
    house is worth 70k, mortgage is 150k.
    So they cant afford to sell the property.


  • Options
    #179
    handlemaster
    Registered Users Posts: 6,003 ✭✭✭handlemaster


    riclad wrote: »
    Landlord s get tax relief on mortgage interest,insurance,repairs etc
    but after paying loan and expenses ,a landlord can still be liable for tax,
    if the rent is higher than the expenses claimed for tax relief.
    ie you can make no profit at all and still be liable for tax,
    You cant claim tax relief on capital repayments on a mortgage .
    Theres a lot of landlord in negative equity ,
    house is worth 70k, mortgage is 150k.
    So they cant afford to sell the property.



    but but the greedy landlords !! just wait one poster will be along shortly.


  • Options
    #180
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    Lets say the new rule is the landlord gets 110 per cent tax relief on all expenses including the full morgage payments .
    IF he give s a tenant a lease for 5 to 10 years ,and the rent can only be increased once every 3 years .
    IF the tenant stops paying rent , the landlord can make a complaint to the prtb,
    and evict the tenant after 3-4 months ,
    without going to a court or employing a lawyer .
    in Dublin ,cork,galway, citys , if a landlord takes on a rent allowance tenant he can claim 130 per cent tax relief on expense s .

    AT the moment in dublin ,theres no incentive at all for a landlord to take on a rent allowance tenant .


  • Advertisement
  • Options
    #181
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    I know 2 landlords ,in negative equity , in 10 years they have made zero euro profit.
    The rent does not cover the mortgage, insurance etc
    There must be 1000 ,s of landlords like that in ireland.
    And they still have to pay tax on the property.


Advertisement