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
Hi all,
Vanilla are planning an update to the site on April 24th (next Wednesday). It is a major PHP8 update which is expected to boost performance across the site. The site will be down from 7pm and it is expected to take about an hour to complete. We appreciate your patience during the update.
Thanks all.

Mortgages

  • 22-04-2012 11:50am
    #1
    Sappa
    Registered Users Posts: 885 ✭✭✭Sappa


    After all the mess and continuing chaos around mortgages in Ireland,what are peoples genuine opinions of them.
    I continually come across friends who are either snookered by a huge mortgage,a couple of them have just up sticks and legged it and others are just about managing.
    I'm more of the opinion that I would rather rent than be slaved by a mortgage or save enough over time where I can buy outright or move to a cheaper country.
    But I won't be getting a mortgage


«13

Comments

  • #2
    galwayrush
    Registered Users Posts: 12,815 ✭✭✭✭galwayrush


    They help people buy houses...


  • #3
    girl2
    Registered Users Posts: 654 ✭✭✭girl2


    http://www.irishtimes.com/newspaper/property/2011/1117/1224307694424.html

    Here's one guy's opinion.

    My opinion - they worked before everyone went cuckoo thinking they could actually afford that €450,000 house that they would NEVER have got a mortgage for ten years previous.

    I have a mortgage, Ive alwys paid it. I entered it knowing what was I front of me. It worked for me because I couldn't have afforded a house without one. It will be paid soon and I'll be free of it. Will I look another mortgage. At this point in time - no.


  • #4
    Richard Hillman
    Registered Users Posts: 12,033 ✭✭✭✭Richard Hillman


    It seems like a badge of honour for a lot of people, like you've achieved something by having a wife, a few kids and a mortgage :confused:

    Its no different to getting a 200k loan for a Ferrari.


  • #5
    old_aussie
    Registered Users Posts: 3,410 ✭✭✭old_aussie


    Op just be someones rent bitch for the rest of your life and be happy that you have helped other people pay off their mortgage.


  • #6
    true
    Banned (with Prison Access) Posts: 1,325 ✭✭✭true


    The mortgage system works when the banks are responsible in selling them.

    During the boom some building societies / banks here sold mortgages without care or prudence.....sometimes to a value 50 or 60 times the applicants annual income. No wonder the system crashed. Those responsible in the financial system should be taken out and shot, for ruining peoples lives.


  • Advertisement
  • #7
    eviltwin
    Registered Users Posts: 17,495 ✭✭✭✭eviltwin


    Its an Irish thing. I remember being shocked at the numbers of people overseas who are content to rent. We were always told renting was "dead money"....guess who feels stupid for having bought a house now? :o


  • #8
    Milk & Honey
    Banned (with Prison Access) Posts: 1,950 ✭✭✭Milk & Honey


    Sappa wrote: »
    After all the mess and continuing chaos around mortgages in Ireland,what are peoples genuine opinions of them.
    I continually come across friends who are either snookered by a huge mortgage,a couple of them have just up sticks and legged it and others are just about managing.
    I'm more of the opinion that I would rather rent than be slaved by a mortgage or save enough over time where I can buy outright or move to a cheaper country.
    But I won't be getting a mortgage

    I know a guy who got a mortgage on a house in 1993 just after the interest rate crisis. He has been paying a mortgage of about €450 per month average since. There is now less than €10k outstanding. The house next door is identical and is let. The rent is €2k a month.
    Which house would you prefer to be occupying? The one where the mortgage will be paid off completely next year or the one where the rent will inevitably rise in the future?


  • #9
    ted1
    Registered Users Posts: 23,233 ✭✭✭✭ted1


    Richard Hillman wrote: »
    It seems like a badge of honour for a lot of people, like you've achieved something by having a wife, a few kids and a mortgage :confused:

    Its no different to getting a 200k loan for a Ferrari.
    A house doesn't deprecate like a car does. (with the exception if those bought during the boom)

    Once you pay off the mortgage in x years you li e mortgawge and rent free. If your paying rent how on hell will you pay rent when you stop working.

    Also i'm currently paying 1150 a month rent. I just bought a house in a slightly better estate and my mortgage will be 750. A no brainer if you ask me.


  • #10
    true
    Banned (with Prison Access) Posts: 1,325 ✭✭✭true


    ted1 wrote: »
    A house doesn't deprecate like a car does. (with the exception if those bought during the boom)

    Once you pay off the mortgage in x years you li e mortgawge and rent free. If your paying rent how on hell will you pay rent when you stop working.

    Also i'm currently paying 1150 a month rent. I just bought a house in a slightly better estate and my mortgage will be 750. A no brainer if you ask me.

    wait until interest rates increase. They are historically at rock bottom now. Plus welcome to the world of paying for property repairs,maintenance, property insurance, property tax etc.


  • #11
    smallerthanyou
    Registered Users Posts: 1,025 ✭✭✭smallerthanyou


    Aaarrrggghhh! Cant believe people are still trotting out the rent is dead money line. When any friends say this to me I have the urge to punch sense into them. A mortgage in the first few years is primarily "dead money". Very little is capital repayment. Renting can be the best decision for a lot of people. It is currently for me. But in the future may not be.
    ted1 wrote: »
    Also i'm currently paying 1150 a month rent. I just bought a house in a slightly better estate and my mortgage will be 750. A no brainer if you ask me.

    Congrats on your new home! Out of interest how much would interest rates have to rise for your repayment to hit 1,150?


  • Advertisement
  • #12
    Logical Fallacy
    Registered Users Posts: 5,933 ✭✭✭Logical Fallacy


    Sappa wrote: »
    After all the mess and continuing chaos around mortgages in Ireland,what are peoples genuine opinions of them.
    I continually come across friends who are either snookered by a huge mortgage,a couple of them have just up sticks and legged it and others are just about managing.
    I'm more of the opinion that I would rather rent than be slaved by a mortgage or save enough over time where I can buy outright or move to a cheaper country.
    But I won't be getting a mortgage

    I won't get a mortgage but I just bought a house.

    Pretty ****ing sweet.


  • #13
    ted1
    Registered Users Posts: 23,233 ✭✭✭✭ted1


    About 3.5%, but rent could easily rise too.


  • #14
    smallerthanyou
    Registered Users Posts: 1,025 ✭✭✭smallerthanyou


    ted1 wrote: »
    About 3.5%, but rent could easily rise too.

    Very true but I'll just move somewhere cheaper and lose nothing. A mortgage holder can't be sure of doing that.

    I'm not saying mortgages are wrong for everyone and renting is right. Every case is different but this rent is always dead money argument wrecks my head. I know you didn't say that but just trying to make a point.


  • #15
    ted1
    Registered Users Posts: 23,233 ✭✭✭✭ted1


    I've rented for the past years and bought the house for less than a third of the peak price. Very happy with the area couldn't see myself wanting to move.


  • #16
    eviltwin
    Registered Users Posts: 17,495 ✭✭✭✭eviltwin


    Pros and cons to both. Hard to say if either is the "best" option. We can all make statements based on the hindsight of the last few years but none of us know what is going to happen in the future. Its all chance really.


  • #17
    smallerthanyou
    Registered Users Posts: 1,025 ✭✭✭smallerthanyou


    ted1 wrote: »
    I've rented for the past years and bought the house for less than a third of the peak price. Very happy with the area couldn't see myself wanting to move.

    Congratulations. Exactly what I intend to do in time. A perfect example of the 3 years rent you paid not being dead money.


  • #18
    stovelid
    Closed Accounts Posts: 27,252 ✭✭✭✭stovelid


    Have one and the payments are still in and around the cost of renting the place. Can easily afford the payments at the moment and could also cover them with one wage if needed. It's fixed for another 5 or 6 years and by the time that's over, the kids will be out of creche thankfully. The house is big enough for us and while I would prefer a different house (typical Celtic tiger design),I really like the area and would stay here if I won to lotto, albeit I would buy land and build a place.

    Each to their own if they rent or own. Problem with this forum - and this country - is that far too many people care about what others do.

    I doubt very much a mortgage is a status symbol as said here?


  • #19
    Kali Unimportant Sunbather
    Posts: 0 ✭ Kali Unimportant Sunbather


    I fully intend on getting one when I can get a job back near home.

    I hate handing money over in rent when I know it could be going towards owning the place instead also the thought of renting all my life is awful.


  • #20
    foxyboxer
    Closed Accounts Posts: 3,528 ✭✭✭foxyboxer


    Hayden Gorgeous Silencer wrote: »
    I fully intend on getting one when I can get a job back near home.

    I hate handing money over in rent when I know it could be going towards owning the place instead also the thought of renting all my life is awful.

    Aren't you getting shelter when you pay rent?
    And paying a mortgage is essentially renting (plus interest) from a lender anyway?


  • #21
    Kali Unimportant Sunbather
    Posts: 0 ✭ Kali Unimportant Sunbather


    foxyboxer wrote: »
    Aren't you getting shelter when you pay rent?
    And paying a mortgage is essentially renting (plus interest) from a lender anyway?

    Your getting shelter but your never getting a place thats your own and that means a lot to some people. Like I couldn't imagine my home house not being owned by my parents, its the place I have lived all my life and even though I'm living away now I'm still home every 2nd weekend.

    The thought that at some point this house would no longer be ours due to having to move out or whatever is almost unthinkable.

    Its not renting plus interest as with every repayment you are closer to owing the house/apartment and at some point you will no longer have to pay but still be living in the place, also mortgage repayments are less than the equivalent rent in a lot of cases now so it actually makes more since to buy if you plan on staying living in the area.


  • Advertisement
  • #22
    not yet
    Registered Users Posts: 7,008 ✭✭✭not yet


    true wrote: »
    The mortgage system works when the banks are responsible in selling them.

    During the boom some building societies / banks here sold mortgages without care or prudence.....sometimes to a value 50 or 60 times the applicants annual income. No wonder the system crashed. Those responsible in the financial system should be taken out and shot, for ruining peoples lives.
    And their's you talking about care and prudence...you do realise the absurded content of your post....

    60 x the average income would be 1.8 million. I personally don't know anyone who got 60x their salary.


  • #23
    Fizzlesque
    Registered Users Posts: 668 ✭✭✭Fizzlesque


    Sappa wrote: »
    After all the mess and continuing chaos around mortgages in Ireland,what are peoples genuine opinions of them.

    I think it varies hugely from person to person, and where they are in their lives at a given time. For years I rented, and it suited me very well to rent, as I was young and didn't want the responsibility of a house/mortgage. Plus, at that time I was always losing jobs (being let go, getting fired, or deciding to leave), and was far from stable enough (financially and emotionally)to take on a mortgage. That finally changed, thank goodness.

    After being asked to leave a flat I absolutely loved, because the landlord's daughter wanted to live there, I ended up constantly having to move home (leases not being renewed, house mates moving out, rents going up too much etc) and finally I moved into a bedsit, and there I stayed for 3 years.

    At this stage I was in my late 30s, and had no desire to house-share with strangers, so the bedsit was the lesser of two evils. Eventually, living in a tiny room was severely negatively affecting me, so I decided to look into buying a house. I was very fortunate as my father helped me with a decent deposit and the mortgage company didn't offer me an outrageous mortgage (in fact, it was because what they offered wouldn't buy anything, my father made up the shortfall) and to my great surprise, and delight, when I moved into my house, I was only paying €100 more per month.

    For me, the psychological benefits of moving from one tiny room, to a house with rooms and a garden and bath and open fire, were (and still are) completely priceless. I love knowing I can make any changes I like to my home, and that one day I won't have to pay a large monthly amount to live there, and that (as long as I keep paying the mortgage) I'll never be at the mercy of someone else's timetable/plans and be told I have to move out.

    I love my house. Seven years later I'm still as enamoured with it as I was the day I moved in. A true love affair. I'm no more broke now than I was when I rented, but I'm a much, much happier. Horses for courses, I reckon. :)


  • #24
    analucija
    Closed Accounts Posts: 363 ✭✭analucija


    Mortgage is perfectly fine if you can afford it and if you plan to stay somewhere for a long period of time. We have mortgage, we built our house at the end of boom times. We are not in negative equity, have the house we wanted and big misbehaving dog who can occupy his own farmchair, without anybody but us complaining and we live in a nice area.

    But if you are not settled somewhere and plan to stay there for decades and if you can't afford it, then taking mortgage out and buying a house is very risky or even stupid.


  • #25
    golden lane
    Registered Users Posts: 1,364 ✭✭✭golden lane


    paying rent......is an investment for somebody's family.........paying a mortgage is an investment for your own family.......

    but having a miserable life, is not good for your family.........


  • #26
    Agent J
    Registered Users Posts: 1,909 ✭✭✭Agent J


    If there is one thing to learn from the last few years.

    Rent is not dead money.

    Can we get that crystal clear?

    Mortgages have their place as well but Ireland seems to be obsessed with property ownership. Getting a Mortgage at all costs is not a good thing.


  • #27
    Mink
    Registered Users Posts: 2,260 ✭✭✭Mink


    I rent and one of the big benefits is that rentals are nearly always furnished and you don't have to pay for maintenance/repairs of washing machines & the like. Something goes wrong, the landlord is entitled to pay for it.

    However, there's LOADS of home improvement things I would love to do to make it more liveable and comfortable but I don't want to put money into something I don't own.

    But I won't be able to get a mortgage for at least another 2 years (debts & little savings) so I have to live with it.

    I do want to get a mortgage BUT only an affordable one - ie; I'll have a fair bit of expendable income left over to cover emergencies and interest rate hikes. And it would have to be for a home that I would be okay with living in for the foreseeable future with chislers and so on.

    They key as to whether getting a mortgage is a good idea or not is if the person is looking realistically at its affordability and not just "ah we'll manage with that repayment".


  • #28
    coffee_cake
    Moderators, Category Moderators, Politics Moderators, Recreation & Hobbies Moderators, Society & Culture Moderators Posts: 81,310 CMod ✭✭✭✭coffee_cake


    I have zero interest in getting a mortgage
    I don't know if I'll even stay in ireland long term anyway so I don't mind
    renting suits me just fine


  • #29
    Gurgle
    Closed Accounts Posts: 5,064 ✭✭✭Gurgle


    ted1 wrote: »
    A house doesn't deprecate like a car does. (with the exception if those bought during the boom
    50% depreciation in 3 years, 80% depreciation in 8 years.
    The worst property decision at the height of the boom barely even come close.


  • #30
    foxyboxer
    Closed Accounts Posts: 3,528 ✭✭✭foxyboxer


    Mink wrote: »
    I rent and one of the big benefits is that rentals are nearly always furnished and you don't have to pay for maintenance/repairs of washing machines & the like. Something goes wrong, the landlord is entitled to pay for it.

    However, there's LOADS of home improvement things I would love to do to make it more liveable and comfortable but I don't want to put money into something I don't own.

    But I won't be able to get a mortgage for at least another 2 years (debts & little savings) so I have to live with it.

    I do want to get a mortgage BUT only an affordable one - ie; I'll have a fair bit of expendable income left over to cover emergencies and interest rate hikes. And it would have to be for a home that I would be okay with living in for the foreseeable future with chislers and so on.

    They key as to whether getting a mortgage is a good idea or not is if the person is looking realistically at its affordability and not just "ah we'll manage with that repayment".

    That's a good point. If you look at any contract e.g. an iPhone contract. They don't say that it's only €1000, they say it's only €45 per month.

    As mortgage lenders won't mention the compound interest that you will pay them over the course of the mortgages lifetime. They will tell you the monthly repyaments and how manageable and easier it is psychologically.

    "Buy a house for 200k, repay 280k!" doesn't appear as enticing as "From only €450 per month"


  • Advertisement
  • #31
    golden lane
    Registered Users Posts: 1,364 ✭✭✭golden lane


    Gurgle wrote: »
    50% depreciation in 3 years, 80% depreciation in 8 years.
    The worst property decision at the height of the boom barely even come close.

    a very sad situation to be in.....if repossession is on the cards....

    there has been a terrible lesson imposed on a lot of people..but not on everybody....


Advertisement