Advice Needed - What would you do?

Mr E

I'll try and give as much information without posting personal info. (This could be more suited to the 'Work' forum, but I am asking financial advice too).

I'm in a job that I really like. I've been here for almost 4 years now. The problem (and its a big problem) is that I haven't had a salary increase since I started. I'm on 37k a year, and, if the salary of my peers is anything to go by, I should be on about 50k by now (I'll be 10 years out of college next year).

Even with basic 3% annual inflation and cost of living increases, I should be on at least 42k by now.

I've been with the company since the very start, I've worked my ass off, and apart from the salary issue, I have great job satisfaction.

We are a privately funded company, and we're doing OK (breaking even). There is possibility of a buyout in the next 12-18 months (maybe sooner). I have shares in the company (we have a 5% employee share pool), so sticking it out to the buyout could be in my best interest.

However, I'm at the stage in life where I want to get my own house. I'm in my early 30s (not getting any younger!), I'm single, and I have my eye on a place thats about €180,000 to buy. Considering that mortgage providers only give about 4-4.5 times salary, that leaves me a good bit short.

SSIA, for what its worth, is due in February 2007.

I believe that I need to get my own place by the end of March at the latest, because house prices will probably jump 10-15k as soon as the first round of SSIA payouts happens in May.

Well thats it.... Do you have any advice? What would you do in my situation?

daveg

Hi Dave. It's a tricky situation isn't it. One I have been very familiar with. A year after I left collage I started working for a large Telelcom multinational. The pay was shíte as were the pay increases. However job satisfaction was high and it was a superb place to work. However, as with many telelcom multinational's we were laid off. I am since working for another multinational earning good pay with bonus and (considering the global work climate) yearly pay increases. However the place is a hole. Job satisfaction is zero etc etc..

My point is I've come to learn money is not everything. Imo being happy where you work and not having the Monday morning blue's every week is worth more, again imo. I still pine for my first job and would leave my current role, and take a paycut, to move into a job I love.

However I understand where your coming from with the property ladder issue. Have you talked to the bank? From what I remember when we were first time buyers that 4 to 4.5 times salary can be twisted to suit your buying needs. Maybe try going through a broker. I remember when we remortgaged the broker managed to negotiate a much higher mortgage (not that we needed or used it). The fact you have SSIA coming in will be a big help. If you can raise the deposit (10% ish) you should be able to get a mortgage for 180K.

Do you have many large outgoings (car loan etc). If you have a car could you sell to finance deposit and buy a new car when SSIA comes in? Can parents help out?

Best of luck Dave.

Sleipnir

If you don't ask you don't get.
Seriously, what's to stop you just asking your boss? Explain your situation; that you haven't had a pay review since you joined, that you're actually worse off now then when you started (due to inflation etc) and that you're looking for a house now.
Have you ever heard of anyone getting sacked for asking for a pay rise? I certainly haven't.

You've nothing to lose by asking.

daveg

Sleipnir wrote:

If you don't ask you don't get.
Seriously, what's to stop you just asking your boss? Explain your situation; that you haven't had a pay review since you joined, that you're actually worse off now then when you started (due to inflation etc) and that you're looking for a house now.
Have you ever heard of anyone getting sacked for asking for a pay rise? I certainly haven't.

You've nothing to lose by asking.

This is very true. For example my GF now works in the Telecom company I used to work in. There have been no pay increases for about 7 years. However he boss managed to get her a 10% increases a few years ago as she was well below the adverage in her group as she came in as a graduate. My point is sometimes there are ways around the pay freezes.

Maybe tell your boss that you don't want to leave. That you love your job. But your looking to buy a house and maybe forced to find another job that'll give you the salary for finance a house purchase.