getting on the ladder...

MonkeyWrench

I was in with a mortage guy today discussing how much i could afford to take out to get a mortgage and talking about the various types of houses available. i'm a 28 year old male in a good job earning good money and it seems as though the hope of me getting on the property ladder for me right now would require that i rob a bank and steal at least 30 grand for a deposit...it seems as though our generation (30 under) are going to finding it almost impossible to come up with the goods unless your parents can fork out large sums of money to do so.
out of about 12 friends of mine who are of similar age, only 2 of them have houses and like me the rest of us have to hope the whole thing collapses sooner rather than later...

Ickle Magoo

Some of the banks (Perm TSB do - not sure of others) offer 100percent mortgages.....maybe shop around & see what others are offerring....it is really frustrating - I remember having an argument with a guy in one bank trying to explain that by the time I saved €10K for a deposit, inflation would ensure I needed €15K, etc, etc, ad infinitum.....he didn't have much sympathy....:mad:

Heyes

Yeah i know the feeling, im dieing to get my own place. Plan is to get it all sorted next year, but the morgage situ really is a dark area, all i can really do is bust my gut saving and hope for the best

In relation to 100% morgages, apparently you have to be on a certain wage bracket to be even eligable for it...

dr zoidberg

It's terrible, but at the same time I wouldn't advise taking out a 100 % mortgage - you'll be paying it off forever and will take a big hit on interest payments. Hopefully the prices will come down, or at least stabilise, with all the new houses they're building this may happen in the future as supply starts to match demand.

robinph

Not much hope if your only on the one salary either. Just keep on stashing the cash away and wait until the market crashes, which it will do if people cannot afford to buy in at the bottom of the housing market anymore. By the time that happens everyone will hopefully have wasted all of their SSIA savings on new cars etc and the banks won't be caring about you needing as much of a deposit anyway as they be glad of the new business and you can then buy yourself a nice new gaff for cheap while all your buddies are screwed with negative equity and huge repayments.

RoundyMooney

Such is life. Any poor soul starting off now has my sympathy. It takes two good earners to manage an average mortgage these days. As I stand, I could manage the repayments on my home comfortably, however, given that Mrs. Mooney has a pensionable job too, it would be silly for her to give it up when it keeps us in a comfortable lifestyle...maybe in a few years.

Without getting into facts and figures, a shared ownership scheme (you and your local authority) may be an option? I'm not well versed in the ins and outs of it tbh, because it never came up, but it would be no harm to enquire into the criteria for same, and maybe the financial consequences should you choose to sell within ten years or whatever.

Good luck.

FX Meister

Don't forget to consider renting a room. Most lenders allow a certain amount for this and it does help with your mortgage payments. Or you could also think about letting the whole thing out for a while. That's what I did. Busted my ass to get the mortgage then rented it out for a few years which covered the mortgage while I got into a position to move in myself.

Ickle Magoo

dr zoidberg wrote:

It's terrible, but at the same time I wouldn't advise taking out a 100 % mortgage - you'll be paying it off forever and will take a big hit on interest payments.

That's true - but rather than paying OTT rent, it at least got us our own place & if the market keeps going the way it is - and it doesn't look like slowing in the near future so far, due to inflation, the house should be worth enough in a couple of yrs (not to mention my husbands increasing wages) to remortgage at a lesser rate - that's the plan anyway....:) It's just a way to get a foot on the ladder - not ideal but without €25K worth of savings or a wee gift from Daddy & being a family we don't want to pay extortionate rent for a property we can't decorate or put child locks in, what other options are there?

justsomebloke

ye i am only back from autralia and now i have to try and look into getting a someone to live. Both myself and my girlfriend would have decent jobs but unless we go miles out we don't really have an option of buying a house, so we are probably going to go for an apartment somewhere reasonable and then hope that houses prices continue to go up until we can afford something better further down the line. the only problem is, as we are probably goign to get an apartment we are going to have to pay around 2 grand in maintance fees eash year

Terry

*laughs at everyone else*
ha. i own my house fully. ok, i inherited it. i'd be boned if i had to get a moprtgage. there is no way i would be approved. they don't take kindly to self employed people. most of my friends ended up buying houses in edenderry, kilcock and celbridge. they just couldn't afford to buy in Leixlip.

Heyes

julep wrote:

*laughs at everyone else*
ha. i own my house fully. ok, i inherited it. i'd be boned if i had to get a moprtgage. there is no way i would be approved. they don't take kindly to self employed people. most of my friends ended up buying houses in edenderry, kilcock and celbridge. they just couldn't afford to buy in Leixlip.

/me smacks Julep for rubbing it in....nasty move ....

MonkeyWrench

Cheers Julep, you might want to see the 'Karma' thread...