Mortgage = Lifestyle Changes?

Celtic67

Hi,
As a single person with a mortgage of approx €1,200, I was wondering about anyone else out there with a mortgage and how it has impacted their lifestyle for example socialising, car, holidays etc.

My friends and I were discussing it the other night and one mentioned that he almost regrets getting a mortgage due to the constraints it has put on other aspects of his life. Anybody else feel the same or how have people coped with the impact of having a mortgage?

markpb

I have mine a year now and it does change your lifestyle. You can't blow all your money because the mortgage man will come for his pound of flesh regardless. It wasn't so bad till the interest rate rises, every little hurts as Tesco might say

On the upside, I don't have to house hunt anymore (at least not for a few years), the house is mine to do what I like with and I can choos who to live with and kick them out if it doesn't work out.

brown*eyed*girl

Celtic67 wrote:

Hi,
As a single person with a mortgage of approx €1,200, I was wondering about anyone else out there with a mortgage and how it has impacted their lifestyle for example socialising, car, holidays etc.

My friends and I were discussing it the other night and one mentioned that he almost regrets getting a mortgage due to the constraints it has put on other aspects of his life. Anybody else feel the same or how have people coped with the impact of having a mortgage?

Is the €1200 after TRS & also I presume thats per month? Thats quite a lot for a single person. WOuld you rent out a room to help towards payments for a while.

I'm very lucky to have gotten on the property ladder over 5 and a half years ago. My monthly payment after TRS is only €575*. I'm a single parent with two kids & support them both on my own so it can be a struggle at times. I found that budgeting and cutting back can be a great help. Eg. bring your lunch to work, don't bother buying things like scratch cards or magazines, buy value packs like Tesco value pack products, look out for bargains, etc. You'd be surprised how much you could save. The way I see it I'd prefer cut back on those stuff & have a night out.

Edited to add I've only had one foreign holiday since I got my mortgage so yes sacrifices have to be made but as the years go by it gets easier to budget & at the moment I hope to cut back & save for one holiday per year.

*Edited to add that my current payment is €450 pm from sept to dec 06 as it includes back-dated TRS lumps sums per month but the actual monthly payment after TRS is €575 which still isn't too bad. Houses a lot cheaper outside Dublin.

iceman777

I've had my house just over 2 years now and I knew when I got it it would stretch me for the first 2 years, but I also knew I had to rent out a couple of rooms to help with the mortgage. My brother-in-law talked me into it as I thought I couldn't afford it at all and I must say I called in a lot of favours from family and friends to get on the property ladder.

Now that the first 2 years are out of the way, it's SO much easier. I am still renting out 2 rooms, everything in the house is paid for, and I managed to buy a new car at the start of the year.

However, I had to seriously cut back on foreign hoidays over the last 2 years and next year I'll be heading to America, Spain and Italy on holidays. I believe after talking with my friends that the start of a morgage is always the worst, but after a while it gets so much easier and you're happy to have done it. Imagine if you sold the house today, how much you could do with the cash you get from it.

I always found that having the 35 year mortgage hanging over my head would break me, but now I have it down to 27 years (After 2 years) and I intend on increading my mortgage repayments at the end of the year when the SSIA kicks in. I'll spend half my SSIA on decreasing the principle of the mortgage and the other half on my car loan and the money I was spending on the SSIA will go towards my monthly mortgage repayments.

I think in another year or so your friend will be happy they got their house and the sacrifice will be worth it.

Now, that's enough rambling from me...

seamus

I'm just jumping in, looking at a mortgage of 1600+ for two people. I'll probably miss not having much spare cash to spend on whatever the hell I want, whenever I want, but I always seem to manage to get to the end of the month with only a little bit of spare cash and not much to show for it anyway.

After talking with everyone else, I'm well aware that the first two years are the worst, so I'm preparing for it

iguana

We bought our house in May and the mortgage including insurance and ppi is about €1600. It's more than we used to pay in rent, but we used to save €400pm when we were renting to help us buy. But while we have bigger outgoings now I think our lifestyle would have changed regardless.

We definitely go out a bit less, but we used to live in Ranelagh so going out was constant as so many of our friends live there and there were so many nice places to go out surrounding us. Now we live in a part of London where we don't know anyone and which doesn't have much by way of bars or restuaraunts. We are also happier to stay in, we have more space and a proper kitchen so it's nicer to cook at home and eat in.

We also have things to do, because no matter how nice your house is when you buy it there will be things you want to change. So weekends tend to be on Saturday we'll paint our bedroom and on Sunday we'll laze about and recover from it.

The biggest lifestyle change however is both the nicest and the scariest. The number one reason we decided to buy a house in the first place was so we could get a dog. So now we have two springers who need to be walked at least twice a day, all plans to go out need to factor them in. Holidays need to be worked around them, so even if we had all the money in the world we couldn't head off as often as we used to anyway.

stifz

I bought in august. about 1600 pm by myself as my wonderfull lady is banking as much of her wage for our wedding.. Serious pressure these days with cash. All the wedding is booked and deposits held so we just need to save about 10k and forced to borrow for the honeymoon.

I've a 2k visa and outstanding debts of about another 1500.. I suppose the upside is we have no car loans as we had to clear to buy the house... using the original wedding fund around 12k..

It's the most stressful year i've ever had i think. But i look forward to marraige and having a home with a top class lady. :rolleyes:

Budd

Have to laugh at the misery people put themselves through to live in a dump of a semi. This Irish thing of having to own your own house is to blame for all these massive mortgages.

stifz

Budd wrote:

Have to laugh at the misery people put themselves through to live in a dump of a semi. This Irish thing of having to own your own house is to blame for all these massive mortgages.

got a 3 bed detached on 3/4 of an acre - no misery at all! ..:D

iguana

Budd wrote:

Have to laugh at the misery people put themselves through to live in a dump of a semi. This Irish thing of having to own your own house is to blame for all these massive mortgages.

Ahh Budd.

Budd wrote:

Have you ever thought of how difficult it is as a renter to move between tenancies without losing out on hundreds? To try and have a place lined up the same week as the one you are leaving and still give the right amount of notice? Its not easy so a little bit of compassion should be given.

Wow it only took you 6 minutes to change your tune.:rolleyes:

Budd

Thats a different thread so dont be quoting it here as its not relevant. And where have I changed my tune?

Ruu_Old

Will be jumping into a mortgage myself shortly, have worked out the payments at something around 900 dollars a month for a 100,000 dollar house in the US. Phew, I'd be interested in more opinions. Good thread.

seamus

Ruu wrote:

Phew, I'd be interested in more opinions.

I hate you. That's my opinion.

iguana

Budd wrote:

Thats a different thread so dont be quoting it here as its not relevant. And where have I changed my tune?

In the other thread you talk about one aspect of how difficult renting can be, then 6 minutes later you came on this thread laughing at people who have had enough of the crap that is renting and bought a place. Making sweeping generalisations and obviously not having read through the thread. I for one find that owning is far superior to renting. I might be paying more but I have a much bigger home for not much more per month. And I have freedom to do the things I like which most importantly for me was getting dogs, a near impossibilty in an urban rental.

And it is perfectly reasonable to quote what somebody said on an other thread if it bears relavence to their comments on this one.

Princess Consuela Bananahammock

Budd wrote:

Have to laugh at the misery people put themselves through to live in a dump of a semi.

Well and truly seconded.

Budd

You are wrong. Leave the other thread alone.

The level of home ownership is an unusal feature of Irish life quite at odds with other countries. Its clear that their are too many people buying homes from social pressures when they and the rest of the country would be much better off if they just rented.

seamus

Ikky Poo2 wrote:

Well and truly seconded.

If you're going to put yourself through misery to live in a dump when you have another option, then you are indeed a fool. If on the other hand, you see the benefit in a (very) long-term investment that's your's (i.e. that you have full control over), then you can go and buy a home within your means.

Renting is dead money. As much as renters will always claim they have the good end of the stick, if you're renting privately at market rates, you're paying off someone else's mortgage for them.

bill_ashmount

Celtic67 wrote:

Hi,
As a single person with a mortgage of approx €1,200, I was wondering about anyone else out there with a mortgage and how it has impacted their lifestyle for example socialising, car, holidays etc.

My friends and I were discussing it the other night and one mentioned that he almost regrets getting a mortgage due to the constraints it has put on other aspects of his life. Anybody else feel the same or how have people coped with the impact of having a mortgage?

Agree 100%. I like having my own house but I am begining to think it's not worth all the sacrafice. Unfortunately it's only going to get worse with interest rates rising. Really don't want to sell at this stage though, hate the thought of sharing with strangers again. Been there and don't particulary want to do that again.

Budd

How is renting dead money? I get accomadation for my money. I live in 500k apt. in the centre of Galway city and theres no way I could afford to live their without renting. Young people who buy houses now end up living in cheap housing estates in Carlow and commute to Dublin instead of jsut renting a nice place.

stifz

Budd wrote:

You are wrong. Leave the other thread alone.

The level of home ownership is an unusal feature of Irish life quite at odds with other countries. Its clear that their are too many people buying homes from social pressures when they and the rest of the country would be much better off if they just rented.

Other EU counties went through the same level of ownership until the markets peaked and the investors took over.. it was then and only then that people became acustomed to renting or leasing for life - Ireland is years behind in it's growth compared. Swiss (even though not being an EU member can be looked at as an example)


How would the rest of the country be better off by people not buying houses i do not know? No one pressurised me into buying - i realised the fact i can gain equity on a yearly basis as apposed to paying someones elses mortgage. oh i can also change the locks on my own door without asking, hang a painting or infact knock an entire wall down if i like. So before going off one about not buying house go off on one about not paying other peoples mortgages for them .. namely rent.

iguana

Budd wrote:

The level of home ownership is an unusal feature of Irish life quite at odds with other countries.

What are you basing this on. The rate of home ownership in the EU averages at 63.5%, while Ireland is high at 77% it is by no means the highest in the union. That honour goes to Spain with owner-occupancy rates at 82%. In addition in Estonia, Hungary, Lithuania, Slovakia, Slovenia, Bulgaria and Romania home ownership rates are over 80%. So while we do have high levels of home ownership, we are not actually that unsual.

People buy their own homes for a variety of reasons. For independance from landlords, freedom to have pets or choose their own colour scheme. For the security of knowing that their landlord isn't going to call up one day and tell them that they are selling up and you now have to move. For the knowledge that when they are older they won't have to pay a penny toward their accomodation. My mortgage will be paid up by the time I'm 52, but probably sooner as I plan to over pay and hope to knock at least 10 years off.

Now I don't know about you, but I hope to live well into my eighties (at least, and I'm financially planning beyond that) so 15 years of payments for 55 years of accomodation is a deal you can not get renting. And when I do die my dependants get a big lump sum. Please tell me where I can get all that from a private rental.

Budd wrote:

You are wrong. Leave the other thread alone.

No I'm not, as long as it's relevant I can bring it up, read the charter for what isn't allowed. If you have a problem take it up with the mods.Its clear that their are too many people buying homes from social pressures when they and the rest of the country would be much better off if they just rented.

jester77

If you call rent dead money then so is the interest you pay on a mortgage- no difference!

I live in a reasonably sized apartment (77 sq. meters) in the middle of Hamburg for €770 a month with my partner, thats €385 each. This also includes heating, maintenance of gardens + building and cable TV. Everything I need - bank, Post Office, gym, shops, pubs, 2 underground stations are less than 5 mins walk from my apt and work is 15 mins. When I want to move jobs or cities there is absolute no hassle, just give my notice and move along.

Owning a place is a lot of hassle and I haven't succumbed to the peer pressure of owning a house. I'll buy one when I've decieded on a place to settle down - which will be close to where I work in a job I'll retire on! Until then I don't see the point of paying higher pricers for a reduced quality of life.

Princess Consuela Bananahammock

seamus wrote:

If you're going to put yourself through misery to live in a dump when you have another option, then you are indeed a fool. If on the other hand, you see the benefit in a (very) long-term investment that's your's (i.e. that you have full control over), then you can go and buy a home within your means.

Renting is dead money. As much as renters will always claim they have the good end of the stick, if you're renting privately at market rates, you're paying off someone else's mortgage for them.

I just watch friends take mortgages and then becoming hermits because they don't have the ving money to go out, and moan about hating their job and the commute to it and having no way out.

I like being able tosave up and walk out of a job at two weeks notice and having the time and money to do my own thing.

I'm also beginning to dislike Dublin, but htat's another argument. If I could get a nice place out side of the city, I'd consider it, but only if I could work from home.

seamus

Ikky Poo2 wrote:

I just watch friends take mortgages and then becoming hermits because they don't have the ving money to go out, and moan about hating their job and the commute to it and having no way out.

Well, as I say that's up to them. If you don't plan sufficiently ahead (i.e. and spend every last penny of spare cash on your mortgage), then of course you're going to be trapped. Contrary to popular belief it is possible to have a mortgage and a life.

iguana

jester77, Would that be Hamburg, Germany? You can't really compare renting in Ireland to renting in Germany. Germany has one of the lowest home ownership rates in Europe - currently 44 per cent nationwide, dropping dramatically in major cities such as Berlin to 13 per cent - primarily because rents, sustained by government subsidies and tenant-weighted social covenants, remain low.

If renters had the same rights in Ireland as they do in Germany then perhaps it would be a more enticing choice. But renting in Ireland can be a nightmare. Rents are generally high, as landlords are using the rent to cover their mortgage and those with lower mortgages are still going to charge market rate. Renters have very little rights and can be evicted with only a few weeks notice if the landlord decides to sell or move in a family member.

Corporation and council housing is the only place where renters have any security, and value for money. But unfortunately most of those estates become ghettos in which most people prefer not to live.

I have hated renting. I never felt comfortable anywhere I rented. There were always problems which were rarely satisfactorily sorted out. Owning is an amazing experience, I prefer having responsibility for my own home than being behest to someone else.

markpb

Budd wrote:

Theres no way I could afford to live their without renting. Young people who buy houses now end up living in cheap housing estates in Carlow and commute to Dublin instead of jsut renting a nice place.

I bought my apartment in Dublin when I was 23. In Dublin - not Carlow, Kilkenny, or anywhere remote like that. I cycle to work in a lesiurely 15 minutes. Apart from a small helping hand with the deposit from my parents, I pay the mortgage entirely by myself.

Of course you're right, if I was renting I'd have the option of living in the city centre instead of Santry. It works out cheaper for me - mortgage is 1002 per month and is split between me, girlfriend and renter living in the other room. A smaller two bed apartment in the city centre costs at least 1,200 per month.

There are pros and cons to both, you can't just laugh at everyone who buys and says they're pushing up mortgages. Neither can you say rent is dead money and laugh at renters.

jester77 wrote:

When I want to move jobs or cities there is absolute no hassle, just give my notice and move along [...] Until then I don't see the point of paying higher pricers for a reduced quality of life.

I rented seven places in six years (as a student and the first year of employment) and I can happily say that moving was the most stressful thing I have ever done. Forget the leaving cert or final exams, they're soft in comparison. House hunting and house moving was truly awful and only done when necessary.

How do you see house owning as a reduced quality of life? I chose the place I liked (within reason obviously), I decorate it as like, I chose who I live with and for how long and when the second room is rented, the mortgage is only 100 euro a month more than I was paying in rent in the same area.

exCrumlinBoyo

Not for me. Actually when I bought my house, my mortgage was lower than the rent I was paying in the apartment we were living in. My Mortgage is only about $400 bucks a month. I have to pay a high insurance premium of about $65 per month along with Property taxes of about $50 so overall my monthly payment is around $560.88 which you cannot beat. My house is nothing special, but it’s a small bit bigger than a normal house back in Crumlin. I bought it two years ago for $71,000 and its now worth $125,000. I am going to refinance it next year when I get back from Dublin on a holiday and buy a second property which will be our family home and the one I have now will be a rental/investment property.

The price of homes in Dublin/Ireland is crazy. I could not survive paying the mortgages back home for the same size house I live in now. Right now, my wife stays home with the kids and goes to college at night, I work and my income is very modest but adequate enough to own a house and we just bought a brand new Toyota a couple of months ago.

stifz

jester77 wrote:

If you call rent dead money then so is the interest you pay on a mortgage- no difference!

Did'nt realise renting gained equity for the tennant?! I've never met a tennent that walked away with property increase value in their back pocket when the lease is up?!


Bottom line is you don't get a mortgage you can't afford. Pure simple and the gods honest truth.

jester77

stifz wrote:

Did'nt realise renting gained equity for the tennant?! I've never met a tennent that walked away with property increase value in their back pocket when the lease is up?!

And what happens if the ass falls out of the market and people end up with negative equity - it will be the renters that will be laughing! Could happen and has happened before.

jimmycrackcorm

Budd wrote:

You are wrong. Leave the other thread alone.

The level of home ownership is an unusal feature of Irish life quite at odds with other countries. Its clear that their are too many people buying homes from social pressures when they and the rest of the country would be much better off if they just rented.

Here I am paying €750pm for my mortgage and if I were to move
back down the country I could sell up and buy a house back home, have no mortgage and a couple of hundred grand in equity profit.

But instead you'd suggest I should be paying €1100 in rent for a house with crap decor because there'd be no point in me doing it up.

EOA_Mushy

seamus wrote:

Renting is dead money. As much as renters will always claim they have the good end of the stick, if you're renting privately at market rates, you're paying off someone else's mortgage for them.

Aint that the truth, a friend bought recently, has enough people renting for to cover the morgage and put a small amount in his pocket.

He is just waiting for the right time to move into one of the rooms, loose the extra money in the pocket and have very cheap rent. One way or another other people are paying the majority of his morgage.

BTW SSSHhhhh.... I want less compitition in the market!!! :rolleyes:

[edit] oh, and whats with size=1 being that big? (see above)