Buying a house but lost my job.

LegacyUser

I just lost my job last week. I will be working till the end of October and paid until the end of December as Im only there under a year.

Im in the middle of buying a house and Im terrified. The house is only 125k and is in the country. What would you do? I can afford the mortgage on a waitress job, but Im in a high manager position at the moment.

Im going through with the house through gut feeling but would like some perspective from other people.

There seems to be plenty of jobs out there for cleaners, etc and I would happily take a job lesser than my current title to pay for the house.

Any opinions

wexford202

First of all are you buying this house on youor own?

Second of all would you be able to rent a room out?

Thirdly can you spread your loan over longer period?

Otis Driftwood

Well you are working until the end of October and paid until December so whos to say you wont find a job in the next 4 months?Just get your CV polished and get it out there!

Good luck.

VaioCruiser

Borrowing 125,000 euros and no way to repay it.



There is a clue in there somewhere.....

dudara

Sorry to hear that you've lost your job, but the good news is that you don't seem to have a ridiculous mortgage.

You don't seem to think that you would get another job at a comparable level - why is that?

Start job-hunting now. Don't leave it until you have to start making mortgage repayments.

Oh The Humanity

Is it too late to pull out of the sale?

There are thousands of houses (new builds) standing empty down the country and will be for some time to come!

If you can pull out without losing anything, then do!

jetski

Peronally i would persevere.... at the end of the day i imagine you will need money for rent either way so make no difference?

jetski

post is better off in accomodation and property BTW

puglover

As someone who was made redundant 3 months after buying a house I would strongly recommend you not to go ahead. Even aside from the mortgage the cost of running, insuring and maintaining your home are much more expensive than renting.

I would imagine if you haven't finalised your mortgage, your lender won't approve the loan at this stage anyway.

I know highly experienced professionals, and plenty of low skilled people too who are out of work for months and cannot get jobs, don't kid yourself that it's going to be easy. You may very well be unemployed for a long time yet.

Builderfromhell

House prices will continue to drop, maybe by another 30%.
Rents are dropping all over the place.
Jobs are getting harder to find.

I definetly would not buy a house in Ireland now. Rent until things start to improve. You'll save a fortune by renting for now. Plus you will have more flexibility with work. You can easily leave a rented place and work in another part of Ireland or overseas. You cannot leave a mortgaged house so easily.

dixiefly

First of all, comiserations on the job loss.

Unless you are absolutely sure that this house is in a location that you want to be long term then you should take the advice of the majority here and pull out. The house might be "only" 125k in comparison to old prices and the auctioneer could have done a good sales job but that doesnt mean it's good value in comparison to future prices.

You may need to move a bit to get the right job and the house may prevent you from being able to do that.

thefeatheredcat

OP,

If I were you, I'd re-think the whole situation. Buying a house on a mortgage is fine if you have the financial backing to do so. A home of your own is in fact a luxury, not a necessity.

Your mortgage lender will probably have to reconsider your application and you could be turned down, so be prepared for that.

With the way things are atm you could be a while getting a job, no matter how determined you are or what job you're prepared to take. You could end up taking a job that would pay considerably less and may reduce your standard of living.

I think you should consider the worst case scenario and take it from there.

You could face the prospect of having to move further afield for a job that you have expected.

Have you talked to family members on this issue?

If I were you, I'd hold off due to the financial circumstances faced. I think you're better off with some money in your pocket and a place to rent and ability to pay for food than to have to face having your house repossessed due to not being able to pay the mortgage and all your earning sunk in it.

SLUSK

jobless11 wrote: »

I just lost my job last week. I will be working till the end of October and paid until the end of December as Im only there under a year.

Im in the middle of buying a house and Im terrified. The house is only 125k and is in the country. What would you do? I can afford the mortgage on a waitress job, but Im in a high manager position at the moment.

Im going through with the house through gut feeling but would like some perspective from other people.

There seems to be plenty of jobs out there for cleaners, etc and I would happily take a job lesser than my current title to pay for the house.

Any opinions

Why are you in such a hurry to buy a house? If there is any hesitation you should probably wait.

sunnyside

jetski wrote: »

Peronally i would persevere.... at the end of the day i imagine you will need money for rent either way so make no difference?

I bought a house on my own almost 2 years ago now. I'm female 31 now. My house is in the city and cost over 300k. I pay the mortgage and household bills on my own and as a result I have less disposable income than half the people on the dole. I choose not to rent rooms because I rented and shared for years and I like my own space.

I'm still glad I did it though, I see the house as a long term plan, I'm happy there and I know I wouldn't have a hope of getting a mortgage now. I always wanted my own home and now I have it, but there are a lot of financial sarcrifices involved in keeping it. I wanted my own home really badly though, I hated renting so to me it's worth it.

I'm not exactly telling you to go ahead. I'm saying if you want the house as badly as I did and see it as a long term thing and will be satisfied to live like a student for the next while then do it.

But a lot of people would advise against it. Can you go without holidays, nights out, new clothes, refuse invites because you can't afford to do things? It honestly isn't the best way to be living.

There will be loads of cheap houses on the market for the next year or 2 at least so if you miss out now there will be others but getting mortgage approval gets more difficult all the time.

who_ru

just don't go ahead with the purchase now, the stress simply isn't worth it. wait until you find a new job, go house hunting again.

Overheal

You are not commited to a house purchase until you Close. At any point before you sign the closing contract, you can pull away scott free. You should feel under no pressure to be forced into buying this house. Opt out. Youre not in the same position you were when you started.