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

Advice: Rent or buy?

Options
2»

Comments

  • Options
    #32
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    RedPandaDan wrote: »
    I'm not sure this should be seen as a negative. While you would get a bigger mortgage by borrowing before having kids, the bank would be offering a smaller mortgage for a reason. Kids are expensive!

    where did I use the word negative anywhere ? I said its a consideration.


  • Options
    #33
    RedPandaDan
    Registered Users Posts: 86 ✭✭RedPandaDan


    D3PO wrote: »
    where did I use the word negative anywhere ? I said its a consideration.

    Indeed you did, apologies.


  • Options
    #34
    Villa05
    Registered Users Posts: 4,553 ✭✭✭Villa05


    D3PO wrote: »
    1) Rent for 5 more years reduces the mortgage term you will be able to apply for by 5 years

    - result incresed monthly payments and decrease in the amount of a mortgage you will be offered

    2) Yes the mortgage may be more than rent by twice but remember the mortgage is capital and interest. Once house prices arent falling the money paid off the capital is just as valuable as the 100k you would save outside of it.

    3) The OP mentions they are looking to have 1 or 2 children in the next 5 years. Having 2 children will have a large impact to what banks will lend you when its time to apply for a mortgage.

    Thats without the considerations of the hassle of renting, possible rises in house prices, possible rises in the cost of renting in the intervening 5 years, and how your life could be impacted if god forbid the OP or their partner got seriously sick.

    Im not saying renting and saving 100k to put towards a mortgage in 5 years time isnt a good idea Im just saying theres more to consider than people are letting on in this thread.

    1 Saving for 5 years while renting means a much smaller mortgage meaning you have reduced repayments and you will not require a large mortgage. It will also allow you to see the full impact of cutbacks and taxes, these will feed into house prices negatively

    2. In the first years of a mortgage you are mainly paying interest with very little coming of the capital, therefore it would make sense to maximise your deposit before entering a mortgage

    3. Having 1 or 2 children is probably the best reason to be prudent and save rather than maximizing a mortgage now


Advertisement