Saving for a mortgage while renting

snowflake1989

Hi all,

We're currently renting have one child, we rent for 1100 for a two bed in dublin, looking to start our savings for a home four my family

As a rough idea how much are you's saving along with renting
I'm full time and my boyfriend is flexi time min hours he does is 26

Money isn't too right at minute but it will take ya a while to save up for a deposit (as we ahe two credit union loans to clear up also)

But as a rough guide how much are you's saving along with rent?? Also any tips on saving money whilst renting

Thanks in advance x

Michael D Not Higgins

I'm not sure what you want us to say. Move somewhere cheaper? The idea of this forum isn't too provide general advice outside of that.

snowflake1989

Ok was just wondering I'll delete the stupid post so

Millem

snowflake1989 wrote: »

Hi all,

We're currently renting have one child, we rent for 1100 for a two bed in dublin, looking to start our savings for a home four my family

As a rough idea how much are you's saving along with renting
I'm full time and my boyfriend is flexi time min hours he does is 26

Money isn't too right at minute but it will take ya a while to save up for a deposit (as we ahe two credit union loans to clear up also)

But as a rough guide how much are you's saving along with rent?? Also any tips on saving money whilst renting

Thanks in advance x

I don't think it is a stupid question at all.
Our rent plus savings amounts to the mortgage repayment at 6ish percent. (Stress test). We have €2250 left over a month after this which is what bank want (€1000 per adult and €250 per child).

snowflake1989

Oh I didn't realise that that was how. It is seen -1000 per adult and 250 per child after te payment thanks for that reply

indigo twist

We are in a very similar situation, exact same rent. Can't afford to save a penny because of creche fees. If we didn't have those, I guess we'd have an extra €1,049 a month to put towards savings. But as it is, we're living month to month - won't be in a position to apply for a mortgage anytime soon.

Millem

snowflake1989 wrote: »

Oh I didn't realise that that was how. It is seen -1000 per adult and 250 per child after te payment thanks for that reply

That's what we were told! It's crazy I know! We keep telling ourselves we will have sooooo much money when we eventually buy a house as we are saving soo much! But I supose it's a good habit to be in! We cleared all our loans but we were told we didn't have to but they would offer is less! The dublin market is insane though some are happy just renting at the mo

snowflake1989

Thanks for the reply- I can only imagine creche fees where lucky in that family help out while we both work were blessed in that sense,

Awh I'm glad your happy I should e too think I'm just stuck in the thinking that I'm 25 and should be thinking of owning my own house soon!! Heres hoping that some saving will help out

snowflake1989

It is a bit crazy isn't it ! But it's named appropriately 'stress test' I'm thinking of calling a broker for some advice on my situation and how to become mortgage ready

snowflake1989

Millem wrote: »

That's what we were told! It's crazy I know! We keep telling ourselves we will have sooooo much money when we eventually buy a house as we are saving soo much! But I supose it's a good habit to be in! We cleared all our loans but we were told we didn't have to but they would offer is less! The dublin market is insane though some are happy just renting at the mo

Oh really I think I'll just keep chipping away at my debt whilst saving silly loans taken out for cars etc but it's always good to have the savings alongside it

Millem

snowflake1989 wrote: »

Thanks for the reply- I can only imagine creche fees where lucky in that family help out while we both work were blessed in that sense,

Awh I'm glad your happy I should e too think I'm just stuck in the thinking that I'm 25 and should be thinking of owning my own house soon!! Heres hoping that some saving will help out

I was like that too wanting to own something but in fairness I don't know anyone under 30 who bought a 3 bed semi where we are looking as they so dear!

James esq

Ask the credit union for advice, they used to give loans towards deposits, they may extend your loans, if you have a good credit history with them you will find them very flexible.

alibab

James esq wrote: »

Ask the credit union for advice, they used to give loans towards deposits, they may extend your loans, if you have a good credit history with them you will find them very flexible.

This is not good advice . The bank will not give mortgage unless loans are clear adding another one is not the answer or extending. You need to be paying rent consistent saving even if it's 200 a month and then have the 2250 left a month after the mortgage is paid in disposal income .

D3PO

the opening post really makes no sense. Why would what others saving on top of their rent have any bearing on you ?

If your tryign to save for a deposit, the answer is save as much as you can as regularly as you can. Its not rocket science.

hfallada

James esq wrote: »

Ask the credit union for advice, they used to give loans towards deposits, they may extend your loans, if you have a good credit history with them you will find them very flexible.

But you want to pay off short time loans asap. The interest on the credit union loans might be anything from 8-12%, which is far higher than 1-2% which op would get if they keep their savings on deposit in a bank. They are best paying off their loans instead of saving

Mrs OBumble

OP, saving for a deposit while renting is really not much different from saving for anything else.

1 Prepare a budget
2 Review it to see if the amount you will save over time (eg monthly savings x 12) is enough to meet your goals
3 Adjust your priorities, so you can save more (or less), and review the budget

Repeat 2 and 3 over and over until you are happy with the lifestyle / saving-acheivement tradeoff.

Then live according to the budget. Do another review after six months, or if you have any major living cost changes, to see if you're still happy with the tradeoff, or if you need to adjust it a bit.


The only Accommodation and Property related savings tip that I can think of is to maintain a good relationship with your landlord and to fix stuff yourself if you can, because this may lower the chance that they increase the rent. (We've had other threads about this: in some cases a tenant who causes the LL to notice them will get a rent increase that they wouldn't have got otherwise.)

There's a coupons and Frugal Living forum where you might go for some cost saving tips: http://www.boards.ie/vbulletin/forumdisplay.php?f=1530

Work and Jobs might be able to suggest ways you can get a better paying job: www.boards.ie/vbulletin/forumdisplay.php?f=10

How specifically to save money, though, depends on your priorities: small things (eg shopping in Lidl instead of Dunnes, walking places instead of taking the car) can make a big difference over time - but it all comes down to your lifestyle. There is almost no one who cannot make savings if they choose to do so.

Mink

The above post from OBumble is great, very sound advice.

Some banks look for 1300 per adult and 300 per child after mortgage payment, so might be an idea to work out your budget according to that.

We are in similar situation, both working (one part time), child (cared for by family), credit union loans to clear etc. We work in Dublin but live a good bit outside and our rent is low but it's a grand big house and garden.

I think we conscientiously started really saving AND clearing our loans (beyond the weekly repayments) almost a year ago and we've come quite far.

We've had to constantly rework our budget. We've been fairly strict but we also don't deny ourselves the occasional family trip, night out, the odd take away etc. There's no point living a miserable life for the next 2 years while you save.

But by changing small things and really setting a goal of trying to save each week and month, we have gotten ourselves out from a heap of debt and we should be ready to get a house in about a year and a half.