Buying apartment on my own with decent enough deposit

DebDynamite

Bought house with my ex-partner. Broke up and deciding whether to sell house or rent it out. He reckons we'd make about €120K on the sale of the house (so €60K each).

Would the bank even consider me if I was looking to buy a 2 bed-apartment, circa €200K-€220K with a minimum €60K deposit, salary of €30k. Do they still take into account that you'd get a lodger to help towards the mortgage and that it would cost me considerably more to rent a similar type of accommodation than I'm looking to buy?

Mrs OBumble

What about estate agent fees? (or is the 120k after that?)
Furniture?
Legal and valuation fees?


At first glance you don't have a hope: 3.5 times your salary is only 105k. Even if a lodger was allowed to count (usually they don't I think), they won't make that much of a difference.


Note: Depending on where you live your salary is well below the threshold to qualify you for social housing. They don't really expect you to be able to buy a house or apartment if you're earning that little. ref: http://www.housing.gov.ie/sites/default/files/migrated-files/en/Publications/DevelopmentandHousing/Housing/FileDownLoad%2C29414%2Cen.pdf

(Note that table is nett, ie after tax, income. I'm picking that your 30k is before tax).

L1011

Mrs OBumble wrote: »

Even if a lodger was allowed to count (usually they don't I think) .

They can't anymore. Salary only.

As you have equity in the existing property - how much would you need to borrow to buy your ex out?

DebDynamite

Mrs OBumble wrote: »

What about estate agent fees? (or is the 120k after that?)
Furniture?
Legal and valuation fees?


At first glance you don't have a hope: 3.5 times your salary is only 105k. Even if a lodger was allowed to count (usually they don't I think), they won't make that much of a difference.


Note: Depending on where you live your salary is well below the threshold to qualify you for social housing. They don't really expect you to be able to buy a house or apartment if you're earning that little. ref: http://www.housing.gov.ie/sites/default/files/migrated-files/en/Publications/DevelopmentandHousing/Housing/FileDownLoad%2C29414%2Cen.pdf

(Note that table is nett, ie after tax, income. I'm picking that your 30k is before tax).

So a single adult with no children, who earns under €35K could be entitled to social housing?

Wow, that's mad. I know I don't earn huge wages, but I can more than afford a house-share somewhere. And would someone like we even have a chance of been given social housing?

DebDynamite

L1011 wrote: »

They can't anymore. Salary only.

As you have equity in the existing property - how much would you need to borrow to buy your ex out?

I think we both just want a fresh start somewhere else, so neither of us would want to stay in the house, or would want the other to stay either.

L1011

DebDynamite wrote: »

. And would someone like we even have a chance of been given social housing?

With current waiting lists, no. If the major social housing building projects planned before the election actually go ahead, in time yes.

However, with FF back effectively in government and their history of not building social housing and instead rarely buying off builders that vote FF and mostly renting off private landlords that vote FF...

Mrs OBumble

As a single working person with no kids and no other factors (disability etc) - then your chances of being allocated a house or flat are very slim.

They increase once you are elderly or disabled (there are more social houses for those groups), so if you apply now, you'll likely have somewhere permanent to live once you're old and not able to work (and so earn enough to pay rent) any more.

What i was saying is that the government does not believe that someone on your current salary earns enough to house themselves.

While you might be able to scrape enough together to buy, it's unlikely that you can afford to keep the place well enough maintained. It's very sad to meet an older person who owns a house which is falling down around them - they often have absolutely no way of getting adequate housing, and some live in appalling conditions as a result.

To be honest, if you do aspire to home ownership, your best best is to get a better-paying job. This may take further education / training, or taking on more responsibility in your current career.

draiochtanois

This post has been deleted.

MrMorooka

In fairness the 3.5x loan-to-income rule means it is very difficult for the average person to get a mortgage on a Dublin city property as a single applicant, even if you have a large deposit.