Where do people find the money to buy such expensive houses?

outlooks

Hi,

More curiosity than anything else, I was checking this website - https://www.propertypriceregister.ie/Website/npsra/pprweb.nsf/PPR?OpenForm and there are hundreds of houses sold at a price above 500k euro. Anything above 300k is, imo, quite a lot of money.

Also interesting was to run a search on the house address to see how much was the ask and for how much it was sold after the bidding.

Where do people find the money to afford these mortgages?

vicwatson

Who says they need a mortgage ?

outlooks

vicwatson wrote: »

Who says they need a mortgage ?

That is actually a good point. Still where do people get the money? Family savings? Lotto?

Mantis Toboggan

Plenty arriving back from Australia in recent years where earnings were in excess of 200k each year, lots of these houses are being bought for cash.

outlooks

Tyson Fury wrote: »

Plenty arriving back from Australia in recent years where earnings were in excess of 200k each year, lots of these houses are being bought for cash.

That makes sense and it totally takes locals out of the "market". Would that be the majority? If you check the website I've shared there were a really large number of houses sold at a premium price.

Chivito550

Tyson Fury wrote: »

Plenty arriving back from Australia in recent years where earnings were in excess of 200k each year, lots of these houses are being bought for cash.

I lived in Australia for 3 years. I'd be amazed if very many Irish were earning that sort of money out there. And every dollar over 100,000 is taxed at 50%, and the cost of living out there is expensive so you wouldn't be saving massive amounts.

Geuze

A close relation bought a house inside the canals, approaching 300 k.

Paid cash.

Earns 28 k pa, aged approx 40.

Earned more in the past, savings, SSIA, parental gift. etc.

Geuze

There is more income and wealth in Ireland than people realise.

Cookie_Monster

couple with 2 incomes of 50k plus wouldn't exactly be unusual IMO, easily affordable in that case

Ursus Horribilis

There are jobs out there that pay very well too. Medical consultants, I.T, high level finance, lawyers, CEOs etc.

aido79

Chivito550 wrote: »

I lived in Australia for 3 years. I'd be amazed if very many Irish were earning that sort of money out there. And every dollar over 100,000 is taxed at 50%, and the cost of living out there is expensive so you wouldn't be saving massive amounts.

I personally know a few Irish people earning that sort of money in Australia. They are working in mining/oil and gas and their living expenses would be quite low as they work away for 4 weeks at a time and only really need to spend money on their week off.
The highest rate of tax at 45% doesn't kick in until a person earns $180,000 a year.
Believe me some of these guys( the ones who aren't stupid with their money) are saving massive amounts of money.

Ginger83

outlooks wrote: »

Hi,

More curiosity than anything else, I was checking this website - https://www.propertypriceregister.ie/Website/npsra/pprweb.nsf/PPR?OpenForm and there are hundreds of houses sold at a price above 500k euro. Anything above 300k is, imo, quite a lot of money.

Also interesting was to run a search on the house address to see how much was the ask and for how much it was sold after the bidding.

Where do people find the money to afford these mortgages?

Some waste of half a million quid.

outlooks

Ginger83 wrote: »

Some waste of half a million quid.

Agree. With 300k one could buy a 4bed detached modern house in a complex in Spain or Portugal for their retirement years. Theee hous diatance with nice weather, nice food and good health care system.

I guess that is what some people realized and are now selling their 40 yrs old houses for more than half a million. Family and friends aside why would one live their whole lives under the rain?

I would imagine there are plenty of couples whose earnings combined go into six figures. They'd well be able to afford a 300k house anyway.

Sam Kade

Tyson Fury wrote: »

Plenty arriving back from Australia in recent years where earnings were in excess of 200k each year, lots of these houses are being bought for cash.

What were they working to make in excess of 200k/year? Also if they were earning that down under why would they bother coming back to ireland?

JustAThought

Barbara Juicy Limb wrote: »

I would imagine there are plenty of couples whose earnings combined go into six figures. They'd well be able to afford a 300k house anyway.

300k on one good salary - just managable - on two salaries that would be very managabke, higher up to 500k an SME owner with a good turnover & low debt - again very managable, people who gave 'good' jobs - lawyers, doctors, successful builders, chip shop owners, publicans, etc not to mention people with the many lucrative government contracts, hardworking business owners, private practices like speech therapists, occupational therapists, married double salary 'civil' 'servants' on state protected salaries for life which is taken into account, people who inherited, who in the 80's and 90's invested wisely, people who put their SSIA into savings bonds that are maturing now, people who get lump sums in work at staged intervals & stocks, etc etc etc

Mantis Toboggan

Chivito550 wrote: »

I lived in Australia for 3 years. I'd be amazed if very many Irish were earning that sort of money out there. And every dollar over 100,000 is taxed at 50%, and the cost of living out there is expensive so you wouldn't be saving massive amounts.

I'm talking about people working in the mines, who receive free accommodation, flights and food. Everything earned is saved and speaking from experience, yes you would be amazed

lawred2

Chivito550 wrote: »

I lived in Australia for 3 years. I'd be amazed if very many Irish were earning that sort of money out there. And every dollar over 100,000 is taxed at 50%, and the cost of living out there is expensive so you wouldn't be saving massive amounts.

Whereas every euro above 33k is taxed here at near 50%...

Mantis Toboggan

Sam Kade wrote: »

What were they working to make in excess of 200k/year? Also if they were earning that down under why would they bother coming back to ireland?

Visas and residency are the big problems. They earn that kind of money and more. Things is its a bit of a ****y life, you fly into these places in the middle of nowhere for 4 weeks at a time and work pretty much every day.

Mantis Toboggan

lawred2 wrote: »

Whereas every euro above 33k is taxed here at near 50%...

Not sure where he got 50% tax rare in Australia either.

thierry14

Tyson Fury wrote: »

I'm talking about people working in the mines, who receive free accommodation, flights and food. Everything earned is saved and speaking from experience, yes you would be amazed

Yeah some shrewd ones out there

I have a school friend who worked as an electrician in Middle East last few years

Got 50k after tax, food, accommodation all paid for, even got a living allowance approx 100 - 150 per week as his main salary was paid in lump sums

He recently bought a house for cash here and has it rented out.

In Canada now, only 29

Chivito550

aido79 wrote: »

I personally know a few Irish people earning that sort of money in Australia. They are working in mining/oil and gas and their living expenses would be quite low as they work away for 4 weeks at a time and only really need to spend money on their week off.
The highest rate of tax at 45% doesn't kick in until a person earns $180,000 a year.
Believe me some of these guys( the ones who aren't stupid with their money) are saving massive amounts of money.

Apologies, I got the rates wrong.

Nobody living in a city would be earning that sort of money and saving that sort of money.

Regarding living in the mines for years, what an awful waste of a life that is. I passed through a town called Port Headland where some are based. Depressing is too mild a word. Not worth it, house or no house. Would rather a life.

Ursus Horribilis

Chivito550 wrote: »

Regarding living in the mines for years, what an awful waste of a life that is. I passed through a town called Port Headland where some are based. Depressing is too mild a word. Not worth it, house or no house. Would rather a life.

Short term pain for a longer term gain perhaps?

Walter2016

Most staff in Facebook have share options.

Many were given when it went public at $21 just 4 years ago and also could buy additional shares - shares are now $117. Even after tax, it has been a huge earner for many of their staff and 500k+ would not be unusual.

Same but not as lucrative for Google staff, Microsoft staff and many others that have seen substantial share price growth in the past few years.

John Mason

My friend came from working in the carribean for 15 years and bought 4 penthouse apartment in Smithfield outright.

they are all rented out now, she already owned her own apartment and another house which is also rented out. Oh then there are the 2 holiday homes.

JustAThought

What was she doing that she had at least 1.5 million euro saved from a third world country operating in a different currency and when dollars were worth two thirds the value of a euro.?

John Mason

JustAThought wrote: »

What was she doing that she had at least 1.5 million euro saved from a third world country operating in a different currency and when dollars were worth two thirds the value of a euro.?

telecommunications

Tax free, all accomdation paid for including all bills plus a car. flight home paid for.
share options, nowhere to spend money

aido79

Chivito550 wrote: »

Apologies, I got the rates wrong.

Nobody living in a city would be earning that sort of money and saving that sort of money.

Regarding living in the mines for years, what an awful waste of a life that is. I passed through a town called Port Headland where some are based. Depressing is too mild a word. Not worth it, house or no house. Would rather a life.

You're right...nobody living and working in any Australian city could save that sort of money.

Having worked in Port Hedland many times it still remains one of my least favourite places in Australia but as another poster said...short term pain for long term gain. It's definitely not somewhere I would choose to live but I can see the attraction for people who are thinking long-term about setting themselves up.

troyzer

I'm a mining geologist. I'm not in Aus at the moment but the starting salaries even at such a poor part of the business cycle are pushing $150k in some of the bigger mines. Within five years you're easily making $250k and if you're on a FIFO you're basically not spending money 75% of the time.

The reason why people leave is the same reason why the money is so good. It's a rough, hard life and it's very difficult to start a family.

Kadser

Always thought it's because they mostly get 40-year mortgages?

alastair

Plenty of people trading up too. Not so difficult to buy a 500k house if you're selling a 350k one, even on an unexceptional income.

Mr Joe

I don't want to take this off topic but it must really gall people who spend that much on a house and work that hard, and then you get Joe Bloggs around the corner given his free council house who doesn't work at all.

If it was me it would sicken me badly. I'm not sure how that works in proper functioning places Britain and the US. It's another reason that makes it preferable to live abroad than here. You don't get rewarded for that hard work here, you get taxed out of existence to fund the lifestyles of others and in the end you probably aren't much better off than people who play the Council House waiting game.

Walter2016

Mr Joe wrote: »

I don't want to take this off topic but it must really gall people who spend that much on a house and work that hard, and then you get Joe Bloggs around the corner given his free council house who doesn't work at all.

If it was me it would sicken me badly. I'm not sure how that works in proper functioning places Britain and the US. It's another reason that makes it preferable to live abroad than here. You don't get rewarded for that hard work here, you get taxed out of existence to fund the lifestyles of others and in the end you probably aren't much better off than people who play the Council House waiting game.

Not really - joe bloggs won't be earning great wages, he wouldn't be able to do much to the house, has to pay rent relative to earnings and can't really move location.

And of course doesn't benefit from any appreciation in price nor can the house be passed on to other family members.

Btw - you say "proper functioning places like UK and USA" eh, i suggest you check both out. "unfunctioning" would be a more apt word - one look at a usa trailer park will tell you that.

irishguy

As people have already said there are a number of very well paying jobs in the Dublin area in IT, Finance, Accounting etc. A large number (12/15 people) people I know (mostly in IT/Accounting) with C.10 years experience are on €70/90k (excluding pension/bonus) some of which have a spouse on the same money or more (in a few cases). So 2 first time buyers on a joint €140,000 would be allow you to borrow €490k + deposit.
Its still a lot of money and is the top 10% of earners, it's just mostly concentrated in the Dublin area, in the rest of Ireland it would be quite rare to get that level of earnings.

newacc2015

A lot of people outside of Dublin are obvious to how wealthy Dublin is. I visited a family member down in a regional city and I went to the city centre for Christmas Eve. I was so shocked at how different it was to Dublin. So few people had shopping bags and very few were actually buying anything. Versus Christmas Eve in Dublin City where everyone is covered in several bags a lot of which is luxury items. I was over in London during the Summer and there was less displays of wealth than Dublin. If you stand for 5 mins on Grafton or Baggot St, you will see several people with several thousand hand bags. Dublin is a very wealthy city, there is just so much poverty that it is hard to see the wealth at times. This not my opinion, the EU has plenty of surveys on income that put Dublin as one of the richest regions in Europe and the West and midlands is generally below average EU income

Dublin is the centre of aviation finance for the world. The average salary for this is about €150k in some firms. The average chartered accountant is about €100k per year. Most of the big 4 work is done in Dublin despite having offices outside of Dublin. The IFSC has a ton of extremely well paid jobs. Then there is the all IT companies who often have their largest operations outside of America in Dublin. A lot of their managers would be Irish. Most well paid jobs in Ireland are in Dublin.

I know two people who are a year out of college, one working in IT sales and another working as an engineer in a pharmaceutical. Both are on about €65-75k. Massive salaries in Dublin are not abnormal if you are educated and have an in demand skill

Dial Hard

Ursus Horribilis wrote:

Short term pain for a longer term gain perhaps?

It really depends on how much people are willing to sacrifice for a few bob. Last year I was given the opportunity to work in the UAE for 1-3 years (I could choose how long I stayed). Tax-free, accommodation included, two flights home annually paid for and a completion bonus of two months salary per year worked when I finished up. I turned it down. For me it just wasn't worth giving up all the things I take for granted as a woman living in Ireland.

sparky63

Short term pain for a longer term gain perhaps. If one can buy with cash, no debts.

Otherwise!

More like Short term gain for a longer term pain.

Timistry

aido79 wrote: »

I personally know a few Irish people earning that sort of money in Australia. They are working in mining/oil and gas and their living expenses would be quite low as they work away for 4 weeks at a time and only really need to spend money on their week off.
The highest rate of tax at 45% doesn't kick in until a person earns $180,000 a year.
Believe me some of these guys( the ones who aren't stupid with their money) are saving massive amounts of money.

Agree 100% All living and work expenses covered. Many actually live in Asia paying $50 a week rent and living like a king off of maybe twice that...

People say its expensive but your tax is spent wisely,you have entitlements and there is no tv licence, rip off car tax and insurance, health insurance etc

Muahahaha

Another growth area of well paid jobs is Irish people being promoted to director level of American MNCs. Companies that established their European base here in the early 2000s now have local employees with 10-15 years experience in the same company and theyre climbing the ladder onto boards where salaries over €250k can be common plus share options too.

ongarboy

Muahahaha wrote: »

Another growth area of well paid jobs is Irish people being promoted to director level of American MNCs. Companies that established their European base here in the early 2000s now have local employees with 10-15 years experience in the same company and theyre climbing the ladder onto boards where salaries over €250k can be common plus share options too.

You don't have to be promoted to director level in MNCs to earn decent salaries to afford the houses the OP is querying. I work in the funds industry which employs 1000s in Dublin alone and anyone who reaches Assistant Vice President (AVP) grade or higher is easily on 50/60K or more per annum. My last two companies had over a 100 AVPs each so that gives a snapshot on how common decent salaries are. Most large funds employers have dozens of such grade employees along with the higher Vice Presidents, Senior VPs and then Executive VPs (all on 100K+ salaries).

Combine that with their partners on either modest or good salaries, and the houses that OP queries are easily affordable through mortgages or accumulated savings over the years (particular staff bonuses in the form of shares that are tax free after 3 years apart from capital gains tax) and you have many people with decent assets built up. I'm only speaking for the sector I work in but the insurance, accountancy, institutional and retail banking and all the other professional sector occupations have many employees in those well paid salary brackets also. If you acquire a 3rd level university degree as most young people do these days, work hard and display a good ethic and get promoted multiple times over your formative years, the opportunities are there to earn good money.

power pants

Walter2016 wrote: »

Not really - joe bloggs won't be earning great wages, he wouldn't be able to do much to the house, has to pay rent relative to earnings and can't really move location.

And of course doesn't benefit from any appreciation in price nor can the house be passed on to other family members.

Btw - you say "proper functioning places like UK and USA" eh, i suggest you check both out. "unfunctioning" would be a more apt word - one look at a usa trailer park will tell you that.

it is passed to the next generation if their name is on the floor. Even less incentive for that family to ever work creating generations of useless lazy dummies for tax payers to support.

Personally, I think people who dont work and have no reason not to be working should be in prison or even worse

Oink

power pants wrote: »

Personally, I think people who dont work and have no reason not to be working should be in prison or even worse

You might want to rephrase. It sounds a bit silly, like you mean it or something.

power pants

I do 100%

JuliusCaesar

power pants wrote: »

it is passed to the next generation if their name is on the floor. Even less incentive for that family to ever work creating generations of useless lazy dummies for tax payers to support.

So the three children grow up and move their partners into the one house with the parents and then each of the three families have children, and all of them in the same house forever? It just doesn't make sense.

power pants wrote: »

Personally, I think people who dont work and have no reason not to be working should be in prison or even worse

So everyone can work who isn't ill or mentally or physically handicapped? How does drug addiction or alcohol addiction count? Or ship them off to prison too?
How about a sink culture, sink schools, denigration by everyone, and no employment given to a person with x address? I dunno. Anyway, it's very expensive to keep someone in prison, and I believe the biggest education got there is in crime.


But then (back on topic) there's BIG houses to rob!

SEPT 23 1989

is poverty a crime?:D