Property-tycoon-says-generation-needs-start-saving.

divillybit

http://www.dailymail.co.uk/news/article-4504456/Property-tycoon-says-generation-needs-start-saving.html

An interesting article about an Australian property developer and his advice to young people aspiring to buy a house which was featured on The Last Word on Today FM earlier on.

It just resonated with me as I saved hard for the last few years and meant I was in a really good position as a young first time buyer to buy a good house for myself - albeit at the bottom of the market, and in the midlands where its much more affordable to buy. I have definately missed out on the 'life experience' of going travelling after college I suppose, but instead I opted to stay in Ireland and I got working as the recession hit and developed the savings ethic towards purchasing my own house and avoid taking out a big mortgage which in the economic downturn caused so much distress to people paying off mortgages on properties that were in negative equity. But because of my saving hard ethic it has really set me up well in that I will have the property paid off in the near future..

Its just something worth keeping in mind for a young person starting out their working life that having a good savings ethic will very much stand to you when you decide to buy a place of your own

Brego888

Being good at saving is good for buying a house. Mind blown.

Pawwed Rig

It is something that is not often considered where younger people are concerned. Travelling for a year is astronomically expensive when you aggregate the money spent and lost earnings. It will easily set you back 5 years savings wise especially if debt has funded the trip.

HONKEY TONK

divillybit wrote: »

http://www.dailymail.co.uk/news/article-4504456/Property-tycoon-says-generation-needs-start-saving.html

An interesting article about an Australian property developer and his advice to young people aspiring to buy a house which was featured on The Last Word on Today FM earlier on.

It just resonated with me as I saved hard for the last few years and meant I was in a really good position as a young first time buyer to buy a good house for myself - albeit at the bottom of the market, and in the midlands where its much more affordable to buy. I have definately missed out on the 'life experience' of going travelling after college I suppose, but instead I opted to stay in Ireland and I got working as the recession hit and developed the savings ethic towards purchasing my own house and avoid taking out a big mortgage which in the economic downturn caused so much distress to people paying off mortgages on properties that were in negative equity. But because of my saving hard ethic it has really set me up well in that I will have the property paid off in the near future..

Its just something worth keeping in mind for a young person starting out their working life that having a good savings ethic will very much stand to you when you decide to buy a place of your own

I don't think that's good advice. Young people should experience life and enjoy it while they are fit and healthy.

Anything could happen tomorrow

Life is too short not to enjoy it while you can

worded

I considered this idea but got quickly bored

I opted for a hedonistic life style fuelled by alcohol and wimmins

What a blast !

Blacktie.

Pawwed Rig wrote:

It is something that is not often considered where younger people are concerned. Travelling for a year is astronomically expensive when you aggregate the money spent and lost earnings. It will easily set you back 5 years savings wise especially if debt has funded the trip.

Ye I'm ok with being behind five years with the experiences I had.

Yourself isit

A better idea.

Cheaper housing. More of it.

notharrypotter

Pawwed Rig wrote: »

It is something that is not often considered where younger people are concerned. Travelling for a year is astronomically expensive when you aggregate the money spent and lost earnings. It will easily set you back 5 years savings wise especially if debt has funded the trip.

Opportunity Cost.

wordofwarning

HONKEY TONK wrote: »

I don't think that's good advice. Young people should experience life and enjoy it while they are fit and healthy.

Anything could happen tomorrow

Life is too short not to enjoy it while you can

I think is very much a hierarchy of needs. I would rather have an apartment funded with savings at 26/27 than a mind numbing job of picking fruit in Australia or other ****ty jobs revolved around drinking in an Irish bar which is the dream for some.

Saving is about having a higher standard of living tomorrow. This notion of life today, as there might not be tomorrow is one of the reason why 35/40 people are moaning having no pension, savings for a house etc.

Yes anything can happen tomorrow. But if you look at the fact you need money for retirement, purchasing a house etc. Why make decisions on something you can't quantify ie something tomorrow?

duffman13

Pawwed Rig wrote: »

It is something that is not often considered where younger people are concerned. Travelling for a year is astronomically expensive when you aggregate the money spent and lost earnings. It will easily set you back 5 years savings wise especially if debt has funded the trip.

It really depends on the individual, I saved for two years to go travelling and came back with more money than I left with which put me in a good position. I was away for two and a half years and saved my ass off in Australia for 6 months, while working and travelling around there. Did some more travelling and picked up some more work on the way.

The other side of it would be that if I came back with no money a few grand in debt I still don't think I'd have any regrets.

The guy in the article owns a property empire which he started not from savings but an inheritance. Fair play to him for being hugely successful but he didn't start with zero. Also his advice is trying to basically fuel an already heated real estate market in Australia. Buy a property and get on the ladder is very reminiscent of 10 years ago in Ireland.

C Montgomery Gurns II

A young couple these days in Dublin on a combined 50K can buy a house worth 195K (of which there are plenty, in decent areas), assuming they pass the 2K stress test or whatever, and have saved up 17K, which is not hard if you live VERY frugally for a year. They can go as low as140K for a 3 bed if they know/ are prepared to risk some of the capital's less salubrious estates.

190K house for a mortgage of circa 170K. Mortgage of somewhere over 6K per year, very tops 600 euro per month- to rent the property would cost, at least, 1400 per month.

Ten years ago couples in a similar financial position were being sold the same property for 350K and 1200 per month. Main difference was they needed fook all deposit to get going with.

It baffles me how the media and the public somehow think first time buyers are worse off now than in 2007 or so.

wordofwarning

wordofwarning wrote: »

I think is very much a hierarchy of needs. I would rather have an apartment funded with savings at 26/27 than a mind numbing job of picking fruit in Australia or other ****ty jobs revolved around drinking in an Irish bar which is the dream for some.

Saving is about having a higher standard of living tomorrow. This notion of life today, as there might not be tomorrow is one of the reason why 35/40 people are moaning having no pension, savings for a house etc.

Yes anything can happen tomorrow. But if you look at the fact you need money for retirement, purchasing a house etc. Why make decisions on something you can't quantify ie something tomorrow?

But people can experience the whole world without having to pick fruit in the outback or work in a Aussie bar. Or drink in an Irish Pub for that matter!
I actually have a good pensionable job, I'm in my 40s, have plenty of savings & Tbh I couldn't care less about the pension. I don't care now about money I may have in 25 years time. I'll just move somewhere cheap to live. Hopefully on a beach somewhere sunny & hot!
Life experience is worth so much more than having a 3 bed semi somewhere in the Dublin suburbs.

C Montgomery Gurns II

C Montgomery Gurns II wrote: »

A young couple these days in Dublin on a combined 50K can buy a house worth 195K (of which there are plenty, in decent areas).

Can we have links to these houses less than 195k in decent areas please?

Fol20

wordofwarning wrote: »

I think is very much a hierarchy of needs. I would rather have an apartment funded with savings at 26/27 than a mind numbing job of picking fruit in Australia or other ****ty jobs revolved around drinking in an Irish bar which is the dream for some.

Saving is about having a higher standard of living tomorrow. This notion of life today, as there might not be tomorrow is one of the reason why 35/40 people are moaning having no pension, savings for a house etc.

Yes anything can happen tomorrow. But if you look at the fact you need money for retirement, purchasing a house etc. Why make decisions on something you can't quantify ie something tomorrow?

I see what your saying but I have to say I completely disagree with what your saying. Life is what you make of it and when your young. Travelling is a brilliant eye opener and experience I will never forget. I went travelling for a year and a half and although the opportunity cost provided me with a lower salary on returning and costed me even more in a missed investment. I have no regrets as the memories And experiences I brought back are priceless. At the end of the day a nice house,nice car etc are all materials and are tools there so that you can enjoy your life. Don't get me wrong I dream of having a nice large house for my family in the future and I'm a little different in that I have some assets already but I still only view all materialist items as tools for me to either A( make me feel more self confident about my self worth) or B so that I can enjoy my life. It's a means to an end as when you pass away you will leave earth the way you entered it and all of the niceties in life will be much less important.

You are partly right where people still need to be pragmatic in their approach to life and plan ahead also but at the end of the day. Life is there to be lived in the short span of time you have to enjoy it

elperello

bubblypop wrote: »

Can we have links to these houses less than 195k in decent areas please?

I just did a quick search on Daft.
There are currently 74 houses for sale in Dublin between 175k and 200k.
Seems to me like a small number for a city the size of Dublin.

I'm not in the market but only a handful would appeal to me.

elperello

elperello wrote: »

I just did a quick search on Daft.
There are currently 74 houses for sale in Dublin between 175k and 200k.
Seems to me like a small number for a city the size of Dublin.

I'm not in the market but only a handful would appeal to me.

Well you said there are 'plenty' under 175 in decent areas in Dublin.
So 74 houses in the whole of Dublin is a very small number, I'm not sure how many you imagine are in actual decent areas?

Sorry, it wasn't you, it was a different poster. I'm interested in his replies!

divillybit

In my case I've no regrets that I didnt go travelling and passed on going to all the festivals and gigs and made do with a modest car. People in their 20's who are working away dont always appreciate that those are the years you will have the most disposable income as you'll not be paying off a mortgage or most likely not have childcare costs so its the few short years that they can save alot and it will set them up well for the future...or it has done for me anyways. I just preferred to save and for me it has worked out in that I'll get my main asset paid off in my early 30's. Fair play to people that take out mortgages for 25 or 30 years. I just wouldnt be comfortable with that.

NinetyTwoTeam

This guy got 34k from his parents to buy his first property.

I'm sick and effin tired of pr#cks like this saying that smartphones and takeaway coffees are stopping my generation from being able to buy houses. Every single one of my peers who bought a house got at least some money from their parents to do it, and/or were allowed to live at home for long periods of their adult life so they could save without paying rent.

The class you're born into is the number one deciding factor of where you'll end up. A quick Google will bring up studies to prove this.

The cost of living has skyrocketed in relation to wages. Many people work hard and are still unable to save because renting is so expensive.

doc22

divillybit wrote: »

In my case I've no regrets that I didnt go travelling and passed on going to all the festivals and gigs and made do with a modest car. People in their 20's who are working away dont always appreciate that those are the years you will have the most disposable income as you'll not be paying off a mortgage or most likely not have childcare costs so its the few short years that they can save alot and it will set them up well for the future...or it has done for me anyways. I just preferred to save and for me it has worked out in that I'll get my main asset paid off in my early 30's. Fair play to people that take out mortgages for 25 or 30 years. I just wouldnt be comfortable with that.

:rolleyes:

What Bull on so many levels? You seem to want to justify your life choices which is fine.

In your 20's is the time for traveling, and going festival is a hundred euros not a mortgage.

People in 20's have most disposable income? With rent and low starting salarys I don't know how.

And modest car? most young people use public transport and can't even afford a car.

NinetyTwoTeam

The 'tycoon' has already been caught out that he didn't buy his first property with money saved by skimping on breakfast, have a look on twitter. He got handed the money from relatives.

It's like Donald Trump saying he built a successful business empire all by himself from nothing. A lot of gullible people believe it, but it isn't true and most of the pictures these guys paint about their backgrounds are built on BS.

These are delusional people who were born on 3rd base and go through life thinking they hit a triple. (Sorry for the baseball analogy)

If you want to save and can do it, great. But idolising these phonies is fooling yourself twice: they didn't get rich by saving the odd fiver, and you probably won't either.

It's in the interests of the rich to keep the rest of us thinking that being a hard little worker and saver is the way into their club, when really it just ensures they keep employees chained to their jobs, chasing that property carrot. A property tycoon who wants people to have more money for property? Imagine that!

If all the young people are spending so much money on avacodo toast instead of houses why doesn't he sell his property and invest in avacodo farms?

The_Conductor

If you listen to some of the interviews on ABC and 7 from Australia that he has given- he is lashing out at 'youngsters who are more interested in buying $20 avocado toast and 4 coffees in hipster cafés', and implying that their hedonism is a love of avocado toast and should be discouraged at all costs. (I have no idea what the hell the story is with avocado toast- though my Mexican colleagues assure me its an American import that features, along with drinking in the Cinco de Mayo 'celebrations').

The guy is full of BS- and has something against youngsters having coffee and some sort of posh toast- and is implying that if they didn't eat/drink- that they'd have deposits for their first homes within 24 months.

Honestly- its remarkable that he hasn't been called on it before now.

Google his Australian interviews- they're actually quite funny.

pilly

There's plenty of things I regret from my youth but not saving is definitely not one of them.

We spend enough of our lives chained to a desk for most of the week.

Youth is definitely something that's supposed to be misspent.

Wanderer78

pilly wrote:

There's plenty of things I regret from my youth but not saving is definitely not one of them.

pilly wrote:

We spend enough of our lives chained to a desk for most of the week.

pilly wrote:

Youth is definitely something that's supposed to be misspent.

Agreed, life's for living. They wanted us to be wage slaves, check, then they wanted us to be debt slaves, also check! Live life folks, as its all a bit of a scam

davo10

I listened to the piece about this on the Matt Cooper show yesterday evening. I agree with most that your youth is for living and the last thing on my mind when finishing Uni was to start saving for a house.

But in fairness, he wasnt quite saying that everyone should start saving immediately and avoid expensive avocado toast and barista coffee, what he said was that he couldn't understand people giving out about not being able to afford a home while at the same time spending a lot of their disposable income on expensive luxuries. Effectively he was saying that if you want something, you have to make sacrifices to save. On the other hand, if you don't want to buy, party on.

I'm sure the podcast is up on the today fm website.

Pawwed Rig

Wanderer78 wrote: »

Agreed, life's for living. They wanted us to be wage slaves, check, then they wanted us to be debt slaves, also check! Live life folks, as its all a bit of a scam

Different people want different things from life. Neither are right or wrong.

Wanderer78

davo10 wrote:

But in fairness, he wasnt quite saying that everyone should start saving immediately and avoid expensive avocado toast and barista coffee, what he said was that he couldn't understand people giving out about not being able to afford a home while at the same time spending a lot of their disposable income on expensive luxuries. Effectively he was saying that if you want something, you have to make sacrifices to save. On the other hand, if you don't want to buy, party on.

The only problem is, our economic systems are based on flaky flawed theories and models that are truly designed to indebt us as much as possible, as soon as possible. Ignore all this nonsense, live life and enjoy it. Living by this kind of thinking makes for very unhappy people

Pawwed Rig

Wanderer78 wrote: »

The only problem is, our economic systems are based on flaky flawed theories and models that are truly designed to indebt us as much as possible, as soon as possible. Ignore all this nonsense, live life and enjoy it. Living by this kind of thinking makes for very unhappy people

While providing luxury the likes of which our anscestors could only have dreamt of.

Hector Savage

So young people OP should just sell their souls to the bank, to get a 350k piece of **** house in Athlone to commute to Dublin every day for work - great advice !!!

davo10

Wanderer78 wrote: »

The only problem is, our economic systems are based on flaky flawed theories and models that are truly designed to indebt us as much as possible, as soon as possible. Ignore all this nonsense, live life and enjoy it. Living by this kind of thinking makes for very unhappy people

That's your perspective, but owning a property for most inevitably means borrowing from a lender, so if that is indebtedness by design, it is your decision to accept that design if you want to.

Rents now seem to be higher than mortgage repayments would be on the same property so owning may actually be cheaper than renting. Also, most parents of new borns are in the 20-35 age bracket so owning a house when you have a family is certainly advantageous particularly when it comes to putting down roots and staying in the same area for family/schools etc.

It all comes down to what you want from life and when you want it. I think when you get older you wish you enjoyed your youth more, but I think when you are young and carefree you don't always see the challenges ahead.

davo10

Hector Savage wrote: »

So young people OP should just sell their souls to the bank, to get a 350k piece of **** house in Athlone to commute to Dublin every day for work - great advice !!!

It's not advice, it's an opinion which applies only to those who want to buy a house. As an earlier poster said, there is nothing groundbreaking about saying that if you want to buy a house then you have to give up some luxuries to save money. If you don't want to live in Athlone, don't, but the opinion in the peice was that if you don't save, don't give out that you can't afford a house in Dublin.

Wanderer78

Pawwed Rig wrote:

While providing luxury the likes of which our anscestors could only have dreamt of.

It's only 'stuff' I'm afraid, when your economic systems cannot provide adequately the most important necessities for all, and causes serious, possible irreversible environmental damage which has the potential to lead to catastrophic problems for future generations, you gotta ask, are they actually working? I think not!

Wanderer78

davo10 wrote:

It all comes down to what you want from life and when you want it. I think when you get older you wish you enjoyed your youth more, but I think when you are young and carefree you don't always see the challenges ahead.

Oh I completely agree, it's making me very angry that many people are unable to even get on the property ladder, and actually may never be able to. It's best for society as a whole if people could but prices are spiralling out of control, we seriously need to address this immediately

The_Conductor

Heres a link to the interview from the Guardian- which also has the 60 minutes interview streamed on it:

https://www.theguardian.com/lifeandstyle/2017/may/15/australian-millionaire-millennials-avocado-toast-house

The_Conductor

Wanderer78 wrote: »

Oh I completely agree, it's making me very angry that many people are unable to even get on the property ladder, and actually may never be able to. It's best for society as a whole if people could but prices are spiralling out of control, we seriously need to address this immediately

Sigh- I *hate* the expression 'Property Ladder'.
In an Irish context- we are almost solely building 'Starter Homes' that are geared First Time Buyers.
The term 'Property Ladder' implies you buy at rung no. 1 on the ladder- and climb the ladder as your circumstances change.
This is nigh impossible- if there are not units being built at the various rungs on the 'ladder'- which is not happening- and this is how, according to the CSO, we have over 600,000 people, living in owner occupied property, which is wholly or partially unsuited to their needs, as they didn't see themselves living in it long term- however, that's where they've found themselves.

Its quite amazing that the property hype from the noughties is back with such a vengeance- honestly, I didn't expect to see the fervour being displayed by many people- for many a long year yet.

Wanderer78

The_Conductor wrote:

Sigh- I *hate* the expression 'Property Ladder'. In an Irish context- we are almost solely building 'Starter Homes' that are geared First Time Buyers. The term 'Property Ladder' implies you buy at rung no. 1 on the ladder- and climb the ladder as your circumstances change. This is nigh impossible- if there are not units being built at the various rungs on the 'ladder'- which is not happening- and this is how, according to the CSO, we have over 600,000 people, living in owner occupied property, which is wholly or partially unsuited to their needs, as they didn't see themselves living in it long term- however, that's where they've found themselves.

Great point, I must stop using it myself, we truly need to stop thinking of housing in this way, it's slowly destroying our society

CJhaughey

In a functional society which actually looks after its citizens, housing is a basic need and the state through its various branches should provide at least a basic level of housing for people that don't want or can't buy a house.

The notion that the whole property market should be monetized has lead to the current situation where if you don't have a house then you are at a severe disadvantage and at risk of becoming homeless.

The time to build affordable houses should have been in the last 5 years, yes the state was broke but starting a building program for state houses could have been done and land was at rock bottom prices.
Not to mention that it may also have kept tradespeople in employment that have had to emigrate.

NAMA should have used its capital to fund this.
Unfortunately there are a huge number of vested interests in the property market and in Government who do not want to see affordable housing as it would affect their business interests.

neonsofa

bubblypop wrote: »

Well you said there are 'plenty' under 175 in decent areas in Dublin.
So 74 houses in the whole of Dublin is a very small number, I'm not sure how many you imagine are in actual decent areas?

Sorry, it wasn't you, it was a different poster. I'm interested in his replies!

Also, by the time you get to bidding etc., the price is nowhere near that figure advertised, and in many cases you're outbid by the county council.

The_Conductor

CJhaughey wrote: »

Unfortunately there are a huge number of vested interests in the property market and in Government who do not want to see affordable housing as it would affect their business interests.

Just wondering on your thoughts on this.
Any landlords I know would throw a party if they heard that significant social housing was going to be built in their area- and they'd also be far more inclined to upgrade their properties than they are at present. What, in your opinion, is the agenda behind the non-provision of social housing?

pilly

divillybit wrote: »

In my case I've no regrets that I didnt go travelling and passed on going to all the festivals and gigs and made do with a modest car. People in their 20's who are working away dont always appreciate that those are the years you will have the most disposable income as you'll not be paying off a mortgage or most likely not have childcare costs so its the few short years that they can save alot and it will set them up well for the future...or it has done for me anyways. I just preferred to save and for me it has worked out in that I'll get my main asset paid off in my early 30's. Fair play to people that take out mortgages for 25 or 30 years. I just wouldnt be comfortable with that.

Look, you're obviously a very conservative person and fair play to you, that's your personality and you shouldn't change it but honestly advising others to save hard so they can buy in the midlands is little bit OTT.

My last piece of advice to anyone who's young would be to save hard and buy a place where they're from. I currently work with people who have lived and worked in the same village all their lives and I have to say they are mind crushingly boring because they've no outside view of the world, it honestly is like they live in a bubble. They are actually shocked when they see a black person (I'm not kidding here).

I've encouraged all of my children to travel as much as they can for as long as they can. It's so character building in so many ways.

Michael D Not Higgins

The_Conductor wrote: »

Sigh- I *hate* the expression 'Property Ladder'.
In an Irish context- we are almost solely building 'Starter Homes' that are geared First Time Buyers.
The term 'Property Ladder' implies you buy at rung no. 1 on the ladder- and climb the ladder as your circumstances change.
This is nigh impossible- if there are not units being built at the various rungs on the 'ladder'- which is not happening- and this is how, according to the CSO, we have over 600,000 people, living in owner occupied property, which is wholly or partially unsuited to their needs, as they didn't see themselves living in it long term- however, that's where they've found themselves.

Its quite amazing that the property hype from the noughties is back with such a vengeance- honestly, I didn't expect to see the fervour being displayed by many people- for many a long year yet.

It's driven by spiralling rent costs and low interest rates. The old "rent is dead money" phrase is out in force again.

Fian

My wife and I bought a house and moved in together when we were young - in fact we moved in with each other in rented accomodation while we were in college. We didn't ever go travelling the world in our youth, which we both regret tbh.

On the other hand we ended up buying a house in 1996, which would probably be out of our reach now even with our significantly higher income. The house would sell for 5 times what we paid for it in 1996, although that is comparing ?price with €price. Kids started coming along a few years later so possibility of heading off to travel just disappeared. 1996 was just before the boom which lasted until 2007 so we were extremely fortunate to have bought before the market started climbing.

Even so, though undoubtedly we are glad we did stay in Ireland and buy when we did, we do both wish we had spent a year travelling the world together. But I guess you can't have your cake and eat it, all our kids are now in their teens so in another decade or so maybe we can go and have that adventure together, albeit we will be in our early 50s rather than early 20s.

James Bond Junior

Fian wrote: »

My wife and I bought a house and moved in together when we were young - in fact we moved in with each other in rented accomodation while we were in college. We didn't ever go travelling the world in our youth, which we both regret tbh.

On the other hand we ended up buying a house in 1996, which would probably be out of our reach now even with our significantly higher income. The house would sell for 5 times what we paid for it in 1996, although that is comparing ?price with €price. Kids started coming along a few years later so possibility of heading off to travel just disappeared. 1996 was just before the boom which lasted until 2007 so we were extremely fortunate to have bought before the market started climbing.

Even so, though undoubtedly we are glad we did stay in Ireland and buy when we did, we do both wish we had spent a year travelling the world together. But I guess you can't have your cake and eat it, all our kids are now in their teens so in another decade or so maybe we can go and have that adventure together, albeit we will be in our early 50s rather than early 20s.

I did the save hard and buy the house thing at 26. I'm 29 now and it's now I'm doing the travelling, went on one holiday so far this year and I've 4 more coming up. It was worth it in my opinion as if my partner and I were renting our own place we wouldn't be able to afford to travel and enjoy life like we are now. It depends on your priorities I suppose.

Wanderer78

James Bond Junior wrote: »

I did the save hard and buy the house thing at 26. I'm 29 now and it's now I'm doing the travelling, went on one holiday so far this year and I've 4 more coming up. It was worth it in my opinion as if my partner and I were renting our own place we wouldn't be able to afford to travel and enjoy life like we are now. It depends on your priorities I suppose.

it sometimes depends on your date of birth unfortunately

Mickiemcfist

Wanderer78 wrote: »

James Bond Junior wrote: »

I did the save hard and buy the house thing at 26. I'm 29 now  and it's now I'm doing the travelling, went on one holiday so far this year and I've 4 more coming up. It was worth it in my opinion as if my partner and I were renting our own place we wouldn't be able to afford to travel and enjoy life like we are now. It depends on your priorities I suppose.

it sometimes depends on your date of birth unfortunately

Spot on, I'm 27 now & am on a decent salary and am right now in the position to buy a decent house in South Dublin......at 2012-2014 prices. 
To be honest I had neither the money to go travelling or the money to save when I was in my early 20's but just studied part time & worked to afford that. Ultimately I'll be happy if I can get on the property ladder before I'm 32ish, If I want to go travelling then, I can save for that after & rent out the house while I'm gone. Gotta say though, house would be my priority, although my parents could never afford to buy so that probably influenced me.

Lumen

Mickiemcfist wrote: »

If I want to go travelling then, I can save for that after & rent out the house while I'm gone

And then never get it back. :pac:

karenalot

I saved €250 a month for 5 years from the age of 18-23, which would be nothing to a lot of workers these days but was hard for me as I did it with jobs through college and backpacking. My mother drilled it into me to always save something no matter how small.

Bought my first house at 23 with the 15k deposit my savings gave me and continued on travelling as renting out mine and the spare rooms covered a good chunk of the mortgage.

While I think the article mentioned is OTT I can see his point somewhat. I was the only one of my friends to save from a young age. Most of them are now just getting into buying now 10 years later and are left bewildered when they realise they cant just save a deposit in 12 months and go buy the house they want.

neonsofa

karenalot wrote: »

I saved €250 a month for 5 years from the age of 18-23, which would be nothing to a lot of workers these days but was hard for me as I did it with jobs through college and backpacking. My mother drilled it into me to always save something no matter how small.

Bought my first house at 23 with the 15k deposit my savings gave me and continued on travelling as renting out mine and the spare rooms covered a good chunk of the mortgage.

While I think the article mentioned is OTT I can see his point somewhat. I was the only one of my friends to save from a young age. Most of them are now just getting into buying now 10 years later and are left bewildered when they realise they cant just save a deposit in 12 months and go buy the house they want.

The deposit isn't even the issue for most people I know, they have that ready to go and have done for years now, building on it with each year that passes, it's actually getting approved for a mortgage that is the issue for most people I know. And those that are unfortunate enough not to have a partner can just forget about ever owning unless they can save up a much higher deposit than the usual 10%, in order to offset the difference between what they can borrow and what they need to even buy the most modest of properties.

hytrogen

The_Conductor wrote:

Sigh- I *hate* the expression 'Property Ladder'. In an Irish context- we are almost solely building 'Starter Homes' that are geared First Time Buyers. The term 'Property Ladder' implies you buy at rung no. 1 on the ladder- and climb the ladder as your circumstances change. This is nigh impossible- if there are not units being built at the various rungs on the 'ladder'- which is not happening- and this is how, according to the CSO, we have over 600,000 people, living in owner occupied property, which is wholly or partially unsuited to their needs, as they didn't see themselves living in it long term- however, that's where they've found themselves.

Michael D Not Higgins wrote:

It's driven by spiralling rent costs and low interest rates. The old "rent is dead money" phrase is out in force again.

It's also driven by settling people, people becoming too content in their four walls and roof resigning to the "well this is it I suppose for the next 40odd years" introvert​ mentality after commiting like a pilgrim so long to the sacrement of "saving for the future" instead of feeling the hunger to make money on an investment.
Together with the media fixation on first time buyers stats brought out by those daft crowd it would put anyone into their armchair for life!
A house is but a house until you make it your home

pilly

neonsofa wrote:

The deposit isn't even the issue for most people I know, they have that ready to go and have done for years now, building on it with each year that passes, it's actually getting approved for a mortgage that is the issue for most people I know. And those that are unfortunate enough not to have a partner can just forget about ever owning unless they can save up a much higher deposit than the usual 10%, in order to offset the difference between what they can borrow and what they need to even buy the most modest of properties.

That's the people I feel sorry for the most. There's so little hope for young single professionals now.

professore

I would advise anyone to travel, but that doesn't necessarily mean taking a loan and a year out to "find yourself".

Worked my way through college and left Ireland and lived in a European country for 5 years, working at a professional level. My job had a fair bit of European travel so got to see lots of Europe, even was in Poland before they got here

Got a Morrison green card too but due to circumstances (girlfriend) didn't take it up.

Came back in 98, rented for a year and bought a house in 99 with my wife with a 92% mortgage, it's worth at least twice what we paid for it and will have it paid off in 2 years. Already had a kid by that stage, so with the crappy tenancies here renting is really bad for families.

I too find people who never went anywhere crushingly boring. They only see things one way.

Could I have lived at home, saved money, and bought a cheap house? Sure. Would I have been happy? No way.
[EDIT : Not dissing the OP, to each their own. He would probably find me a pain in the ass]

hytrogen

pilly wrote:

That's the people I feel sorry for the most. There's so little hope for young single professionals now.

Well society is designed for you to co-habit, and sure ask Rapunzel, it gets awefully lonely up in that bell-tower in Grand canal dock