single person on average wage get a mortgage?

gercoral

is it possible for a 29 yr old single person with a modest job currently living with parents and about 5,000euro to their name to get a mortgage or some sort of loan to get a fooking house or property for themselves?

becoming increasingly frustrated at lack of rental properties within a 20mile radius of my job. at the stage now where i would prefer to build a new place anyway and not rent.

ted1

You could get one in Tallaght,blanch , Ballyfermont etc

You're going to need a lot more than 5k saved I'm afraid, you'll need 10% of the cost of the property as a deposit + 1% stamp duty + legal fees.

You then can borrow 3.5 times your annual gross salary. So the house value would be 3.5 times your salary + your deposit.

It's hard to do if you're single and applying by yourself. If those figures add up then the best advice is to start saving as much as you can every month and do not touch it for anything other than a life or death emergency. You'll need to be saving enough each month to cover the mortgage payments.

Cash_Q

ted1 wrote:

You could get one in Tallaght,blanch , Ballyfermont etc

Not with 5,000 as a deposit, and not with 'some sort of loan' as OP puts it


The only type of loan you can use to finance a property is a mortgage

The usual rule is 3.5x your salary. You have not disclosed this but let's say your modest salary is 30,000 - bank could lend you 105,000. There are sometimes exceptions to this rule but usually reserved for those on high salaries

5,000 savings will not suffice, as you must have a minimum of 10% of the purchase price for the deposit, plus a few thousand to cover solicitors fees and stamp duty

Keep saving regularly is the only advice I can offer. I know it's frustrating as the house prices keep rising but all you can control is your own saving and spending.

lawred2

gercoral wrote: »

is it possible for a 29 yr old single person with a modest job currently living with parents and about 5,000euro to their name to get a mortgage or some sort of loan to get a fooking house or property for themselves?

becoming increasingly frustrated at lack of rental properties within a 20mile radius of my job. at the stage now where i would prefer to build a new place anyway and not rent.

29 years old, living with your folks and only €5k savings.

You'd want to have saved a lot more than that without rental payments for a bank to look at you.

You're not really showing an ability to repay.

bush

Start saving a grand a month and you could do it by the time your 35. Its hard but can be done.

pwurple

Three components really to figure it out. Your salary, your savings and your location. 

The average wage in Ireland according to the CSO is around 45k. Based on that, the rules for primary residence are 3.5 times salary, plus deposit. So, with the average wage, you should be able to get a mortgage of up to 150k for a property, and you need to add 20% deposit to it. So, deposit of 39k. Property value of 185k would be your max. You'd need to save another while to get to the 39k.. if you've got 5k now. Couple of years. 

Depending on where you live and work in the country, should be something available in that range.

Ursus Horribilis

You might need to change jobs or upskill I'm afraid. €5k is a drop in the ocean when it comes to buying or building. I bought on my own and €5k of my savings was swallowed up by solicitor's fees, the survey, stamp duty etc. I changed career in my late twenties because I was in a dead end, low paying career path. If l hadn't, I doubt I'd be where I am now.

Mrs OBumble

What's your actual wage and what is your local council housing list threshold?

You may not be realistically able to ever own a house.

Mrs OBumble

Mrs OBumble wrote: »

What's your actual wage and what is your local council housing list threshold?

You may not be realistically able to ever own a house.

Unfortunately this is the reality for many I think. I probably couldn't afford one on my own (in an area that suits for family/friends/work) but my wife and I can together.

utmbuilder

3 bed tallaght 195k

http://www.broe.ie/residential/brochure/47-rossfield-avenue-tallaght-dublin-24/4255172

Ballyfermot might be a safer bet , unless you know the no go parts of tallaght

Mint Sauce

Probably not. Most of that 5k, will only cover fees, and the booking deposit.

Do you have an arrangment with your parents, for housekeeping, ie, regular payments to them, pay any utilities, or regular bills? Banks like to see you can budget, and make regular payments for bills, rent, etc, to see if you can manage the regular mortgage repayments. Thats on top of all their other checks on your banking and fininical history.

drinkingwater

utmbuilder wrote: »

3 bed tallaght 195k

http://www.broe.ie/residential/brochure/47-rossfield-avenue-tallaght-dublin-24/4255172

Ballyfermot might be a safer bet , unless you know the no go parts of tallaght

To buy that you'd need 19.5k deposit (+5k for stamp duty, solicitor fees, etc)+ 50k salary

Pelvis

ted1 wrote: »

You could get one in Tallaght,blanch , Ballyfermont etc

OP has 5k, and hasn't mentioned what kind of salary he's on, so who are you replying to exactly?

gercoral

gercoral wrote: »

is it possible for a 29 yr old single person with a modest job currently living with parents and about 5,000euro to their name to get a mortgage or some sort of loan to get a fooking house or property for themselves?

becoming increasingly frustrated at lack of rental properties within a 20mile radius of my job. at the stage now where i would prefer to build a new place anyway and not rent.

You don't really have much right to be frustrated if you've only €5k saved.
It's widely known and accepted that 10% deposit is the absolute minimum requirement.

lawred2

Augeo wrote: »

You don't really have much right to be frustrated if you've only €5k saved.
It's widely known and accepted that 10% deposit is the absolute minimum requirement.

to be fair - he said he was frustrated at the lack of rental properties

professore

With all due respect, if I was working full time, living at home, no dependents and on €30k I'd save 5k easily in 6 months.

What are you spending your money on???? Car payments or going out 5 nights a week or something? Your mortgage will be probably something like €500 / week - try saving that for a start - €5k in 10 weeks.

lawred2

professore wrote: »

With all due respect, if I was working full time, living at home, no dependents and on €30k I'd save 5k easily in 6 months.

What are you spending your money on???? Car payments or going out 5 nights a week or something? Your mortgage will be probably something like €500 / week - try saving that for a start - €5k in 10 weeks.

For a lad on a modest income - he's not going to be repaying a mortgage of 2k a month

That's suburban family home territory..

I would say aiming to put away €300 to €350 a week would be a more reasonable target.

Where do you live OP as that makes a massive difference to what you can afford?

Cina

Probably not, Op. You really need to save, hard.

I got my apartment at 29, but I have a good wage due to being in IT. Had 30% of the cost of it saved over the last 9 years of employment and was able to get a 4.0x mortgage due to being employed for so long, too. Even then I still had to rely on the help to buy scheme (16k off a new build) to afford it. Saying that mine's in Castleknock and there are cheaper areas.

Basically, get saving. I would also say if at 29 you only have 5k saved, living at home, then you are in no financial position to get a property that could cost you up to 1,000e in repayments every month, to be blunt.

Cuddlesworth

gercoral wrote: »

is it possible for a 29 yr old single person with a modest job currently living with parents and about 5,000euro to their name to get a mortgage or some sort of loan to get a fooking house or property for themselves?

becoming increasingly frustrated at lack of rental properties within a 20mile radius of my job. at the stage now where i would prefer to build a new place anyway and not rent.

Other people have said this but you spend way too much to "only" have 5k saved. If your going to live at home, you should be saving hard at your age to be able to leave.

Minimum wage at a full time 37.5 hour week is 1500 after tax. Even after college, you should have at least 7 years of working under your belt but all you have to show for it is roughly 60 quid a month, or 15 quid a week?

But at the end of the day, a near 30 year old deli worker in Wexford is not a competitive or skilled job and will most likely never offer the wages required to live comfortably on a single wage. You need to either get more money, find a partner or sacrifice a lot for a extended period of time.

JimmyMW

gercoral wrote: »

is it possible for a 29 yr old single person with a modest job currently living with parents and about 5,000euro to their name to get a mortgage or some sort of loan to get a fooking house or property for themselves?

becoming increasingly frustrated at lack of rental properties within a 20mile radius of my job. at the stage now where i would prefer to build a new place anyway and not rent.

I think we need to hear from the OP here, is living with the parents only a recent thing and has been renting all along maybe? That might explain the low level saving of €5k

GingerLily

OP, are you not aware that you need at least a 10% deposit plus fees?

Nobody knows what the op circumstances are like or where they live. There are places in Ireland where you can buy a property for under a 100k.

They need some ideas.

4068ac1elhodqr

These glamping pod type things seem to be on the increase. Every other week someone designs one as a solution to the global housing crisis.
This weeks model is made in Chesire, costs 20k stg.

http://www.dailymail.co.uk/news/article-6006257/Former-Rolls-Royce-engineer-creates-21-000-pods-installed-gardens.html
Could always buy a few, join them together, then open up a glamping biz when no longer needed in future years.

Caranica

Virginia CoolS Grout wrote: »

These glamping pod type things seem to be on the increase. Every other week someone designs one as a solution to the global housing crisis.
This weeks model is made in Chesire, costs 20k stg.

http://www.dailymail.co.uk/news/article-6006257/Former-Rolls-Royce-engineer-creates-21-000-pods-installed-gardens.html
Could always buy a few, join them together, then open up a glamping biz when no longer needed in future years.

Good luck getting planning permission. There's a thread on that every other week too

4068ac1elhodqr

Caranica wrote: »

Good luck getting planning permission. There's a thread on that every other week too

True enough, the pod is called a conker, so just say it feel out of one of those there trees.

It's essentially a ball of sealed hex panels (heat-recovery system), so can be rolled off somewhere else (once you sellotape everything on to the walls).



If the door position could be moved, it would actually make a good bunker if can shovel out a 4x4m void in the ground for whenever Donald and Kim have another twitter spat.

CeilingFly

Build a garden room in your parents garden if the space is there and you get on well with neighbour.

Keep it under 40sq m.

Cost is about 30k

In Dublin, the council is turning a blind eye to this once its a direct family member and no complaints are had from neighbouring properties.

There's also a possibility that such structure will be permitted on a ten year licence. Such policy is currently being pushed by some councillors.

gercoral

thanks for the replies. i have 5k savings, i recently bought my car but could sell it again for about 8,5k. i work full time in admin and earn 20k per year. recently visited australia which cost the bones of 4k. i have 3 loans out which are currently coming out of my account.

upskilling is probably the way to go tbf. i know myself that this admin job is not in my future plans. i do have a degree but not in anything admin related. i am aware of the 10% deposit as i have friends currently applying for mortgages. if push came to shove, i would have 15k...that being selling everything i own.

also, i dont live near dublin and have no intentions! i used to live there before and its just not for me.

i lived away from home for about 5 years but had to return to look after my parents who, while not completely dependent on me, need help around the household. they need lifts to doctor/hospital appointments (local and in dublin), shopping must be done, gardening must be done, painting etc.
believe me, if i could move out, i would. but at the moment, its not possible unless i buy a campervan or something which will solve many issues. also, to answer another poster.. i socialise very little, i dont smoke or gamble. however, im probably a bit too generous with my money.

thanks for the replies, but as one poster commented, i am looking for ideas. apart from winning the lotto. i see ads popping up for those glamping pods as mentioned and timber houses etc. anyone know the cost of these or have them? buildling beside the folks is not an option

Pelvis

Before thinking of doing anything, you need to manage your money better. With a salary of 20k you have no business spending what was presumable 10k+ on a car, let alone 3 loans. No bank would look at you.

Also, start looking for another job. You're 29 with a degree earning minimum wage, know your worth. At the very least you should be asking for a pay rise.

CeilingFly

gercoral wrote: »

thanks for the replies. i have 5k savings, i recently bought my car but could sell it again for about 8,5k. i work full time in admin and earn 20k per year. recently visited australia which cost the bones of 4k. i have 3 loans out which are currently coming out of my account.

Zero chance of a mortgage for the near future.

Minimum required salary is 30k and that would be based on noi loans.

First thing is get rid of the loans - they are costing you about 10%-12% whilst your savings are earning 0.01%

Sharing initially and then meeting and partnering up with someone where a combined salary would be over 50k is really what you're realistically looking at.

But getting from 20k to 30k salary should be a priority and extra training or looking at other jobs that have potential is the direction you have to go in.

To give an example - regular full time staff in Aldi earn about €30k a year and plenty of opportunity to be supervisor (40k+) manager (60k+)

mugsymugsy

Not being harsh OP and I think it's great that you want to get on the property ladder but when you have bought a car and been on a big holiday and have three loans you want a house as well.

Some tough love but pay off the loans, stop the holidays, up skill in your job and save like mad for a year maybe even get a second job and then see what position you are in.

Peter Flynt

In February house prices in Dublin increased, on average, by €18,000

1.3 million out of 2.1 million workers earn less than €30,000 per annum.

It's government/Fine Gael policy:
1) Not to invest in housing
2) sell off existing NAMA stock to vulture funds.

Posters on here giving advice like "save a few bob" mean well, but it's complete nonsense.

Many will just have to do what millions of Irish have had to do for years, emigrate.

GingerLily

Peter Flynt wrote: »

In February house prices in Dublin increased, on average, by €18,000

1.3 million out of 2.1 million workers earn less than €30,000 per annum.

It's government/Fine Gael policy:
1) Not to invest in housing
2) sell off existing NAMA stock to vulture funds.

Posters on here giving advice like "save a few bob" mean well, but it's complete nonsense.

Many will just have to do what millions of Irish have had to do for years, emigrate.

The problem is the OP has loans and goes on 4k holidays and spends 8+k on a car - the average house price in Ireland isn't the reason the OP cannot afford to buy here. Moving is not going to fix thr fundamental issue here

Peter Flynt

GingerLily wrote: »

The problem is the OP has loans and goes on 4k holidays and spends 8+k on a car - the average house price in Ireland isn't the reason the OP cannot afford to buy here. Moving is not going to fix thr fundamental issue here

It is completely unrealistic for people to suggest that a house is affordable in Dublin on a salary of €30,000.

3.5 times this salary is €105,000. Deposit would be €10,500.

You wouldn't get a dog kennel for that in Dublin.

So if he's going on holiday and spending a very modest sum of money on a car (although they are expensive to run) then, quite frankly, good luck to him.

No point in sacrificing your life and saving for a mortgage he ain't gonna get on his own.

As ever the issue is with supply, corrupt do nothing politicians (a large chunk of whom are benefiting personally as they are landlords), a corrupt state that doesn't provide housing for the poor and sells off existing housing supply to foreign vultures who are ready to pick off what's left of the Irish.

Bubbaclaus

Peter Flynt wrote: »

It is completely unrealistic for people to suggest that a house is affordable in Dublin on a salary of €30,000.

3.5 times this salary is €105,000. Deposit would be €10,500.

You wouldn't get a dog kennel for that in Dublin.

So if he's going on holiday and spending a very modest sum of money on a car (although they are expensive to run) then, quite frankly, good luck to him.

No point in sacrificing your life and saving for a mortgage he ain't gonna get on his own.

As ever the issue is with supply, corrupt do nothing politicians (a large chunk of whom are benefiting personally as they are landlords), a corrupt state that doesn't provide housing for the poor and sells off existing housing supply to foreign vultures who are ready to pick off what's left of the Irish.

OP isn't in Dublin. Plus your losing the run of yourself on the political stuff. There is no quick fix to the housing crisis. It doesn't matter who is in government.

Peter Flynt

Bubbaclaus wrote: »

OP isn't in Dublin. Plus your losing the run of yourself on the political stuff. There is no quick fix to the housing crisis. It doesn't matter who is in government.

It does matter who is in government because one of the most basic requirements of any government is to build houses to match the needs of the population.

No houses, and people will choose to leave and work elsewhere.

It's already happening. Health service is short 1,800 nurses and 400 consultant posts.

FG are also incompetent and couldn't care less about the poor.

If you're going to come out with stuff like that comment then you should declare your allegiance.....As cant be bothered dealing with FG Leo Lickarses.

gercoral

GingerLily wrote: »

The problem is the OP has loans and goes on 4k holidays and spends 8+k on a car - the average house price in Ireland isn't the reason the OP cannot afford to buy here. Moving is not going to fix thr fundamental issue here

i think its a bit unfair. i spent about 4k to see my bother who i havent seen in 10 years and who was unwell. 1500 on flights alone and the rest on accomm and spending money because i cant live on fresh air. i wouldnt call it a holiday as such.

and living in rural ireland with no public transport within 9 miles, i needed an upgrade from my 19 year old car that nobody would insure me on. the loans (its actually 2, not 3) were something to tie me over, not major loans.

if im being honest, i think upskilling is a way for sure. obviously i'm not on the same wage as a lot of people, so its my own problem to fix.

worker bee

Pay off the 2 small loans.

Add to your savings - regularly rather than one lump sum or random amounts. Set up a direct debit if you need to.

Check out property prices locally wherever you are and keep the 3.5 times salary rule in mind. You'll have a good idea of what you need that way.

Work on that pay raise / new job / extra job.

Forget the glamping pods etc.

All boring but achievable.

Come back in 6 months with improved figures all round and you'll have a very good chance of getting mortage pre-approval.

Good luck.

Peter Flynt

Peter Flynt wrote: »

It does matter who is in government because one of the most basic requirements of any government is to build houses to match the needs of the population.

No houses, and people will choose to leave and work elsewhere.

It's already happening. Health service is short 1,800 nurses and 400 consultant posts.

FG are also incompetent and couldn't care less about the poor.

If you're going to come out with stuff like that comment then you should declare your allegiance.....As cant be bothered dealing with FG Leo Lickarses.

Yeah consultants and their six figure salaries are really suffering from house prices. And you know we've well over the OECD average number of nurses right?

Graham

Mod Note

Enough with the political soapboxing. If you'd like to debate political allegiances please continue in the Politics forum.

Peter Flynt

Dexter Long Backache wrote: »

Yeah consultants and their six figure salaries are really suffering from house prices. And you know we've well over the OECD average number of nurses right?

So we're not short of nurses because of some OECD statistic that you have not proven or verified?

Department of Health must be wrong so . . . especially with their work recruitment jobs fairs for nurses abroad which saw next to none of them returning from emigration.

I mentioned consultants because they work in the same area as nurses. Sure they could afford property but they leave for a better quality of life/work conditions elsewhere.

Paddy's race to the bottom ain't working.

Peter Flynt

Graham wrote: »

Mod Note

Enough with the political soapboxing. If you'd like to debate political allegiances please continue in the Politics forum.

Tying to separate politics from housing?

WTF?

Do you have to be a moron to be a moderator on this site?

Ursus Horribilis

Definitely get those loans cleared for starters because they'll drag you down. You're nowhere nearly ready to apply for mortgage but having no loans is a good start. When I applied for my mortgage, they looked for a year's worth of bank statements for my savings account and 6 months of current account/credit card statements. I had no loans and no credit card debt.

Unfortunately Ireland is a cold place for people on lower salaries. If you think you can upskill and improve your lot, go for it. Before I changed careers I was in admin too and earning poor money. By the time I bought my house I was earning 3 times that. It took some sacrificing and it wasn't fun at times. But worth it.

Peter Flynt

OK. . . . To suit the moderators

Housing is really underpriced in Ireland.
FG and others are doing a fantastic job.
The deals offered to renters and property buyers alike by vulture funds are incredibly generous.

It's all your responsibility if you cannot afford a mansion with 10 bedrooms.
Sure who do you think you are driving a car?

Pelvis

gercoral wrote: »

i think its a bit unfair. i spent about 4k to see my bother who i havent seen in 10 years and who was unwell. 1500 on flights alone and the rest on accomm and spending money because i cant live on fresh air. i wouldnt call it a holiday as such.

and living in rural ireland with no public transport within 9 miles, i needed an upgrade from my 19 year old car that nobody would insure me on. the loans (its actually 2, not 3) were something to tie me over, not major loans.

if im being honest, i think upskilling is a way for sure. obviously i'm not on the same wage as a lot of people, so its my own problem to fix.

Needing to upgrade a car is fine, choosing to spend half your annual income to do so shows complete ineptitude towards financial planning.

Graham

Mod Note

Peter Flynt, do not post in this thread again.

Peter Flynt

Graham wrote: »

Mod Note

Peter Flynt, do not post in this thread again.

Truth hurting you, is it?

I post my opinion. I'm not posting your opinion.

Bubbaclaus

Peter Flynt wrote: »

Truth hurting you, is it?

I post my opinion. I'm not posting your opinion.

When an opinion makes absolutely no sense it serves no purpose other than to derail the thread.

Peter Flynt

Peter Flynt wrote: »

So we're not short of nurses because of some OECD statistic that you have not proven or verified?

Department of Health must be wrong so . . . especially with their work recruitment jobs fairs for nurses abroad which saw next to none of them returning from emigration.

I mentioned consultants because they work in the same area as nurses. Sure they could afford property but they leave for a better quality of life/work conditions elsewhere.

Paddy's race to the bottom ain't working.

You haven't verified anything either and I'd love to see you try prove that the lack of health staff (and we don't have a shortage of nurses) is as a result of the housing situation.

Graham

Mod Note:

Folks, Peter won't be responding to any of your posts for a while.

AlphaOmega1

Graham wrote: »

Mod Note:

Folks, Peter won't be responding to any of your posts for a while.

No one cares


OP you could downgrade the car by 5k and still have a reasonable car if you're smart about it. Then you could pay off some of your loans or if you already have a plan for that, you can double your pot to 10k. Goodluck anyways.