How can someone in their 30s afford a house - PLEASE READ MOD WARNING IN OP

RedXIV

Its certainly not easy. We've 4 kids and started earnestly last year. We might be ready in another 2 years to try and make an offer somewhere but it won't be Dublin. Unless there is a crash, but to be honest I don't think Dublin houses would drop massively even if there was a crash.

We tend to butt heads a bit about it but overall we're working well on this as a team which is very reassuring and we're saving for a family holiday next year as well as trying to get the deposit together. But we'll be very careful about it because we had a holiday last year and it definitely hit our savings goals because we over spent. But we're pulling in a good combined wage, so I imagine it's very difficult for those on a lower wage.

divillybit

bigpink wrote: »

Fully paid off?Impressive any tips

I wont offer tips but in my case the following factors worked in my favour

- being from a farming background I was thrifty and was reared on half nothing so I appreciated money when I started earning it and had a perspective that I didnt want to be saddled with alot of debt.
- saving makes great financial sense as every 1k you save is 1k less to borrow at mortgage time which in a typical mortgage would cost you 2k to repay over the lifetime of the mortgage in round figures
- i invested prudently, didnt get big returns but it all added up. For example back in 2011 I had 60k saved, put that into a states savings earing 10% over 3 years tax free. Those rates got slashed not long after I took out the bond.
- the recession was good in my case as I bought a new 4 bed detatched in a county town in late 2013 for 175K. Crucially this was the bottom of the market, I was a cash buyer. The builder wanted to back out of the sale as houses were starting to go up in value and he could have got more but we had contracts signed at that stage. Same houses are making 240k now.

Im sure I'll get slagged off asking if I still have my communion money but I was just fortunate in ways but you make your own luck. God helps those that help themselves.

overkill602

The future economy is going to be snowed under with so much social and pension debt weak governance and opp afraid who will be in power for the next bailout wont be able to blame the banks or developers this time if your lucky to be working tax will 75% why should you risk another chain around your neck

booksale

Some posts are inspiring.

OP, you are only 30. There are so much to learn and earn. We recently got our own place and my husband is in early 50s and myself early 40s.

There is no standard timeline to do things in your life.

Saving is always a good habit no matter you want a house or not.

And just keep learning, doing your best in your job. Develope yourself. Find an affordable hobby you enjoy. I don’t know. Just live. And who knows, you are not ready to buy now but you maybe ready to do so later when the time is right for you.

Having a house shouldn’t be the most important goal of your life. Aim higher and things would come along.

All the best.

abcabc123123

abcabc123123 wrote: »

Buy an apartment, save for a couple of years and trade up?

Want to end up trapped in negative equity, in an apartment unsuitable for future needs? Because this is how you do that.


Seriously, have the Irish collective learned nothing from the past 10 years?
Never buy a home with the sole intention of "trading up"

Kidkinobe

Deleted User wrote: »

Want to end up trapped in negative equity, in an apartment unsuitable for future needs? Because this is how you do that.


Seriously, have the Irish collective learned nothing from the past 10 years?
Never buy a home with the sole intention of "trading up"

Over the past 10 years, house prices have only gone up... Is that what you mean when asking if anybody has learned anything?

My wife and I only earn 70k between us. We bought a new build in Navan. With help to buy, we only needed a 13k deposit. We saved that while renting in Dublin. Then you might need another 5k or so for solicitor fees and stamp duty.

lisasimpson

Eric Cartman wrote: »

and if you dont mind, the price of the house, or ballpark. Were you paying rent at the time and if so how much, A few people have posted these success stories , none so far are about dublin or their conditions paying >500 a month in rent while saving.

Was renting at the time 475 a month and had been renting for over 10 years at that stage. Parents helping out was not an option or living with them at the time House was also one that needed some work done to it but was still liveable.If it was today I would be paying over 500 a month and wouldn't have a hope of buying in the same area now. Cork was getting expensive by the time I left. But as I said in another post it's still a good idea to try saving coz you never know where life will take you or where you will end up. Also they way we work in certain industries is changing ie IT and finance to name two examples so maybe in time less need to live in our major cities

pwurple

alexmalalex wrote: »

First off, most of this stuff is common sense. Most people know how to save. Its not rocket science. The baseline assumption is that the OP is fritting away his or her money. They posed a perfectly legitimate question that many have asked. Are you seriously suggesting that the OP can buy a Dublin house by cycling to work, heating his Lidl porridge in the microwave, and leaving an ultra-frugal lifestyle. Even if he he saves 50%+ what he earns, it isn't going to make a difference. You clearly don't understand the Dublin property market. it is out of bounds to most people.

Second, you don't have the moral authority to claim what people need and don't need. I'm sure your kids could walk to school, or maybe there is a bus service they could take. Needs are relative not absolute.

Third, it has been suggested that anyone that saves doesn't have a life. Not true. I save, quite a bit actually. But I don't get on the rooftops of this forum and proclaim how great I am, how much I endured, how many volcanoes I climbed. etc etc etc.

Frugal + snobbery = Frugobbery

Alex, the thread is long, so I am going to assume you missed the question I was answering with my post, which was... “how did people do it in the 70’s.” My point is that we have MORE now, than then. (Not less, like people implied) Across the board. We all have more, which costs more. This is why you can’t compare us to the 70’s, unless you start living like the 70’s.
Does that not make sense? Clearly, people don’t have that understanding as common sense if they scratch their head and ask the question in the first place.

On your handily numbered second point, there is no judgement in defining what luxuries are, it is a simple fact. Black and white, well defined. It’s you attaching some emotive resonance to it, not me.
My comment to the op was Work work work. Because you cannot save what you don’t have. No amount of saving on the dole will get you enough to buy a house. We buy them with money, we need to earn it to save it.

No idea what you are at making assumptions about my kids, their legs work, and they do walk to school.




The justification that I do have a life, was to someone telling me that I don’t. What do you want, I bow down and say, oh yes sir, sorry sir, I don’t have a life, you’re so right? Grovel away nice and demurely is it? You know what, So what if I’m proud of myself? Feck that... I make no apologies for enjoying my life. I’ve had a great time up to here, plenty of **** times like everyone else, but plenty of good too. I’d be fairly content to be run over that bus tomorrow, no regrets.



Cheers for the name calling though.

Good to see the Irish taking a dig at anyone having some self-esteem. And we wonder why it’s so low, in so many. There’s your answer.

amcalester

Kidkinobe wrote: »

Over the past 10 years, house prices have only gone up... Is that what you mean when asking if anybody has learned anything?

I bought last year, and was talking to the builder about the crash and prices before and after. He told me that in 2007, the same house in the same estate as I bought were going for about 40% more than I paid.

So, house prices have increased over the last few years but it would be foolish to think they can only go 1 way.

Kidkinobe

amcalester wrote: »

I bought last year, and was talking to the builder about the crash and prices before and after. He told me that in 2007, the same house in the same estate as I bought were going for about 40% more than I paid.

So, house prices have increased over the last few years but it would be foolish to think they can only go 1 way.

House prices do indeed go up and down over short periods...But show me a house that is cheaper today than it was in the 1980s, 70s, 60s,50s etc..House prices will always go up and its foolish for you to say otherwise..

daheff

Kidkinobe wrote: »

House prices do indeed go up and down over short periods...But show me a house that is cheaper today than it was in the 1980s, 70s, 60s,50s etc..House prices will always go up and its foolish for you to say otherwise..

while this is very true, i did read something around the time of the crash that the average apartment owner had bought with a view to selling/trading up within 5 years..... so you do need to be cognisant of shorter term price fluctuations if you are buying a starter home. Otherwise you might be stuck in a starter home for a lot longer than you want(like many celtic tiger couples).

Wildly Boaring

Kidkinobe wrote: »

House prices do indeed go up and down over short periods...But show me a house that is cheaper today than it was in the 1980s, 70s, 60s,50s etc..House prices will always go up and its foolish for you to say otherwise..

Plenty lower than the were in 05 06 07 though. And may never get to those levels again.

Who is to say that Brexit wont wipe us out altogether. And Feb 2019 becomes the new July 2017?

Or prices go up a bit more until sinn Fein win an election and no one in this country ever buys a house again?

amcalester

daheff wrote: »

while this is very true, i did read something around the time of the crash that the average apartment owner had bought with a view to selling/trading up within 5 years..... so you do need to be cognisant of shorter term price fluctuations if you are buying a starter home. Otherwise you might be stuck in a starter home for a lot longer than you want(like many celtic tiger couples).

Exactly, saying house prices always increase over a 30 year period is of no use to the person who bought a "starter home" and is stuck in negative equity after 10.

Kidkinobe

Kidkinobe wrote: »

House prices do indeed go up and down over short periods...But show me a house that is cheaper today than it was in the 1980s, 70s, 60s,50s etc..House prices will always go up and its foolish for you to say otherwise..

I take it that you didn't buy a small apartment in 2007 yeah?

Wildly Boaring

Wildly Boaring wrote: »

Plenty lower than the were in 05 06 07 though. And may never get to those levels again.

Who is to say that Brexit wont wipe us out altogether. And Feb 2019 becomes the new July 2017?

Or prices go up a bit more until sinn Fein win an election and no one in this country ever buys a house again?

I agree with your point but don't get the Shinner comment though.

FF caused all that mess

*have never even given SF a preference BTW*

BoJack Horseman

Bought my house at the age of 25, the price was (sadly) much higher than the current value.

It was all down to the bank being liberal at lending.
We were paying 1k in rent at the time so saving was manageable.

Being married was the only way it can/could be done

Kidkinobe

Deleted User wrote: »

I take it that you didn't buy a small apartment in 2007 yeah?

I probably would have if I was desperate to buy my own place to live in and an apartment was all I could afford and my only other option was to rent for the next decade.. However, if I bought it to get rich by renting it out, I probably would kick myself for not doing my homework and being greedy.

Kidkinobe

Kidkinobe wrote: »

I probably would have if I was desperate to buy my own place to live in and an apartment was all I could afford and my only other option was to rent for the next decade.. However, if I bought it to get rich by renting it out, I probably would kick myself for not doing my homework and being greedy.

So you've learned nothing from the hundreds of people who bought homes (see that's the word I used "home") in 2007 and are still stuck there, unable to move for work or family reasons.
Finally they have a hope (if in the right area) to rent it, while taking on massive commute whule renting a bigger place further out but hey... They own an apartment so all is well

professore

Nermal wrote: »

11.25% of it: https://www2.hse.ie/services/fair-deal-scheme/financial-assessment-your-payment-towards-care.html

At least make your spendthrift scenarios plausible.

11.25% of it NOW. It used to be 5%. What do you think it will be in 40 years time, when there will be a huge elderly population supported by a tiny workforce?

I lived through the crash where people lost everything. The people who killed themselves saving got hit the worst. I'm not saying don't save and spend everything, I'm saying giving up your youth is a big price to pay for a house. You can't make more time. You can always make more money. And if your single or don't plan for kids, you don't need a house.

Timing is everything. A mortgage can be for life if you aren't careful. Payments that look affordable when you are young, kid free and healthy can quickly become unmanageable if you aren't. And selling doesn't solve the problem of negative equity. You can easily move and rent somewhere else without a millstone of debt, unlike with a house.

I'm actually pretty frugal and bought my house before the Celtic Tiger. Back then it made sense with payments I could afford. Now it doesn't in a lot of cases, especially in Dublin.

The time to buy was 2009-11. Another crash is imminent.

Kidkinobe

Deleted User wrote: »

So you've learned nothing from the hundreds of people who bought homes (see that's the word I used "home") in 2007 and are still stuck there, unable to move for work or family reasons.
Finally they have a hope (if in the right area) to rent it, while taking on massive commute whule renting a bigger place further out but hey... They own an apartment so all is well

Yeah but if they didn't buy a home, how much money would the have lost on renting a home for the past decade as that was the position they were in, either buy a home now when we can afford it or continue paying rent for the rest of our lives.

professore

Kidkinobe wrote: »

Yeah but if they didn't buy a home, how much money would the have lost on renting a home for the past decade as that was the position they were in, either buy a home now when we can afford it or continue paying rent for the rest of our lives.

Considering rents collapsed for several years, they would most likely be much better off. They could have moved to take that better job offer. Moved into a smaller place for a while to save money. Its not the no brainer you think it is.

Graham

Deleted User wrote: »

So you've learned nothing from the hundreds of people who bought homes (see that's the word I used "home") in 2007 and are still stuck there, unable to move for work or family reasons.
Finally they have a hope (if in the right area) to rent it, while taking on massive commute whule renting a bigger place further out but hey... They own an apartment so all is well

The alternative is half the population trying to buy a 3 or 4 bed semi detached 'forever home' in a nice housing estate inside the M50.

That's not working out too well either.

f@steddie

professore wrote: »

I'm saying giving up your youth is a big price to pay for a house. You can't make more time.

I don't think anyone on this thread is advocating giving up your youth for a house. If no other message gets through it should be that you can live a very good life without living the ridiculous consumer lifestyle that some on here believe is the only way to be happy.

professore wrote: »

The time to buy was 2009-11.

Hindsight is excellent. Good call. Of course you'd have had to have been saving in advance of that to take advantage of it as credit was hard to get at that time.

professore wrote: »

Another crash is imminent.

Could well be but I'd love to know what you're basing this on.

Kidkinobe

professore wrote: »

Considering rents collapsed for several years, they would most likely be much better off. They could have moved to take that better job offer. Moved into a smaller place for a while to save money. Its not the no brainer you think it is.

Thats all well in good saying that after looking at what happened over the past decade...but what if the opposite happened and prices continued to rise...The original argument was about house prices not going up forever when they do go up, even it it takes 20/30 years. Another 10 years, apartment prices will be double what they are now.

professore

Kidkinobe wrote: »

Thats all well in good saying that after looking at what happened over the past decade...but what if the opposite happened and prices continued to rise...The original argument was about house prices not going up forever when they do go up, even it it takes 20/30 years. Another 10 years, apartment prices will be double what they are now.

The demographics don't support it. Supply will catch up with demand and prices will fall again.

professore

f@steddie wrote: »

I don't think anyone on this thread is advocating giving up your youth for a house. If no other message gets through it should be that you can live a very good life without living the ridiculous consumer lifestyle that some on here believe is the only way to be happy.


Hindsight is excellent. Good call. Of course you'd have had to have been saving in advance of that to take advantage of it as credit was hard to get at that time.


Could well be but I'd love to know what you're basing this on.

Agree with all of the above. And basing it on a big slowdown in the world economy, Brexit, and some third unknown that always appears that no one saw coming... Maybe the collapse of some Chinese banks.

Kidkinobe

professore wrote: »

The demographics don't support it. Supply will catch up with demand and prices will fall again.

And then demand will go up again and prices will go up again...Dublins population is projected to grow 400k by 2031...thats a little over a decade away so I don't know how you think the demographics wont support it...and thats before inflation is even included..

Kidkinobe

Kidkinobe wrote: »

And then demand will go up again and prices will go up again...Dublins population is projected to grow 400k by 2031....................

It is a projection though, mightn't happen.
Our populaton decreased after 2007 iirc , that wasn't on many projections.
That accepted, I don't see Dublin property prices falling too sharply for most 2, 3, 4 bedroom units tbh.......... given supply constraints and demand.
Anything can happen the €1m+ ish units of course.

witchgirl26

Little Less Conversation wrote: »

Thanks for all the replies. How do people have what they have at such a young age? What do ye do in life to get paid a decent wage? I kind of started saving last year but haven't saved since last September. Haven't touched it either. But it's such a miserable amount, about 1k. Guess it's a start but I'll be in my 40s by the time I get anything if I'm lucky.

For me I was quite lucky in that I figured out what I wanted to do young enough so have been in the same career for the past 10 years with a professional qualification earned 8 years ago. Obviously staying in the same career has led to steady wage increases over the years.

That said, I know someone who changed career mid to late 20's and earns more than me because they have a natural aptitude for the new career (IT related) and continuously up-skilled themselves plus gained a good reputation so are now in high demand and can name their salary practically. Took a lot of effort on their part though for a few years and there were social sacrifices to get to the point now that they can do what they want both professionally and socially.

Eric Cartman wrote: »

and if you dont mind, the price of the house, or ballpark. Were you paying rent at the time and if so how much, A few people have posted these success stories , none so far are about dublin or their conditions paying >500 a month in rent while saving.

I posted before and I bought in Dublin last year. I was paying over €500 a month in rent (plus bills etc) sharing with my OH. Based on savings history/job history (increasing salaries year on year) we were able to ask for an exemption on the salary multiple. While both of us get bonuses each year, these weren't counted as they are not contractual. Was it easy - nope not at all and there were some things I just had to stop buying (expensive cosmetics etc) but I still went on holidays (in the years saving I've been to New York twice, San Francisco and all around Europe). Those holidays were well thought out though in advance and saved for prior to going.