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How can someone in their 30s afford a house - PLEASE READ MOD WARNING IN OP
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We bought our home 2 weeks before my 36th birthday in 2016 as a single-income family of 4 where both myself and my wife had pissed away every cent we earned in our 20's and early 30s.
We had a few things going for us, or things I think we did well. Some of them might be tips others could take on board, other just factors of our good luck:
1) I earn a shade over the average gross household income so while not spectacular or anywhere near 6 figures, it's a decent wage.
2)We both took on additional part-time jobs, me doing a few bar shifts, my wife doing some babysitting.
3) We were lucky enough to be able to borrow some of the deposit from parents (they took out 5 year loans, lodged the amount our accounts 6 months before we applied for the mortgage so it wouldn't show on our bank statements at that time and we made the repayments out of cash from the nixers).
4) We clearing all our previous debts and saved our asses off for two years by living frugally: driving a single 12/13 year old car, have never had health insurance, cancelled the TV package (just kept an internet connection and Netflix / On demand services / torrents etc), bought an annual pass for the zoo and used it almost every second week instead of bringing the kids to the cinema / play centres / swimming pools etc., wouldn't go to the doctor unless absolutely necessary, refused invitations to a few weddings, stags dos etc., meal planned as much as possible to reduce what we spent on takeaways and waste on grocery shopping (which was always done in Lidl or Aldi), took 1 short, cheap family holiday to the UK in that time availing of loyalty points I'd accumulated from business travel to cover 3 nights of hotels, invited friends over and drank in our home instead of the pub (though having 2 small kids, the pub wasn't a big factor in our lives anyway!)
5) We threw the net very wide when looking at areas we'd be happy to live in and found somewhere we absolutely love in North County Dublin that I wouldn't have initially thought of at all.
6) We focused on finding a fixer upper that didn't involve structural work and found a solid, 4 bed / circa 110sqm house that had been neglected for years was horrendously decorated but was on a lovely small road in a small village surrounded by green space and beaches.
7) We accepted that we couldn't fix everything about the house immediately. Some rooms we've gutted (bathroom and kitchen), most we've just given a good lick of paint, I've a list of DIY jobs that'll keep me busy for years to come (and a major job planned for 3 or 4 years time to replace the ancient, misted up double-glazing with more appropriate sash windows).
8) When it came to fitting out the house we gratefully accepted some hand me downs from friends and family, bought stuff second hand off adverts (the washer / dryer cost all of €50, the bathroom sanitary ware was free and got tarted up with new taps etc., we salvaged an "upcycling gone wrong" kitchen table for free etc.), the rest came from the lower ends of the IKEA catalogues.
9) I did as much of the work as I could, learning from youtube, the DIY forum here and so on.
10) We went to builders providers or wholesalers for paint, fittings, materials, etc. they can be less than half the price than the big DIY chains and the products can often be of superior quality.
11) We took the first mortgage we were offered, gave the place the afore-mentioned cosmetic facelift over the first year we lived there and were able to change our LTV to avail of a much better interest rate for our second year in the property after getting it revalued.
A neighbour's house in comparable condition to what ours is in now has just sold for 40% more than we paid (in an area that's increased by an average of slightly over 11% in that time) so I'd hope we're fairly safe in the event of a crash: we've almost 35% equity in the property and the mortgage is manageable even if I have to take a 50% cut in salary at some point. Sure, the BER rating is nowhere near what we'd have in a new build and the heating/electric bills reflect that. I could easily spend 50k modernising the place further but I've actually discovered that I enjoy DIY as a hobby and it'll get there over time. Time that we'll be spending paying down our own mortgage instead of a landlord's.
There was a lot of talk about how much easier it was to buy a property in the 70's on this thread without remembering that properties in those days weren't done up to anything like the same standard as people expect these days. Couples buying in the 70's/80's often lived with the decor for years before they could afford to decorate it to their own tastes. Rooms were furnished as the money to furnish them was earned and saved. Many of what we now consider household "essentials" were luxuries only the very wealthy had back then (tumble dryers, microwaves, second television sets, heated towel rails, burglar alarms). I can still remember the excitement of our family getting our first VCR when I was 4 years old and it costing my Dad a full month's wages!0 -
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2)We both took on additional part-time jobs, me doing a few bar shifts, my wife doing some babysitting.
3) We were lucky enough to be able to borrow some of the deposit from parents (they took out 5 year loans, lodged the amount our accounts 6 months before we applied for the mortgage so it wouldn't show on our bank statements at that time and we made the repayments out of cash from the nixers)............
Did the nixer money cover the loans? Or are the repayments running for the next couple of years too?
I doubt many can get the deposit like that tbh....... and that was crucial to your plan/project 0 -
No, the nixers covered the loans until after we'd drawn down the mortgage. Will be paying them back for another couple of years still. The repayments, if added to our mortgage repayments, would still be lower than market rent for the area though.Did the nixer money cover the loans? Or are the repayments running for the next couple of years too?
I doubt many can get the deposit like that tbh....... and that was crucial to your plan/project
I'd imagine a lot more than you'd expect could get a chunk of their deposit that way (it was about 40% of our deposit and initial redecoration budget). The only real requirements are parents that are willing and able to take out a home improvement loan and the forward planning to arrange it. It's some creative accounting and I'm sure it would be frowned upon by the banks but there's nothing too dodgy about it.0 -
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The vast majority of replies here are from dual income buyers, the question was "someone" not "couples"
I think we know the answer for a single person, it's extremely hard to afford a house on their own presently. Maybe easier to afford an apartment though. 0 -
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The vast majority of replies here are from dual income buyers, the question was "someone" not "couples" I think we know the answer for a single person, it's extremely hard to afford a house on their own presently. Maybe easier to afford an apartment though.
Agreed. But realistically, land in Dublin at scarce. A single person living in a house in Dublin is inefficient and it makes sense that it would be unaffordable to most when they're competing against couples. I don't see any reason why a single person wouldn't aim to live in a well spec'd apartment.
As regards couples affording a house in Dublin; yes, it involves having 2 decent incomes and a good attitude to saving. It is do-able though.0 -
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The vast majority of replies here are from dual income buyers, the question was "someone" not "couples" I think we know the answer for a single person, it's extremely hard to afford a house on their own presently. Maybe easier to afford an apartment though.
I was originally applying as a sole applicant but because we weren't married, it made sense to do a joint application so both names on deeds and mortgage. It was more from that point of view than the financial cost that we went for it. I could have gotten the mortgage on our house by myself (deposit wasn't fully there solely though).I don't see any reason why a single person wouldn't aim to live in a well spec'd apartment.
Honestly if I was single and buying, I probably would look more at apartments rather than houses. But being in a couple and planning a family, it made sense to get a house so as not to have to look at moving in a couple of years (I hate moving).0 -
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Moderators, Social & Fun Moderators, Regional East Moderators, Regional North West Moderators Posts: 12,005 Mod ✭✭✭✭
Join Date:Posts: 11231
angel eyes 2012 wrote: »I'd suggest that the prevailing message from this thread, is to commence saving, ideally by a monthly standing order, even if the amount is small.
I don't remember where I read this (probably some 'inspirational' Facebook meme :P) but you can also apply it to saving:
The best time to plant a tree was 20 years ago. The second best time to plant one is today.
--
I'd say to anyone just do it, however much you can afford. If you're not stretched in month/week one, increase the amount and keep increasing it until you feel you've reached your limit for the moment. If you have anything left at the end of the month before payday, add that to savings too. When a loan repayment ends or you get a raise, increase savings accordingly. Sometimes you'll have to decrease what you are saving too, things happen but keep on saving whatever you can. It all adds up.
There are some very inspirational posts in this thread for big time saving, I've enjoyed reading them and they have given me some ideas of my own 0 -
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*eyeroll* Sure, I'm dead already. I've never been across africa, syria, or iceland,or lived in the US and switzerland. Never abseiled a glacier, never saw a sunrise over a hawaiian volcano. Never had a family, never rode motorbikes across europe. Never stood on standby in Austin texas for 40 hours waiting for jumpseats to be available, and heard some crazy stories. Except, wait, yes I did all those things. Within my means, while working.
Only one parent works in our house too. To do that, you need to spend less. Kinda like the 70's.
Back in the 70's (and yes, I was there too) we all had way less. We had one car, that didn't have back seats. Family of 7. All shared bedrooms. No mobiles, no internet, no meals out, no cafe coffee, no holidays to anywhere on an airplane. I didn't see an elephant in real life until I was 24. The Zoo? Don't be silly, that's crazy money.
You want more, like people generally have now, you pay more for it. That's how it works.
There was a thread in PI recently where the whole of boards seemed to think it was ludicrous that a guys new girlfriend didn't think a telly and a subscription was necessary in her house. She's right, it's a luxury. I remember my parents buying their first one.
And actually, if you want to be a bit more like people who you think have what you want... a house, a lifestyle, whatever, read and pay attention to what they say about getting there. Learn from their experience. Also also learn from people who f-ed it up. Most of the time they are bitter , but you can learn from that too.
I used to read heaps of books on this when I was in my twenties, and now, I read a good bit on FatFIRE, and LEANFire, for planning my retirement. People who have money, don't spend it on unimportant stuff, and have learned how to earn it.
Ah, would you give over? If you were around in the 70s, then you have no idea what it's like to be 30ish now. I love how people from your generation think they worked harder and sacrificed more and conveniently forget how much more affordable housing was when you were young.
All this 'don't go to Starbucks' sh1te is just that - sh1te. I could never buy another latte in my life and it wouldn't make a blind bit of difference regarding being able to get a mortgage or not. I'm a single woman in my early thirties and you know why I can't afford a house?
- Didn't get any help from parents for college, or a grant, so had to take out loans of over 3k euros a year, in addition to working every summer and term time.
- Graduated right into the 2008 recession, and spent a few years taking any old sh1tty job going, just to pay the rent.
- While doing the above, I was paying a fortune in rent and bills. Well over half my paycheck every single month gone on just survival, before I even got into paying for food, student loan repayments, travel to work, etc.
- Have a chronic illness which costs me a lot of money in doctors visits and medication costs, am not entitled to a medical card.
- Still earning a below average wage now in my thirties due to the above issues and have only just been able to start saving anything at all. Still paying a fortune to rent a room and struggle to save anything.
I've never had a car. Never even had a driving lesson because I couldn't afford them. Never gone out drinking every single weekend. Never gone on a 'gap year'. I simply just have never had any money. As a single person who has always had to rent since leaving school, almost all my money has gone on essentials. There are plenty of people like myself.
I love how so many of the people here are thinking they're great for saving a mortgage when they have a partner and both are earning a decent wage. The funniest one is the guy whose partner already had savings. What are the rest of us meant to do, magic up a partner who already has money saved in the bank?0 -
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