Will the 3.5 rule ever go away.

Bigfatmichael

Realistically I'm going to halve to move back in with the parents for two years to get a house which I do not want to do and have no social life whatsoever

4.5 Salary would obviously be ideal and really should be at this level.

PhoenixParker

If it was 4.5 times salary then prices would simply rise to match and you'd need 5.5 times salary. You'd be worse off.

rubberdungeon

Bigfatmichael wrote: »

Single person in Kilkenny getting 40K a year.

Most I can get from the banks is 140k. Property in my area where I grew up and want to live are ranging from 195K to 270K.

Realistically I'm going to halve to move back in with the parents for two years to get a house which I do not want to do and have no social life whatsoever.

My other choice is probably move to Dublin for two years to get a higher salary.

4.5 Salary would obviously be ideal and really should be at this level.

There’s a new Affordable Purchase Shared Equity scheme in the pipeline that might be worth exploring. It’s where the State would provide equity support to households seeking to purchase homes in the private market but unable to secure the full mortgage to do so.

https://www.gov.ie/en/press-release/e3e16-minister-obrien-publishes-affordable-housing-bill-2020/

Buddy Bubs

If there's 1000 houses for sale and 1500 people looking to buy them, the price will be what the 1000 can afford.
If the 1000 people's income is over 50k combined, the price will be deposit plus 3.5 x 50000 so let's say 25k deposit can be saved prices will be 100k.
If the lending rules go to 4.5 times income, there's still only 1000 houses but they will cost 250000.
Same number of people own houses, but have less disposable income because of higher mortgage rates.
While I sympathize with your situation, does moving to 4.5 times salary help society as a whole? No.
However, there is rebuilding ireland mortgages which allows first time buyers borrow more. And the help to buy scheme which allows you build a bigger deposit.
If you were on 40k over last number of years, you should have access to appox 25k of tax refunds to use as a deposit. You're now at 165k before you've saved a penny yourself so 200k doesn't look unachievable for a purchase price for you.

PhoenixParker is right, prices would just go up.

Banks do make exceptions though, I'm not sure what the current situation is as they definitely pulled back on them last year during COVID.

It's a very lucky few of us that get to live where we grew up and want to be. I bought in an area I could afford, and I think I'd be seen here as part of an unwanted gentrification of the area. But likewise, the reason I'm here is because my own home town is almost unrecognisable to me, and certainly well out of my price range for the rest of my life.

beanyb

You should look into the Rebuilding Ireland Home Loan - http://rebuildingirelandhomeloan.ie/. There's a separate thread on it.

I earn a similar amount to you and recently closed on a property on my own at €215k in Dublin using it.

Bigfatmichael

beanyb wrote: »

You should look into the Rebuilding Ireland Home Loan - http://rebuildingirelandhomeloan.ie/. There's a separate thread on it.

I earn a similar amount to you and recently closed on a property on my own at €215k in Dublin using it.

I will look into that many thanks

godtabh

I hope it doesn't. There is a good reason why its there.

Smee_Again

You can’t afford to buy where you want because you don’t earn enough to buy there.

A salary multiplier won’t make a difference because the same number of people can outspend you.

Browney7

Bigfatmichael wrote: »

Single person in Kilkenny getting 40K a year.

Most I can get from the banks is 140k. Property in my area where I grew up and want to live are ranging from 195K to 270K.

Realistically I'm going to halve to move back in with the parents for two years to get a house which I do not want to do and have no social life whatsoever.

My other choice is probably move to Dublin for two years to get a higher salary.

4.5 Salary would obviously be ideal and really should be at this level.

With remote working could you get a job based in Dublin with a payrise and get a higher mortgage (after probation) and then get your KK house? Who's to say your KK job wouldn't be there for you a year or two down the line. All dependant of course on your current job being WFH friendly which of course isn't an option for all.

Bigfatmichael

Smee_Again wrote: »

You can’t afford to buy where you want because you don’t earn enough to buy there.

A salary multiplier won’t make a difference because the same number of people can outspend you.

Well actually I can with the county council mortgage someone posted there.

I can get 181,000 with my current salary, I have 0 debt and no kids.

Thank you to that poster who posted the rebuilding Ireland loan

In the last hour ive decided to hand in my notice to my rental place and move back home. I hav 15K saved and won't be long getting a place for around the 195k Mark.

Thanks though.

Bigfatmichael

Browney7 wrote: »

With remote working could you get a job based in Dublin with a payrise and get a higher mortgage (after probation) and then get your KK house? Who's to say your KK job wouldn't be there for you a year or two down the line. All dependant of course on your current job being WFH friendly which of course isn't an option for all.

I've decided to put my fate in the county council mortgage calculator. Thanks though for the advice. Some of the house have been up for a year or more so should be able to get them.

Smee_Again

Bigfatmichael wrote: »

Well actually I can with the county council mortgage someone posted there.

I can get 181,000 with my current salary, I have 0 debt and no kids.

Thank you to that poster who posted the rebuilding Ireland loan

In the last hour ive decided to hand in my notice to my rental place and move back home. I hav 15K saved and won't be long getting a place for around the 195k Mark.

Thanks though.

That’s good. Hope it works out for you.

The general point still stands though.

AngryLips

Bigfatmichael wrote: »

I'm going to halve to move back in with the parents for two years to get a house which I do not want to do and have no social life whatsoever.

I hate to break it to you, but this second bit is pretty much the reality for most people getting a mortgage for the first time.

Wesser

Hopefully not.... as it stops property prices spiraling out of con trol.

I would advise youto get some extra qualifications so you an earn more and get a promotion.

Eric Cartman

The 3.5 rule is the greatest thing we have to stop the entire nation going mental again, long may it remain. I even think the exceptions are too broad, nobody should be getting 4-4.5x on a property unless its something >1 million

Browney7

Browney7 wrote: »

With remote working could you get a job based in Dublin with a payrise and get a higher mortgage (after probation) and then get your KK house? Who's to say your KK job wouldn't be there for you a year or two down the line. All dependant of course on your current job being WFH friendly which of course isn't an option for all.

Not relevant to the OP, but a friend of mine recently purchased a new build in their home county while their job is based in Dublin. Before the pandemic, they were remote working 4 days a week and commuting to Dublin 1 day a week.

Before approving the mortgage on the house in their home county their lender requested a letter from their employer to confirm that they had been working remotely before the pandemic, and they would continue to do so indefinitey.