Should I bother with a mortgage?

Andrewf20

Mortgage all the way. In 10 years in all probability, your salary will have increased + your mortgage monthly bill will have reduced + the value of the property will have risen which will give you a lump sum if you sell.

You will hopefully find yourself in a much better financial place relative to rents which will likely rise with inflation.

Something like this:

Now: Mortgage = 1000eu/month or rent 1000eu/month (salary = x)
10 years: Mortgage = 750eu/month or rent 1400eu/month (salary = x + 20%)

Andrewf20

Andrewf20 wrote: »

Now: Mortgage = 1000eu/month or rent 1000eu/month (salary = x)
10 years: Mortgage = 750eu/month or rent 1400eu/month (salary = x + 20%)

The payment on the mortgage doesn't reduce. Not unless you pay a lumpsum off it or extend the length of it.


EDIT: Sorry, I see how you're trying to phrase it now. 1k in todays money will be worth less in 10 years.

jimmycrackcorm

Batattackrat wrote:

If I had kids and a missus I would definitely get a mortgage. Also will have a decent pension on retirement and will have the parents house when they pass away.(I know this is morbid but have to consider all possibilities).

There is a downside in that if you split with the Mrs then it's likely you won't have a house but still paying a mortgage.

The J Stands for Jay

[Deleted User] wrote: »

(haircuts are dead money, netflix is dead money, etc.).

Hair clippers and DVDs ftw

Iodine1

decreds wrote: »

Biggest recession in history on the way (we're currently in it but it will get worse), job losses, lowered confidence and most importantly SF coming to power in 2024 will add new supply and we may see a huge brain drain as no high value people will want to stay.

Recession yes but SF adding more supply? That's wishful thinking in the extreme. Local councils don't want the hassle with social houses and that's why they are not building them. Any they do build will be for direct provision people now. Developers will only build when there is a profit, so recession = no further building. On top of this is a consistently growing population so maintaining a shortage. Better "snap" up that bargain soon as there are plenty of people looking for it.

riclad

lets say you are paying rent 1000 per month,
the mortgage is 1200 per month.
the advantage of a mortgage is you know how much it will cost you,
as long as you pay the mortgage you will not be at the risk of eviction.
for the last 10 years rents have increased .
we have seen booms and recessions,over 30 years,
in the long term house,s tend to increase in value.
A landlord can just say i need to sell the house, you ,ll have to move out in
a certain time.
do you think you,ll be in the same job in 10 years time.
A mortgage is a LONG term committment,
a bit like getting married .

decreds

Iodine1 wrote: »

Recession yes but SF adding more supply? That's wishful thinking in the extreme. Local councils don't want the hassle with social houses and that's why they are not building them. Any they do build will be for direct provision people now. Developers will only build when there is a profit, so recession = no further building. On top of this is a consistently growing population so maintaining a shortage. Better "snap" up that bargain soon as there are plenty of people looking for it.

I do not think all the supply added will be from SF, i predict by end of 2022/2023 our incompetent government will realize their days are numbered and will ramp up the supply in a last ditch effort to win votes. By then it will be too late, with more supply on board when SF come to power plus covid recession and likely SF doing more economic damage than good it's a recipe for disaster.


I was not aware that new council builds are reserved only for direct provision, wtf, why is there not uproar about this? The Irish are being played. Do you have a link?

Iodine1

decreds wrote: »

I was not aware that new council builds are reserved only for direct provision, wtf, why is there not uproar about this? The Irish are being played. Do you have a link?[/QUO

I didn't say "reserved". But they are not building much/ enough at present. Now we have a new regulation passed that "direct provision" is to end and those people are to get "own door houses/ apartments" in I think 4 months? after arriving here. And that's the popular issue now, so that will mop up a lot of the available social houses. Housing pressure will only increase in the coming years.

silver2020

riclad wrote: »

A mortgage is a LONG term committment,
a bit like getting married .

At least its a lot easier to extricate yourself from a mortgage

silver2020

Iodine1 wrote: »

I didn't say "reserved". But they are not building much/ enough at present. Now we have a new regulation passed that "direct provision" is to end and those people are to get "own door houses/ apartments" in I think 4 months? after arriving here. And that's the popular issue now, so that will mop up a lot of the available social houses. Housing pressure will only increase in the coming years.

This is the problem reading into fakebook theories and rags like the daily muck. They don't tell you the truth.

1 - there are about 3500 family units on the list that do not have a permanent place of residence. They are not "homeless". Whilst their living conditions are not perfect, they have a temporary place to live.

2 - These 3500 family units include people who have been in direct provision and are now officially in Ireland. It includes a lot of traveller families (about 800 was the figure last year) and it includes people who have had to move out of previous homes for various reasons including anti social behaviour, abuse and also end of leases

3 - The vast majority of people in direct provision are very well educated and would make positive contributions to society - both in terms of diversity and also in terms of tax contribution. - Become a volunteer and you will have your eyes opened.

4 - a large number of those on social housing lists are scavengers. They take take take at every turn and contribute nothing to society. Those who work or want to work and contribute to society should always be pushed higher on such lists as they are more deserving of a socially rented home

5 - Housing pressure will not increase in coming years. There's a huge amount of building now taking place (slowed due to covid), but expect output to go towards 40,000+ very quickly

decreds

Iodine1 wrote: »

decreds wrote: »

I was not aware that new council builds are reserved only for direct provision, wtf, why is there not uproar about this? The Irish are being played. Do you have a link?[/QUO

I didn't say "reserved". But they are not building much/ enough at present. Now we have a new regulation passed that "direct provision" is to end and those people are to get "own door houses/ apartments" in I think 4 months? after arriving here. And that's the popular issue now, so that will mop up a lot of the available social houses. Housing pressure will only increase in the coming years.

Makes me sick to my stomach reading that, what is the logic behind that? We are in the middle of a housing crisis and deeply in debt but are now opening the floodgates to welfare tourists who will just leech off our resources and not contribute.


I know plenty of hard working talented immigrants paying huge rent and this is an insult to them and an absolute mockery to the Irish people who contribute and are struggling.

Batattackrat

OP here, feck it decided that I will start looking at houses after the AIP from rebuilding Ireland home loan.

I think it was just last minute worries about getting the mortgage and be tied in for so long but definitely be worth it in the long term after Been in 13 different rental properties in my life time.

Be great to have a place I call home home and can rent out rooms as well so no a brainer really.

Thanks for the feedback folks

mrasgar

All the best to you OP, it sounds like you have done your share of renting and it's time for a long-term decision.

I'd agree with most here, and will add that:
- Renting is good for the short-term and when you're not sure of your eventual plans (just make sure you're saving as much as you can every month).
- But once you have a bit of stability and certainty, pay that deposit and buy an affordable house with a long/30y mortgage that allows overpayments (and try to pay it off in 5-10 years, if your savings are less than the house price). You will have more freedom, in being able to make changes to your home and less hassle dealing with agents and landlords. And once it's paid off, you will no longer have to spend 1000s each month on rent/mortgage so you'd be *much* better off compared to most people who have been convinced in recent decades that it's normal to be paying for a house for your whole working life.

decreds

Batattackrat wrote: »

OP here, feck it decided that I will start looking at houses after the AIP from rebuilding Ireland home loan.

I think it was just last minute worries about getting the mortgage and be tied in for so long but definitely be worth it in the long term after Been in 13 different rental properties in my life time.

Be great to have a place I call home home and can rent out rooms as well so no a brainer really.

Thanks for the feedback folks

Fair play to you for coming to a decision.


Just some advice, make sure it's a forever home if that is possible as there is a strong chance you may be in negative equity with this purchase within a few years. So if you plan to sell within 10 years, this may not be the best gift to your future self.


Wish you all the best.