Prospects of buying a 2 bed apartment in early 40s, earning 100k+

Grammadeck

Hi all,
I made a post recently in the entrepreneurial forum describing my current situation.

The summary is that I am self employed and am trying to determine whether I should maximise my salary now by cutting back on overheads in my company, or continue as I am and continue renting, but allow the business better growth potential.

I currently pay myself a salary of 50k, but if I were to wind back the business I could pay myself ~100k. I could likely make this switch at any stage over the next few years.

Given that I definitely want to own my own property at some point, I'm trying to determine what is the cut off point considering that I am now nearing 40.

If for example I was going for a 2 bed apartment in Dublin, around the 300k mark, when would be my last chance to bump the salary up and go for that mortgage, as I know banks are a lot less eager to give out mortgages to you after the age of 40.

Do I have a few years of left to 'wait and see' or should I be making moves sooner rather than later?

Thank you

riclad

Banks assume you will stop working aroung 60 years of age,you should be saving x amount of money per month,
the bank will want to see a few years accounts ,plus info on your savings.
Go to a broker, if you can save 30- 50k, that means you,ll only need to borrow 150k approx.
remember apartments have annual fees ,
some charge for a parking space.
its easier to get a loan under 80 per cent
The broker will give you basic advice and help you to get a mortgage

itsusuallyjazz

I am much closer to 50 and I have had no issue getting a mortgage - I was given a 22 year term which is no problem for me

I am also on above 80k a year so that probably helped

Casati

riclad wrote: »

Banks assume you will stop working aroung 60 years of age,you should be saving x amount of money per month,
the bank will want to see a few years accounts ,plus info on your savings.
Go to a broker, if you can save 30- 50k, that means you,ll only need to borrow 150k approx.
remember apartments have annual fees ,
some charge for a parking space.
its easier to get a loan under 80 per cent
The broker will give you basic advice and help you to get a mortgage

In my experience banks have no issue giving you a mortgage at any age as long as the term is paid out before your 65. BOI allow you go to 70

itsusuallyjazz

Casati wrote: »

In my experience banks have no issue giving you a mortgage at any age as long as the term is paid out before your 65. BOI allow you go to 70

PTSB also allow up to 70

Humour Me

Have you got deposit saved? Assuming you are a 1st time buyer you will need to have saved a minimum of €30k deposit plus your legal fees. They bank may given you more than 3.5 times salary but you will still need a minimum 10% deposit.

Grammadeck

Humour Me wrote: »

Have you got deposit saved? Assuming you are a 1st time buyer you will need to have saved a minimum of €30k deposit plus your legal fees. They bank may given you more than 3.5 times salary but you will still need a minimum 10% deposit.

No I don't have all of the deposit saved, that's the thing. This is due to high outgoings (rent) rather than any other issues eg gambling, excessive spending etc.

I'm wondering am I better staying at 50k to qualify for rebuilding Ireland (50k being the cap for an individual) or to ease my salary up over time which would allow for better savings, but would have me forego any of the rebuilding Ireland benefits.

e.g I could put my salary at 60k soon enough and probably ease it up slowly over the next couple of years.

Taylor365

Grammadeck wrote: »

forego any of the rebuilding Ireland benefits

And what would they be?

riclad

try and save at least 20 per cent before you apply for a loan if you can.
Theres no harm in contacting a broker soon to ask for advice.

Grammadeck

Caranica wrote: »

Rebuilding Ireland would restrict your buying options in term of budget surely?

How so? Isn't it for property up to a value of 320k in Dublin?