From your income (after tax) how much goes to your rent/mortgage?

ms vieria

Just curious as to the percentage of mortgage/ rent to income you guys have?

I have seen the rule of 1/3 of salary is OK amount for Mortgage - do you think that still holds true in Irealnd?

JustAThought

ms vieria wrote: »

Just curious as to the percentage of mortgage/ rent to income you guys have?

I have seen the rule of 1/3 of salary is OK amount for Mortgage - do you think that still holds true in Irealnd?

50% is typically taken in taxes and stealth taxes first before you get your hands on the money you worked for - assuming you work and aome other hardworking schmuck isn’t paying your rent through their tax as ‘rent relief’ or ‘social’ housing / charity housing. Skews the detail /stats a lot.

Renault 5

We are both working.

Combined ( After Tax )Salary our Mortgage works out as 27.82% of our Income

~28% of Net here. Single person household.

Ronney

33% of Joint Salaries going in rent:mad:

On the hunt for a house and or Max Mortgage would be as low as 25% but will probably aim to shorten the term and pay round 28/29%

My half of the mortgage is ~28% of my net pay. It's hard to calculate exactly for my partner because her pay is different pretty much every month but it would be in the 25-30% bracket as well I reckon.

Smee_Again

2 salaries here mortgage and mortgage protection combined is 15% of take home pay.

We bought based on 1 salary so adding the second made a big difference.

ted1

Single income family and 18% of take home , got lucky and bought at bottom of the market.

Sleepy

Single income family - 19.5%. As we bought a fixer upper, there's near enough that again in other loans though they'll all be cleared in the next 6 months. Will be nice to be able to start saving towards the next round of renovations!

ted1

Sleepy wrote: »

Will be nice to be able to start saving towards the next round of renovations!

It never ends.

rain on

23%, and that was as much as the bank would lend me (single income household).

DaveyDave

Joint salaries, just under 25% after tax and we're overpaying by 10%.

ms vieria

DaveyDave wrote: »

Joint salaries, just under 25% after tax and we're overpaying by 10%.

Is the overpayment in the 25%?

DaveyDave

ms vieria wrote: »

Is the overpayment in the 25%?

Yes the overpayment is included.

The Mighty Quinn

26% of my take home.
14% of joint income.

Like another poster above, was granted a mortgage on my income alone, wife's income has really made it quite a manageable mortgage. Overpaying about 10% from this month on.

galson

Over 50% easily with the ridiculous rents, and it will be more as we were told to move out this year by the landlord.

Paul_Mc1988

Dual income paying about 60% on the mortgage due to overpayment. Payment is about 1250 per month and overpayment is about 2500 per month. Covid means we have nothing to spend the money on and every month the payment comes down.

relax carry on

17.5% of nett take-home. Overpaying by 10% monthly. Overpayment included in the 17.5%.

catrionanic

28% of our net incomes. He works full time and I am part-time. A 10% over payment is included in that.

MarshmallowPop

10.2% of our net incomes. This rented house is fine but we really want a place to call our own but I have Mortgage Phobia. My aim is to have 100k saved altogther and be out of here in 18 months, then have a smaller mortgage and some renovation money if needed.

Creamy Goodness

25%, single income

wench

Single income, 14% now, was 37% when taken out.

cubatahavana

I am pleasantly suprised at the figures quoted. We are 25% ourselves.Not overpaying yet (we just got the mortgage 3 months ago), but planning maybe in the future.

jrosen

Think we are at about 23%. He works FT, I work PT.

The Mighty Quinn

There are 4 people so far spending over 70% of their take-home pay on rent/mortgage.
That's a frightening situation to be in.

blackbox

Mortgage paid off.

thegetawaycar

The Mighty Quinn wrote: »

There are 4 people so far spending over 70% of their take-home pay on rent/mortgage.
That's a frightening situation to be in.

It's relative though, if you are paying 70% of PUP on mortgage/rent at least there is hope you will be back to full earnings soon.

ms vieria

Thanks for all your replies - I know everyone's situations are different but interesting to see what people are doing. For mortgages I wonder if year bought and % of income are mortgage are correlated?

We are renting a 2 bed in Cork city and it’s 14.5% of our combined net income. Very lucky. Still looking to buy soon though.

Cuddlesworth

JustAThought wrote: »

50% is typically taken in taxes and stealth taxes first before you get your hands on the money you worked for - assuming you work and aome other hardworking schmuck isn’t paying your rent through their tax as ‘rent relief’ or ‘social’ housing / charity housing. Skews the detail /stats a lot.

Last I looked you had to be earning around 670k to make it past 50% tax rate.

Ray Donovan

Built my house with my wife. Mortgage & Mortgage protection is 18.75% of net salary.

December sees the end of my fixed term so will be shopping around.

ec_pc

Single income family, 33% including over payment of 45%, Payments keep reducing every month due to over payment, keep topping up to a set amount. Really making in roads, if I keep over payments up it will remove over 6 years from mortgage. 20 years down to just under 14.

corsav6

Single income and 0% but at least 100k to finish the house and lands around it.
Moved in with only a sitting room, kitchen and bathroom ready. Steadily over the past 5 years we've 95% of upstairs done and only a utility room left to tile downstairs.
Outside needs fencing, which is in progress, kerbing, driveway either tar or paving, but it's a large area so 30k at least and a half acre to the back which needs clearing and leveling before we even attempt anything with it.
Plan is take it slow and have no debt.

ted1

For those over paying, are you maxing out your pension contributions?
Or just focusing on the mortgage? Surely it’s more beneficial to take the tax advantage of putting it into your mortgage.

LimeFruitGum

13% at the moment between the pair of us and we bought the property in 2014.

Having said that, our salaries have improved a good bit since the purchase, through various job moves & promotions. We also put in a couple of lump sum overpayments. I would say we started off at around 20%.

Harpon

ted1 wrote: »

For those over paying, are you maxing out your pension contributions?
Or just focusing on the mortgage? Surely it’s more beneficial to take the tax advantage of putting it into your mortgage.

It’s a big risk to put any significant amount into your pension, you could be dead and buried before you see a penny of that money. Or if you do make it to retirement there’s a good chance you will have some sort of serious illness or just general ailments like a bad hip, bad knee, arthritis etc that prevents you from fully enjoying the money. People should use and enjoy their money while they are still young and healthy.

ec_pc

Good query about the pension. My personal aim is to be mortgage free as soon as possible and then start to enjoy more travel etc once the world gets back to normal.

DubCount

Harpon wrote: »

It’s a big risk to put any significant amount into your pension, you could be dead and buried before you see a penny of that money. Or if you do make it to retirement there’s a good chance you will have some sort of serious illness or just general ailments like a bad hip, bad knee, arthritis etc that prevents you from fully enjoying the money. People should use and enjoy their money while they are still young and healthy.

Don't join the Samaritans

scooby77

10% including c.15% over payment. Should clear july 2022, 5 years early. Was lucky got very low tracker, and had good deposit.
Down side house worth €60k-€70k less than we paid, and will probably never reach that price again. Newer houses in area more desirable. No plans to move though at moment though, so suppose that's irrelevant.

L1011

14% of combined after-tax income - mortgage is significantly less than 1x combined salary.

Could have it paid off in maybe 3 years if we went insane, but we're saving to do a huge refurb instead. I still want it clear in 6 years for a milestone age; there's 9 years left on the current term.

Buying single and in a deep crash has helped. A lot.

Dick Turnip

Was renting paying 36% of net

Getting keys (hopefully) in couple of weeks, mortgage will be 29% of net pay

Single person in Dublin

onrail

Living in Belfast, paying 9% of our two (net) incomes on rent. Can’t complain

ted1

Harpon wrote: »

It’s a big risk to put any significant amount into your pension, you could be dead and buried before you see a penny of that money. Or if you do make it to retirement there’s a good chance you will have some sort of serious illness or just general ailments like a bad hip, bad knee, arthritis etc that prevents you from fully enjoying the money. People should use and enjoy their money while they are still young and healthy.

Cool story bro, but how is over paying your mortgage any different? You are putting money away you could use now.

whatawaster81

Single person, mortgage is 31.84% of Net

cubatahavana

While this is an interesting thread, I think percentages can be deceiving. Big difference between a 25% of a combined income of 100k net or 50k net.

Harpon

ted1 wrote: »

Cool story bro, but how is over paying your mortgage any different? You are putting money away you could use now.

Because you access your pension at what 66, although by the time anyone in their 20s/30s/40s retires the pension age will have been pushed up to 70 or older I would imagine. The latest a bank will give you a mortgage to is 66, so if someone is overpaying the mortgage it will be paid off sooner. Most people tend not to get a mortgage term lasting until they are 66 so even if they aren’t overpaying they will have access to their money sooner.

ms vieria

cubatahavana wrote: »

While this is an interesting thread, I think percentages can be deceiving. Big difference between a 25% of a combined income of 100k net or 50k net.

Very true but not an easy topic to get a clear picture on but the comments have shed more light. Thanks to all who contibuted

ebayissues

Single, 23%.

stoneill

House paid for!

bilbot79

stoneill wrote: »

House paid for!

Why I oughtta!!!

onrail

stoneill wrote: »

House paid for!

GTFO!