Is it fair to blame the Banks & Government if you cant get mortgage approval?

Padre_Pio

JizzBeans wrote: »

Oof, lead balloon here:D

Too right. Not sure if you're trolling really.

People enjoying their 20's has nothing to do with the cost of housing being at a near all time high. Wages in 2021 are not too far removed from 2007

gandalfio

JizzBeans wrote: »

Not entirely accurate, cost and availability might be an issue in area X but not in area Y.


If you refuse to entertain the idea of buying outside of Dublin, for example, then you cant objectively make that claim.


"I want to be near me ma" isn't a good enough excuse

So people should leave Dublin and spend hours commuting, spend a fortune on fuel, tolls, car depreciation etc, uproot their children from school and friends, move miles away from family and supports, spend a fortune on fuel, tolls, car depreciation etc?
It's not that simple.

SEPT 23 1989

Seriously go out and enjoy yourselves in your 20’s spend your money on rubbish

Enjoy a bit of travel.flash cars and clothes

Splashing out in Nightclubs and pubs

The money men who will have you by the balls for the rest of your life can wait

divillybit

divillybit wrote: »

Young folk get very touchy about their spending habits and see going to oz as a right of passage that often times doesent do much for their career progression... I did the 4 years in college, graduated in 2008 into the recession, decided not to travel as I'd no real interest in going abroad and wanted to get work in Ireland... But I worked hard and saved hard and by 2016 had enough saved to buy a place along with needing a small mortgage that I've since cleared.. People in their 20s kinda need to be mentored a little that those are the years when they will have the most disposable income and to save or invest it wisely..but they don't really want to listen

You cleared a mortgage in 5 years? fair play, but I get the idea that you are outside in the boondocks somewhere. Also you appear to be a farmer.

Thats the other problem with these kind of threads, apart from the economic illiteracy, some parts of Ireland are still cheap. Most aren't.

JizzBeans

Padre_Pio wrote: »

Too right. Not sure if you're trolling really.

People enjoying their 20's has nothing to do with the cost of housing being at a near all time high. Wages in 2021 are not too far removed from 2007

Its no coincidence we have a generation with virtually no savings or pensions for that matter.

Witcher

JizzBeans wrote: »

Its no coincidence we have a generation with virtually no savings or pensions for that matter.

Source?

Tork

What do you think of the rent they pay?

Geuze

Shebean wrote: »

I can't believe anyone believes the first comment including the person posted it.

Prices are too high and supply is low. New supply is being bought up to be rented and first time buyers are being priced out. The younger cohort have come up through this, a financial crash and Covid. Hardly living on the pigs back.

Correct.

It is genuinely much harder to buy a house now, especially in urban areas.


In 1982 my father, aged 35 approx, on one wage, could buy a 4-bed 1800 sqft detached house on 0.25 acre. This is in a small provincial town.

That same house would now ask approx 300k.


Could a typical 35yo now, one-earner, with a wife + 3 kids, buy a 300k detached house????

gmisk

JizzBeans wrote: »

If the current generation of first time buyers have spent their 20's doing things like....

1. Traveling the world
2. Spending 3-6 years in college
3. Living in Australia for a couple of years
4. Buying new cars
5. Buying the latest smartphones
6. poor family planning
7. Going on expensive holidays every summer
8. Boozing every weekend
9. Moving out with friends to live the life

Then they shouldn't expect to get mortgage approval in their 30's now because they are "ready to settle down"



Are people really surprised at the recent ERSI report findings? There is nothing inherently wrong with these activities as such, but they are not exactly compatible with saving for a deposit either.


For most ordinary people, home ownership is a long and difficult journey, takes years of planning, saving, sacrifice etc. Its not something you decide to undertake on a whim because your are "getting on".


Cant blame the banks and government for everything, personal responsibility has to play a part, no?

You missed out Avocados!

I think it's more that cost of property has gone through the roof and wages haven't really grown massively, definitely not at rate of inflation.

What was the average wage to average house price ratio when your parents were buying do you think?

Jizique

[Deleted User] wrote: »

Also. Houses were cheaper back then relative to income and people could purchase them younger.

Lower population, emigration and higher rates.
If interest rates were 8%, prices would be a lot lower, but I guess we would not be happy with that either.

Jizique

gmisk wrote: »

You missed out Avocados!

I think it's more that cost of property has gone through the roof and wages haven't really grown massively, definitely not at rate of inflation.

What was the average wage to average house price ratio when your parents were buying do you think?

Irrelevant - rates were a lot higher, so if you want lower house prices, let’s increase interest rates to historical levels (say 8%) and reduce the life expectancy to 75 thereby freeing loads of houses occupied by the elderly; and end immigration

shivermetimber

JizzBeans wrote: »

If the current generation of first time buyers have spent their 20's doing things like....

1. Traveling the world
2. Spending 3-6 years in college
3. Living in Australia for a couple of years
4. Buying new cars
5. Buying the latest smartphones
6. poor family planning
7. Going on expensive holidays every summer
8. Boozing every weekend
9. Moving out with friends to live the life

My folks did literally everything on that list bar 4 and 5 (number 3 was the US but same thing different generation) and they still managed to buy a house in a location of their choosing easily in their late 30's, with 2 kids, and on one civil servant wage.

On the flip side, I only did 2 (education...why is that a bad thing?), 6 (who said holidays have to be expensive?) and 8 (moved out because that's what an adult does right?), worked consistently since, pumped money into rent, saved what I can on mediocre wages and still can't afford to buy a 1 bed apartment within a 50km radius of Dublin. I don't blame the banks, I blame the Government.

Such a nonsense troll post.

So I'm in a position where I will buy in the near future. I'm in my thirties, I earn a pretty high salary. I don't live in Dublin and am planning to buy in a commuter town. I've saved a decent deposit and didn't remotely live life as the OP described. I'm mortgage approved and the reality is that it's still not particularly easy to buy. I'm hoping we have a bubble that's gonna pop cause prices have increased to insane degrees.

Compare this to the fact that 2 decades ago a nurse would be able to buy a new build if they had a deposit saved. And that fact is pretty important, I'm in a lucky position where I earn a fair bit. Meanwhile there are plenty of people who will struggle to buy, they fulfill important roles in society but if they don't marry, they're gonna struggle to buy. We've become more affluent in plenty of ways but plenty in my generation are gonna struggle to ever buy and it's not just because of insane lifestyles.

And none of the above is because of struggling to get mortgage approval. It's just an extraordinarily difficult market to buy in, in plenty of locations outside of Dublin.

Renno123

Very short memories op..
The People you refer to spent their their late teens and 20s in severe recession of up to 15%unemployment.
Don't forget the public sector only removed the hiring freeze a number of years ago.

Housing is unaffordable, not because of smartphones but because of failed government policy.

eviltwin

JizzBeans wrote: »

If the current generation of first time buyers have spent their 20's doing things like....

1. Traveling the world
2. Spending 3-6 years in college
3. Living in Australia for a couple of years
4. Buying new cars
5. Buying the latest smartphones
6. poor family planning
7. Going on expensive holidays every summer
8. Boozing every weekend
9. Moving out with friends to live the life

Then they shouldn't expect to get mortgage approval in their 30's now because they are "ready to settle down"



Are people really surprised at the recent ERSI report findings? There is nothing inherently wrong with these activities as such, but they are not exactly compatible with saving for a deposit either.


For most ordinary people, home ownership is a long and difficult journey, takes years of planning, saving, sacrifice etc. Its not something you decide to undertake on a whim because your are "getting on".


Cant blame the banks and government for everything, personal responsibility has to play a part, no?

My peers and I did everything on your list except the year in Oz and got mortgages. None of us in especially high paying jobs either. The only difference is we bought in the early 2000’s when the deposits were lower and property was bought to live in and not rent. As others have said it’s supply,

JizzBeans

JizzBeans wrote: »

Its no coincidence we have a generation with virtually no savings or pensions for that matter.

That’s because of the high rents, there, jizz.

McGaggs wrote: »

Isn't that the over 40s?

It’s most private sector workers.

The J Stands for Jay

JizzBeans wrote: »

Its no coincidence we have a generation with virtually no savings or pensions for that matter.

Isn't that the over 40s?

KaneToad

The govt has a once in a lifetime opportunity to effect real change with balanced regional development. It has been proven that WFH is entirely possible for huge swathes of the population.

Public sector jobs, where possible, should be WFH or work from hub. Private sector jobs should be encouraged, via tax incentives, to have employees WFH or work from hub. The concentration of all govt depts in Dublin is ridiculous.

Dublin property prices are unobtainable for the majority. We never built appropriate, high density, city dwellings....now Dublin is just a sprawling mess.

gmisk

Jizique wrote: »

Irrelevant - rates were a lot higher, so if you want lower house prices, let’s increase interest rates to historical levels (say 8%) and reduce the life expectancy to 75 thereby freeing loads of houses occupied by the elderly; and end immigration

What I wrote is entirely relevant.
The below is a few years old and its probably even worse now.
https://m.independent.ie/business/personal-finance/property-mortgages/more-difficult-to-buy-a-home-now-than-in-the-1980s-36321280.html

Errr you can't just decide to increase interest rates or lower life expectancy randomly...


I don't have skin the game either to speak. I worked hard saved a lot and bought a house alone in my early 30s in Dublin (I couldn't have afforded the place I got if there wasn't a recession though)

gmisk

KaneToad wrote: »

The govt has a once in a lifetime opportunity to effect real change with balanced regional development. It has been proven that WFH is entirely possible for huge swathes of the population.

Public sector jobs, where possible, should be WFH or work from hub. Private sector jobs should be encouraged, via tax incentives, to have employees WFH or work from hub. The concentration of all govt depts in Dublin is ridiculous.

Dublin property prices are unobtainable for the majority. We never built appropriate, high density, city dwellings....now Dublin is just a sprawling mess.

I agree with you entirely.

But it isn't going to happen with the public sector. It will be a blend for some (like the one I am in).

JizzBeans

shivermetimber wrote: »

My folks did literally everything on that list bar 4 and 5 (number 3 was the US but same thing different generation) and they still managed to buy a house in a location of their choosing easily in their late 30's, with 2 kids, and on one civil servant wage.

On the flip side, I only did 2 (education...why is that a bad thing?), 6 (who said holidays have to be expensive?) and 8 (moved out because that's what an adult does right?), worked consistently since, pumped money into rent, saved what I can on mediocre wages and still can't afford to buy a 1 bed apartment within a 50km radius of Dublin.

Such a nonsense troll post.

Does it have to be Dublin?

shivermetimber

JizzBeans wrote: »

Does it have to be Dublin?

It was used as an example considering that's where my parents bought a 3 bedroom house. According to them they had the pick of locations and choices both sides of the city.

JizzBeans

Purely rent?? Nothing to do with the points I listed out?

KaneToad

gmisk wrote: »

I agree with you entirely.

But it isn't going to happen with the public sector. It will be a blend for some (like the one I am in).

I don't see why they don't give it a try. They thought it was a good idea when doing Charlie McCreevy's decentralisation plan - but they chickened out and only made a half assed effort.

Now they have the tech, the environmental incentive, the real world proof that it can be done, the housing crisis... the new world view of the population (?)

What more could they need to commit to a revolutionary policy that would drastically improve the lives of many.

JizzBeans

shivermetimber wrote: »

It was used as an example consider that is where my parents bought a 3 bedroom house. According to them they had the pick of locations and choices.

But by your own admission, home ownership wasn't a priority in your 20's right? How long have you been saving for a mortgage deposit specifically, do you mind me asking?

JizzBeans

JizzBeans wrote: »

Does it have to be Dublin?

Could you buy in Dublin yourself, or did you spend your 20s galavanting?

mohawk

Starting salaries in many industries have not kept up with the cost of living. I heard a radio interview recently and they said that relatively speaking salaries in the 90’s and 00’s were better then they are now. Combine that with high rents, price of houses compared to median salary and it’s no surprise that younger people are struggling to buy houses.

They may as well enjoy a few avocado toasts. Life is short.

gmisk

KaneToad wrote: »

I don't see why they don't give it a try. They thought it was a good idea when doing Charlie McCreevy's decentralisation plan - but they chickened out and only made a half assed effort.

Now they have the tech, the environmental incentive, the real world proof that it can be done, the housing crisis... the new world view of the population (?)

What more could they need to commit to a revolutionary policy that would drastically improve the lives of many.

Like I said I agree.
But I don't see it happening.

Typical older generation mentality.
'Back in my day you could buy a house for a few thousand pounds and weren't in debt for nearly the rest of your life. Now look at the younger generation. Just because they have to spend close to a grand a month on rent and try and run a car is no excuse'

This country is full of bitter bastards..

shivermetimber

JizzBeans wrote: »

But by your own admission, home ownership wasn't a priority in your 20's right? How long have you been saving for a mortgage deposit specifically, do you mind me asking?

It wasn't because I was a young adult. But I certainly wasn't living a frivolous life. Been trying to save for 6 years now, on an average wage (real world average not median) all the while paying far more in rent then I would on a mortgage repayment.