Have to move home and save. Looking for aditional advice please.

job seeker

Hi all so I must move home and save for a mortgage. I’ve beenrenting the last two years. I’ve paid 400 per month and I am now going to movehome and save this four hundred for a deposit. What else would be a good idea?Would it help the mortgage application if I paid my parents rent? Although Iguess this would be taxed then? Or any other advice that I could do in additionto saving the forty per month?

My partner is also saving 1k permonth. So I know four hundred looks small in the grand scheme of things. Thiswill all be combined. Plus, my 8k I have in savings.

Thanks in advance for anyadvice,

Kindregards,

dory

The rent to your parents won't be taxed. It would be covered under the Rent a Room scheme. And anyone can give someone else €3,000 a year before it's taxed. I would just keep saving as much as you can. The main thing the bank cares about is how big if your deposit. Not that you put it in a deposit account Vs paid rent. So just show it clearly coming out of your account into your savings account every month.

DubCount

If you were to pay rent to our parents, it would not be taxable IMHO.

The banks are interested in your capacity to repay, so establishing that you can save/pay rent in the amount of 1400 per month between you and your partner gives them good comfort that you will be able to repay your mortgage to a similar level.

Make the 400 per month consistent - set up a standing order so that it comes out on the same day every month, just like a mortgage. If you can increase the 400, so much the better. If you are moving back home, will you have less to spend on utilities etc..

Finally, the bank of mum and dad are doing you a big financial favour here. You should at least discuss with them whether you should be contributing to their household when you move back in.

Former Former Former

You would be far better saving the money than paying it to your parents in rent. Pay your way in terms of bills etc but if they are willing to forego rent, then do it.

I understand maybe you don't want to be a sponge but the faster you save a deposit, the faster you move back out. 400 a month is not a huge amount to save when you need probably 30 to 50k.

Rocket_GD

Be aware OP that you will be means tested with an increase in interest rates, saving €1400 a month will only allow you to get roughly a €1200 mortgage.

Save every penny that you can, try reduce all costs and discretionary spending for a couple of years. If you were even able to up it to a combined €1600 you'll have €38,400 in 2 years, along with your €8k already, you'd be in a good position.

the_amazing_raisin

As others have said 400 per month might be a bit low. If it's possible to squeeze a bit extra out then every bit helps. I would be aiming to save the same €1k per month as your partner or as close as possible

I know it's asking a lot of your parents but they might be willing to give up some of your contributions to the bills if it's going to savings. Even an extra 100 will give a bit of headroom

For some context, if you're looking to save €30k between you and your partner then that'll take 20 months at €1500 per month

Unfortunately if house prices continue to rise that'll extend the time you need to save. A 10% increase in 2 years will add 3 months at your current savings rate

Hence why saving more early on can be more beneficial

Dial Hard

https://www.boards.ie/discussion/comment/123636300#Comment_123636300

Pretty sure Rent A Room doesn't apply to adult children living with parents.

Edit: I checked, it doesn't. They still won't be liable for tax though.