Rent

Augeo wrote: »

There was no minimum wage in the 80s.
But I'm sure there are household s on 40k/annum wage incomes managing away nicely today (outside of Dublin etc) with a car & mortgage etc.

Hang on, you think someone on 40k/annum wage can even get a mortgage these days?

My partner and I are on a combined 63k/annum wage and after a very long conversation with several banks and mortgage providers, they all calculated that based on our current spending, which limited purely bills, rent, car loan, and all that other stuff, we're like at a minimum of 15 years before we've secured the required 10% for a mortgage based on current house prices in Cork.

We don't get takeaway more than once a month, never go to the cinema and haven't had a holiday in about 5 years now.

My own mother was able to buy a house in Sheffield for a decent £18,000 in 1987. Having done a google search for that same area and approx housing prices, that same property would cost about £300,000. Even with inflation, that is an insane amount of money. The same can be said for both my aunt and uncle who bought houses in Cork in the 80's.

Augeo wrote: »

No personal accountability for your lack of a deposit?

If you need a bank to tell you it'll take 15 years to save a deposit and ye earn 63k there's some serious spending going on IMO.

All that other stuff is what exactly? I'm mid 30s and only recently got a vehicle on finance and I'm driving (my own car) since I was 18.

I didn't say I had no personal accountability on this. I was hit very hard by the recession and was set back very far. Since then I have worked pretty much every single day and have saved as much as possible.

The reason for the meeting was simple, we did our calculations but wanted a second opinion from a specialist. It was free, and mostly cleared up things for us.

Basically I acted like a responsible adult.

Mrnew wrote: »

so then what class are we cause we are not entitled to medical cards and still paying rent the same as a middle class person. Yes neither of our paths are high earners and I have just changed quite recently, I had a kid young should that mean I just give up and join the scroungers ?

You'd both be better off on the scratcher, getting Hap and all the other benefits. Sit down and add it up. Then work out how much work is costing you.
Financially you're being hammered working.

Unfortunately you are working class. What we class as working class though don't work and never will work.

Geuze wrote: »

Do not confuse a negative cashflow with positive rental profits.

You could well be earning large net rental profits, yet at the same time be cashflow negative.

A lot of accidental ll might confuse the two alright but I wouldn’t call it “large bet rental profit” when in reality your taking a big gamble and working multiple hours a year for potentially 3-5k on paying down the principle.

Sonics2k wrote: »

Hang on, you think someone on 40k/annum wage can even get a mortgage these days?

My partner and I are on a combined 63k/annum wage and after a very long conversation with several banks and mortgage providers, they all calculated that based on our current spending, which limited purely bills, rent, car loan, and all that other stuff, we're like at a minimum of 15 years before we've secured the required 10% for a mortgage based on current house prices in Cork.

We don't get takeaway more than once a month, never go to the cinema and haven't had a holiday in about 5 years now.

My own mother was able to buy a house in Sheffield for a decent £18,000 in 1987. Having done a google search for that same area and approx housing prices, that same property would cost about £300,000. Even with inflation, that is an insane amount of money. The same can be said for both my aunt and uncle who bought houses in Cork in the 80's.

63 combined is actually below the average industrial wage and you should be on circa 90(45k each). That along with the fact you have a car loan can impact a loan application massively. It’s all relative to what your looking for. You could get a 2 bed in cork city for circa 200k or 3/4 bed in satellite towns for the same amount which would bring you up to what you could afford if you had no other outstanding loans and the 20k deposit. People decide to get other niceties in life now such as 1k iPhones or brand new cars and if people really wanted a house like what they would have done many years ago it would mean having a beater car, no holidays, no eating out for a few years. At the end of the day it’s your own responsibility to save or spend your own money. If you look at the accommodation forum, you can see some people endured a few tough years so they could eventually get their dream home and when it pays off, all those years where your watching your friends jet off their the latest holiday was worth it.

Augeo wrote: »

No personal accountability for your lack of a deposit?

If you need a bank to tell you it'll take 15 years to save a deposit and ye earn 63k there's some serious spending going on IMO.

All that other stuff is what exactly? I'm mid 30s and only recently got a vehicle on finance and I'm driving (my own car) since I was 18.

Sorry just on the point of having a deposit.. what do you say to those who have to pay 50 per cent of their Salary on rent alone.? How are they supposed to even dream of making substantial contributions for a deposit?

And bear in mind, even if you had money for deposit, this alone isn't enough.

I would have enough for a property over 250k, but because I earn under 40K and with the mortgage lending dictating you can only borrow 3.5 ( 4.0 at a push) of your yearly income, it means even with a decent deposit, I still fall short of being able to afford a house in my county that isn't a run-down kip.

KevinCavan wrote: »

Fair play to Newstalk and Dr. Ciara Kelly, there was a segment on her show about the current property crisis. They were saying that it will take a few years for the Irish to take to the streets in protest. I’d echo what others have mentioned, the housing issue could well get Fine Gael turned out of office. Leo is totally out of touch.

There have been housing protests -I've been on them. We need more people to come on them!

Augeo wrote: »

Housing protests?
What is the aim of these?
Do ye want
- more social housing for those who don't work?
- cheaper rent for those who do work (tax credit etc etc)
- more affordable housing for workers?
- tax credits for landlords to encourage more folk to rent out properties?
- more private houses being built by developers?

What are ye protesting for exactly?

More social & affordable housing.
Better security of tenure & limits on rent increases for renters

whisky_galore wrote: »

It's those people who feel insulated from the crisis now won't be so smug in a few years with their grown up kids living under their feet.

totally agree - have a few family members who have dismissed my whinging about rent / not being able to get a mortgage who now have kids about to start college - will be very interesting to see their attitude change when they realise that little Johnny & Mary are likely to be living at home for a looooooooooong time.

Augeo wrote: »

Yeah, most college graduates don't house share in their 20s etc etc.
They'll be home forever.
What did you do at college btw?

I'm sensing some hostility here Augeo. I lived at home because it was a short commute.

Augeo wrote: »

Ok, so you didn't plan on buying until you realised long term renting was unsustainable in Ireland. Before that light came on what were your plans for housing yourself in retirement?

that's right yes. I didn't realise rents would go up at such a quick rate and not in line with salary increases.

I though that I could perhaps rent forever, including in old age, with pension, savings, inheritance etc. Naive? Probably.