Have a lot of money. Don't know what to do with it.

LegacyUser · 15-01-2019 9:28pm #1

I know this is going to sound ridiculous and most people would love to be able to complain about not knowing what to do with money. But I'm just kinda looking for advice.

I'm 27. Single. Live with parents.
Been working for several years now and spent the last 2 in a job that looks like its going to be a job for life.
I've a nice car. Have regular holidays. Lots of disposable income.
I've €30k in total in savings.

I was trying to get a mortgage last year but I can't get approved for enough money to be able to afford a house purchase. Most I'm able to get is €80k from bank. And the housing market is desperate at the moment.

I don't know what to do with my money/life. I don't want to live with my parents any longer, especially as I approach 30. Houses/apartment purchases are out of my reach.
I don't want to rent as there is a big shortage and most places are overpriced and poor condition. I can live and save much more comfortably with my parents.

But I mean, how much more am I going to save up before doing something with my life?
Am I going to save up another 20-30k before I'll be able to afford a small place.
Should I just suck it up and try move onto a rental market and be unhappy with my living arrangements?

Am I being immature?

Rubberchikken · 15-01-2019 11:03pm

can you increase your savings?
do you want a particular house? if you were interested you could buy a do-it-up for a lot less than the more ready to move into types.

D3V!L · 15-01-2019 11:06pm

Whats the personal exactly ?

James Bond Junior · 15-01-2019 11:10pm

I don't understand how you've €30k in savings and a good enough wage to have a good lifestyle yet you can't get a mortgage. Where are you and what is your gross wage? Trying to draw the dots here.

The_Honeybadger · 15-01-2019 11:12pm

James Bond Junior wrote: »

I don't understand how you've €30k in savings and a good enough wage to have a good lifestyle yet you can't get a mortgage. Where are you and what is your gross wage? Trying to draw the dots here.

Was just about to post the same question. Makes no sense at all.

Ursus Horribilis · 15-01-2019 11:13pm

Can you come back and clarify if that €80k you mention is the correct amount and not a typo? Because if it is and it's 3.5 times your salary, you probably need to look into upskilling.

eurokev · 15-01-2019 11:14pm

It's not really a lot of money.

Id probably just keep saving, my wife would probably want to get work done on a house. My brother would probably spend it on a car, my sister would probably travel with it, my buddy would probably, drink snort and ride it.

In short - do whatever you want with it. Everyone is different and can't answer it for you

lawred2 · 15-01-2019 11:22pm

30k isn't a lot of money

80k loan offer makes little sense - that would point to a mid twenties salary.. if so you'll not go very far with that.

It's easy to have savings and holidays when living at home with Mum and Dad.

The bank will see a 27 year old on twenty something a year who has little in the way of outgoings. Owning and maintaining property is expensive. Much more expensive than just the mortgage repayment.

LegacyUser · 15-01-2019 11:52pm

I earn €30k per year, but also make approx 10-15k per year on overtime but its not guarantee'd so the bank only look at me making 30k. 3.5 times that is 105 but they say oh you have to pay 25k of that out of your deposit so we'll only give you 80.
2 other banks basically told me no point in applying because i'd be rejected.

As I said I've been saving for years so thats how I built up 30k.

The banks were all really hesitant. Yeah I know its 3.5 times my wage but theycome back with really ****e offers like 80k-90k.
I can't find anywhere in the price range of 120~k that looks reasonable or in a suitable place for me to live in relation to work.

I really don't want to go back to education. There's options for career progression within my job presently and my pay will increase.

I just feel kind of bummed out that there housing market is so dire and scarce and overpriced.
Should I just buy a small wrecked house worth what the bank will give me and spend several years doing it up and perhaps not moving into it for some time.
would that be the mature thing to do rather than sitting on my cash and moping?

pwurple · 16-01-2019 12:19am

nice car, lots of holidays = spending it like water. Is it your net disposable bringing you down on the mortgage approval by any chance? How many monthly bills have you? Car loan? Big phone contract? Netflix? Betting account?

What’s your pension look like?

Move that disposable right out of your own reach.

JayRoc · 16-01-2019 12:22am

30,000 euro = not a lot of money. Boards

The_Honeybadger · 16-01-2019 12:26am

JayRoc wrote: »

30,000 euro = not a lot of money. Boards

30k is a lot of money to a lad in his twenties with no commitments but if you’re talking about buying a house it’s not really that much. It’s not as if he’s set up for life.

jarvis · 16-01-2019 12:35am

The_Honeybadger wrote: »

30k is a lot of money to a lad in his twenties with no commitments but if you’re talking about buying a house it’s not really that much. It’s not as if he’s set up for life.

He’s 27!! Not 17. A man of 27 aiming to obtain a mortgage should know well that €30k isn’t a huge amount of money. I genuinely thought this was an after hours post.

Brego888 · 16-01-2019 1:02am

Just keep saving. It you can't afford a place you want now than just save for another few years. How much are you saving a month? Increase it.

The_Honeybadger · 16-01-2019 1:07am

stagnant wrote: »

I earn €30k per year, but also make approx 10-15k per year on overtime but its not guarantee'd so the bank only look at me making 30k. 3.5 times that is 105 but they say oh you have to pay 25k of that out of your deposit so we'll only give you 80.
2 other banks basically told me no point in applying because i'd be rejected.

As I said I've been saving for years so thats how I built up 30k.

The banks were all really hesitant. Yeah I know its 3.5 times my wage but theycome back with really ****e offers like 80k-90k.
I can't find anywhere in the price range of 120~k that looks reasonable or in a suitable place for me to live in relation to work.

I really don't want to go back to education. There's options for career progression within my job presently and my pay will increase.

I just feel kind of bummed out that there housing market is so dire and scarce and overpriced.
Should I just buy a small wrecked house worth what the bank will give me and spend several years doing it up and perhaps not moving into it for some time.
would that be the mature thing to do rather than sitting on my cash and moping?

OP it sounds like you are in a reasonable position but it’s honestly nothing exceptional. If you are enjoying life then I know it’s boring advice but keep doing what you are doing until you can afford to buy a house and move out or else move in to a house share to gain some independence from your parents. You can’t afford a mortgage for the house you want for now.

The housing market assumes two salaries generally speaking nowadays, it’s hard on single people like yourself.

unattendedbag · 16-01-2019 2:25am

The_Honeybadger wrote: »

The housing market assumes two salaries generally speaking nowadays, it’s hard on single people like yourself.

+1 on this. You are competing against couples with twice your income and the same deposit.

I'd you really want your own place then take advantage of living at home for now and save like crazy. Every euro you save is less you have to borrow and pay interest on.

In a few years you may have the opportunity to move in with a partner or get a place together.

lalababa · 16-01-2019 3:12am

stagnant wrote: »

I earn €30k per year, but also make approx 10-15k per year on overtime but its not guarantee'd so the bank only look at me making 30k. 3.5 times that is 105 but they say oh you have to pay 25k of that out of your deposit so we'll only give you 80.
2 other banks basically told me no point in applying because i'd be rejected.

As I said I've been saving for years so thats how I built up 30k.

The banks were all really hesitant. Yeah I know its 3.5 times my wage but theycome back with really ****e offers like 80k-90k.
I can't find anywhere in the price range of 120~k that looks reasonable or in a suitable place for me to live in relation to work.

I really don't want to go back to education. There's options for career progression within my job presently and my pay will increase.

I just feel kind of bummed out that there housing market is so dire and scarce and overpriced.
Should I just buy a small wrecked house worth what the bank will give me and spend several years doing it up and perhaps not moving into it for some time.
would that be the mature thing to do rather than sitting on my cash and moping?

I'd look into that kinda plan, it would get rid of your savings which seem to be burning a hole in your pocket. It would give you a hobbies kind of thing to be upgrading the house AND it would give you a goal and direction in becoming independent/moving on in your life. They say a change is as good as a rest!

lawred2 · 16-01-2019 9:29am

JayRoc wrote: »

30,000 euro = not a lot of money. Boards

Plenty for a lad living with his folks

Not much when it comes to buying and maintaining a home on your own

OP needs to save more.

Little Less Conversation · 16-01-2019 11:41am

There's a scheme where if you get rejected by two banks you can apply to your local council for a mortgage. There's a few other things to meet like having a deposit but it seems like you would meet the criteria. Look into it.

baby and crumble · 16-01-2019 12:09pm

I've been where the OP is - when I was younger I had a really well paying job; or at least i thought it was at the time when I was living at home, paying only a little bit to my folks towards my share of food etc. I was able to go on weekend city breaks, eat out whenever i wanted to, treat my friends etc.

But in reality, OP, a salary of 30k isn't huge; the average yearly wage (before tax etc) in the ICT sector is €54k. If you average it out over all employees across all sectors, your 30k is still below average (ref for this here, btw). Obviously your 10-15k in overtime pushes you to quite a good wage but tbh you might as well forget about that for mortgage purposes, you said yourself the bank can't take that into consideration for a mortgage.

I'm not saying this to crap all over your earnings. You're on a decent wage for someone in their 20's with no dependents and without many outgoings (food, rent, bills etc) since you live at home. And you've done really well to save what you have up to now, that's super impressive, well done.

But honestly now you have the info that you simply won't get a sufficient mortgage to buy a house you want at your salary and with your existing savings. You can moan about it all you won't but it won't change facts. So you now need to adjust your approach.

1) Get a different job with a higher guaranteed salary, to get around that issue.
2) Cut out most of the extras like having a few holidays a year etc and put your 'loads of disposable income' into savings. Build that up and you won't need as high a mortgage. TBH if you're pulling in €45k a year after overtime whilst living at home you should be able to put away €1k+ a month into savings easily.
3) Decide to try renting for a while. It'll eat into your money, but you'd at least get a taste of real independence.
4) Buy a fixer-upper of a house and get stuck in to renovating it on your budget, as you go.

basically you have to cut your cloth to meet your measure.

determinedlass · 16-01-2019 5:32pm

+1 - great advice from Baby and Crumble. 30k is not a lot. You've had enough of still living at home at 27, so now it's time to rent or buy.

You should definitely be able to save about 1000e a month, living at home. I managed to save more than that when I was renting (rent was e540) and on your wage (circa e45,000 at the time). I still went on holidays , but I didn't drink, bought clothes second hand and went for coffees with friends instead of meals out etc!

You may feel comfortable living at home, but it's a false comfort - time to get out and get living!

James Bond Junior · 16-01-2019 8:35pm

If you are earning 30k then the most you can borrow is 3.5 times that which is 105k. I would imagine being single is your issue as you are probably failing their stress tests. Could you look into buying with a sibling?

Floricwil · 16-01-2019 9:42pm

Little Less Conversation wrote: »

There's a scheme where if you get rejected by two banks you can apply to your local council for a mortgage. There's a few other things to meet like having a deposit but it seems like you would meet the criteria. Look into it.

This is true. Its called the Rebuilding Ireland Homeloan Scheme. If you earn under 50k as a single person, you should qualify. They will give you up to about 5 times your salary - much more than the 3.5 times the bank offers.
You should look into this.

What part of the country are you looking to rent / buy in?

LegacyUser · 16-01-2019 10:26pm

Hi OP,

I was always a good saver. When I got to 30, I had all this money (about 30k). Didnt know what to do with it. I did not want to buy a house. I wasnt ready. Banks would have laughed at me anyways.

I also didnt want to rent. So, I did stay at home for about 5 years (It's a big house, and me and parents got on well).

I decided I was going to buy a brand new car for myself, while still saving. It would also show my ability to repay a loan. I paid 10k for the car myself. And got a 5k loan. I did that (I still have this car). Then decided that I was going to enjoy life. I went off on long holidays and doing interesting things. And going out a lot etc. I reckoned my time would come.

Mid 30s, I got a promotion. Which enabled me to seriously consider a mortgage. Then I happened to inherit a plot of land. Currently, am building.

I get that people want their own stuff and place. We (as Irish) seem obsessed to own something. What I also dont get is the urgency and the "want it now" attitude people have adopted. Same with jobs. I just dont get it. Would ye not prefer to enjoy the ride? To me sometimes its like throwing toys out of a pram.

Youre late 20s for goodness sake. Enjoy your life!

lawred2 · 17-01-2019 7:52am

houseywousey wrote: »

Hi OP,

I was always a good saver. When I got to 30, I had all this money (about 30k). Didnt know what to do with it. I did not want to buy a house. I wasnt ready. Banks would have laughed at me anyways.

I also didnt want to rent. So, I did stay at home for about 5 years (It's a big house, and me and parents got on well).

I decided I was going to buy a brand new car for myself, while still saving. It would also show my ability to repay a loan. I paid 10k for the car myself. And got a 5k loan. I did that (I still have this car). Then decided that I was going to enjoy life. I went off on long holidays and doing interesting things. And going out a lot etc. I reckoned my time would come.

Mid 30s, I got a promotion. Which enabled me to seriously consider a mortgage. Then I happened to inherit a plot of land. Currently, am building.

I get that people want their own stuff and place. We (as Irish) seem obsessed to own something. What I also dont get is the urgency and the "want it now" attitude people have adopted. Same with jobs. I just dont get it. Would ye not prefer to enjoy the ride? To me sometimes its like throwing toys out of a pram.

Youre late 20s for goodness sake. Enjoy your life!

Yeah but most people don't get the choice to live at home nor get gifts of free land to build their mcmansions on..

Hannibal_Smith · 17-01-2019 8:28am

Look at Rebuilding Ireland. They are local authority mortgages targeted at people on lower incomes who are unable to get loan approval. I think one of the criteria is that you need to have been refused loan offer from 2 different banks and for a single person your income has to be less than 50k. Look it up anyhow. See if it's something that would suit you.

LegacyUser · 17-01-2019 4:28pm

houseywousey wrote: »

Hi OP,

I was always a good saver. When I got to 30, I had all this money (about 30k). Didnt know what to do with it. I did not want to buy a house. I wasnt ready. Banks would have laughed at me anyways.

I also didnt want to rent. So, I did stay at home for about 5 years (It's a big house, and me and parents got on well).

I decided I was going to buy a brand new car for myself, while still saving. It would also show my ability to repay a loan. I paid 10k for the car myself. And got a 5k loan. I did that (I still have this car). Then decided that I was going to enjoy life. I went off on long holidays and doing interesting things. And going out a lot etc. I reckoned my time would come.

Mid 30s, I got a promotion. Which enabled me to seriously consider a mortgage. Then I happened to inherit a plot of land. Currently, am building.

I get that people want their own stuff and place. We (as Irish) seem obsessed to own something. What I also dont get is the urgency and the "want it now" attitude people have adopted. Same with jobs. I just dont get it. Would ye not prefer to enjoy the ride? To me sometimes its like throwing toys out of a pram.

Youre late 20s for goodness sake. Enjoy your life!

Someone who was literally gifted their entire life through pure luck (being able to stay at home until their thirties, inheriting a plot of land) is calling other people spoiled? Absolutely hilarious. Most people don't have the option to stay at home past 18, either because of family problems or because they have to move for work. Most people don't get given plots of land for free. Maybe if you'd spent over a decade paying 600+ euros plus bills to rent a ****ty room in a house, sharing with flatmates into your thirties, you'd also have a 'want it now' attitude towards buying a home and gaining some quality of life.

LegacyUser · 17-01-2019 8:47pm

Lolsssss Do ye want me to feel bad/apologise for hurting feelings for having a good job that (over time) I worked hard for and inheriting a piece of land?
Not a chance. Get real.

I saw living at home as an opportunity. It afforded me another opportunity.

Some people out there might not see it like that, or have parents to rely on. I was addressing the OP who is in a similar situation. I can identify with him on that.

OP - Achieving dreams can take time and other opportunities will arise. Enjoy life until they come along.

/over and out from my big mansion.

LegacyUser · 17-01-2019 11:56pm

houseywousey wrote: »

Hi OP,

I was always a good saver. When I got to 30, I had all this money (about 30k). Didnt know what to do with it. I did not want to buy a house. I wasnt ready. Banks would have laughed at me anyways.

I also didnt want to rent. So, I did stay at home for about 5 years (It's a big house, and me and parents got on well).

I decided I was going to buy a brand new car for myself, while still saving. It would also show my ability to repay a loan. I paid 10k for the car myself. And got a 5k loan. I did that (I still have this car). Then decided that I was going to enjoy life. I went off on long holidays and doing interesting things. And going out a lot etc. I reckoned my time would come.

Mid 30s, I got a promotion. Which enabled me to seriously consider a mortgage. Then I happened to inherit a plot of land. Currently, am building.

I get that people want their own stuff and place. We (as Irish) seem obsessed to own something. What I also dont get is the urgency and the "want it now" attitude people have adopted. Same with jobs. I just dont get it. Would ye not prefer to enjoy the ride? To me sometimes its like throwing toys out of a pram.

Youre late 20s for goodness sake. Enjoy your life!

OP I think that is terrible advice. You have 10 or 15 years in your 20's early 30's when you can literally move mountains , after that you start to slow a bit. Earn as much as you can and save save. I know that the interest on deposits is terrible and DIRT on top but if you can get set up early in life, you are made for the rest of it. If you can get over the hurdle of getting a place of your own you will be able to rent out a room for a while to pay the bills - completely tax free! Then you can have all the nice things , cars holidays etc. Believe me been there and I am so glad I got my housing sorted when I was young I was mortgage free at 38 and have done all the fun things since then .

LegacyUser · 18-01-2019 10:03am

Another Guest wrote: »

Then you can have all the nice things , cars holidays etc. Believe me been there and I am so glad I got my housing sorted when I was young I was mortgage free at 38 and have done all the fun things since then .

Great its worked for you but equally if you put off actually living your life you could end up with an injury or illness that hampers things. Life is too short and obsession we have in this country in buying a house is mind boggling. OP I was doing the same as you in my mid 20s when my dad in his late 40s just dropped dead. To say it was a wake up call is an understatement. I got out of my comfort zone, spent several years travelling. Came home broke and panicked for a second till I looked around at friends stuck in their negative equity flats they bought while single but now married with kids crammed into tiny spaces with massive commutes as they changed jobs since buying flat. I'd gained loads of experience and more importantly confidence pushing myself out there and got a much higher paying job I love, solid savings now and partner that we are looking to buy somewhere we want together and am excited about finding a home which I never was before as I know its out home rather then just buying a property cus it was the done thing.

If owning a flat is what you want then go for it but ask yourself why - is it just because it's the done thing? What happens if you met someone or you get a job that means moving etc etc Renting out an apartment is not as easy as it sounds - just go look in the accommodation board on here and see the amount of accidental landlords struggling.

Pelvis · 18-01-2019 12:10pm

OP, you might want to re-evaluate your situation. You're not in as good a position as you think you are. You have savings, a nice car, regular holidays and lot of disposable cash because you live with you parents, who are subsidising your lifestyle. You can stay home, save, and have your mam wash your clothes, or you can be a grown up, move out, pay your own bills and rent and learn a valuable lesson on the value of money. If you're smart with your money and you're getting your 45k a year, you can still save while living independently.

Have a lot of money. Don't know what to do with it.

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