Single person on 22k gross income? (Nanny/musician) Getting a mortgage?

GoldenSlumbers · 02-05-2021 10:19PM #1

Hi, just wondering if anyone has any advice for me in regards to my nanny or music work and the possibility of getting a mortgage.

I work part-time nanny (PAYE) for 22k gross a year, I've been working for the same boss for over 2 years. I am also a (self employed) musician, but my costs are higher than my income since I started at the end of 2018 so I can't count it as income yet towards getting a mortgage. Though I have started seeing good earning with some busking and I think I can see a potential for me to start earning good money with house concerts after covid has passed. So I'm hoping I can bring in an additional 5k a year on top of my 22k PAYE income. Which I know is not much, but I'm happy with the way things have been improving and growing.

Now I really want to buy a house in the next 1-2 years (outside of Dublin, don't think I could ever afford near Dublin) but I know that I need to show 2 years of wage slips for my self-employed earnings. And I wonder if they'll frown on my busking income, or will discard these earnings completely.

So part of me thinks I should just get a full time nanny job for a bit. Earn 35k for a while. I assume banks are happy with people with nanny jobs? seeing they're PAYE and generally quite stable jobs. I think for PAYE jobs you only need to show 3 months of wage slips to get a mortgage, so technically I could just do 3 months of a full time nanny job and then move back to a part time nanny position after my mortgage has been approved.

Anyway, I'm rambling, but I just want to know. What can I do? I know I'm eligible for social housing, but I just really want to make it work by just working hard. If anyone has any tips or is in a similar low income bracket please say hi.

confusedeire · 02-05-2021 11:08PM

realistically you'd be looking at a mortgage of 3.5X you gross annual income. rarely they will take into account income not guaranteed. so you'd be looking at an mortgage of 77K plus i minimum deposit of 7.7K.

The income payslips will be required again when it comes to draw down of the mortgage so you'd need to keep it up full time work until the deal is done on the house.

headtheball14 · 02-05-2021 11:24PM

Put your name down for social housing, you don't need to take it up in the event you don't want it. Realistically you will probably need to be near a city to get nanny work and in that case with the salary even 35 thousand you wil struggle to find anything in your budget.
Alternatively would you think of going abroad, say Switzerland. Get a live in position for a few years and save as much as possible .

GoldenSlumbers · 02-05-2021 11:43PM

headtheball14 wrote: »

Put your name down for social housing, you don't need to take it up in the event you don't want it. Realistically you will probably need to be near a city to get nanny work and in that case with the salary even 35 thousand you wil struggle to find anything in your budget.
Alternatively would you think of going abroad, say Switzerland. Get a live in position for a few years and save as much as possible .

thanks. You're probably right, but I'm so not fond of the idea of social housing, I feel scared that people will look down on me if I go down that route.

And do you know while on the social housing waiting list (which can take over 10 years of waiting), can you decline the HAP supplement for helping with rent? I just feel scared mentioning to my future landlord that my rent will be paid out of HAP. but I do think it would be good for me to be on the housing waiting list just in case I'm still unable to buy music 10 years from now.

StupidLikeAFox · 03-05-2021 12:05AM

GoldenSlumbers wrote: »

thanks. You're probably right, but I'm so not fond of the idea of social housing, I feel scared that people will look down on me if I go down that route..

Given your financial circumstances, social housing is your best bet for long term stability. If you are entitled to it then go for it, thats what its there for. You can still save and scheme to buy your own place if home ownership is something you want.

Regards the opinions of other people, don't worry about it. Almost nobody will know about your housing circumstances, and even less will care. Even if, for arguments sake, there was somebody who knew you were in social housing and "looked down on you" for it, **** them and their judgemental opinions. These kinds of people (who may or not even exist) are not the ones that should be dictating your life choices

GoneHome · 03-05-2021 10:00PM

It really depends on where you want to buy/live, I'm living in rural Co Limerick, last Thursday I was talking to the girl that works in our local spar shop in the village. she was telling me she and her boyfriend have recently bought a three bedroom one bathroom 1980s bungalow a mile from the village for €92,000, ready to move into as it is and the cooker, fridge. washing machine were included in the sale, they're a young couple in their 20s and she was telling me of all the plans they have for it once they get a bit of money saved putting in a new kitchen etc. I'm telling you this because this couple wouldn't be on big wages by any means, she works in the local spar and he's works as a labourer with a local builder, so it just shows it can be done.

GoldenSlumbers · 04-05-2021 07:22PM

GoneHome wrote: »

It really depends on where you want to buy/live, I'm living in rural Co Limerick, last Thursday I was talking to the girl that works in our local spar shop in the village. she was telling me she and her boyfriend have recently bought a three bedroom one bathroom 1980s bungalow a mile from the village for €92,000, ready to move into as it is and the cooker, fridge. washing machine were included in the sale, they're a young couple in their 20s and she was telling me of all the plans they have for it once they get a bit of money saved putting in a new kitchen etc. I'm telling you this because this couple wouldn't be on big wages by any means, she works in the local spar and he's works as a labourer with a local builder, so it just shows it can be done.

that's hopeful news. thank you. also do you know does the bank care how much you can save a month? thinking of doing regular savings of 200 or 250 a month, but wondering if it might be deemed too low. I want to get a good record of being able to save. Currently i'm more into saving big lump sums, but not really monthly regular savings.

04-05-2021 07:40PM

GoldenSlumbers wrote: »

thanks. You're probably right, but I'm so not fond of the idea of social housing, I feel scared that people will look down on me if I go down that route.

Are you joking? There's never been a better time to be a social housing tenant. You will generally get a brand new house in a new development, with everything as modern as you can imagine. And once you've lived there for a year, the council will sell the house to you at 50% of it's market rate.

I'm genuinely not having a go, or trying to be funny, but if you can wait it out a few years, you're laughing all the way to the bank.

GoldenSlumbers · 04-05-2021 07:45PM

Deleted User wrote: »

Are you joking? There's never been a better time to be a social housing tenant. You will generally get a brand new house in a new development, with everything as modern as you can imagine. And once you've lived there for a year, the council will sell the house to you at 50% of it's market rate.

I'm genuinely not having a go, or trying to be funny, but if you can wait it out a few years, you're laughing all the way to the bank.

maybe yeah. you're probably right. but thing is I don't want to be deemed as too poor to buy a house, cause I work my butt off. it just sucks a little.

also I think you get offered one house and you have to take it. Or you can decline if it's not suitable and then have to wait another year. I've never seen a council house from the inside or I don't think they specify what neighbourhoods or streets are council homes at. there's one council street near my gaff and I would not want to live there. it's always dirty on that street (though the people are nice) and police wanders around there 24/7 (teenagers are not so nice there). But there must be great council neighbourhoods, I just don't know how to find them.

Anyway, thanks so much for your advice.

Darc19 · 04-05-2021 07:49PM

[Deleted User] wrote: »

Are you joking? There's never been a better time to be a social housing tenant. You will generally get a brand new house in a new development, with everything as modern as you can imagine. And once you've lived there for a year, the council will sell the house to you at 50% of it's market rate.

I'm genuinely not having a go, or trying to be funny, but if you can wait it out a few years, you're laughing all the way to the bank.

I think you've been fed a lot of mis truths and have believed them without question.

As for the op, the banks will want to see regular savings, a good financial record and will look at your career.

A nanny will need to change jobs regularly, so they may look at qualifications and up to a couple of years earnings.

But 35k should get you a €100k mortgage. You won't get 3.5 times because they'll work out your living expenses.

If you get two refusals, you can apply for the rebuilding Ireland homeloan from your local authority. These are 2% fixed interest loans for 25 years

FromADistance · 04-05-2021 08:03PM

Darc19 wrote: »

I think you've been fed a lot of mis truths and have believed them without question.

https://www.gov.ie/en/service/12558-incremental-tenant-purchase-scheme-for-existing-local-authority-houses/

There's no mistruth about the scheme above which I believe KKV is referring to. I never knew this scheme existed. Absolutely shocking. Really takes the p1ss out of people who pay a mortgage for 30 years.

irishrepeat2 · 04-05-2021 08:24PM

FromADistance wrote: »

https://www.gov.ie/en/service/12558-incremental-tenant-purchase-scheme-for-existing-local-authority-houses/

There's no mistruth about the scheme above which I believe KKV is referring to. I never knew this scheme existed. Absolutely shocking. Really takes the p1ss out of people who pay a mortgage for 30 years.

really its as simple as that?

FromADistance · 04-05-2021 08:35PM

irishrepeat2 wrote: »

really its as simple as that?

Probably not entirely straight forward but this article is from 2016 & gives a flavour of what Dublin City Council were looking to offer social tenants - https://www.irishtimes.com/news/social-affairs/council-tenants-may-get-60-discount-to-buy-houses-1.2625578
Nearly half of the housing stock held at the time was offered under the scheme. That being said no one knows how many houses actually changed hands since then.

Darc19 · 04-05-2021 08:41PM

FromADistance wrote: »

https://www.gov.ie/en/service/12558-incremental-tenant-purchase-scheme-for-existing-local-authority-houses/

There's no mistruth about the scheme above which I believe KKV is referring to. I never knew this scheme existed. Absolutely shocking. Really takes the p1ss out of people who pay a mortgage for 30 years.

But you need to read it

If you get a 50% reduction the council takes a charge of 50% if the property and reduces it 2% a year for 25 years.

So it will be 25 years before you earn out your discount

You cannot go onto social housing again.

Works out well for both parties.

In private housing you can get a tax rebate of up to €30,000 and no strings attached.

In previous years you got both a first time buyers grant and interest tax relief. For those who bought in the boom, this was worth up to €50,000.

And for those in-between, you have the rebuilding Ireland homeloan, with a fixed low rate for the term of the mortgage.

The easiest one is the no conditions attached tax rebate open to everyone.

Sheep Shagger · 04-05-2021 08:51PM

FromADistance wrote: »

https://www.gov.ie/en/service/12558-incremental-tenant-purchase-scheme-for-existing-local-authority-houses/

There's no mistruth about the scheme above which I believe KKV is referring to. I never knew this scheme existed. Absolutely shocking. Really takes the p1ss out of people who pay a mortgage for 30 years.

It sounds like the old affordable housing scheme that existed before the crash. Thought they had scrapped ot but perhaps lt was resurrected with the currenr housing crisis.

Buy a place, pay thr MV less discount and you only have to repay that if you ever sell. If its your forever home yiu are laughing.

Why is it not more advertised?

Edit: Seems much more restricted than the old scheme and doesn't look like they are brand new homes? The last bit saying houses transferred from developer to council are not eligible.

FromADistance · 04-05-2021 09:18PM

Darc19 wrote: »

But you need to read it

If you get a 50% reduction the council takes a charge of 50% if the property and reduces it 2% a year for 25 years.

So it will be 25 years before you earn out your discount

You cannot go onto social housing again.

Works out well for both parties.

In private housing you can get a tax rebate of up to €30,000 and no strings attached.

In previous years you got both a first time buyers grant and interest tax relief. For those who bought in the boom, this was worth up to €50,000.

And for those in-between, you have the rebuilding Ireland homeloan, with a fixed low rate for the term of the mortgage.

The easiest one is the no conditions attached tax rebate open to everyone.

I have read it. I am well aware of the various schemes. Either the council is providing social housing or not... I'm paying tax and a mortgage to provide social tenants with the benefit of that discount. All the while, there's still nothing to tackle affordability. The whole system is also completely dscriminatory against single people.

The best one could do in this country is marry young and have as many kids as possible. Get your forever home in Mullen Park or Bay Meadows on the HAP and be practically sorted for life.

04-05-2021 10:27PM

Sheep Shagger wrote: »

The last bit saying houses transferred from developer to council are not eligible.

That's interesting alright. That wasn't there even last year, as far as I know, so that's a new addition. Has to be a second-hand ("used") house, then. Odd rule to add to the scheme.

OP Just has to make sure he accepts a house that's been built already. Not hard done, as most people would be wanting into the new estates, anyway.

timeToLive · 04-05-2021 10:29PM

can I apply for social housing? whats the limitations?

M_Murphy57 · 05-05-2021 06:40AM

Busking and nannying arent particularly stable or well paying long term. Buying in rural limerick doesnt seem a good match for either also.

If you have the option to make 35k as a "full time" nanny great, but again it's not exactly stable given kids grow up so you will need to change jobs every few years.

If you are set on home ownership maybe consider retraining into something with more permanency, stability and a realistic chance of salary inflation over the years? You sound quite young , time is on your side.

I'd look at retraining before resigning myself to a decade long wait for a social housing home.

Dolbhad · 05-05-2021 07:25AM

A friend of mine bought a house by themselves and works as a child minder. They couldn’t get a mortgage from a bank as bank considered child care as not a permanent job as every few years they will need to move job. Only option was rebuilding Ireland. They still had to show they could regularly save and have a deposit.

Because as a single applicant, the mortgage together with deposit was less than 100k. It meant all they could buy was a house that pretty much needs a huge amount of work to make it habitable by the Council’s standard. So they had to show to rebuilding Ireland they had the money to do it on top of the deposit (60k). They were lucky they have builders in the family so can take on that work and can get a gift of family to do the works so they could show the council the money is there. Not everyone has that option.

So it can be done but it’s not easy. Location will be key. You’ll have to see what you can get it your location for around the 3.5x salary

Single person on 22k gross income? (Nanny/musician) Getting a mortgage?

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