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Child Item

Can you afford a house?

darkman2

Hi, for ppl (like myself) under 25 the sight of queues for appartments in a Dublin suburb selling for over 1.5 million euro each is a bit devestating to say the least. How the hell are young ppl going to get on the property ladder with such inflation in houses. This is gonna end up in a very sorry mess at some stage when the property marktet crashes. And it will because immigrants, the vast majority of them, cant afford to buy either and were gonna have 1 millon of them in 15 years time:eek: Where are they going to live? On the street? Houses are increasingly looking simply too expensive for most of us. Does anyone else find this is reality?

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Rudolph Claus

the house will be left to me so why should i get a mortgage

As an investment!
Get your folks to hand you the house now, and borrow a mortgage for another house on the security of your current house or something.

blu_sonic

jonny68 wrote:

Not a chance can i afford to buy my own house and not a chance am i gonna commit to a 30+ year mortgage either,talk about a rope around your neck,whenever my old dear dies (i don't mean this in a bad way) the house will be left to me so why should i get a mortgage.

i was gonna say something similar, i'm an only child of devorsed folks so (and i hope not too soon) when one dies i get their house (i'm willed in) otherwise its nothing short of a lotto win.

Rudolph Claus

otherwise its nothing short of a lotto win.

Depends on where the houses are! Crappy estates mightnt do too well.

junkyard

The only houses worth buying here are the ones with wheels under them so we can get out fast once the interest rates start climbing.:)

ST*

blu_sonic wrote:

i was gonna say something similar, i'm an only child of devorsed folks so (and i hope not too soon) when one dies i get their house (i'm willed in)..

I cannot even bear to think of one of my parents dying, let alone what I would 'get' as a result of their deaths. You are 'lucky' you are an only child. My mother is one of 6, and there was bitter disputes between the siblings over what was inherited. I told both of my parents that I dont anything off them, ever - because I seen the damage that was done to my mother and brothers and sisters.

And to answer the OP's question, no I cant afford my own home at the moment, Im studying. 30+ mortgage or not, I'll still try after I finish my degree. I need somewhere to call my own. Long term financial debt doesnt scare me, and Im not about to sit around waiting for someone I love to drop dead.

Diamondmaker

I bought 2.5 years ago off plans. At the time I thought a 300k mortgage would kill me. Now I wish I bought 2!
Buying off plans allows you to spend a year or 2 saving up cash with no mortgage to pay and your property set at a fixed price.
Also hopefully you will be in a better financial situation 2 years on with an old raise or 2 or promotion. Some developments will let you sign contract based on as little as 8k deposit balance on completion.
Its much more palatable to pay rent knowing yours is being built slowly but surely.

whizzbang

When the banks say they are going to sell off all their property and lease it back, it means its a good time to sell.

J

blu_sonic

Shock_treatment wrote:

I cannot even bear to think of one of my parents dying, let alone what I would 'get' as a result of their deaths. You are 'lucky' you are an only child. My mother is one of 6, and there was bitter disputes between the siblings over what was inherited. I told both of my parents that I dont anything off them, ever - because I seen the damage that was done to my mother and brothers and sisters.

And to answer the OP's question, no I cant afford my own home at the moment, Im studying. 30+ mortgage or not, I'll still try after I finish my degree. I need somewhere to call my own. Long term financial debt doesnt scare me, and Im not about to sit around waiting for someone I love to drop dead.

i agree my next door neighbour had the problem of the will being contested. very sad. the house was left vacant and boarded up for about 6years. the reason behind my morbid post is i was talking about wills with my mother, or rather she was with me. not a nice conversation

Flukey

People tell you that they can afford to buy a house and the next thing they do is go out and get a mortgage. If you could afford to buy a house, then you would not need a mortgage. So on that, correct interpretation, very few of us can afford to buy a house.

daveirl

This post has been deleted.

blu_sonic

Flukey wrote:

People tell you that they can afford to buy a house and the next thing they do is go out and get a mortgage. If you could afford to buy a house, then you would not need a mortgage. So on that, correct interpretation, very few of us can afford to buy a house.

i think the O/P means can you afford to take on a mortgage, and hence buy a house. ie. can you keep up the repayments

Flukey

blu_sonic wrote:

i think the O/P means can you afford to take on a mortgage, and hence buy a house. ie. can you keep up the repayments

I know that Blu_sonic, but that is still different than being able to afford to buy a house. If you need a loan to purchase something, then that means you can not afford to buy it yourself out of your own money. In truth, banks buy houses, not people. It is with the money from the bank that people pay for the house, not their own. Then they pay the money to the bank, and an awful lot more besides. So the question should be, and it is a fair and reasonable one: "Can you afford a mortgage?" I am not being petty or pedantic, just correct and factual.

So people, can any of you afford to buy a house or, if not, can any of you afford a mortgage?

blu_sonic

point taken i think that most posters (or at least i did) see that thats what was ment, but your compleatly correct. in effect 95% of people can't afford a house

drdre

nah i cannot afford a house, but when im abit older the prices are going to be mad so i think i will just stay at the family home

Diamondmaker

Example:
Couple friends of mine are renting a 1 bed at 1100 p/m.
If they bought a 2 bed in the same area the mortgage would be about 1400/m (25yr).
Rent the 2nd room for 400 p/m. Mortgage works out cheaper by 100

Allow for first year outlay on furniture and fees etc.

How bust and how quickly does the economy have to go bust to make renting at -1100 per month better than owning at -600/m? with increasinf % of payment going into a savings account known as equity.

say 5 years renting= Effective Loss of 12x1100x5=66,000.

How bad must things get and how likely is it to happen soon, that the above makes more sense than buying???

jonny68

Nuttzy wrote:

As an investment!
Get your folks to hand you the house now, and borrow a mortgage for another house on the security of your current house or something.

No chance mate,anyway there's only my ma in the house and no way would she hand it over or would i ask for that matter,i wouldn't have any problem renting for the forseeable future anyway but im not committing to any mortgage...

daveirl

This post has been deleted.

ronbyrne2005

man A: why are prices going up so fast??
man B :its all supply and demand,theres obviously a massive demand for accomodation.
man A :if theres such a demand for accomodation why havent rents gone up since 2002?
man B: i dont know?
man A: maybe the demand is from people buying just because they think prices will rise,if enough people thought prices would keep rising then prices would keep rising!
man B: ah a bubble!
man A : exactly

The tax man

blu_sonic wrote:

i think the O/P means can you afford to take on a mortgage, and hence buy a house. ie. can you keep up the repayments

Eh..........No!!!!:mad:

whizzbang

I cannot afford to buy anywhere I want to live. Sure I could probably buy somewhere and hour and a half form where I work but I don't want to waste 3 hours a day in the car!

daveirl

This post has been deleted.

whizzbang

daveirl wrote:

This post has been deleted.

I couldn't agree more. I travel 15 minutes to work and 15 minutes back again. I live in a lovely appartment that would probably cost about 500,000 to buy but I get to use it for 575 a month (thats half the rent). I have no exposure to interest rates and I can lose my job tomorrow and not be too pushed about it as I have savings enough to see me throguh to a new job. Why would I want to change this for a house 75 miles form where I work? The cost in petrol alone doesn't bear thinking about!

~Leanne~

I dunno how people could rent someone's else's houses for the rest of thier lives instead of getting on the property ladder??
I would hate to suddenly turn 40 have a kid or two and not have my own house!

whizzbang

~Leanne~ wrote:

I dunno how people could rent someone's else's houses for the rest of thier lives instead of getting on the property ladder??
I would hate to suddenly turn 40 have a kid or two and not have my own house!

millions of europeans do this, its not that big a deal!

I do intend to buy a house at some stage, but I just don't believe the current prices represent good value for money. There are a few options as far as I can see

1) Buy now, take out a mortage that I can only just afford even though interested rates are at historic lows
2) Move abroad and buy a house there
3) Wait for house prices here to fall

I'm going for option 3 as I think its the lowest risk.

If I houses never come down (unlikely given that every other bubble has burst at some time) I will just rent. Its not that big a deal.

J

CodeMonkey

~Leanne~ wrote:

I dunno how people could rent someone's else's houses for the rest of thier lives instead of getting on the property ladder??
I would hate to suddenly turn 40 have a kid or two and not have my own house!

That's probably the kind of thinking that got everyone in this country into a property buying frenzy and driving up the prices

daveirl

This post has been deleted.

whizzbang

I wonder if people are putting money into proerty rather than their pensions? If so they is crazy. I'm in my late 20s and I fully accept that I will probably be working to 70 or 75. I am currently maxing out my PRSA so I'll have a nice bundle of money when I retire.

If people are putting off starting pensions to buy a house then they are essentially condeming themselves to having to sell the house when they retire. The state pension will be worth feck all in 40 years time, even less than today. I would rather my pension was properly manged by a profesisonal rather then having all my eggs in the one basket open to the whims of the property market.

taby_dub

I work in a Estate Agents and to be honest i dont think at the moment the market will crash i do however feel that due to interest rates the market will slow down and prices wont rise as much as the trend for the last few yrs.

People say they cant afford to buy !!Nobody can, yet they can afford to line someone elses pocket paying rent even if it is just renting a room of house in a shared house.

If you and a friend/partner/sibling put your resorces together you could easily get a mortgage between you to buy somewhere ok it might not be the area you want but it a step on the ladder.

EG: Myself and my partner are renting costing 1000 per month between the two of us neither of us have much savings, we need about 30k for deposit/solicitors.
I get money off my father (7k) and i sell my car and buy an older car (5K cash i now have) i have about €2500 savings
Partner get a money off parents (7k) borrowed 9k off credit union after he applied for mortgage and had loan approvel

We wanted to buy in rathmines but couldnt afford it so we bought in crumlin paid €306 last yr and valued at €380

if you really put your mind to it you can do it you can always borrow and work hard for a yr

brown*eyed*girl

I was very very lucky and bought my house over 5 years ago for €115,000 and its worth well over €200,000 now. Just recently got a remortgage and did some major renovations to modernise the house and I'd say its price is gone up again. I bought for the location rather than the house and love the area I'm living in. Its where I was brought up and I have quite a few family members in the same area. Its about 10 mins walk from Waterford city centre which is so handy. My daughter's school is around the corner. It still has a great community spirit about it too which is rare to find these days i.e. my neighbour will bring in my bin when I'm in work. I definiately bought for a home and not an investment but I'm sure my two kids will benefit when I pass away with a decent lump sum each. My Mam bought her house around 15 years ago (same area) for IR£12,500 and its worth I'd say well over €250,000 as it has a massive side garden which you could build a town house on no problem. I hate to think of anything happening to her or my stepdad but I'm an only child and that house will be mine when they pass away. Hopefully it wont be for a long long time though. Prices much cheaper down here in Waterford obviously compared to the capital. Glad I was born and reared down here because I'm very close to my family and if it had've been Dublin I doubt I'd be a home owner myself.

whizzbang

taby_dub wrote:

I work in a Estate Agents and to be honest i dont think at the moment the market will crash i do however feel that due to interest rates the market will slow down and prices wont rise as much as the trend for the last few yrs.

People say they cant afford to buy !!Nobody can, yet they can afford to line someone elses pocket paying rent even if it is just renting a room of house in a shared house.

If you and a friend/partner/sibling put your resorces together you could easily get a mortgage between you to buy somewhere ok it might not be the area you want but it a step on the ladder.

EG: Myself and my partner are renting costing 1000 per month between the two of us neither of us have much savings, we need about 30k for deposit/solicitors.
I get money off my father (7k) and i sell my car and buy an older car (5K cash i now have) i have about €2500 savings
Partner get a money off parents (7k) borrowed 9k off credit union after he applied for mortgage and had loan approvel

We wanted to buy in rathmines but couldnt afford it so we bought in crumlin paid €306 last yr and valued at €380

if you really put your mind to it you can do it you can always borrow and work hard for a yr

Its always interesting to hear the opinion of someone in teh business. Can I ask you how long have you working in an Estate Agents? Have you ever experienced a downward property market during your working lifetime?