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First house

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  • 19-04-2011 9:21am
    #1
    Moneytalks
    Closed Accounts Posts: 27 ✭


    Hi,
    I'm looking to buy a house as a holiday home it will be the first house I have bought I am getting the deposit for it through my credit union I have never got a loan from them before and I am wondering how much I need to have in shares in order to borrow 15,000 and what I will actually need to do to buy a house to the value of 150,000 how much income do I need to have and is there any other fees I need to know about.
    Thanks


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    #2
    JoeyJJ
    Registered Users Posts: 3,663 ✭✭✭JoeyJJ


    Is it 2006? You know you can't borrow the money for a deposit if you intend getting a Mortgage, you need to save the money yourself!

    The days of 100% Mortgages are over.


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    #3
    irlrobins
    Registered Users Posts: 7,544 ✭✭✭irlrobins


    If you need to borrow money to get the deposit to buy a property, then you can afford to buy the property. Period.

    The days of 100% mortgages are long gone. You'd probably need to provide 20% of the purchase price yourself before any bank will give you a mortgage.

    So taking your example of a property at €150,000, you need to have €30,000 saved at least. Saved, not borrowed.


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    #4
    Moneytalks
    Closed Accounts Posts: 27 ✭Moneytalks


    I'm not looking for a full mortgage the deposit is 12800 for 150,000 I have 9,000 in the credit union that I can take and my girlfriend and I earn around 2,700 after taxes ourselves but I wanted to borrow a bit extra from the credit union so I could lightly furnish the house with the basics I need


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    #5
    JoeyJJ
    Registered Users Posts: 3,663 ✭✭✭JoeyJJ


    The absolute minimum you need would be

    Deposit: 12,000 (8%)
    Stamp Duty: 1,500
    Legal Fees: 1,500
    Survey/Valuation 400


    Then add on Furnishings at least 3k, however that would be as your main residence, can't see a bank giving anywhere near 92% for holiday home.


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    #6
    Moneytalks
    Closed Accounts Posts: 27 ✭Moneytalks


    Thanks as it would be the first house I buy the lender would not need to know it was a holiday home would they ?


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    #7
    irlrobins
    Registered Users Posts: 7,544 ✭✭✭irlrobins


    Let's assume the holiday home is fully furnished and requires no further work. Let's also assume that there is no stamp duty or legal fees to pay.

    You still can't borrow for a deposit. The deposit needs to come from your own savings. So you need to save more.

    And then once you add in the cost of furnishing the home, stamp duty and legal fees, you need to save even more.

    Hate to burst your bubble, but you can't afford to buy the holiday home. If you think otherwise, I'd love to hear your thinking!


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    #8
    irlrobins
    Registered Users Posts: 7,544 ✭✭✭irlrobins


    Moneytalks wrote: »
    Thanks as it would be the first house I buy the lender would not need to know it was a holiday home would they ?

    Bank: Where do you currently live and work?
    You: X
    Bank: Where is the house you wish to buy?
    You: Y
    Bank: ????


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    #9
    Moneytalks
    Closed Accounts Posts: 27 ✭Moneytalks


    Thanks for the replies looks like a few more months of saving or maybe what I want to do isn't possible I live in a council house that we were going to buy and then I thought why not buy a house for the summer instead as we like where we live now and only pay 160 a month rent so it would be nice to have another place where we could bring our kids we have around 1500 disposable income per month and 9000 savings if I can't buy a house il buy something else maybe a caravan who knows.
    Thanks


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    #10
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    am I the only one that thinks the idea of buying your first home as a holiday home is off the wall :confused::confused:


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    #11
    irlrobins
    Registered Users Posts: 7,544 ✭✭✭irlrobins


    I think if the council found out you had enough cash to buy a holiday home you'd risk losing your current home or see your rent go up!


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    #12
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    Moneytalks wrote: »
    Thanks for the replies looks like a few more months of saving or maybe what I want to do isn't possible I live in a council house that we were going to buy and then I thought why not buy a house for the summer instead as we like where we live now and only pay 160 a month rent so it would be nice to have another place where we could bring our kids we have around 1500 disposable income per month and 9000 savings if I can't buy a house il buy something else maybe a caravan who knows.
    Thanks

    and this is exactly why this country is in the SH*TTER you have a council house if you have the means to buy a house on your own then you shouldnt be leeching off the state.

    how about you post your name and address on here and I will have a little chat with you local council and see what they make of your plans.

    your a disgrace


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    #13
    JustAddWater
    Closed Accounts Posts: 1,990 ✭✭✭JustAddWater


    Moneytalks wrote: »
    my girlfriend and I earn around 2,700 after taxes
    Moneytalks wrote: »
    I live in a council house and only pay 160 a month rent
    Moneytalks wrote: »
    I'm looking to buy a holiday home

    :eek:


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    #14
    Moneytalks
    Closed Accounts Posts: 27 ✭Moneytalks


    I live and work in Dublin and I'd like to buy in Wexford and my bank is aib


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    #15
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    JustAddWater wrote: »
    :eek:

    exactly if Boards had any social morality they would contact the OPs local council with his IP address to report this thread.


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    #16
    Moneytalks
    Closed Accounts Posts: 27 ✭Moneytalks


    I don't see what the big deal is people can report to whoever they want I'm doing nothing wrong


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    #17
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    Moneytalks wrote: »
    I don't see what the big deal is people can report to whoever they want I'm doing nothing wrong

    so you think somebody earning 2700 a month and can afford by their own view in this thread to buy their own property should be able to take up a much needed soocial housing place and pay less than 200 quid a month whilst more needy people wait on a housing list ?

    you dont think there is something wrong in that situation ? If you dont think your doing anything wrong pm me your details and I will have a chat with your councils housing department and see if they agree with your assertion that your doing nothing wrong.

    somehow i think they will have a differing view on the matter


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    #18
    Moneytalks
    Closed Accounts Posts: 27 ✭Moneytalks


    I don't decide how much the rent rates are I pay what I'm told to pay and if you were in my position what would you do ? Your bitter over something so you sit at home on your computer and take your frustration out on boards on people who are probally better off than you good for you


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    #19
    mjth2004
    Registered Users Posts: 157 ✭✭mjth2004


    I think I smell a troll!


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    #20
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    Moneytalks wrote: »
    I don't decide how much the rent rates are I pay what I'm told to pay and if you were in my position what would you do ? Your bitter over something so you sit at home on your computer and take your frustration out on boards on people who are probally better off than you good for you

    no the council decide on the rates but if your trying to tell me that the council are fully aware of your take home pay and have set your rental at its current rate then quite frankly I dont believe it.

    P.S Your not better off that me buddy I earn significantly more than you, but equally I pay my way in society and dont try and sponge off others.


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    #21
    Moneytalks
    Closed Accounts Posts: 27 ✭Moneytalks


    My girlfriend is a carer for my son so she doesn't pay rent only I do good for you earning more than me great. Sponging off who and in what way ?


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    #22
    pitachu
    Closed Accounts Posts: 55 ✭✭pitachu


    Putting all that aside, and getting back to the original question.

    OP, I am currently, and have been going through this for the last 3 months, applying for a mortgage. You will have to provide documentary proof that you have not borrowed the deposit money (e.g. 6 months bank statements showing the money building up each month).

    We were lucky enough to get a gift from my father and he wrote a letter stating this, but the Bank (in this case AIB) also requested proof that he had not borrowed the money (which he had not).

    So with this in mind, your plan is a complete non-starter.
    Pete


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    #23
    fontanalis
    Closed Accounts Posts: 3,619 ✭✭✭fontanalis


    D3PO wrote: »
    am I the only one that thinks the idea of buying your first home as a holiday home is off the wall :confused::confused:

    Liz O'Kane says no!


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    #24
    Moneytalks
    Closed Accounts Posts: 27 ✭Moneytalks


    Thanks Pete I did not know what was needed I will put my savings into the bank and then save up to the amount I need so they can see it's not borrowed.


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    #25
    Mr. Loverman
    Closed Accounts Posts: 4,001 ✭✭✭Mr. Loverman


    Can't help but think this is a wind up.

    Moneytalk, if you're for real, keep saving as house prices decline. We have years of pain ahead of us, so every month you wait is a couple of grand (seriously) in your pocket.


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    #26
    Moneytalks
    Closed Accounts Posts: 27 ✭Moneytalks


    Its no wind up I have no clue about these kind of matters and was looking for some advice and now that I have it I know what I need to do.


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    #27
    foxy06
    Registered Users Posts: 2,138 ✭✭✭foxy06


    2700 a month and you pay 160 a month rent to council? We have 4 kids take home less than you and pay 700 a month to council so you are full of ****.

    Go wind a clock


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    #28
    djmcr
    Closed Accounts Posts: 237 ✭✭djmcr


    This guy has to be taking the piss


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    #29
    Moneytalks
    Closed Accounts Posts: 27 ✭Moneytalks


    700 rent for a council house and you say im full of **** explain how thanks because they calculate it as 10 percent of your money so it would mean you earn 7000 euro


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    #30
    mscarroll
    Closed Accounts Posts: 3 ✭mscarroll


    I dont know whats going on here i borrowed out of the credit union for my deposit and it was fine as i could afford my mortgage and loan.....glad i didnt ask for help on this, you end up being attacked for asking for advise.


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    #31
    pitachu
    Closed Accounts Posts: 55 ✭✭pitachu


    When was that, if you don't mind me asking?

    Pete


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