10 years, 10 whole years.

daingeanrob · 13-05-2014 10:42AM

10 years of scrimping is only an opinion from the outside looking in, something we all do but rarely realise. working in a nursing home can be very rewarding and you can have a kinda social bond with, in some cases interesting elderly folk and still do you're job with the others who are senile. they sounded like they worked together and had a plan. money doesn't have to be spent to have a good time. they also ate well in a nursing home. fair play to them for earning their new home. Walking to work would be great for me but I'm never up on time/too lazy.

IK09 · 13-05-2014 11:18AM

md23040 wrote: »

Every bank sold this idea in the 1980/1990's with endownment mortages.

Their sale spiel literature showed a big juicy lump sum that could be earned, to educate the kids through university or have that dream lifestyle later in life.

The reality was the polar opposite.

I dont think you understand what I mean, maybe I didnt explain it correctly.

Save a large amount of money, invest it in a product where the annual return is +0.5% of the mortgage capital and interest rate.

The investment return then pays the mortgage. Your capital amount remains, while the mortgage balance is decreasing. This way you tie up your capital while receiving an interest payment, your capital is not used to pay the mortgage, only the interest you earn.

An endowment mortgage is an entirely different animal, where you are only paying the "interest only" amount on the mortgage debt, therefore the amount you owe remains the same, you are just servicing the debt all the time and become liable for the outstanding balance at the end of the term.

snaphook · 13-05-2014 11:23AM

I used to stay in a B&B in dublin for work a few years back (2010).
The receptionist was from Madagascar and was a friendly chap.

He told me he was here to save up to E30,000.
Said he would essentially be a multi millionaire at home with that much savings.

Arthur Beesley · 13-05-2014 11:59AM

enda1 wrote: »

"Buying in cash" doesn't mean arriving at the estate agents with two bags of loot with dollar signs on the side. It's just an expression for buying without credit.

Ahh...that explains it. I was picturing them arriving at the estate agents with bag loads of cash.

13-05-2014 12:31PM

IK09 wrote: »

I dont think you understand what I mean, maybe I didnt explain it correctly.

Save a large amount of money, invest it in a product where the annual return is +0.5% of the mortgage capital and interest rate.

The investment return then pays the mortgage. Your capital amount remains, while the mortgage balance is decreasing. This way you tie up your capital while receiving an interest payment, your capital is not used to pay the mortgage, only the interest you earn.

An endowment mortgage is an entirely different animal, where you are only paying the "interest only" amount on the mortgage debt, therefore the amount you owe remains the same, you are just servicing the debt all the time and become liable for the outstanding balance at the end of the term.

Arbitrage is always great ^^

the_monkey · 13-05-2014 12:32PM

I hate stingey cúnts like that to be honest ... whats the point ?

living in misery for 10 years ?

You think they will all of a sudden start to enjoy themselves ?

no they won't they'll continue to save everything they earn and live like peasants .

let them

IK09 · 13-05-2014 12:59PM

md23040 wrote: »

Capital Repayment plus Standard Variable Rate repayment at 80% LTV requires about 6.29% return yearly. At base of 6.29% plus 50bps would require a guarantee return of 6.79%.

If this ever existed with any product offering 50bps over loan rates, my concerns would not be paying a mortgage but selling the idea to the nearest investment bank and becoming a squillionaire in process.

Understandably in an ideal world, it would be great situaiton to have what your thinking but the reality remains very different.

It currently "half" exist with an Italian solar power investment. Solar21, not currently regulated by the Central Bank, but should be regulated early next year. It is regulated by the Italian Government. They offer 7-8% annual return. No capital guarantee, but realistically, your not going to get a substantial capital guarantee with a return of 7% pa.

iguana · 13-05-2014 01:17PM

Jesus Christ! Who the hell says they lived in misery? Just because they didn't spend loads of money. Personally I couldn't have lived in a box room for ten years but that doesn't mean that they found it miserable just because I would have. They ate well, got plenty of exercise, did jobs that they may well find enjoyable and had the company of the person they loved, all the while working toward a shared goal. Oh yeah bloody miserable that sounds, in bizzaroland! In this world psychological theory tells us that all those things are actually very beneficial to mental health and wellbeing. While spending and consumerism is actually what makes us miserable.

md23040 · 13-05-2014 01:40PM

IK09 wrote: »

It currently "half" exist with an Italian solar power investment. Solar21, not currently regulated by the Central Bank, but should be regulated early next year. It is regulated by the Italian Government. They offer 7-8% annual return. No capital guarantee, but realistically, your not going to get a substantial capital guarantee with a return of 7% pa.

The only guarantees in life are death and taxes. Paper refuses nothing. The emboldened is the rub. All they have to do is give your money back over 4 years then go bankrupt. And the way Italian government change like counters on a slot machine nothing in essence is underwritten or safe.

To get your money back you need 7% return compounded per year for ten years as a definite, then anything after that is a bonus.

Will something in technology be better in 2024 than some solar farm in Italy. Also solar cell retard with time so the investment conversely dimishes proportionally.

partyguinness · 13-05-2014 01:48PM

Remember we are judging their social life by what we do. Just because they were not out partying and generally living the Celtic tiger lifestyle does not mean they felt like they were missing out. They prob never did that anyway.

It would have been easier to do it in Ireland than in Lithuania as less friends etc around. I remember working in the US for 4 months on a J1. I was regularly working 100+ hours per week. To be honest I had nothing else to do.

It was easy as I was still 20 and cldnt really go out. It actually became a challenge as to how much (I was paid hourly and overtime) I could work every week. There was an ongoing competition with a Moroccon guy (who was saving to bring the wife and kids over). I know he always beat me..110+ hours plus per week. As a 20 yr old I was getting $1400- $1500 cheques per week. Had some nice holidays at the end and great memories.

I paid back my loan and I blew it all by Christmas...:(

enda1 · 13-05-2014 01:56PM

partyguinness wrote: »

snip 4 months on a J1 snip

4 months != 10 years :P

partyguinness · 13-05-2014 02:02PM

enda1 wrote: »

4 months != 10 years :P

Ah come on. I know 4 mts is not comparable to 10 years. I was just saying that once you get into a certain mentality it becomes 2nd nature.

Kevhog1988 · 13-05-2014 02:10PM

Im working in the uk with the view of returning home and building a house mortgage free.

Do my full time job, Consultancy on the side, buy & sell online, bit of ducking and diving with second hand cars… Pay £100 a week for apartment all bills included. cook all my own meals, Try to keep cost of living as low was possible. Not sure if this makes me tightfisted or just frugal

Idbatterim · 13-05-2014 02:13PM

I think that's extreme, but whatever you are into! Personally and I see a few on the accommodation forum, I bloody wish I started to put aside, a few thousand a year when I was younger, so much was wasted on socialising (as in it was OTT). Now when we get closer to our thirties or considering buying in general it seems like a lot of people have to go to the opposite extreme, then you have prices constantly rising which is eroding what you are saving at the same time.

A poster put up himself and his gf were on 85k living in Dublin 14, E1200 per month rent and couldnt save virtually anything! Which when you do the figures, isnt too shocking, get that figure in net, knock off E1200 plus bills and other essentials and I could see how if you wanted to live pretty much without sacrifice, that the non existent saving is the sacrifice...

I see the government are preparing to launch a state backed guarantee scheme for FTB on new builds... If it goes ahead, purchasers will only require a 5% deposit.

http://www.independent.ie/business/irish/richard-curran-new-mortgage-scheme-is-taxpayer-subsidised-intervention-in-housing-market-30270000.html

Lou.m · 13-05-2014 02:19PM

joe stodge wrote: »

I was just talking to my neighbour today and he was telling me about a couple who work with his wife.

They are Lithuanian and moved here in 2003. They were already married with no kids, they set themselves up with jobs in a nursing home and rented a box room in a house from one of the nurses who worked there.

They worked every hour under the sun and For 10 years they saved, they spent nothing.

Not for food, they ate in breakfast, lunch and dinner in the nursing home for free, walked to work instead of paying for the bus. no holidays, no luxuries, spending only on the essentials.

10 years of no social life, 10 years of work all to buy a house cash up front.

They bought a house a few months ago with cash, credit where credit is due. Fair play to them.

I couldn't do it, could any of you put yourselves through that for 10 years just to be mortgage free??

I have a fair few eastern european friends and they are all the same.

They make their entertainment and hobbies free. They have a lot of stick to it iveness.

They will go for walks and socialize with people they join drama groups choirs and things like that. Lots of them volunteer up in the DSPCA with me.

I was in a drama group for a while and there were a lot of poles and Estonians. They have friends etc they are just not materialistic. I found them great company.

Larbre34 · 13-05-2014 02:24PM

After 10 years of living like that, theyll be hard pressed to find a friend to show their new home.

No, life is too short, its about the experience as much as the goals. Id rather be out and about, change jobs, travel, learn a few life lessons and maybe gain a bit of wisdom. It really would have killed my spirit to live like they have.

c_man · 13-05-2014 02:47PM

AlanS181824 wrote: »

That's a crazy way to live. What's the point in living if you're not gonna live to the full!

By posting on boards? :P

kuntboy · 13-05-2014 03:13PM

Larbre34 wrote: »

After 10 years of living like that, theyll be hard pressed to find a friend to show their new home.

No, life is too short, its about the experience as much as the goals. Id rather be out and about, change jobs, travel, learn a few life lessons and maybe gain a bit of wisdom. It really would have killed my spirit to live like they have.

But you can congratulate yourself on how smug you are and how much smarter than everyone else and now you can look down on them with ultimate self-satisfied smugness.

And then the government will either:
a) legally seize and sell your house to pay for the property tax
b) force you to sell to pay your old-age care expenses
c) force you to sell to pay for the upcoming "asset tax" to be used to bail out pencil pushing public sector unionised office drone workers lavish wages and gilt-edged, gold-plated pensions, so they can buy their votes and get re-elected to the lavish gravy train and ultimately the European Parliament jobs for the boys for life un-vouched expenses supreme junket at your expense, while laughing all the way to the bank.

IK09 · 13-05-2014 03:16PM

md23040 wrote: »

The only guarantees in life are death and taxes. Paper refuses nothing. The emboldened is the rub. All they have to do is give your money back over 4 years then go bankrupt. And the way Italian government change like counters on a slot machine nothing in essence is underwritten or safe.

I dont really have any preference for regulated and un-regulated products. It really doesnt matter if it has been regulated. Look at the way the central bank regulated investments performed over the last 10 years. Regulation just means approved by, it has no real worth.

As for the Italian Government, they wouldnt have anything to do with whether something is regulated or not. Regulation decisions are made by the regulator i.e. the central bank of the country

Electric Sheep · 13-05-2014 03:16PM

iguana wrote: »

Jesus Christ! Who the hell says they lived in misery? Just because they didn't spend loads of money. Personally I couldn't have lived in a box room for ten years but that doesn't mean that they found it miserable just because I would have. They ate well, got plenty of exercise, did jobs that they may well find enjoyable and had the company of the person they loved, all the while working toward a shared goal. Oh yeah bloody miserable that sounds, in bizzaroland! In this world psychological theory tells us that all those things are actually very beneficial to mental health and wellbeing. While spending and consumerism is actually what makes us miserable.

If they weren't going out getting moldy drunk at least once a week and showing off what they bought, obviously they were living a miserable life by Irish standards.

partyguinness · 13-05-2014 03:41PM

Idbatterim wrote: »

I think that's extreme, but whatever you are into! Personally and I see a few on the accommodation forum, I bloody wish I started to put aside, a few thousand a year when I was younger, so much was wasted on socialising (as in it was OTT). Now when we get closer to our thirties or considering buying in general it seems like a lot of people have to go to the opposite extreme, then you have prices constantly rising which is eroding what you are saving at the same time.

A poster put up himself and his gf were on 85k living in Dublin 14, E1200 per month rent and couldnt save virtually anything! Which when you do the figures, isnt too shocking, get that figure in net, knock off E1200 plus bills and other essentials and I could see how if you wanted to live pretty much without sacrifice, that the non existent saving is the sacrifice...

I see the government are preparing to launch a state backed guarantee scheme for FTB on new builds... If it goes ahead, purchasers will only require a 5% deposit.

http://www.independent.ie/business/irish/richard-curran-new-mortgage-scheme-is-taxpayer-subsidised-intervention-in-housing-market-30270000.html

I was just thinking about the Help to Buy in the UK. I know a lady who is buying a property for £317,500.00 with Help to Buy in the UK

£106,000.00 her own savings...:eek: (she is 29 works as a tax manager with one of the large multinational accountancy firms)
£63,500.00 from the scheme
£148,000.00 mortgage

Now does she really need a £317,500.00 house??

gctest50 · 13-05-2014 03:48PM

Larbre34 wrote: »

After 10 years of living like that, theyll be hard pressed to find a friend to show their new home.....

they will yeah ...

Lou.m wrote: »

They will go for walks and socialize with people they join drama groups choirs and things like that. Lots of them volunteer up in the DSPCA with me.

I was in a drama group for a while and there were a lot of poles and Estonians. They have friends etc they are just not materialistic. I found them great company.

SCOOP 64 · 13-05-2014 03:56PM

I bet they seperate a year after moving into there new house, no goals left, not many friends ,never went out.

WilyCoyote · 13-05-2014 03:57PM

I worked with a fellow in the late 60s. He was a "teaboy" - making tea and cooking steaks in the caravan/canteen. Quiet but a good conversationalist he was happy in his own self. Went to the pub on Sunday for 6 or 8 pints - otherwise read and watched TV. In the mid 70s he asked a mutual friend how he would go about buying a house (mortgage criteria was a little different in those days). The friend told him to bring all his savings to his house and he would take him to meet a Real Estate agent.
He brought two duffle bags. Stuffed! Stg 42,000.
So instead of taking out a loan he bought a house outright. This was in N London. Never married but he liked people so he let a couple of rooms.
Unfortunately, he succumbed to cancer about 10 years ago. But he was a happy guy. Ha came up with a plan and stuck to it.

osarusan · 13-05-2014 04:02PM

Perhaps the OP's friend exaggerated somewhat about their work ethic, lack of friends and general penny-pinching.

SmartShopper · 13-05-2014 04:03PM

joe stodge wrote: »

I was just talking to my neighbour today and he was telling me about a couple who work with his wife.

They are Lithuanian and moved here in 2003. They were already married with no kids, they set themselves up with jobs in a nursing home and rented a box room in a house from one of the nurses who worked there.

They worked every hour under the sun and For 10 years they saved, they spent nothing.

Not for food, they ate in breakfast, lunch and dinner in the nursing home for free, walked to work instead of paying for the bus. no holidays, no luxuries, spending only on the essentials.

10 years of no social life, 10 years of work all to buy a house cash up fr
They bought a house a few months ago with cash, credit where credit is due. Fair play to them.

I couldn't do it, could any of you put yourselves through that for 10 years just to be mortgage free??

You have to admire them, and maybe others could learn from this, that hard work does actually pay off.

Snake · 13-05-2014 04:11PM

So what.. They didn't spend a fortune on stupid things.. They have a house and it's THEIR house they bought with THEIR money that THEY worked for.. 10 years saving is a farsight better than 30 years paying back the bank, if they lose their job no worries, they don't owe money to the bank or to a landlord, they can use whatever's left in their savings while they find a new job, how many people with a mortgage can say that?

diomed · 13-05-2014 04:22PM

The saving and working by the Lithuanian couple makes no sense to Irish people. If we could see their lives before they came here I am sure we would understand.
The other situation is people who remortgaged their house many times, and bundled overspending debt with the remortgage. I think there was something in the Bible about this: wise and foolish virgins, and prodigal sons.

suicide_circus · 13-05-2014 04:31PM

This is extremely common practice in the eastern european community in ireland.
It does sound great in practice but the reality is not all roses.
The towns they leave are bereft of the young go getting entrepreneurs, investment, tax take, infrastructure etc while theyre gone. Communities suffer and degrade so when they return home, things aren't what they were.
They lose touch with friends, family, dont have business cotacts/networks any more.
Ireland aint amazing to live in but it has a hell of a lot more going on than in some crumbling soviet hangover polish town or dirt track village in moldova.
Theyre are a large amount of half built big houses all around EE, their owners burning out their youth in some bedsit in dublin, working minimum wage far away from home.

Permabear · 13-05-2014 04:35PM

This post has been deleted.

10 years, 10 whole years.

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