How can someone in their 30s afford a house - PLEASE READ MOD WARNING IN OP

Little Less Conversation · 10-02-2019 6:52pm #1

I wasn't thinking of the future in my 20s, I was useless at saving and who wants a life long commitment in your 20s. The recession hit in my late 20s and I gave up work to go back to college. Then I spent some time unemployed. I eventually got some work but the pay was horrible. I'm upskilling again because a change in jobs wouldn't have done it.

Just how do people do it. I'm a long way off from getting any kind of a deposit together and even if I can get something, I don't think a bank would even look at me.

I'd be quite happy in a mobile home except you need planning permission for that and the only way you would get granted planning permission for a mobile home is if it's part of a new build and it's used as temporary accommodation.

How are we meant to get our own place?

MOD NOTE

Mod Note

I see we have a few new posters, welcome to Accommodation & Property. Please take a minute to read over the forum charter.

For everyone new and old, please leave out the personal digs/trolling/political soapboxing. We do expect a reasonable standard of posting here in A & P, some of the recent posts are well below reasonable.

Thanks

Dakotabigone · 10-02-2019 6:58pm

A little more action maybe.

Poor Uncle Tom · 10-02-2019 6:59pm

I'm sorry but that just reads like excuses. You know that to qualify for a mortgage you need savings and probably from both applicants, there is no way around it, 100% mortgages are not sustainable, try your local authority get some ideas from them about a starter home, you may also qualify for the Help to Buy scheme.

judeboy101 · 10-02-2019 7:00pm

Marry a farmers son or daughter

Tuco88 · 10-02-2019 7:07pm

Id say joint mortgage is the only hope.

But eh... feck thats another can of worms ðŸ€£

Fiftyfilthy · 10-02-2019 7:35pm

Can be done

I’m a lone parent, work full time and secured a mortgage and sale agreed on an apartment

astrofool · 10-02-2019 7:35pm

Work hard for a few years, save as much as you can, try and get to the average salary, have a partner who also works, then it all becomes manageable.

Don't have a career, can't save, and plan to stay alone, then shared rent or live with parents.

Atlantic Dawn · 10-02-2019 7:39pm

The bigger question is who the feck will be left to pay the far too generous state pensions when normal working people can't afford to live and breed in the country.

Alkers · 10-02-2019 8:02pm

Lived in shared accommodation for a few years while saving a deposit, it's a lot cheaper than trying to rent a house just for yourself and partner. Dave a fixed amount every month, starting small when we weren't really planning anything and then when we had a plan we put everything we had into savings for about 18 monts
Bought when we were 30 & 31.

MSVforever · 10-02-2019 8:03pm

It's possible. You’ll be surprised how much you can save. Obviously it depends on your circumstances.

Are you living in Dublin? Do you live at home with your parents or do you have your own place?

What is your current rent?

What is your net salary?

You can save a lot of money by doing the following:

1. Bring your lunch to work
2. Bring your own coffee to work
3. Don't get takeaways and don't go to restaurants
4. If you drink then don't go to pubs
Have a few drinks at home instead.
5. Quit smoking if applicable.
6. If you live close enough to work then either get a taxsaver ticket or a bicycle
7. Get rid of the car if applicable.
8. Get rid of bill pay phone - pre pay instead
9. Quit gym and workout outdoors instead
10. Go on cheap holidays i.e. camping, air b&b, couch surfing etc
11. Team up with a girlfriend / boyfriend so you can save more and cut utility bills etc

Be frugal for a couple of years and you'll have a deposit in no time.

10-02-2019 8:08pm

Single and in Dublin? Good luck. Other than those 2 things it's doable.

Jack0125 · 10-02-2019 8:16pm

A secondary school teacher said to the wood work class one day...you need to be saving a quarter of your net pay from your first job onwards

Its a good mantra...save from 23 to 30 years 5k a year. 40k deposit.

Cant arrive at 30 with no savings in the bank.

Jack0125 · 10-02-2019 8:16pm

A secondary school teacher said to the wood work class one day...you need to be saving a quarter of your net pay from your first job onwards

Its a good mantra...save from 23 to 30 years 5k a year. 40k deposit.

Cant arrive at 30 with no savings in the bank.

abcabc123123 · 10-02-2019 8:37pm

Buy an apartment, save for a couple of years and trade up?

Moonbeam · 10-02-2019 8:44pm

I took on a 2nd job first in night clubs then doing gig and hotel security,brought my lunch to work every day and lived in shared accomodation.(2005).
I did not have much of a social life and my house is not in my ideal location but it is a nice house and on a train line.
Later on met someone so we bought a bigger place in an area we really liked.

12gauge dave · 10-02-2019 8:45pm

That is what your 20's are for enjoying yourself:)
Dont panic just start saving what you can for 3 years amd see how you are then.
Dont be in a panic to commit yourself to a mortgage its not all its cracked up to be being a homeowner.

10-02-2019 8:47pm

Moved home and cut down on going out every weekend....saved religiously for the past two years and just about to close sale on house.

Nomis21 · 10-02-2019 8:52pm

I came to Ireland 12 years ago at the age of 53 with nothing. I still have nothing but I have had a good time.

You can't take it with you so just enjoy your life and stop getting fixated on house purchasing and a mortgage which will be a ball and chain round your neck for 25 years.

Kidkinobe · 10-02-2019 8:53pm

Jack0125 wrote: »

A secondary school teacher said to the wood work class one day...you need to be saving a quarter of your net pay from your first job onwards

Its a good mantra...save from 23 to 30 years 5k a year. 40k deposit.

Cant arrive at 30 with no savings in the bank.

15 years ago I worked 60 hours a week for 4 months flat and had a 10% deposit for a house within that 4 months. I was mid 30s married with two kids..If I done the same 4 month stint today, under the same conditions and allowing for inflation and house prices, my savings would only amount to 2.5% of the deposit.
Its so much more difficult today and you suggest saving from 23 to 30,that is 7 years of house price inflation, by historical stats, in that 7 years of saving, house prices would have gone up 75%, meaning they need to save near 70k in that 7 years to keep up with inflation/house prices. Count in a child two on the way and its next to impossible to get a home on the current median Irish wage without help from the bank of mum and dad, taking into a account the rule of 3.5 times income for a mortgage.

spurshero · 10-02-2019 8:56pm

MSVforever wrote: »

It's possible. You’ll be surprised how much you can save. Obviously it depends on your circumstances.

Are you living in Dublin? Do you live at home with your parents or do you have your own place?

What is your current rent?

What is your net salary?

You can save a lot of money by doing the following:

1. Bring your lunch to work
2. Bring your own coffee to work
3. Don't get takeaways and don't go to restaurants
4. If you drink then don't go to pubs
Have a few drinks at home instead.
5. Quit smoking if applicable.
6. If you live close enough to work then either get a taxsaver ticket or a bicycle
7. Get rid of the car if applicable.
8. Get rid of bill pay phone - pre pay instead
9. Quit gym and workout outdoors instead
10. Go on cheap holidays i.e. camping, air b&b, couch surfing etc
11. Team up with a girlfriend / boyfriend so you can save more and cut utility bills etc

Be frugal for a couple of years and you'll have a deposit in no time.

Jesus ya may as well be dead ....

bucketybuck · 10-02-2019 9:01pm

Basically the take away from this thread is that if you want to buy a house you need to make it your entire life's focus, give up everything that costs money, work every waking hour and then eventually in the next decade you will have a deposit and can start looking at houses. Though you won't get your dream house, it'll be some apartment or crappy starter home.

Wonderful.

Kidkinobe · 10-02-2019 9:05pm

bucketybuck wrote: »

Basically the take away from this thread is that if you want to buy a house you need to make it your entire life's focus, give up everything that costs money, work every waking hour and then eventually in the next decade you will have a deposit and can start looking at houses. Though you won't get your dream house, it'll be some apartment or crappy starter home.

Wonderful.

Its not really a lottery if you want a place to call your home...the alternative is renting for the rest of your life...Which a few might say they are content with, but in reality, given the chance, Im sure all of them would say that they would love their own bit of turf.

Eric Cartman · 10-02-2019 9:06pm

spurshero wrote: »

Jesus ya may as well be dead ....

and by christ if youre single youre fooked, most of the advice is stay indoors and do nothing and you'd have 0 chance to go out and meet someone , that and having to save twice as hard for the deposit.

the real lesson here is, if youre single, live places that houses cost 100k or under or wait until youre with somebody and the two of you can isolate yourselves completely from the outside world for 6 months-a year in order to just about to afford to live within 1.5 hours rush hour commute of a city.

Yaaaaaayy......

muddle84 · 10-02-2019 9:14pm

Bottom line, you will not get a mortgage without savings so just forget about it until you have savings. All the posts about dramatic changes in lifestyle will only work if you're happy to do that. Budget your wages, if you like a pint or whatever, allow for it in your budget and set a savings Target and stick to it. If you can only save 5k a year or 2k a year so be it go with that and if you get a raise or more money save more. You can still get a mortgage in your 40's so don't be daft regretting anything you done in your 20's and get on with it.

Ursus Horribilis · 10-02-2019 9:20pm

I bought a house when I was single but the saving grace was living outside Dublin. I got the deposit together by living in a house share. Not where I wanted to be after having split from my ex and having had to start again... I'd still be in renting hell if I lived in Dublin and I've a good job. Our capital city is a cold place for anybody single or not on a very good wage.

divillybit · 10-02-2019 9:24pm

I read a book called Irelands House Party by Derek Brawn back in 2008... I was 22 at the time, just started my first job... it focused my mind on saving for a house... I wont get into my circumstances but i had my house paid off when I was 31.. a few things worked in my favour, the main one was not living in Dublin for work.but being in the midlands... cost of living in Dublin is the killer

Wildly Boaring · 10-02-2019 9:37pm

Mid thirties and happily living in a 3 bed bungalow easily commutable from cork or limerick.

It was said earlier but save a bit every year from as early as possible.

I worked through college and managed to graduate at break even..

Straight away (ie during finals) I was driving tractors and milking for a neighbour.

Full time job after that harvest and full time employed since.

Enjoyed my 20s moving about, working and socialising in different spots most years. I've never brought a packed lunch to work and I've spent silly money on cars at different times.

But I always saved a bit. 3 or 4k year 1, repeat, repeat, repeat. My now wife did the same.
That's about 300 a month saved.

After 10 years at 3k a year you'd have 30k. 2 people doing the same have 60k.

As we earned more we saved more. Over 100k saved when we bought, 10 years after I left college.

Eric Cartman · 10-02-2019 9:51pm

divillybit wrote: »

I read a book called Irelands House Party by Derek Brawn back in 2008... I was 22 at the time, just started my first job... it focused my mind on saving for a house... I wont get into my circumstances but i had my house paid off when I was 31.. a few things worked in my favour, the main one was not living in Dublin for work.but being in the midlands... cost of living in Dublin is the killer

See thats where its possible, Ive met a fair few lads on the 'morgage will be paid off before 35' bandwaggon, the one thing in common with all is the house was under 150k,

15k in savings and a 35-40k a year job in the midlands, or outside a city where a pint is still under a 5er and you can live in a house share for 300 a month while saving is very easily doable.

Theres a lot to be said for it, there are many now in dublin on 50-60k , which is solid money who because of splitting a 2 bed apartment for 800 each a month and paying through the nose for everything would struggle to save that 15k for a midlands house, let alone the average of 300k dublin is now commanding.

Colonel Claptrap · 10-02-2019 9:53pm

spurshero wrote: »

Jesus ya may as well be dead ....

I don't think there's anything unreasonable in that list.

Owning a house is not for everybody. Some people are woeful at budgeting, and live pay cheque to pay cheque. Regardless of salary, these people should not be taking out loans. Especially a mortgage.

A friend of mine decided to start saving for a deposit just before christmas. Now it's February and she regularly gets a taxi to work if it's raining, buys her lunch every single day, and in January alone - joined a gym, a separate pilates class, and signed up for a weekly frozen health food delivery service.

She's far too impulsive, and unsurprisingly owes even more on her credit card, and put no money aside for savings.

She cribs and moans about the housing crises and how unfair it is for people like her in their 30's.

listermint · 10-02-2019 9:55pm

Eric Cartman wrote: »

and by christ if youre single youre fooked, most of the advice is stay indoors and do nothing and you'd have 0 chance to go out and meet someone , that and having to save twice as hard for the deposit.

the real lesson here is, if youre single, live places that houses cost 100k or under or wait until youre with somebody and the two of you can isolate yourselves completely from the outside world for 6 months-a year in order to just about to afford to live within 1.5 hours rush hour commute of a city.

Yaaaaaayy......

Most people meet other people through jobs and work.

So errrr no your assertion isn't really accurate.

Yaaaay .

More chance of meeting someone from working

MSVforever · 10-02-2019 10:13pm

spurshero wrote: »

Jesus ya may as well be dead ....

You don't have to do all of this but unless you earn a decent salary you can't have it both ways (speaking from experience ).

Similar to the OP I had zero interest in owning a property in my twentieth. It was all about going to uni, working part time, travelling and getting wasted etc

Once you meet your other half and start having a family your priorities change drastically.

If you live frugal for 3-5 years you still have enough time to enjoy yourself

Moonbeam · 10-02-2019 10:17pm

Eric Cartman wrote: »

and by christ if youre single youre fooked, most of the advice is stay indoors and do nothing and you'd have 0 chance to go out and meet someone , that and having to save twice as hard for the deposit.

the real lesson here is, if youre single, live places that houses cost 100k or under or wait until youre with somebody and the two of you can isolate yourselves completely from the outside world for 6 months-a year in order to just about to afford to live within 1.5 hours rush hour commute of a city.

Yaaaaaayy......

I married one of my tenants;)

Charles Babbage · 10-02-2019 10:32pm

She's far too impulsive, and unsurprisingly owes even more on her nes, credit card, and put no money aside for savings.

She cribs and moans about the housing crises and how unfair it is for people like her in their 30's.

While here is hardship for some, you could have two people in the same job,one manages a deposit while living fine, the other blows all the money on iPhones, lattes, credit card interest and generally the most expensive way of doing everything.

Moonbeam wrote: »

I married one of my tenants;)

#
Does that mean they stop paying rent?

James Bond Junior · 10-02-2019 10:33pm

I did it in my mid twenties. Sold the nice car, cleared my debts and took on extra work. I could have well have done it without the extra work but the biggest advice I would give is budgeting.

Work out your fixed monthly outgoings and send that amount plus 10% into a separate account. Educate yourself on when what comes out and dip into it as each bill needs to be paid. Leave the extra 10% accumulate and if you have an unexpected bill then you have cash set aside. Work out what you can realistically comfortably live on per week and stick to it. If paid monthly, fire it over to the bills account and then "pay" yourself every Friday. Anything you've left from your "weekly pay" fire into your savings. Also plan your meals and do your shopping the day you allow your stipend into your account. Ditto put petrol in the car on that day. What you have left after the essentials is for the pub, stupid purchases etc. It takes a fair bit of self control and discipline but it works especially if you have standing orders. My other half started this system and she remarked after a month or two that she never has as much money for herself as everything was taken care of in advance. I have used this system for years and it has meant I was able to buy my house alone yet never missed out on anything like holidays, a second car, eating out and so on.

Wood · 10-02-2019 11:17pm

Currently single ( fiancé who is a single parent). Had a crap job then got promoted.

Have about 5% of a deposit. Basically begged stole and borrowed to make the 10%.

Still not approved. Mortgage repayments are 40% of current rent.

So to answer your question. I have no idea.

Income is over 100k a year beyween us. Can't get a mortgage for 200k.

muddle84 · 10-02-2019 11:36pm

Wood wrote: »

Currently single ( fiancé who is a single parent). Had a crap job then got promoted.

Have about 5% of a deposit. Basically begged stole and borrowed to make the 10%.

Still not approved. Mortgage repayments are 40% of current rent.

So to answer your question. I have no idea.

Income is over 100k a year beyween us. Can't get a mortgage for 200k.

Why not? If you have your deposit and you earn more than 100k between you and can't get a 200k mortgage then there is something else a miss there? Have you a bad credit rating or a few loans?
Me and my better half are earning over 100k combined and have been approval in principle from 3 different banks from 250k mortgage. No problem, they asked do we not want more!

NIMAN · 10-02-2019 11:37pm

In certain counties, sure.

Dublin?
Cork?
Galway?

Forget about it.

ontheditch2 · 10-02-2019 11:53pm

Living in Cork, lived my best life through my 20s and early 30s.
Got into a relationship and at Christmas last year, decided to start saving for a deposit. Over the course of the year, managed to put away €9k in the year, as did herself. Added that to the €10k she already had and we now have out deposit and recently gone sale agreed.
I'm making below average wage, she is making average wage, between us we are making nearly €80k a year.

Not saying it was easy but it was just being a bit cuter with my spending.
I've never saved until last year, spent my money as it came in. Never turned down a stag/wedding/trip away etc. Spent €6k on a solo trip to the states 3 years ago for 2 weeks.
My life didn't turn to **** once I started saving, was just a bit more prudent with my spending. Only had 1 foreign trip instead of my usual 3 or 4, cut down on eating out and ate at home more etc.
We did it in essentially 2 years, so it is possible. Set up the savings account to take money out of your account as soon as you get paid. Sacrifice a few small things and you will make it work.

Things benefiting us. Paying €700 rent between us, had only 2 weddings, 1 cheap holiday away, not big drinkers, so might only have 1 heavy night a month, no work commuting costs for herself.

In hindsight, if I had my head screwed on a few years earlier, could of saved way more, but would probably end up in the same place.

Set your targets, them start working towards them. I won't say it is easy but it is not as hard as some make out.

jayjay2010 · 11-02-2019 1:13am

I'm a big believer in short time sacrifice for long term pleasure.

When I bought my first place, I sold my car. I reduced the amount of times I went out drinking. I stopped buying clothes and only bought stuff when I needed. I just cut back everywhere I could and I managed to save lots of money within a short period of time. I also asked a friend for a lend of money to help build my deposit. I managed to buy my place and I paid my friend back within a year.

Cutting back actually thought me a lot - I didn't need much to be happy. Since then I have become somewhat of a minimalist, I now only buy what I need and I don't feel an impulse to buy when I see something new. I pay a mortgage and I still manage to save money every month.

It is true that, a lot of people who complain about the rising house prices etc are the same people who drink Starbucks coffee every morning, pay a gym membership that they don't use, have the top Sky TV package and go on holidays whenever they can.

If you really really want to start saving, either you increase your income or reduce your expenses. Reducing expenses is usually the easiest option of the two.

It's all about mindset.

Gimme A Pound · 11-02-2019 1:31am

Poor Uncle Tom wrote: »

I'm sorry but that just reads like excuses. You know that to qualify for a mortgage you need savings and probably from both applicants, there is no way around it, 100% mortgages are not sustainable, try your local authority get some ideas from them about a starter home, you may also qualify for the Help to Buy scheme.

What are the excuses? What you're saying doesn't contradict the sentiment of the post. And they didn't give an indication that they're not single.

abcabc123123 wrote: »

Buy an apartment, save for a couple of years and trade up?

They can't get a mortgage - how can they buy an apartment?!

eviltwin · 11-02-2019 1:39am

If you want to buy a property something has to give. It's always been that way. I bought my house after three years of solid saving, no nights out, no holidays, no expensive treats...yes it was hard but completely worth it to have my own place. I was 25. If I'd had the mindset that my money was for enjoying myself I wouldn't have my own place now. It's all about priorities.

Gimme A Pound · 11-02-2019 1:48am

Now though when house prices are totally crazy, a person in their 30s or 40s, unless also in a relationship (and even then there are no guarantees) or earning a very high salary (and given the limited window they have left for the duration of a mortgage repayment plan) doesn't have a great chance.

Local authority affordable housing scheme is probably the best bet.

Ursus Horribilis · 11-02-2019 1:58am

It depends where they live. Dublin is an utter basket as are some of the other cities. And with the way things are going, they'll not have to be retired at 65.

11-02-2019 8:22am

Wood wrote: »

Currently single ( fiancé who is a single parent). Had a crap job then got promoted.

Have about 5% of a deposit. Basically begged stole and borrowed to make the 10%.

Still not approved. Mortgage repayments are 40% of current rent.

So to answer your question. I have no idea.

Income is over 100k a year beyween us. Can't get a mortgage for 200k.

If you have your deposit saved and you earn combined over 100k per year and you can't get mortgage approval then there's something you're not telling us.

Addle · 11-02-2019 8:33am

Agree, short term pain for long term gain.

How will you pay rent in your 70s/80s?

Wanderer78 · 11-02-2019 8:47am

Addle wrote:

How will you pay rent in your 70s/80s?

Don't be surprised if inter-generational mortgages appear on these shores, what a mess our housing market has become

Eric Cartman · 11-02-2019 10:22am

Zaiden Brief Upholstery wrote: »

If you have your deposit saved and you earn combined over 100k per year and you can't get mortgage approval then there's something you're not telling us.

No credit is a possibility. Theres some people who are really good at squirriling away money in a savings account who have never had even a credit card that banks are weary about lending to

Creamy Goodness · 11-02-2019 10:44am

Eric Cartman wrote: »

No credit is a possibility. Theres some people who are really good at squirriling away money in a savings account who have never had even a credit card that banks are weary about lending to

the banks don't seriously take credit cards into consideration unless you're terrible at paying them off. as an aside I'm in the camp of "paying a single cent in interest" is the day I cut up my credit card camp.

It's more likely that the issue here is their discretionary income is falling below the banks thresholds, be that existing loans they may have, bad credit history of previous loans, creche fees etc. Or it could be that they are both relatively new sole-traders where the banks are a lot stricter on. There's 101 different things it could be... the main point is there's something they're not telling in the posts for whatever reasons.

Pussyhands · 11-02-2019 10:55am

I think it's not as difficult as many make it seem.

I'm on under the average salary, have been working for 6 years at probably an average of 35k and I have 70k in my current account, have thrown away 1k on bitcoin, bought a decent car for nearly 10k, and currently have 1.5k in stocks and I have bought some expensive items too.

My rent is probably 2k a year lower than market rates but even then I'd still have 58k. I do house share which I think is normal at my age. House sharing is normal in your 20's if you're single, and it's not just something that happened during the housing shortage. I see people talking as if people sharing in their 20's is some awful effect of the housing crisis.

If I was living on my own, it would probably cost me close to 10k more a year. That's 60k of my 70k gone.

I honestly don't know what some people spend their money on as I'd struggle to spend all my salary in a month if I tried.

GingerLily · 11-02-2019 10:59am

Eric Cartman wrote: »

Zaiden Brief Upholstery wrote: »

If you have your deposit saved and you earn combined over 100k per year and you can't get mortgage approval then there's something you're not telling us.

No credit is a possibility. Theres some people who are really good at squirriling away money in a savings account who have never had even a credit card that banks are weary about lending to

Not in Ireland, if you've evidence that you save regularly and in good amounts then the banks will be interested. Having a healthy CC helps but banks here don't follow the US/UK credit rating system so you don't need a history of borrowing.

witchgirl26 · 11-02-2019 11:04am

Honestly I saved feck all during my 20's. Way too interested in enjoying myself. I'd have a small amount saved but would end up using for for something like a car or holidays. Towards the start of my 30's, I realised that had to change so I started saving small amounts each month and then increased the amount every few months. Was it tough - course it was! It's not easy to get something you want. That said by 33 I was able to afford a sizeable house with my other half with the full deposit between us (not using HTB) and get approved for a mortgage. I'm not being a matyr here but if you want something, you're going to have to give up other things. And during this time, my OH retrained and switched career into something completely different. It takes a bit of effort, course, but worth it now. Mortgage is not too mad per month and still have income to save/spend afterwards.

How can someone in their 30s afford a house - PLEASE READ MOD WARNING IN OP

Comments