Boards.ie uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Click here to find out more x
Post Reply  
 
 
Thread Tools Search this Thread
30-06-2020, 10:06   #166
Eric Cartman
Registered User
 
Eric Cartman's Avatar
 
Join Date: Sep 2007
Posts: 23,704
Quote:
Originally Posted by ELM327 View Post
Like in '08 and before, I saw ads for 100% mortgages and it was relatively common to get 4X,5X + in LTI
In summer 2008 I was 18, in a job 2 months , on 32k a year and remember going in to the bank looking for a 500 euro credit card so I could start building a credit rating.

While there the mortgage advisor offered me a 102% mortgage "you'll have AIP by the morning" for 190k , no money down with the 2% back in cash after 30 days to buy furniture etc..

I could tell this was a terrible idea even at 18. I suspect many weren't as clued in.
Eric Cartman is online now  
(2) thanks from:
Advertisement
30-06-2020, 10:21   #167
 
Join Date: Jun 2020
Posts: 85
Very easily outside Dublin.

I have a house and on 45K. Paid 150 for it.

Friend of mine on 37K bought an apartment for 140K.

I could probably get an extra 20K if I moved to Dublin but couldn't be bothered moving back to that hole.
lickalot is offline  
(2) thanks from:
30-06-2020, 11:16   #168
Augeo
Registered User
 
Join Date: Jul 2014
Posts: 14,896
Quote:
Originally Posted by Eric Cartman View Post
In summer 2008 .................
While there the mortgage advisor offered me a 102% mortgage "you'll have AIP by the morning" for 190k , no money down with the 2% back in cash after 30 days to buy furniture etc.. .............
Summer 2008 was quite grim economically........ I'm surprised 6 times income and 100% mortgages were being offered tbh.

https://www.irishexaminer.com/irelan...008-81882.html

Auctioneers in Leinster reported a massive 32% of jobs lost in their businesses, while in Munster 25% lost their jobs in 2008, with forecasts of further losses in 2009, from 3% in Leinster, to 19% in Connaught.

Dublin’s auction scene slumped to just 127 sales in 2008, down from 1,500 sales via public auction in 2006.
Augeo is online now  
30-06-2020, 11:19   #169
ELM327
Registered User
 
ELM327's Avatar
 
Join Date: Feb 2017
Posts: 13,951
Quote:
Originally Posted by Augeo View Post
Summer 2008 was quite grim economically........ I'm surprised 6 times income and 100% mortgages were being offered tbh.

https://www.irishexaminer.com/irelan...008-81882.html

Auctioneers in Leinster reported a massive 32% of jobs lost in their businesses, while in Munster 25% lost their jobs in 2008, with forecasts of further losses in 2009, from 3% in Leinster, to 19% in Connaught.

Dublin’s auction scene slumped to just 127 sales in 2008, down from 1,500 sales via public auction in 2006.
Summer 08 was just before sh1t really started hitting the fan. I lost my job in December 08.
ELM327 is online now  
30-06-2020, 11:22   #170
Eric Cartman
Registered User
 
Eric Cartman's Avatar
 
Join Date: Sep 2007
Posts: 23,704
Quote:
Originally Posted by Augeo View Post
Summer 2008 was quite grim economically........ I'm surprised 6 times income and 100% mortgages were being offered tbh.

https://www.irishexaminer.com/irelan...008-81882.html

Auctioneers in Leinster reported a massive 32% of jobs lost in their businesses, while in Munster 25% lost their jobs in 2008, with forecasts of further losses in 2009, from 3% in Leinster, to 19% in Connaught.

Dublin’s auction scene slumped to just 127 sales in 2008, down from 1,500 sales via public auction in 2006.
by summer I could mean anywhere from march onwards it was definitely the last push before the entire world caved itself in.
Eric Cartman is online now  
(2) thanks from:
Advertisement
30-06-2020, 11:35   #171
Hooked
Registered User
 
Join Date: Sep 2007
Posts: 2,341
Quote:
Originally Posted by Augeo View Post
Summer 2008 was quite grim economically........ I'm surprised 6 times income and 100% mortgages were being offered tbh.
Right when I bought (as a single man)... Talk about paying over the odds! Roughly 6 times my (fairly modest) salary too...

However, 12 years on... managed to stay employed (and having grabbed the last of the tracker mortgages) we are finding it incredibly comfortable with my now wife (decent salary), no kids - and both of us having very VERY small commutes to work... approx 2km.

I' feel incredibly grateful EVERY DAY that we have a great quality of life, despite the mortgage and house price seeming a terrible choice merely 10 years ago!
Hooked is offline  
(3) thanks from:
30-06-2020, 12:12   #172
jill_valentine
Registered User
 
jill_valentine's Avatar
 
Join Date: Mar 2004
Posts: 6,168
In answer to the OP, in Dublin at least we just... Don't. The 3.5x cap would shut most single would-be buyers at the get-go from most sites in the commuter zone, never mind a minimally livable home. Pay increases cancelled and second recession of my career looming. Nothing to cut back on, tied to a job and thus rent here, parents not in a position to cover the deposit etc.

The housing market just isn't geared towards us - studios don't really exist anymore and if you can squeeze more bedrooms into the same footprint and charge expontially more, why wouldn't you?

I'm saving to nowhere as the goalposts gallop off, and coming up on aging out of the possibility of a 30 year mortgage. Pretty grim.
jill_valentine is online now  
Thanks from:
30-06-2020, 12:25   #173
Jet Black
Registered User
 
Jet Black's Avatar
 
Join Date: Dec 2007
Posts: 3,491
Best way to do it is reduce your costs to as close to zero as possible. Make a plan and stick to it. It could take 2 years, it could be 5.
Rent is usually the biggest expense so if you could move back to your parents and explain your plan to them. If they're reasonable they'll help. If not see if another family member or friend will let you rent a room. Shared accommodation is the cheapest option if you can't or don't have these supports.
What are you paying monthly?
My car was my second biggest expense. It was a big car I didn't need, tax and insurance was a lot so I got rid of it, bought a small second hand car with the proceeds. If you can do without a car great.
I worked out the yearly cost of car vs bus and the car worked out €200 cheaper so stuck with that.
Forget about holiday, takeaways, eating and drinking out etc. Change these with any free activities like running, learning to cook etc
Watch your weekly spending, it all adds up, I worked it out and I was spending over €60 a week in work on food and coffee. Then nights out, takeaways and eating out was a few more hundred.
Give yourself a weekly or monthly budget of what you can spend. I gave myself €100 a month for luxuries. Make a monthly and yearly budget to see what you will have at the end of the year.
Save what you can you think you can afford. For every month of the year. Birthdays, Christmas and other events that you may have to attend will cost money so factor them in.
Saving a fixed regular amount looks good on an application but if you start dipping into your savings for these events, it won't look good. Speaking of accounts keep you current ac always in the blacck never use the od. Loans and credit cards should be cleared if possible but there could be other options that the bank might offer like consolation.
Look at everything that comes out of your account and see if you can do without it.
Changing jobs could be another thing to look at. If you don't think you're being paid enough move. The only thing it may factor into an application if your on probation etc.

I think I was saving about 60% of my take home at the time. If I didn't have rent and bills it would have been closer to 80%. It was very hard but extremely satisfying when I finally got my keys to my house in the end.
Jet Black is offline  
30-06-2020, 13:36   #174
newaccount2017
Registered User
 
newaccount2017's Avatar
 
Join Date: Nov 2017
Posts: 59
I bought last year (not in Dublin) for €240,000. My parents gave me €10,000 and I had €60,000 saved up from years of not having a very busy social life. I should have bought a few years ago but I wasn't organised at all but I'm happy with my purchase. I'm single so I figure if times get tough, I can rent 2 of the bedrooms out for some extra income.

Last edited by newaccount2017; 30-06-2020 at 13:45.
newaccount2017 is offline  
Advertisement
01-07-2020, 16:51   #175
GoldenSlumbers
Registered User
 
Join Date: Apr 2011
Posts: 35
Quote:
Originally Posted by newaccount2017 View Post
I bought last year (not in Dublin) for €240,000. My parents gave me €10,000 and I had €60,000 saved up from years of not having a very busy social life. I should have bought a few years ago but I wasn't organised at all but I'm happy with my purchase. I'm single so I figure if times get tough, I can rent 2 of the bedrooms out for some extra income.
on what income did you manage to save 60 000 if you don't mind me asking.
GoldenSlumbers is offline  
01-07-2020, 20:37   #176
newaccount2017
Registered User
 
newaccount2017's Avatar
 
Join Date: Nov 2017
Posts: 59
Started saving when I started working properly about 10 years ago, at approx €520 a week, saving about €130 a week. Now on €680 a week and I'm just paying my mortgage as if it was my savings. I don't actually have any savings at the moment but hopefully will be able to build them up a small bit again, just for a rainy day fund. My savings were erratic, sometimes I did really well, other times I was useless. What helped was being in a house-share for majority of time so costs were lower. Also not buying an expensive car and being lucky that it gave me no trouble at all. It was only in the last year and a half that I decided to rent my own (small) place for 2 reasons- 1. To see would I be able to manage to pay a lease (like a mortgage) and 2. Because I hated house sharing so much. Lived with some nutters.
newaccount2017 is offline  
01-07-2020, 21:55   #177
Bass Reeves
Registered User
 
Join Date: Nov 2015
Posts: 7,253
Quote:
Originally Posted by newaccount2017 View Post
Started saving when I started working properly about 10 years ago, at approx €520 a week, saving about €130 a week. Now on €680 a week and I'm just paying my mortgage as if it was my savings. I don't actually have any savings at the moment but hopefully will be able to build them up a small bit again, just for a rainy day fund. My savings were erratic, sometimes I did really well, other times I was useless. What helped was being in a house-share for majority of time so costs were lower. Also not buying an expensive car and being lucky that it gave me no trouble at all. It was only in the last year and a half that I decided to rent my own (small) place for 2 reasons- 1. To see would I be able to manage to pay a lease (like a mortgage) and 2. Because I hated house sharing so much. Lived with some nutters.
Fair play to you. Just shows that even on a modest income it is possible to save a deposit.
Bass Reeves is offline  
Thanks from:
01-07-2020, 22:22   #178
GoldenSlumbers
Registered User
 
Join Date: Apr 2011
Posts: 35
Quote:
Originally Posted by newaccount2017 View Post
Started saving when I started working properly about 10 years ago, at approx €520 a week, .... Lived with some nutters.
Ah great! That gives me some hope. I share with 6 housemates and hate it so much right now. It's like living with small children, despite the fact that they're all mid 20s. I'm on about 500 a week too so it's hard to save on that but it's so hopeful to see someone else made it work. I also invest in my own art a lot, which dissolves a lot of money. But maybe I can do the same as you, save bits myself and ask my parents to give an advance on the house. Did the bank give you an amount of money you had to pay upfront to make it work. With the 3,5x your wage rule, I assume you had to pay more upfront?
GoldenSlumbers is offline  
01-07-2020, 22:27   #179
newaccount2017
Registered User
 
newaccount2017's Avatar
 
Join Date: Nov 2017
Posts: 59
Quote:
Originally Posted by GoldenSlumbers View Post
Ah great! That gives me some hope. I share with 6 housemates and hate it so much right now. It's like living with small children, despite the fact that they're all mid 20s. I'm on about 500 a week too so it's hard to save on that but it's so hopeful to see someone else made it work. I also invest in my own art a lot, which dissolves a lot of money. But maybe I can do the same as you, save bits myself and ask my parents to give an advance on the house. Did the bank give you an amount of money you had to pay upfront to make it work. With the 3,5x your wage rule, I assume you had to pay more upfront?
I got €189,000 off the bank for the mortgage, yeah it was 3.5 times my gross wages last year. I went with the EBS. The man there was really helpful, he did nearly everything for me. I wouldn't be good at all that kind of paperwork and legal stuff. I got mortgage approval about 2 years before and just kept renewing it with new documents and showing my wage increases to increase the amount they would give me for the mortgage.
newaccount2017 is offline  
Post Reply

Quick Reply
Message:
Remove Text Formatting
Bold
Italic
Underline

Insert Image
Wrap [QUOTE] tags around selected text
 
Decrease Size
Increase Size
Please sign up or log in to join the discussion

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Share Tweet