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€100k deposit, €180k budget

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Comments

  • #52
    GreeBo
    Registered Users, Registered Users 2 Posts: 27,253 ✭✭✭✭GreeBo


    Robbie32 wrote: »
    There shouldnt be any penalty for early payment on a varible. Paying off in full might have a "fee".
    Before I sold my house I was paying off lump sums, with no penalty. I managed to get my 35 year mortgage down to 20 in 5 years, by lump sums and also was lucky that the rates dropped, but i cud afford to pay the same monthly repayment.

    Its always a trade off between terma nd repayment. It worked for me saving the extra during the year and paying the lump sum at the end of the year. Also gave me extra cash to pay if there was anything unexpected billwise....

    Sorry, I was thinking of fixed term, I purposely kept some of mine as variable so that I could pay off lump sums as I expected to be coming into cash.

    OP Saving 300 a month to pay off a lump sum will cost you money, its far cheaper to pay that off the mortgage and get a shorter term.
    You will literally save thousands over the term.


  • #53
    tom_tarbucket
    Banned (with Prison Access) Posts: 2,083 ✭✭✭tom_tarbucket


    GreeBo wrote: »
    Sorry, I was thinking of fixed term, I purposely kept some of mine as variable so that I could pay off lump sums as I expected to be coming into cash.

    OP Saving 300 a month to pay off a lump sum will cost you money, its far cheaper to pay that off the mortgage and get a shorter term.
    You will literally save thousands over the term.


    I know what your saying and this is all good and well.

    But OP is essentially pumping all his life savings and possibly all his start from scratch savings in to the house, meaning everything he has in life is tied in to this bloody house, and we all know the way house prices change etc

    I know its 6 of 1, half dozen of another really, but just annoying to have EVERYTHING tied up in a house


  • #54
    Woshy
    Registered Users, Registered Users 2 Posts: 1,429 ✭✭✭Woshy


    Robbie32 wrote: »
    I might be wrong, but doesnt the amount of deposit have an effect on the amount you can borrow????

    Not in our experience either. We had 100k+ in cash when we got our mortgage and it didn't really help in getting a higher amount. That was fine with us though, the amount they did offer was just right.

    It does make your interest rates slightly lower because of the LTV ratio but that was it for benefits in our experience.

    We were also encouraged by our mortgage consultant from the bank to pay extra into the mortgage as often as we can (as we chose a variable rate). So they do encourage it.


  • #55
    TrishSimon
    Closed Accounts Posts: 206 ✭✭TrishSimon


    handlemaster wrote: »
    Thats never going to happen. Best make other plans.

    Agree with this poster I am house hunting at the moment and prices are not going down they were going up and have now steadied but they definitely wont be going down but you are in a great position with 100K deposit why not try the auctions you need cash for those and you get great houses at knock down prices.


  • #56
    dynamited
    Closed Accounts Posts: 74 ✭✭dynamited


    tom_tarbucket wrote: »
    I know what your saying and this is all good and well.

    But OP is essentially pumping all his life savings and possibly all his start from scratch savings in to the house, meaning everything he has in life is tied in to this bloody house, and we all know the way house prices change etc

    I know its 6 of 1, half dozen of another really, but just annoying to have EVERYTHING tied up in a house



    It will be annoying to begin with having to start from scratch but the way i look at it is looking at these key factors


    * Repayments will be low around 350e per month , so if i fall on hard times (redundancy ) i will still be able to keep up with repayments whilst looking for work

    * I only make 2000 per month but if i get a bit of luck a pay rise may be on the horizon of possibly an extra 200-300 per month( not banking on it though ) but it would allow some leverage in regards to possibly adding a bit to another savings account


    * I have already traveled, so i don't think i will pick up the travel bug and regret buying at my age unless i get a bird pregnant (joke)


    * I will not jump into this blindfolded, i have in my mind it's better to buy the smallest property in the best location rather than the best property in a absolute dive !


    * In giving over my life savings the most i will borrow is 80k , if all goes well i may buy more property throughout the years, but if all fails and i end up at rock bottom i will only owe out 80K (Interest on top )which i don't think will be much of a burden over the timespan


  • #57
    Thargor
    Registered Users, Registered Users 2 Posts: 17,964 ✭✭✭✭Thargor


    tom_tarbucket wrote: »
    I know what your saying and this is all good and well.

    But OP is essentially pumping all his life savings and possibly all his start from scratch savings in to the house, meaning everything he has in life is tied in to this bloody house, and we all know the way house prices change etc

    I know its 6 of 1, half dozen of another really, but just annoying to have EVERYTHING tied up in a house
    He's only 26 though, a lot (majority?) of people that age don't have a pot to piss in, worse than that they're in credit card and/or overdraft debt.

    Properly insured his house isn't going anywhere and will be generating a return for him, there's feck all else places to leave a lump sum at the minute.


  • #58
    dynamited
    Closed Accounts Posts: 74 ✭✭dynamited


    Thargor wrote: »
    He's only 26 though, a lot (majority?) of people that age don't have a pot to piss in, worse than that they're in credit card and/or overdraft debt.

    Properly insured his house isn't going anywhere and will be generating a return for him, there's feck all else places to leave a lump sum at the minute.


    Agreed , I've tried stocks and bonds and it's not my thing


    Savings accounts are giving poor returns, gold isn't an option either


    Plus I NEED SOMEWHERE TO LIVE !! :)


  • #59
    [Deleted User]
    Posts: 24,714 ✭ [Deleted User]


    Personally op I'd hold onto at least 20k and use the other 80k for the deposit. Your repayments might be slightly higher but you never know when you might need a decent bit of cash for some reason or another so I don't think its wise at all using up all the savings.

    I'd also (as mentioned earlier) pump all you can into the mortgage at the start rather than trying to save.


  • #60
    Thargor
    Registered Users, Registered Users 2 Posts: 17,964 ✭✭✭✭Thargor


    dynamited wrote: »
    Plus I NEED SOMEWHERE TO LIVE !! :)
    Well you'll be laughing then because the rent you would be paying can be classed as your return on top of everything else, or you would be laughing if it wsnt for property tax, water and all the other crap.

    Bringing in one or 2 tenants to pay all your bills and a bit left over for yourself is always an option aswell though, no rules for live in landlords you can kick them out whenever you feel like it.


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  • #61
    Sadler32
    Registered Users, Registered Users 2 Posts: 90 ✭✭Sadler32


    I was in the same position as OP. I was 26 when I bought my house. I got lucky it was at the height of the boom and I got a really good deal on it. Sold it recently at a loss (on paper) but still walked away with a few quid to start again. It was supposed to be my forever home but life and circumstances changed.

    For what its worth dynamited, you can ask all the advise, and it really is some good advice, but only you can decide what is right for you. Its a big decision and a daunting step. I asked the same questions when I was buying...
    You said it perfectly you need somewhere to live. If your going to be living there long term, does it matter if prices fluctuate abit.

    I pumped all my savings into the mortgage to begin with. I did wish I had kept alittle bit back as a cushion, but in hindsight I am glad I had the push to start saving again. there was a few things I had to wait to have done, but depends on how good your will power is and by the sounds of it, its quite good.... Dont know many 26yo with 100k in the bank. I had 80k when I bought mine.


  • #62
    GreeBo
    Registered Users, Registered Users 2 Posts: 27,253 ✭✭✭✭GreeBo


    tom_tarbucket wrote: »
    I know what your saying and this is all good and well.

    But OP is essentially pumping all his life savings and possibly all his start from scratch savings in to the house, meaning everything he has in life is tied in to this bloody house, and we all know the way house prices change etc

    I know its 6 of 1, half dozen of another really, but just annoying to have EVERYTHING tied up in a house
    I agree, I wouldn't tie all my savings up, but I would pump as much of my monthly income into it.
    Saving to pay off lump sums, when you consider the "rate" your savings will get you is actually costing your money.
    Woshy wrote: »
    Not in our experience either. We had 100k+ in cash when we got our mortgage and it didn't really help in getting a higher amount. That was fine with us though, the amount they did offer was just right.

    It does make your interest rates slightly lower because of the LTV ratio but that was it for benefits in our experience.

    We were also encouraged by our mortgage consultant from the bank to pay extra into the mortgage as often as we can (as we chose a variable rate). So they do encourage it.

    All that matters is the LTV, loan to value ratio, the deposit amount is irrelevant (other than the new CB change)


  • #63
    hadoken13
    Registered Users Posts: 630 ✭✭✭hadoken13


    P. Breathnach wrote: »
    All sales should appear on the register. There is no way of identifying cash sales.

    Figures are separately published showing the number of mortgages arranged. There are fewer mortgages than sales, so the difference is put down to cash sales.

    [Crude summary.]

    Ye that's what I thought. Don't know what the poster I quoted was getting at.


  • #64
    dynamited
    Closed Accounts Posts: 74 ✭✭dynamited


    Offer put in for 3 bed going for 200k but has been for sale since February ( originally was 240k in the summer)


    I've offered 175k to get the ball rolling as i know the EA's are getting desperate


  • #65
    handlemaster
    Registered Users, Registered Users 2 Posts: 6,003 ✭✭✭handlemaster


    dynamited wrote: »
    Offer put in for 3 bed going for 200k but has been for sale since February ( originally was 240k in the summer)


    I've offered 175k to get the ball rolling as i know the EA's are getting desperate

    You should have moved and bought this year to avail of CGT exemption


  • #66
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    handlemaster wrote: »
    You should have moved and bought this year to avail of CGT exemption

    If it's a PPR it doesn't matter as the sales a CGT exempt anyway.


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  • #67
    Robbie32
    Registered Users Posts: 42 ✭Robbie32


    Think I know why the market is so crazy right now.
    Investor have and opportunity that if they buy before Dec 31st, and keep the property for 7 years they do not pay Capital Gains tax on that property.

    Explains why properties are being snapped up and driving prices up.....


  • #68
    handlemaster
    Registered Users, Registered Users 2 Posts: 6,003 ✭✭✭handlemaster


    Robbie32 wrote: »
    Think I know why the market is so crazy right now.
    Investor have and opportunity that if they buy before Dec 31st, and keep the property for 7 years they do not pay Capital Gains tax on that property.

    Explains why properties are being snapped up and driving prices up.....


    This incentive has been there for two years ... your a little slow off the mark


  • #69
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    handlemaster wrote: »
    This incentive has been there for two years ... your a little slow off the mark

    I think what he meant to say- but didn't- is that the 7 year CGT relief expires on the 31st of December. It was one of the provisions announced in the budget.

    The joint owner relief (often used by landowners- as opposed to landlords) also expires on the same day.........

    Other reliefs- have onerous restrictions being applied from the same date.

    31st of December is D Day for a lot of people from a tax perspective.


  • #70
    Piriz
    Registered Users, Registered Users 2 Posts: 1,269 ✭✭✭Piriz


    Conductor if u get a chance can you post about the other tax reliefs ending this year. Perhaps it might warrant a new thread to discuss who they will impact and what influence it will have on prices and affordability... Thanks


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