First house

Moneytalks · 19-04-2011 9:21am #1

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

JoeyJJ · 19-04-2011 9:32am

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.

irlrobins · 19-04-2011 9:35am

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.

Moneytalks · 19-04-2011 9:46am

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

JoeyJJ · 19-04-2011 9:54am

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.

Moneytalks · 19-04-2011 10:01am

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

irlrobins · 19-04-2011 10:03am

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!

irlrobins · 19-04-2011 10:09am

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: ????

Moneytalks · 19-04-2011 10:16am

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

D3PO · 19-04-2011 10:16am

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

irlrobins · 19-04-2011 10:19am

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!

D3PO · 19-04-2011 10:19am

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

JustAddWater · 19-04-2011 10:20am

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:

Moneytalks · 19-04-2011 10:20am

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

D3PO · 19-04-2011 10:24am

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.

Moneytalks · 19-04-2011 10:33am

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

D3PO · 19-04-2011 10:41am

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

Moneytalks · 19-04-2011 10:47am

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

mjth2004 · 19-04-2011 10:53am

I think I smell a troll!

D3PO · 19-04-2011 10:58am

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.

Moneytalks · 19-04-2011 11:08am

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 ?

pitachu · 19-04-2011 4:12pm

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

fontanalis · 19-04-2011 4:22pm

D3PO wrote: »

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

Liz O'Kane says no!

Moneytalks · 19-04-2011 4:26pm

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.

Mr. Loverman · 19-04-2011 4:27pm

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.

Moneytalks · 19-04-2011 4:36pm

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.

foxy06 · 19-04-2011 10:07pm

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

djmcr · 19-04-2011 10:32pm

This guy has to be taking the piss

Moneytalks · 19-04-2011 10:32pm

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

mscarroll · 19-04-2011 10:40pm

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.

pitachu · 19-04-2011 10:51pm

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

Pete

djmcr · 19-04-2011 10:52pm

mscarroll wrote: »

I dont know whats going on here .

Find out whats going on before you leap to this guys defense, there are a lot of holes in his story

JustAddWater · 19-04-2011 10:52pm

Moneytalks wrote: »

700 rent for a council house and you say im full of ****

OK so, lets see...

Moneytalks wrote: »

they calculate it as 10 percent of your money so it would mean you earn 7000 euro

your rent (160) times ten is 1600
So they think you earn €1600

but...

Moneytalks wrote: »

I earn around 2,700 after taxes

Jeremy Beadle where are you? you can come out now...

djmcr wrote: »

Find out whats going on before you leap to this guys defense, there are a lot of holes in his story

Yeah, more holes than a golf course. The math literally doesn't add up!

seamusmcspud · 19-04-2011 10:55pm

this is a gas thread.... i'd say there are loads of us scratching the heads and wondering wtf?
OP by the way if you are serious.. i,ve been saving the last 7 years with a similar income to buy my first home and bank won't touch me with a 10 ft pole last 2 years now... but i'm glad as property keeps falling and i keep earning more interest!!

wife is puttting pressure on to try again though.... you know yourself... how long i can get away without buying now .... who knows???:cool:

Moneytalks · 19-04-2011 10:55pm

Yes and my girlfriend is a carer so her money is not taken into it

mscarroll · 19-04-2011 11:01pm

@pete.. it was in March 2009.....

QUICK CALL THE GUARDS, SOMEONE IN A COUNCIL HOUSE WANTS TO BUY A HOUSE OF THEIR OWN.. LOL

God the guy only asked a question and has been absolutely lynched over it, I don't see any holes in the story, sounds pretty straight forward to me!

foxy06 · 20-04-2011 12:14am

Its more than 20% of your earnings not 10% :rolleyes:

Snakeblood · 20-04-2011 8:23am

mscarroll wrote: »

@pete.. it was in March 2009.....

QUICK CALL THE GUARDS, SOMEONE IN A COUNCIL HOUSE WANTS TO BUY A HOUSE OF THEIR OWN.. LOL

God the guy only asked a question and has been absolutely lynched over it, I don't see any holes in the story, sounds pretty straight forward to me!

The guy is being subsidised by everyone else to live and has a perfectly decent salary (and so doesn't need the subsidy) it appears. Then he says he's going to use the money that he should be paying for rent on his house (that instead the council, which means you and me are paying) to buy a holiday home. That's why people are pissed.

Moneytalks · 20-04-2011 8:25am

2009 Differential Rent Scheme - Summary of main changes
10% of household income + 1 euro
A new allowance of 100 euro for persons over 65
Allowance for each child dependant increased from 3 to 5 euro

Moneytalks · 20-04-2011 8:29am

Snakeblood wrote: »

The guy is being subsidised by everyone else to live and has a perfectly decent salary (and so doesn't need the subsidy) it appears. Then he says he's going to use the money that he should be paying for rent on his house (that instead the council, which means you and me are paying) to buy a holiday home. That's why people are pissed.

Subsidized how ?

MagicMarker · 20-04-2011 8:33am

Don't feed the troll.

wyndham · 20-04-2011 9:29am

You should maybe look at buying a villa in Spain op. Would be nice for you to get away from the cold winters here. And you could also let it out a bit. Maybe Alicante. There's plenty on the market at the moment going cheap. Lot of Irish taxi drivers and labourers bought 2 or 3 of them and are trying to offload.

And the worlds gone f(kin mad.

Snakeblood · 20-04-2011 11:13am

Moneytalks wrote: »

Subsidized how ?

You earn enough to rent. You are paying nominal rent in a council house, you should be paying more. The council is paying for your house. You should be paying for your house.

The money that you are saving because you are living at the council's expense (and thus everyone elses) is money you want to put towards a holiday home.

Is there anything hard to understand about this?

volvilla · 20-04-2011 11:23am

comment below...

volvilla · 20-04-2011 11:25am

D3PO wrote: »

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

You're the disgrace! Guy comes on here seeking advice and you jump to conclusions about his livelihood and trying to get others to join you. Its people like you that boards could do without!

OP, Best of luck with the holiday home or whatever you decide to do with you and your family's hard earned savings!

Snakeblood · 20-04-2011 11:32am

volvilla wrote: »

You're the disgrace! Guy comes on here seeking advice and you jump to conclusions about his livelihood and trying to get others to join you. Its people like you that boards could do without!

OP, Best of luck with the holiday home or whatever you decide to do with you and your family's hard earned savings!

They're not hard earned savings, sadly. They're savings he got because someone else is paying his rent.

Moneytalks · 20-04-2011 11:42am

Snakeblood wrote: »

You earn enough to rent. You are paying nominal rent in a council house, you should be paying more. The council is paying for your house. You should be paying for your house.

The money that you are saving because you are living at the council's expense (and thus everyone elses) is money you want to put towards a holiday home.

Is there anything hard to understand about this?

yes its hard to understand we waited 3 years for our house and pay the rent that is asked of us since we were assessed so in you view i should give my house back and rent someone elses house great advice

SteoL · 20-04-2011 11:44am

If I could pay €160 monthly I would without question. Unfortunately I'm stuck paying € 750.

Snakeblood · 20-04-2011 12:14pm

Moneytalks wrote: »

yes its hard to understand we waited 3 years for our house and pay the rent that is asked of us since we were assessed so in you view i should give my house back and rent someone elses house great advice

I think if you can afford to pay rent which you obviously can, you should, rather than buying a holiday home. If you're not paying a fair rent, then yeah, I don't think you're stupid, but I do think you're taking money from people who either (a) Earned it or (b) Need it more than you do. Which makes you worse than stupid.

MagicMarker · 20-04-2011 12:46pm

I'd just like to point out that the OP is perfectly entitled to local authority housing, as are most people earning under a certain amount. It's not his fault that other people are happy paying ridiculous rent prices.

JustAddWater · 20-04-2011 12:58pm

MagicMarker wrote: »

It's not his fault that other people are happy paying ridiculous rent prices.

And I would just like to point out that rent allowance (and it's abuse) creates an artifical floor which means that our house prices are over and above what they could be as it sets a minimum price to a landlord

MagicMarker wrote: »

I'd just like to point out that the OP is perfectly entitled to local authority housing,

I'm sure that the council would disagree that someone on €33k a year AFTER tax is perfectly entitled to have their rent subsidised by the taxpayer

First house

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