How do single people buy homes?

Creamy Goodness · 23-10-2019 12:04pm

Plumbthedepths wrote: »

20 per cent? So not a first time buyer.

You'll find the majority of FTB's need to save 20% because there's a shortfall between 3.5 times their salary and the cost of a house in the majority of areas people want to live in. I hate the term the squeezed middle but there's a certain section of workers in Ireland that are stuck in a never ending cycle atm. 3.5 times is not enough so they need to save more, time passes, house price rises to another value they can't get quite yet, so they need to save more again and repeat.

FWIW I was a FTB and had 25% deposit.

frillyleaf · 23-10-2019 12:05pm

BrownFinger wrote: »

We were 1st time buyers but couldn't get a mortgage for what we wanted so had to save around 20% also.

Saving as a single applicant isn't the biggest hurdle its the 3.5times salary cap that will get you.

Yes this is definitely a hurdle for me. Even looking at very small houses in the area I can’t afford them with the 3.5 times salary on a single income household. Even on an average income the smallest and oldest houses in my area are out of reach. To move down the country would be very isolating, lonely and will have no support network at all.

frillyleaf · 23-10-2019 12:05pm

Creamy Goodness wrote: »

You'll find the majority of FTB's need to save 20% because there's a shortfall between 3.5 times their salary and the cost of a house in the majority of areas people want to live in.

FWIW I was a FTB and had 25% deposit.

Wow well done! That’s incredible

Wayne Jarvis · 23-10-2019 12:06pm

BrownFinger wrote: »

We were 1st time buyers but couldn't get a mortgage for what we wanted so had to save around 20% also.

Saving as a single applicant isn't the biggest hurdle its the 3.5times salary cap that will get you.

Yeah that's why it took me so long to buy, I had to wait until I was earning at least 30k despite my excellent savings record (if I do say so myself :P).

Another thing I forgot to mention in my earlier post was I had to give up the idea of buying my "dream home". I'm sure one exists for me but I'm also sure it would be well out of my price range by a huge margin.

gigantic09 · 23-10-2019 12:07pm

frillyleaf wrote: »

I’ve noticed a few apartments going for sale in my block too. It is absolutely terrifying to see dual income families with children scrambling to find places to rent and I’m worrying it will be me next.

Well done on saving up for deposit. That is great news and I wish you all the best with your new home.

Cheers but still only at the stage of pre mortgage approval. While it is very difficult for a single person it's probably equally difficult for families on average incomes especially with childcare costs etc. Another option for you might be to house share for a period until you can get a deposit together. Set yourself a date to have your savings goal reached.

Hunnybunny100 · 23-10-2019 12:13pm

Single buyer here, finally managed to buy at the start of this year, no help from parents. No big suggestions here , it took 3 years of saving, clearing a loan and credit card and making sure I had a clean current account and then went through a broker who did all the work for me.

frillyleaf · 23-10-2019 12:14pm

Bass Reeves wrote: »

An issue is the cashless society. Because now loads of people buy with a card they have lost the perception of money and saving. One bit of advice is to get a book and write down you daily expenditure for 6-8 weeks. It easier for a cashless person than one that deals in cash. If cashless you need to go through your account every evening and note every transaction.

However single people always struggled to buy houses even 20-30+ years ago. Most that did were in there 40's before buying. In Dublin no matter what you do it will be impossible unless you are on an exceptional income.

But elsewhere in the country for someone on an average industrial wage the purchaser of a 150 k apartment or house is possible.Assuming 3.5X wages a mortgage of 125k is possible and that would indicate savings of 30-35k.
It's a matter of researching your options. However most look at it as a 3-3 year as opposed to 5-10 year project

I understand that this is the case with some people however everything I spend is accounted for. I am very frugal with what I spend and even on an average salary small old houses outside of Dublin are out of my reach. It’s quite scary but more so because the rental market is as bad as it is......it’s the constant worry of being served notice and the panic of finding somewhere to live within a reasonable distance to schools.

frillyleaf · 23-10-2019 12:17pm

Hunnybunny100 wrote: »

Single buyer here, finally managed to buy at the start of this year, no help from parents. No big suggestions here , it took 3 years of saving, clearing a loan and credit card and making sure I had a clean current account and then went through a broker who did all the work for me.

Well done for buying your own place. I must find out how much salary is stress tested and deducted for children. Someone told me that it reduces the capacity to borrow the 3.5 times of salary

duffman3833 · 23-10-2019 12:18pm

I managed to buy a house at the start of the year through the rebuiling ireland home scheme
banks were offering me feck all so going through this scheme i was able to get a house to the value of €150k including my deposit
It was tough, luckily, i got a house for that amount and my monthly payments are low, worth looking into

frillyleaf · 23-10-2019 12:21pm

gigantic09 wrote: »

Cheers but still only at the stage of pre mortgage approval. While it is very difficult for a single person it's probably equally difficult for families on average incomes especially with childcare costs etc. Another option for you might be to house share for a period until you can get a deposit together. Set yourself a date to have your savings goal reached.

Yes that is a good suggestion but it is not possible for me to house share. I have two children and live in a small house as it is. I think I’ll go back to looking at the log cabin route and see if there is any way to do this.

frillyleaf · 23-10-2019 12:22pm

duffman3833 wrote: »

I managed to buy a house at the start of the year through the rebuiling ireland home scheme
banks were offering me feck all so going through this scheme i was able to get a house to the value of €150k including my deposit
It was tough, luckily, i got a house for that amount and my monthly payments are low, worth looking into

Thank you. I will look into this. Is there a limit on how much the houses can be worth for the rebuilding Ireland scheme?

Creamy Goodness · 23-10-2019 12:22pm

frillyleaf wrote: »

Well done for buying your own place. I must find out how much salary is stress tested and deducted for children. Someone told me that it reduces the capacity to borrow the 3.5 times of salary

generally they stress test the current rate + 2% and for each child they deduct €250 from your discretionary income.

dvdman1 · 23-10-2019 12:22pm

Hunnybunny100 wrote: »

Single buyer here, finally managed to buy at the start of this year, no help from parents. No big suggestions here , it took 3 years of saving, clearing a loan and credit card and making sure I had a clean current account and then went through a broker who did all the work for me.

Are you earning above the so called avg industrial wage of 39k?

gigantic09 · 23-10-2019 12:26pm

Creamy Goodness wrote: »

There's the rebuilding Ireland scheme https://rebuildingireland.ie not sure how feasible this is for the OP.

New builds require paying stamp duty as well, no one gets away from paying stamp duty. Unless you mean LPT? Which is true there's no LPT on new builds at the moment, LPT is a bit of a small fish though it's not causing people to not be able to afford a home.

But with new builds or self builds there you can claim tax back of up to 20000 over 3 or 4 years if I remember correctly. The help to buy scheme looks good on paper but you still need to have a deposit together although they will accept a 'gift payment' to cover a substantial part of this. Also I heard anecdotally that here in mayo they have only given out a handful to date and its not as straight forward as appears on the website.

Geuze · 23-10-2019 12:28pm

dvdman1 wrote: »

Are you earning above the so called avg industrial wage of 39k?

Average earnings of FT workers, incl overtime and irregular earnings, are 46k approx.

Let me check - actually 47,596.

Note that the average earnings of mortgage applicants will exceed this.

Creamy Goodness · 23-10-2019 12:31pm

gigantic09 wrote: »

But with new builds or self builds there you can claim tax back of up to 20000 over 3 or 4 years if I remember correctly. The help to buy scheme looks good on paper but you still need to have a deposit together although they will accept a 'gift payment' to cover a substantial part of this. Also I heard anecdotally that here in mayo they have only given out a handful to date and its not as straight forward as appears on the website.

yup you can use 4 years of your tax payments to apply for 5% of the purchase price as a help to bolster your deposit. Of course you still need a deposit to go along with this as the clue is in the 'help to buy'. There's limits in place in this scheme as the house can't be over 500k, you have to have a minimum 5% deposit yourself and no more than 30% including the HTB. It's not for everyone but if it's for you it helps.

The submission and claiming process is fairly straight forward provided you're a PAYE worker, self employed is a little more involved.

HotMama89 · 23-10-2019 12:34pm

Bought in 2015 as a single parent (in a city but outside of Dublin). Basic 3 bed that needed a bit of work but in nice area. I was fortunate I could move back to my parents for 1.5 years (still paid rent just lower) and between frugality and being able to work for myself on the side I got there. Ironically my salary is now twice what it was back then and if I was buying this year Id just about be able to afford my own house!! It was all about the timing.

Geuze · 23-10-2019 12:38pm

The average income of FTB mortgage applicants is 75k.

https://www.centralbank.ie/financial-system/financial-stability/macro-prudential-policy/mortgage-measures/new-mortgage-lending-data-and-commentary

Seanachai · 23-10-2019 12:38pm

Plumbthedepths wrote: »

You won't get permission for a log cabins that are sold here as a permanent dwelling. For a log cabin to meet regulations the cost is similar to a traditional build.

There's a few down my way off the beaten track, I better not dox them in that case

TitianGerm · 23-10-2019 12:41pm

frillyleaf wrote: »

Genuinely asking how people are managing to do this. I’m currently renting and am constantly nervous of being given notice. Any time something is wrong with house I pay for it to be fixed unless it is to do with water or electricity. Rent privately but don’t I feel secure. Any time a letter comes in post I’m nervous it is an eviction notice. Have had to move house a few times now and want to get out of rent trap.

Long term I would like to buy but I just can’t see how this is ever going to be a possibility with current rental market and cost of living. I’m starting to become anxious about my future and children’s future.

How do people manage to buy as single applicants? Ideally I would like to stay in my area as children are in school here. I don’t live in an “affluent” area but can’t afford to buy. What are the options for single people to buy?

I feel quite disheartened and negative so I’m hoping there will be some positive feedback

What do you work as OP and what sort of salary do you bring in each month? As you have two kids they will be taken into account when applying for a mortgage.

karenalot · 23-10-2019 12:46pm

Check out your local authority website to see if they have an affordable housing scheme planned. There was a lot of talk about them in the news earlier this year.

https://www.irishtimes.com/news/social-affairs/dublin-councillors-approve-affordable-housing-scheme-1.3891244

South Dublin Co Council are inviting people to apply. Conditions are that you earn under 36,800 euro and have been in employment for 6 months.

The Student · 23-10-2019 12:53pm

frillyleaf wrote: »

Genuinely asking how people are managing to do this. I’m currently renting and am constantly nervous of being given notice. Any time something is wrong with house I pay for it to be fixed unless it is to do with water or electricity. Rent privately but don’t I feel secure. Any time a letter comes in post I’m nervous it is an eviction notice. Have had to move house a few times now and want to get out of rent trap.

Long term I would like to buy but I just can’t see how this is ever going to be a possibility with current rental market and cost of living. I’m starting to become anxious about my future and children’s future.

How do people manage to buy as single applicants? Ideally I would like to stay in my area as children are in school here. I don’t live in an “affluent” area but can’t afford to buy. What are the options for single people to buy?

I feel quite disheartened and negative so I’m hoping there will be some positive feedback

If you are paying rent privately chances are you can afford to buy. You just need to accumulate the deposit. Maybe moving back in with parents for a time to save on rent to raise the deposit. Maybe moving to a lower cost area to give you time to save for a deposit.

All of the above are possible with a bit of effort. I appreciate you don't want to uproot your family but it might be necessary in the short term for the long term benefit.

frillyleaf · 23-10-2019 12:58pm

HotMama89 wrote: »

Bought in 2015 as a single parent (in a city but outside of Dublin). Basic 3 bed that needed a bit of work but in nice area. I was fortunate I could move back to my parents for 1.5 years (still paid rent just lower) and between frugality and being able to work for myself on the side I got there. Ironically my salary is now twice what it was back then and if I was buying this year Id just about be able to afford my own house!! It was all about the timing.

That’s incredible well done. Huge achievement to be able to buy your own house as a single parent. This gives me some hope that it will be possible in the future. Maybe the prices will come back down in a few years to the way they were! Who knows it could happen again

machaseh · 23-10-2019 12:59pm

The Student wrote: »

If you are paying rent privately chances are you can afford to buy. You just need to accumulate the deposit. Maybe moving back in with parents for a time to save on rent to raise the deposit. Maybe moving to a lower cost area to give you time to save for a deposit.

All of the above are possible with a bit of effort. I appreciate you don't want to uproot your family but it might be necessary in the short term for the long term benefit.

Not everybody has parents to move back to. Parents might be severely ill, passed away, there might have been family issues in the past such as abuse etc.

Not everybody is able to drive a car and commute a very long distance into Dublin for work every day. Some people are medically unable to drive.

Stop assuming that everybody can 'just move back to their parents in their old village and commute to work to save money'. It's a myth that is simply impossible for many people.

The Student · 23-10-2019 1:04pm

machaseh wrote: »

Not everybody has parents to move back to. Parents might be severely ill, passed away, there might have been family issues in the past such as abuse etc.

Not everybody is able to drive a car and commute a very long distance into Dublin for work every day. Some people are medically unable to drive.

Stop assuming that everybody can 'just move back to their parents in their old village and commute to work to save money'. It's a myth that is simply impossible for many people.

I did not "assume" anything. I merely suggested options. Your response indicates that you have automatically gone on the defensive rather than seeing the post for the spirit in which it was intended.

machaseh · 23-10-2019 1:08pm

The Student wrote: »

I did not "assume" anything. I merely suggested options. Your response indicates that you have automatically gone on the defensive rather than seeing the post for the spirit in which it was intended.

So what would your suggested options be for someone who doesnt have parents to move back to and someone who is unable to drive a car due to medical reasons?

jon1981 · 23-10-2019 1:09pm

RSUs

Fiftyfilthy · 23-10-2019 1:11pm

I was very fortunate, last 20 years renting. My salary is exactly average according to media reports

I was able to save a deposit over the last 12 years. Had no holidays, had the same car 15 years, lived a very frugal existence

I tried for a mortgage 4 years ago but mortgage approval wasn’t enough to buy in Dublin

Applied for the rebuild Ireland scheme as soon as it became available

My landlord was selling and offered it at market price and not the price on the open market

Without the rebuilding Ireland and my landlord selling at market value without external bidders, I would not have been able to purchase

I was very fortunate

From my side, I received no inheritance or cash from anyone. My salary is average and I have a dependent. I just made sure I had no debt, loans and regular savings. I’m not saying for a moment it’s as easy as that , it just gave me more of a chance.

Renting was always stressful as I would tend to stay 4-5 years in a place with my child then all of a sudden , notice that landlord is selling

The worry of trying to find somewhere, able to afford was soul destroying

I never forget how fortunate I am

I’d love to see some sort of legislation for working families who pay rent to be taken into account when going for a mortgage

Ie rent 2k a month for a couple the last 5-10 years means they only need 5% deposit or something

The Student · 23-10-2019 1:14pm

machaseh wrote: »

So what would your suggested options be for someone who doesnt have parents to move back to and someone who is unable to drive a car due to medical reasons?

The op has not made any mention of inability to drive due to medical reasons (at least I did not see that mentioned in any of the posts, unless I missed it).

Hunnybunny100 · 23-10-2019 1:16pm

dvdman1 wrote: »

Are you earning above the so called avg industrial wage of 39k?

Yes I am above the average wage but not by a huge amount.

How do single people buy homes?

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