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

Wildly Boaring · 11-02-2019 11:27pm

VonLuck wrote: »

In my opinion the greatest barrier is the mortgage that's required to purchase a house. Let's say the cheapest half reasonable house inside the M50 is €250k, 10% deposit is €25k. That means you need a mortgage of €225k. At a restriction of 3.5 times your salary, you would need to be earning €65k a year as a single applicant to afford the cheapest two bed home.

I'm not saying that the mortgage lending rules should be relaxed, but there is a serious issue with the cost of houses now. 3 years ago I was earning much less and had a much smaller deposit, yet I could have afforded a two bed home within the M50 area. Now I can't afford a thing!

It's impossible as a single person to buy a worthwhile property in Dublin. You need to be applying as a couple, which is unfortunate for many people out there, including myself.

Bear in mind that if those rules go you'll have a complete free for all.

I deal with building contractors and developers every day of the week.

Those bemoaned rules are the only thing keeping an semblance on normality on prices.

These boys want money. If the rules go or are altered they'll just launch up the price of house accordingly.

Central bank lets it out to 5 times wage and watch within 6 months a 10 or 20 % increase on new build prices.

You'll be even further out of the equation.

There is still a pent up demand at it's being reigned in by the 3.5 times salary.

VonLuck · 11-02-2019 11:38pm

Wildly Boaring wrote: »

Bear in mind that if those rules go you'll have a complete free for all.

I deal with building contractors and developers every day of the week.

Those bemoaned rules are the only thing keeping an semblance on normality on prices.

These boys want money. If the rules go or are altered they'll just launch up the price of house accordingly.

Central bank lets it out to 5 times wage and watch within 6 months a 10 or 20 % increase on new build prices.

You'll be even further out of the equation.

There is still a pent up demand at it's being reigned in by the 3.5 times salary.

Exactly. The problem is with supply. I wouldn't want to go beyond 3.5 times salary even if I was able to get an exemption.

lisasimpson · 11-02-2019 11:40pm

I love these threads and the comments that if your saving u have no life etc. Couldnt be more wrong.
I was single up to my early 30s and had gone sale agreed in cork. Life got in the way at the time and feel through. How did I manage to save on a modest income for a mortgage on my own while renting.
Budgeting. Thankfully my mum thought me good money management while still enjoying myself. After all what is all the hard work for if you can't get some enjoyment. I still enjoy a meals out, nights out, holidays, had numerous weddings
1.For anyone looking to save esp those bad with money open a savings account that requires 30 or 60 days notice to withdraw cash. With this account set up a direct debit on payday to transfer money. Maybe start out with 50 or 100 euro each month. You can easily increase this amount in time if you get a pay increase or finally paying off an existing loan.
2.if you are the type to pull out the credit card a lot ring the bank and reduce the credit card limit.
3. Have your favourite brand of tea/coffee in the press at your desk in work. This will help you reduced the amount of money you spend per week on takeaway teas and coffee I still treat myself to a couple of coffee or hot chocolates during a week. I don't totally cut them out.
4.If your the type of person who has a lot on for a portion of the year ie during the summer cancel your Netflix subscription. Yes it's only 9.99 a month but a few months of no payments help plus when you reactivate your account you will get the 1st month free again.
5. If you drive to work look into car pooling even if it's only 1 or 2 days a week reduces the wear and tear and even may help reduce insurance cost.
6.Get into the habit of switching electricity, heating phones, internet etc.
7. Save some containers from takeaways to use to freeze food. Batch cook some dishes like curries soup etc divide into portions and freeze.you can then use these as lunches at work etc.
8 For a big clear out maybe once or twice a year anything that's in good condition and you don't use try selling it on line. If you have kids oct/Nov is a good time for selling toys
9.Some people think loyalty cards are a waste of time sign up for a boots card or if your regular supermarket has them sign up. Some energy companies let's up earn points on supermarket loyalty cards I earn Tesco's points on my electricity bill. Also if your an Eir customer you can earn points on your supervalu card..while on the subject of supermarkets shop more in aldi and lidl's
10. House share if renting. After 10 plus yrs of house shares I longed for my own place. Myself and one housemate I became v good pals with ended up renting a place for just the 2 of us. She is big into travelling so was always saving which helped. We even use to do taxi for each other. If I was going on a night out and she wasn't she would always drop me into town and if she was up late she would let me know and come back to collect me and I'd return the favour to her. Saved a small fortune doing that for a couple of years

Small little things can mean so much in money management and when your saving. You can save on a modest income and still have a life

Eric Cartman · 11-02-2019 11:43pm

lisasimpson wrote: »

I love these threads and the comments that if your saving u have no life etc. Couldnt be more wrong.
I was single up to my early 30s and had gone sale agreed in cork. Life got in the way at the time and feel through. How did I manage to save on a modest income for a mortgage on my own while renting.
Budgeting. Thankfully my mum thought me good money management while still enjoying myself. After all what is all the hard work for if you can't get some enjoyment. I still enjoy a meals out, nights out, holidays, had numerous weddings
1.For anyone looking to save esp those bad with money open a savings account that requires 30 or 60 days notice to withdraw cash. With this account set up a direct debit on payday to transfer money. Maybe start out with 50 or 100 euro each month. You can easily increase this amount in time if you get a pay increase or finally paying off an existing loan.
2.if you are the type to pull out the credit card a lot ring the bank and reduce the credit card limit.
3. Have your favourite brand of tea/coffee in the press at your desk in work. This will help you reduced the amount of money you spend per week on takeaway teas and coffee I still treat myself to a couple of coffee or hot chocolates during a week. I don't totally cut them out.
3. If your the type of person who has a lot on for a portion of the year ie during the summer cancel your Netflix subscription. Yes it's only 9.99 a month but a few months of no payments help plus when you reactivate your account you will get the 1st month free again.
4. If you drive to work look into car pooling even if it's only 1 or 2 days a week reduces the wear and tear and even may help reduce insurance cost.
5 .Get into the habit of switching electricity, heating phones, internet etc.
6. Save some containers from takeaways to use to freeze food. Batch cook some dishes like curries soup etc divide into portions and freeze.you can then use these as lunches at work etc.
6. For a big clear out maybe once or twice a year anything that's in good condition and you don't use try selling it on line. If you have kids oct/Nov is a good time for selling toys
7.Some people think loyalty cards are a waste of time sign up for a boots card or if your regular supermarket has them sign up. Some energy companies let's up earn points on supermarket loyalty cards I earn Tesco's points on my electricity bill. Also if your an Eir customer you can earn points on your supervalu card..

Small little things can mean so much in money management and when your saving. You can save on a modest income and still have a life

1) when did you go sale agreed, what was the price of the house and was the mortgage for more than 3.5x income and were there any payments from parents etc.. to help.

Wildly Boaring · 11-02-2019 11:54pm

lisasimpson wrote: »

I love these threads and the comments that if your saving u have no life etc. Couldnt be more wrong.
I was single up to my early 30s and had gone sale agreed in cork. Life got in the way at the time and feel through. How did I manage to save on a modest income for a mortgage on my own while renting.
Budgeting. Thankfully my mum thought me good money management while still enjoying myself. After all what is all the hard work for if you can't get some enjoyment. I still enjoy a meals out, nights out, holidays, had numerous weddings
1.For anyone looking to save esp those bad with money open a savings account that requires 30 or 60 days notice to withdraw cash. With this account set up a direct debit on payday to transfer money. Maybe start out with 50 or 100 euro each month. You can easily increase this amount in time if you get a pay increase or finally paying off an existing loan.
2.if you are the type to pull out the credit card a lot ring the bank and reduce the credit card limit.
3. Have your favourite brand of tea/coffee in the press at your desk in work. This will help you reduced the amount of money you spend per week on takeaway teas and coffee I still treat myself to a couple of coffee or hot chocolates during a week. I don't totally cut them out.
3. If your the type of person who has a lot on for a portion of the year ie during the summer cancel your Netflix subscription. Yes it's only 9.99 a month but a few months of no payments help plus when you reactivate your account you will get the 1st month free again.
4. If you drive to work look into car pooling even if it's only 1 or 2 days a week reduces the wear and tear and even may help reduce insurance cost.
5 .Get into the habit of switching electricity, heating phones, internet etc.
6. Save some containers from takeaways to use to freeze food. Batch cook some dishes like curries soup etc divide into portions and freeze.you can then use these as lunches at work etc.
6. For a big clear out maybe once or twice a year anything that's in good condition and you don't use try selling it on line. If you have kids oct/Nov is a good time for selling toys
7.Some people think loyalty cards are a waste of time sign up for a boots card or if your regular supermarket has them sign up. Some energy companies let's up earn points on supermarket loyalty cards I earn Tesco's points on my electricity bill. Also if your an Eir customer you can earn points on your supervalu card..while on the subject of supermarkets shop more in aldi and lidl's.

Small little things can mean so much in money management and when your saving. You can save on a modest income and still have a life

Obviously better saver than counter

(I jest)

lisasimpson · 11-02-2019 11:57pm

Eric Cartman wrote: »

1) when did you go sale agreed, what was the price of the house and was the mortgage for more than 3.5x income and were there any payments from parents etc.. to help.

No help from parents think I got3.75 times income due to savings record that was just over 3 years ago.my savings worked out at 15% deposit at the time. Banks can give some small exceptions to the 3.5 limit not all do

Little Less Conversation · 11-02-2019 11:59pm

Thanks for all the replies. How do people have what they have at such a young age? What do ye do in life to get paid a decent wage? I kind of started saving last year but haven't saved since last September. Haven't touched it either. But it's such a miserable amount, about 1k. Guess it's a start but I'll be in my 40s by the time I get anything if I'm lucky.

Little Less Conversation · 12-02-2019 12:01am

3.5 times my salary, I can only afford a mobile home.

Ursus Horribilis · 12-02-2019 12:04am

There are so many variables in this. Where are you hoping to buy? What's your income? What are your outgoings?

alexmalalex · 12-02-2019 12:07am

pwurple wrote: »

Lordy this country badly needs a financial education program.

That said, any inkling my own kids get will put them leaps and bounds above the rest of the place. Silver lining eh!

I don’t drive two SUVs? Where is that coming from. We have two electrics *running on actual fresh air, charged by a wind turbine*

Yes, good grief, things you don’t NEED, like TVs and zoos are luxury items. By definition. Anything not on the hierarchy of needs, is a luxury. We didn’t have them in the 70’s, when people were able to buy houses on one income. We do have them now, and a boat load of other stuff to boot. they cost us our disposable, second income. So you’ve less left over for housing.

Geddit?

First off, most of this stuff is common sense. Most people know how to save. Its not rocket science. The baseline assumption is that the OP is fritting away his or her money. They posed a perfectly legitimate question that many have asked. Are you seriously suggesting that the OP can buy a Dublin house by cycling to work, heating his Lidl porridge in the microwave, and leaving an ultra-frugal lifestyle. Even if he he saves 50%+ what he earns, it isn't going to make a difference. You clearly don't understand the Dublin property market. it is out of bounds to most people.

Second, you don't have the moral authority to claim what people need and don't need. I'm sure your kids could walk to school, or maybe there is a bus service they could take. Needs are relative not absolute.

Third, it has been suggested that anyone that saves doesn't have a life. Not true. I save, quite a bit actually. But I don't get on the rooftops of this forum and proclaim how great I am, how much I endured, how many volcanoes I climbed. etc etc etc.

Frugal + snobbery = Frugobbery

Wildly Boaring · 12-02-2019 12:08am

Little Less Conversation wrote: »

Thanks for all the replies. How do people have what they have at such a young age? What do ye do in life to get paid a decent wage? I kind of started saving last year but haven't saved since last September. Haven't touched it either. But it's such a miserable amount, about 1k. Guess it's a start but I'll be in my 40s by the time I get anything if I'm lucky.

No idea of your personal circumstances bar the OP.
This states you are college educated and currently "upskilling"

Employed?

alexmalalex · 12-02-2019 12:08am

Little Less Conversation wrote: »

3.5 times my salary, I can only afford a mobile home.

Exactly!!

The OP's issue is not about frugality - its about how the Dublin market is out of the reach of most people.

lisasimpson · 12-02-2019 12:09am

Little Less Conversation wrote: »

3.5 times my salary, I can only afford a mobile home.

Try not to be so negative for a start. You said I kind of started to save last yr so that's a start. Open up a saving account with a standing order for payday. If the money goes into the savings the day you get paid you won't miss it. Start with a small amount into a notice account so you can't touch it. Everyone had to start somewhere. Start small and work up. U never know when circumstances might change ie new job pay increase or life might take you in a completely different direction. Ask me 4 years ago I could never see myself moving to live where I am now. 2 hours away from where I was living

alexmalalex · 12-02-2019 12:18am

Cuddlesworth wrote: »

There are 24 hours in a day. If you travel by bike you will tend to notice that while we have lots of rainy days, you don't end up getting rained on often. So your maths is flawed.

On the topic of saving. If according to your figures, by living frugally you can save a extra 5k a year.

If your target is 50k and you can save 5k a year by living normally and you can save 5k extra by living frugally, then you can have your deposit in 5 frugal years rather then 10 years of normal living.

Its a pretty basic concept, the more you can save in the short term, the quicker you can be out of a bad situation or the better location you can afford.

Its also worth pointing out, if you are dual income one of the best things you can do is save the second income entirely and try only spend at most 75% of the primary earners net wages.

Yes, there is no doubt that it will speed things up

But if we apply that logic to a person starting saving in 2013, reaching their target in 2018, and buying in early 2019 - they would be screwed anyway because in Dublin house prices have almost doubled. A property that could be bought for 250k probably now costs 400k. So they will now need a deposit of 80k

So, by your logic 3 more years of frugality?

I'm interested in your answer.

Ursus Horribilis · 12-02-2019 12:26am

You would help us a lot if you told us where you're living. There's no point in going on about Dublin house prices if you're living in Mayo.

Eric Cartman · 12-02-2019 12:26am

lisasimpson wrote: »

No help from parents think I got3.75 times income due to savings record that was just over 3 years ago.my savings worked out at 15% deposit at the time. Banks can give some small exceptions to the 3.5 limit not all do

and if you dont mind, the price of the house, or ballpark. Were you paying rent at the time and if so how much, A few people have posted these success stories , none so far are about dublin or their conditions paying >500 a month in rent while saving.

Ursus Horribilis · 12-02-2019 12:28am

Eric Cartman wrote: »

and if you dont mind, the price of the house, or ballpark. Were you paying rent at the time and if so how much, A few people have posted these success stories , none so far are about dublin or their conditions paying >500 a month in rent while saving.

That's exactly it. I'm sitting here in the house I bought by myself but it's in a regional county town. I'd be lucky to buy a henhouse on my salary if I was trying to buy in Dublin.

Eric Cartman · 12-02-2019 12:31am

Ursus Horribilis wrote: »

That's exactly it. I'm sitting here in the house I bought by myself but it's in a regional county town. I'd be lucky to buy a henhouse on my salary if I was trying to buy in Dublin.

thats exactly it, all the posts about "you don't have to live like a monk, i did it, saved and saved and put a ~15k deposit down by myself on a ~100k house" class, well done to those users , but its a far cry from the reality of those who are kind of bound to dublin by work and social lives.

bigpink · 12-02-2019 12:34am

lisasimpson wrote: »

No help from parents think I got3.75 times income due to savings record that was just over 3 years ago.my savings worked out at 15% deposit at the time. Banks can give some small exceptions to the 3.5 limit not all do

Could you have asked parents for help?3.75 must be great to get

bigpink · 12-02-2019 12:37am

Eric Cartman wrote: »

thats exactly it, all the posts about "you don't have to live like a monk, i did it, saved and saved and put a ~15k deposit down by myself on a ~100k house" class, well done to those users , but its a far cry from the reality of those who are kind of bound to dublin by work and social lives.

Not many 100k houses round

Little Less Conversation · 12-02-2019 12:38am

Ursus Horribilis wrote: »

You would help us a lot if you told us where you're living. There's no point in going on about Dublin house prices if you're living in Mayo.

Cork but it's still expensive.

Wildly Boaring · 12-02-2019 12:45am

Ok I'm in cork too.

However all my peers in their mid thirties own in Dublin / cork area.

Big difference between therm and OP that I can see is steady employment since graduating college. Lot of them went overseas for recession and came back.

Secondly all are married. 50/50 of those with single or double income now but all had several years on 2 incomes.

Of the 10 or so I left college with all none rent by now. All live in Dublin, meath or cork.

Eric Cartman · 12-02-2019 12:47am

bigpink wrote: »

Not many 100k houses round

galway :
https://www.daft.ie/galway/bungalows-for-sale/ballinasloe/annageg-ahascragh-ballinasloe-galway-1992181/

roscommon :
https://www.daft.ie/roscommon/houses-for-sale/four-mile-house/tonlagee-four-mile-house-roscommon-1871650/

knock :
https://www.daft.ie/mayo/houses-for-sale/knock/glenbrook-f12-fn44-knock-mayo-1817608/

infact theres 1211 properties between 75-100k on daft.ie alone, ok about 50% are wrecks which ive excluded but theres a lot to be had.

the cheapest , not in need of repair house on daft.ie is 30k in roscommon :

https://www.daft.ie/roscommon/houses-for-sale/scramoge/scramoge-scramoge-roscommon-1852869/

Ursus Horribilis · 12-02-2019 12:50am

Little Less Conversation wrote: »

Cork but it's still expensive.

Can you see your salary increasing over the next few years?

AudiAvant · 12-02-2019 12:55am

No hope
Most my age are still living of parents
And will be for a long time to come
As I said the other day,the homeless figure would be through the roof if the parents of the country dumped their children out

bigpink · 12-02-2019 12:56am

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

Fully paid off?Impressive any tips

bigpink · 12-02-2019 1:00am

I think a lot of people have given up hope and know now they will never have a home

AudiAvant · 12-02-2019 1:04am

bigpink wrote: »

I think a lot of people have given up hope and know now they will never have a home

Most of my friends and family members have given up hope.
Mobile home,log cabin or house pod look like only solutions if you have space out your back garden for them.
At least you will own them and not have a nuse around your neck.

NSAman · 12-02-2019 1:08am

Things change in life. I didn't own my own property in my twenties. I was saving and saving. I lost a lot due to a failed business venture in my 30s that wiped out most of my savings completely. I started afresh in my 40s and managed to purchase my first home with a sibling. I changed work and jobs and life has taken off for me in my early 40s. A friend who was in a similar position but older had told me this would happen, as happened to him also.

Currently, I own a few properties and have just purchased my own retirement future house in Ireland.

Life has a way of feeling crap when you don't have your own place. Hard work and lots of sacrifice means most of us manage to finally get a place of our own. That may be down to luck, but hard work sure as hell played a large part in what I have managed to achieve so far.

For me anyway, leaving Ireland had a large part to play in my ability to develop myself and build a future for myself. I know Ireland is much more difficult in terms of financial freedom with banks etc. There are ways to get yourself that first house, most involve a lot of sacrifice, but when that first place arrives, it tends to be easier as you get older.

Jerry5 · 12-02-2019 1:20am

Myself and the girlfriend lived off the lower of our 2 wages for 18 Months and saved 100% of one wage. Wasn't too bad, went out once a month. Better off to blitz it than to spread the saving over many years due to house price increases over time. bought a house for 270k. plenty out there in the dublin area for sub 250k.

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

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