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19-11-2019, 10:30   #31
JustMe,K
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Borrow the money, buy a good decent size house, find a mate, reproduce and you'll be thankful you bought the better house.
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19-11-2019, 10:32   #32
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Originally Posted by pwurple View Post
Oh for goodness sake people, is every thread on boards these days full of 'i don't believe this'. Can't we just take the OP at face value? There are other ways to get money other than your bog standard PAYE. Sell a business, inheritance, shares, etc.


OP, if it were me, I would hold back a rainy day fund of about 20-30k for a start. That should cover something like needing to fly somewhere and not work for a few months, or buy a new car if yours gets totalled, or replace part of a roof, buy some furniture.

So, that leaves you with 270k deposit. You have not mentioned earnings, you would need to meet the 3.5 multiplier on there. So, say you earn 40k... you could get a mortgage for another 140k. Bringing your max up to about 410k
If you're borrowing 200k, you need an income of ~ 60k.

You will be at about 35% LTV there, which should give you a better interest rate.

I wouldn't max out your borrowing, if there is something in the 400's you can afford, go for that. Remember the larger the house, the more expensive it is to furnish, maintain, repair, insure, heat, tax etc. So a smaller house, maybe a solid 2 bed, in a decent area should be manageable. People always forget with renting that ownership comes with that additional cost overhead of maintenance.
I've also looked at the help to buy scheme. It's only for 70 percent loan to value, so presumably I'm ruled out.

Or is there any way around this like take out large mortgage and pay back high amount quickly. I'm sure that wouldnt work in my favour.
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19-11-2019, 10:52   #33
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I've also looked at the help to buy scheme. It's only for 70 percent loan to value, so presumably I'm ruled out.

Or is there any way around this like take out large mortgage and pay back high amount quickly. I'm sure that wouldnt work in my favour.
Yes, you're ruled out of help to buy, because, in fairness , you don't need it.

Yes, you can take out a variable mortgage and overpay it, no problem there, they are flexible. I've done it myself on a couple of mortgages to pay them down fast. Any bonus I got at work I dump into a mortgage, a bit of savings, rent a room out to a lodger, pop it all in. The first mortgage I took out was a 25 year, paid it down in 8 years.

One thing I will say, just in case you are getting that 300k from other loans, credit union etc, a mortgage is about the cheapest loan you can ever get. Look at your rates. If you think you can clear the mortgage quickly, it's usually much cheaper than a term loan.
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19-11-2019, 12:48   #34
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I would take the loan OP. Buying something you're fundamentally unhappy with is a bad idea. If the market shifts badly, you could be stuck in that house or have to take a loss to get out of it.

You have no other loans. I'm someone who doesnt like the idea of buying stuff I can't afford out of pocket, but property is different. I've never had any other loans beyond my mortgages, not even an over draft. I also clear my credit card each month, so i do understand the aversion to buying things on credit, but you need to think of a house as capital expenditure, not current expenditure.
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19-11-2019, 13:24   #35
handlemaster
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Originally Posted by Empty_Space View Post
I'm a single buyer, I don't own any property.

I've been looking to buy a property for just myself and am finding it difficult.

I initially intended on buying a property outright. I can scrape together 300k. However I'm not finding anything that really grabs me in this price bracket. I'm buying in Dublin commuter areas.
I have noticed much better value in the 500k range. Should I get a mortgage and go for this bracket. Would I be mad to mortgage myself out when I can avoid?

Also, 300k is majority of savings, is it foolish to sink all into property?. For my own reasons I really want to buy, I know I will get people saying I'm buying at top.





Deffo go for it
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19-11-2019, 13:45   #36
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Originally Posted by listermint View Post
How can't anyone take this thread seriously..

300k savings.. currently living.... God knows where..and states that there is only value in the 500k plus range in the commuter belt.



Lol
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19-11-2019, 14:20   #37
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Originally Posted by listermint View Post
How can't anyone take this thread seriously..

300k savings.. currently living.... God knows where..and states that there is only value in the 500k plus range in the commuter belt.



Lol
Saved 110k over 4 years while saving for a mortgage and I'm only 30 and she's 28. We were not even being frugal. We could have done 150k in those years but enjoyed life a little. We put it all down on the deposit and went sale agreed three months ago.in full on frugal mode at the moment and saved another 11k since then to put into it.

Just because you cant do it doesn't mean someone else is lying.
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19-11-2019, 14:34   #38
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Imagine you had a 200k mortgage on a house worth 250k, you lost your job and you had no savings... well that's the worst case scenario.

Unlikely to happen of course.

Do you have all that money in cash? If it's in shares, etc, well house prices might fall but so will most investments. So if you're thinking of buying imminently, and house prices seem to have slowed.. you should consider moving it to cash.
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19-11-2019, 14:56   #39
bubblypop
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Thanks Jim,

I have a maybe backwards instinct that borrowing such a large sum makes the banks winners.Im leaning towards borrowing for expensive house though.

The other problem I'm finding is on size. I'm a single buyer and planned to buy a small place. I'm finding any adaquatley sized places very grim and am now thinking of just buying large property and leaving rooms idle.
hi OP, I am in much the same position. I still sometimes think I should just buy something cheap, but the value just isn't there.
I am looking at 400 K-ish, which would be a 150K mortgage. I decided I want to live somewhere I like rather than put up with somewhere I'm not mad about.

I agree with the size though.....I would be happy with 2 bedrooms, but 2 bedroom houses are so small, with no storage, I will possibly end up with a 3 bed, just for the extra size and storage.
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19-11-2019, 17:24   #40
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I'm finding any adaquatley sized places very grim and am now thinking of just buying large property and leaving rooms idle.
if you get a bigger place, you can rent out a room, and get up to 14K a year tax free
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19-11-2019, 17:40   #41
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OP I wouldn't be in such a huge rush to take out the 200k mortgage personally.

I would quite happily take out somewhere between 80 and 120k.
Over 35 years looking at what 500 a month and overpay fairly savagely early days, can always throttle back when necessary.

Anything taking your fancy at the 400k level?

To get 300k together and then take out 200k mortgage would bug me TBH.
Maybe just me
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19-11-2019, 19:08   #42
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if you get a bigger place, you can rent out a room, and get up to 14K a year tax free
Given the op's savings i doubt househaring is an option. I wouldn't like to pay 500k to tolerate someone.

But you raise a good point, and if that's the plan op would need to consider if the house lends itself well to someone sharing.. Noise through ceiling/walls, number of bathrooms, a 2nd living room... Ideally it would be as self-contained as possible.
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19-11-2019, 19:16   #43
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Anything taking your fancy at the 400k level?
I think the problem is 400k is a reasonable amount in dublin for a couple on a decent salary to obtain in finance.
(50k avg x 2 * 3.5) + a decent deposit. So too much competition.
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19-11-2019, 19:25   #44
Empty_Space
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Originally Posted by Wildly Boaring View Post
OP I wouldn't be in such a huge rush to take out the 200k mortgage personally.

I would quite happily take out somewhere between 80 and 120k.
Over 35 years looking at what 500 a month and overpay fairly savagely early days, can always throttle back when necessary.

Anything taking your fancy at the 400k level?

To get 300k together and then take out 200k mortgage would bug me TBH.
Maybe just me
Not a lot at 400k really grabbing me.
In fact the I keep seeing places towards 600!. I won't go that far though.

Renting a room not really considered but would be a nice option.
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