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Do's and don'ts for first time buyers

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    #122
    c.p.w.g.w
    Registered Users Posts: 4,994 ✭✭✭c.p.w.g.w


    Febreeze wrote: »
    Jesus that's awful. I think I would lose my mind if that was to happen to me. Spend all that time saving, happily going through the process then boom 7 years later "Your house is actually sinking". I would lose the will to live.

    What are they planning to do? Is there noone they can contact about this?

    There trying to get their insurer to cover the cost, but apparently the issue is difficult and tricky to fix. Something about the foundation's not being deep enough... basically the whole estate was built on marsh land and the developer didn't spend the money on groundworks to keep their costs down and max their profits


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    #123
    Sparky85
    Registered Users Posts: 120 ✭✭Sparky85


    Graham wrote: »
    I'm not saying it's not possible, but telling a first time buyer fixer-uppers are always a fantastic opportunity is poor advice.


    Plenty of discussion (and examples) over the last few years where the fixer-upper on offer represented extraordinary poor value.

    Which is exactly why I said get a full survey & go in with your eyes open for what needs doing

    It’s not always an opportunity but purely looking at newer houses is a bad way to buy a house, particularly for FTB when circumstances change and they need to sell up & move


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    #124
    Febreeze
    Closed Accounts Posts: 190 ✭✭Febreeze


    Graham wrote: »
    I'm not saying it's not possible, but telling a first time buyer fixer-uppers are always a fantastic opportunity is poor advice.


    Plenty of discussion (and examples) over the last few years where the fixer-upper on offer represented extraordinary poor value.

    I will admit, I've read a couple of threads about fixer uppers and a lot of them have pointed to fixer uppers are just as good as "Newly builds" if you're getting your monies worth basically but I'm on either fence. I think it comes down to preferences as well. I agree with both yourself and the other poster and it is a case of will I won't I but sure I'll find out soon enough won't I. I'll be taking on all advice gathered and I've already annoyed my partner enough to the point where I have been banned from talking about any form of houses haha!

    Cheers for the advice :-)


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    #125
    Febreeze
    Closed Accounts Posts: 190 ✭✭Febreeze


    Sparky85 wrote: »
    Which is exactly why I said get a full survey & go in with your eyes open for what needs doing

    It’s not always an opportunity but purely looking at newer houses is a bad way to buy a house, particularly for FTB when circumstances change and they need to sell up & move

    I am hoping the home we buy will be our first buy and won't have to feel the need down the line to move. I've viewd both older and newer properties and I still can't get my head around the differences in prices, both high and low it's mental but hey, that's the fun of it I guess.

    Eyes open is definitely what I'll be taking from this. Genuinely would of been an idiot and seen a house I love and run for the hills with it but there's so much that I've learned, I've actually backed away from setting with one type of house I would love and took up to viewing all shapes and sizes.


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    #126
    Febreeze
    Closed Accounts Posts: 190 ✭✭Febreeze


    c.p.w.g.w wrote: »
    There trying to get their insurer to cover the cost, but apparently the issue is difficult and tricky to fix. Something about the foundation's not being deep enough... basically the whole estate was built on marsh land and the developer didn't spend the money on groundworks to keep their costs down and max their profits

    I hope they get their houses fixed soon. I say it's a pain in the arse for them as it is.


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    #127
    c.p.w.g.w
    Registered Users Posts: 4,994 ✭✭✭c.p.w.g.w


    Febreeze wrote: »
    I hope they get their houses fixed soon. I say it's a pain in the arse for them as it is.

    Their engineer has said that its unlikely become a real issue for another few years, but they can't sell it as an inspection will find the issue


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    #128
    yaboya1
    Registered Users Posts: 4,610 ✭✭✭yaboya1


    EireinOZ wrote: »
    Me and my partner are saving for a house .I am a public servant and my partner is a engineering. We are both just starting our working career . I'm on 26k and he is on 28k per year. Our rent 600 a month and our car loans are 380 a month . we save about 1500-1600 a month. What is the chance of the banks leading us more than 3.5 times of our income ? We would like to get a house for 300000. We should have our 10 percent deposit in Jan 21

    Honestly?
    No chance.
    You're looking for a €270k loan, which is 5 times your income. The rule is 3.5 times. The banks may make some exceptions, but I've never heard them go that high and the exceptions are usually for high earners. I think you need to lower your expectations and start looking at €200k houses.


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    #129
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    yaboya1 wrote: »
    Honestly?
    No chance.
    You're looking for a €270k loan, which is 5 times your income. The rule is 3.5 times. The banks may make some exceptions, but I've never heard them go that high and the exceptions are usually for high earners. I think you need to lower your expectations and start looking at €200k houses.

    They take other things into account too, a public servant has a very secure job with guaranteed yearly pay increase, most engineering disciplines will be moving into much higher salaries as their career progresses etc this sort of thing is very much part of the equation. Banks will go as far as 4.5 times which isn’t a million miles away from what they need either, save for a bit longer maybe get a gift from family etc and they would be in with a chance of getting somewhere near what they need. Prices for a 300k house now might have dropped too come next year.


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    #130
    JohnnyChimpo
    Registered Users Posts: 1,075 ✭✭✭JohnnyChimpo


    Malcolm Late Funeral wrote: »
    Prices for a 300000k house now might have dropped too come next year.

    Must be some house :pac:


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    #131
    mimimcmc
    Registered Users Posts: 891 ✭✭✭mimimcmc


    yaboya1 wrote: »
    Honestly?
    No chance.
    You're looking for a €270k loan, which is 5 times your income. The rule is 3.5 times. The banks may make some exceptions, but I've never heard them go that high and the exceptions are usually for high earners. I think you need to lower your expectations and start looking at €200k houses.

    Spoke to an AIB advisor yesterday and he said most banks aren't giving exemptions at the moment, presumably due to the virus. So I'd also doubt you would have any chance in getting that price any time soon..


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    #132
    yaboya1
    Registered Users Posts: 4,610 ✭✭✭yaboya1


    mimimcmc wrote: »
    Spoke to an AIB advisor yesterday and he said most banks aren't giving exemptions at the moment, presumably due to the virus. So I'd also doubt you would have any chance in getting that price any time soon..

    What price? Wouldn't need an exemption for a €200k house.


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    #133
    mimimcmc
    Registered Users Posts: 891 ✭✭✭mimimcmc


    yaboya1 wrote: »
    What price? Wouldn't need an exemption for a €200k house.

    Oh no, i know wouldn't need one for that price. He just said in general they're not giving them out right now (I meant to reply to the poster asking the question about the 300k house)

    We're looking at max 220k really


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    #134
    Maz2016
    Registered Users Posts: 1,103 ✭✭✭Maz2016


    EireinOZ wrote: »
    Me and my partner are saving for a house .I am a public servant and my partner is a engineering. We are both just starting our working career . I'm on 26k and he is on 28k per year. Our rent 600 a month and our car loans are 380 a month . we save about 1500-1600 a month. What is the chance of the banks leading us more than 3.5 times of our income ? We would like to get a house for 300000. We should have our 10 percent deposit in Jan 21

    If you managed to clear your car loans it’s doable through the rebuilding Ireland home loan. That’s offered through your county council. Without a car loan ye could get €271k , with car loans it’s reduced to €191k. That’s for Dublin based over 30 years , some other counties would offer lower.

    http://rebuildingirelandhomeloan.ie/calculator/


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    #135
    BailMeOut
    Registered Users Posts: 2,966 ✭✭✭BailMeOut


    May or not mentioned but if you or your spouse smoke then stop now as if you do not have 12 months as a non smoker your life protection insurance will be very expensive.


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    #136
    Febreeze
    Closed Accounts Posts: 190 ✭✭Febreeze


    BailMeOut wrote: »
    May or not mentioned but if you or your spouse smoke then stop now as if you do not have 12 months as a non smoker your life protection insurance will be very expensive.

    Thankfully we quit smoking 2 years ago. Mainly because of health but the price was getting ridiculous so we just stopped. Cold turkey. We've saved loads so that's been a huge help. But thanks for that advice :-)


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    #137
    Jen Pigs Fly
    Registered Users Posts: 2,770 ✭✭✭Jen Pigs Fly


    2BailMeOut wrote: »
    May or not mentioned but if you or your spouse smoke then stop now as if you do not have 12 months as a non smoker your life protection insurance will be very expensive.

    €49 a month for a smoker on mortgage protection policy and I have a chronic illness, it’s defo doable and not crazy money really.

    Maybe we got lucky, but it might be good bearing in mind not everything is black and white as your statement.


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    #138
    guyfawkes5
    Registered Users Posts: 291 ✭✭guyfawkes5


    Malcolm Late Funeral wrote: »
    They take other things into account too, a public servant has a very secure job with guaranteed yearly pay increase, most engineering disciplines will be moving into much higher salaries as their career progresses etc this sort of thing is very much part of the equation. Banks will go as far as 4.5 times which isn’t a million miles away from what they need either, save for a bit longer maybe get a gift from family etc and they would be in with a chance of getting somewhere near what they need. Prices for a 300k house now might have dropped too come next year.
    From conversations with bank advisors, most exemptions fall well below 4.5, in and around the 4 range. I was told that the archetype of the people getting the absolute maximum exemptions were high-earning couples living with the parents with next no permanent expenses.


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    #139
    callmehal
    Site Banned Posts: 461 ✭✭callmehal


    Hey everyone. Do you know do the banks ask for p60's? And is it usually for the previous 2 years? If so, would someone who was back in education and not making a huge salary during those years look poor on an application?


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    #140
    frw5
    Closed Accounts Posts: 61 ✭✭frw5


    If I was saving some extra money on the side in cash, what is the best way to deposit that to the account and have it counted towards deposit?


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    #141
    Jen Pigs Fly
    Registered Users Posts: 2,770 ✭✭✭Jen Pigs Fly


    frw5 wrote: »
    If I was saving some extra money on the side in cash, what is the best way to deposit that to the account and have it counted towards deposit?

    My broker advised standing order. But if it’s cash, then maybe try put in the exact same amount at the same date and if you can label it like savings or something.
    Banks may ask where the cash came from, so be prepared for that, they love paper trails!


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    #142
    frw5
    Closed Accounts Posts: 61 ✭✭frw5


    Jen Pigs Fly wrote: »
    My broker advised standing order. But if it’s cash, then maybe try put in the exact same amount at the same date and if you can label it like savings or something.
    Banks may ask where the cash came from, so be prepared for that, they love paper trails!
    So I've got couple of k saved in cash, always had the idea its good to have some money in cash + normal bank acc savings, so basically split it in ie 3 payments due it on 10th of July, August, September ie.


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    #143
    Interested Observer
    Registered Users Posts: 13,021 ✭✭✭✭Interested Observer


    1. Go to a mortgage broker

    That's pretty much it. They'll do everything else.


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    #144
    Jen Pigs Fly
    Registered Users Posts: 2,770 ✭✭✭Jen Pigs Fly


    frw5 wrote: »
    So I've got couple of k saved in cash, always had the idea its good to have some money in cash + normal bank acc savings, so basically split it in ie 3 payments due it on 10th of July, August, September ie.

    To be honest, when it comes to cash I’d seek out a broker, I went for an independent one, not the one the estate agent recommended (too much interest in the sellers favour). They would be able to help when it comes to cash savings + bank savings.
    You will need to lodge all your savings into the bank anyway as the solicitor EFT transfers your deposit over to the vendors solicitor.

    Some banks also want proof of funds, and I don’t know if a picture of a wad of cash is what they mean! :D


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    #145
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    frw5 wrote: »
    So I've got couple of k saved in cash, always had the idea its good to have some money in cash + normal bank acc savings, so basically split it in ie 3 payments due it on 10th of July, August, September ie.

    Save a much higher amount than normal from your salary for a few months and spend the cash. If asked just say you had a lean few months to save a bit extra before buying.


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    #146
    yourdeadwright
    Registered Users Posts: 20,552 ✭✭✭✭yourdeadwright


    frw5 wrote: »
    So I've got couple of k saved in cash, always had the idea its good to have some money in cash + normal bank acc savings, so basically split it in ie 3 payments due it on 10th of July, August, September ie.

    I think you need a different thread on how to money laundering :D:D

    Just don't touch any money from your account for the next three months and use the cash you have saved for living,


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    #147
    c.p.w.g.w
    Registered Users Posts: 4,994 ✭✭✭c.p.w.g.w


    Jen Pigs Fly wrote: »
    My broker advised standing order. But if it’s cash, then maybe try put in the exact same amount at the same date and if you can label it like savings or something.
    Banks may ask where the cash came from, so be prepared for that, they love paper trails!

    Just tell them you sold a push bike you had no use off...Did a cash job a few months back, went to lodge it got all sorts of questions. Mind it was €1200


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    #148
    c.p.w.g.w
    Registered Users Posts: 4,994 ✭✭✭c.p.w.g.w


    yourdeadwright wrote: »
    I think you need a different thread on how to money laundering :D:D

    Just don't touch any money from your account for the next three months and use the cash you have saved for living,

    That looks worse tho


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    #149
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    yourdeadwright wrote: »
    I think you need a different thread on how to money laundering :D:D

    There's probably a forum for that somewhere. :D

    Mod Note

    This isn't it. :mad:


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    #150
    yourdeadwright
    Registered Users Posts: 20,552 ✭✭✭✭yourdeadwright


    c.p.w.g.w wrote: »
    That looks worse tho

    Could you just say your been extra careful with your money and saving more coming up to applying , How is that worse than lodging a few grand and saying its money you took up out and kept,

    If it really is money he took out ( no reason to not believe him ) he can just point to the cash withdrawals on his statement , If its not money he took out they will look for the cash withdrawals on his statement for him to prove it is ,

    Could always say its gift from mam and dad


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    #151
    GarIT
    Registered Users Posts: 8,671 ✭✭✭GarIT


    mimimcmc wrote: »
    Spoke to an AIB advisor yesterday and he said most banks aren't giving exemptions at the moment, presumably due to the virus. So I'd also doubt you would have any chance in getting that price any time soon..


    The banks majorly F'ed up with exemptions.


    The number of exemptions they can give depends on the number of customers they have. A lot of banks used all the exemptions they expected to have for the whole year in Janruary and are now finding they had less customers than expected. I won't put any hope in getting an exemption this year, the banks might already be fined for giving out too many.


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