Looking for some advice on my situation

sashafierce · 28-10-2018 8:11pm #1

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Fol20 · 28-10-2018 8:34pm

sashafierce wrote: »

Excuse my naivety on the subject I've only thought about buying in the last month. Currently working and renting in Dublin. Paying a small fortune. I have approx 17k saved but since rent went mad in Dublin I haven't been able to add to this in the last 12-18 months. I am considering moving back to my parent place for about 18 months to save. Meaning an hour commute to work but I don't mind that. I've estimated this would allow me to have about 30k by Christmas 2019 (maybe march 2020)
So, does anyone think prices may have dropped by then?
Would it even be feasible for me to buy on one income with that deposit?
Am I looking at finding myself stuck in my parents place then with rent going up more and me not being able to afford to move back.
Obviously no one knows for sure just wondering if the wiser of us have any tips?

It’s also about your salary. If your on on 50k a year this means you can borrow 50x3.5= 175

This along with 30k in saving means you could afford a house for around 200ish. Is this doable in the area you want to buy in?dublin is quite pricey so you might need to look further afield.

Nobody has a crystal ball however the only reason why prices would fall would be if the world has another economic downturn such as Brexit, trade wars etc. if this happens. Prices will fall however at the same time, there will also be a credit crunch and unless your squeaky bum clean. You might not be able to even borrow the above figures

fritzelly · 29-10-2018 12:11am

If you don't mind the hour commute than go outside Dublin and get something for a lot less money.
You will always be chasing that house by spending another year saving money for a deposit in Dublin

sashafierce · 29-10-2018 7:07am

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Cyrus · 29-10-2018 7:28am

sashafierce wrote: »

I don't mind the hour commute for a year or so. Not an option forever. I already work outside the city but want to be able to move jobs if ever needed.

Ideal place to buy would be somewhere like Lucan. Since I don't make 50k a year does this mean I'm basically discriminated against for not being in a couple? So only individuals in top end jobs will ever be able to buy?
Because there's not enough pressure on single females to "find someone" uuuugh

Discriminated against?

Hardly, you salary whatever it is just doesn't support owning your own property in Dublin .

You want to stay in Dublin then rent until that changes or move out of Dublin and buy elsewhere .

fleet · 29-10-2018 7:32am

A few points:

Prices will drop once there are more sellers than buyers, selling into what ever areas serve the same city. We're not close to that point in Dublin.

Given that people buying @4-500k to commute 90+ minutes to Dublin at the moment (Waverly/Ternlee etc.) to we're probably still some years away from affordable stock in Dublin, even second hand in the rougher areas.

This isn't single person discrimination, and it certainly isn't female discrimination. It's just how the market works post crash. Richer people live in the expensive areas, and right now those extend beyond 1 hour commute of Dublin.

Stick it out few years and you will get your property. The reason I can say this is that it will still be profitable to build houses and apartments at 200k within an hour of Dublin once ALL other buyers with more capital have been served. Source: I'm renting in a 2 bed bought new in 2012 for 165k one hour from Dublin.

A crash will also drop prices, but the "ring fence" the IMF made us put in around commercial banking would have to hold.

Alternativly just emigrate, it's what I'm doing.

volchitsa · 29-10-2018 7:37am

sashafierce wrote: »

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What about buying with a friend? People do that in London, the idea being that in a few years either one of the two buys out the other or both sell and move on.

Addle · 29-10-2018 8:33am

Add your name to local authority affordable housing lists.

power pants · 29-10-2018 11:13am

sashafierce wrote: »

I don't mind the hour commute for a year or so. Not an option forever. I already work outside the city but want to be able to move jobs if ever needed.

Ideal place to buy would be somewhere like Lucan. Since I don't make 50k a year does this mean I'm basically discriminated against for not being in a couple? So only individuals in top end jobs will ever be able to buy?
Because there's not enough pressure on single females to "find someone" uuuugh

Discriminated?? That’s ridiculous

Apply to rebuild Ireland scheme and be more proactive. You potentially tick all the boxes for getting a mortgage that you require

4ensic15 · 29-10-2018 11:30am

volchitsa wrote: »

What about buying with a friend? People do that in London, the idea being that in a few years either one of the two buys out the other or both sell and move on.

The banks are most unlikely to finance such a situation. These situations turned into a nightmare when properties went into negative equity.

super_furry · 29-10-2018 11:32am

sashafierce wrote: »

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You’re discriminated against in that same way that I’m discriminated against when I want to buy a Maserati.

sashafierce · 29-10-2018 12:32pm

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sashafierce · 29-10-2018 12:35pm

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power pants · 29-10-2018 12:45pm

sashafierce wrote: »

Also, according to the AIB calculator I could get a house for 260k with a deposit and pay approx the same as I'm paying in rent now. Yet if I'm able to pay mad rent on time without issue why not allow me to have a mortgage???

Talk to aib then and ask them

Bluefoam · 29-10-2018 1:09pm

I currently live in Dublin suburbs only 5k from the city center, I have a 1.5 hour commute...

Addle · 29-10-2018 1:12pm

Remember too that whatever your deposit is, you'll need about the same amount again to furnish the house.

I sympathise OP. It's definitely easier afford a house and incidental costs when there are two incomes rather than just one.

Cuddlesworth · 29-10-2018 1:13pm

sashafierce wrote: »

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Did you fill it out correctly? I just went onto it and it spit out 3.5 times income. The above implies you are earning 67k a year.

TG860 · 29-10-2018 1:13pm

sashafierce wrote: »

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Because a commitment to pay X amount per month while you rent a place isn't the same as a commitment to borrowing hundreds of thousands of euro over 30 years.
What if a recession hits and you go into negative equity/lose your job? What about all of the additional costs of home ownership over and above the mortgage payment?
It's not as simple as saying I pay the same amount in rent at this moment in time, therefore I should be able to borrow more money than is prudent.

sashafierce · 29-10-2018 1:27pm

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the_syco · 29-10-2018 1:28pm

sashafierce wrote: »

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If you like commuting by bus, yes.

sashafierce wrote: »

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Wut?

super_furry wrote: »

You’re discriminated against in that same way that I’m discriminated against when I want to buy a Maserati.

Things are bad when you can't buy a Fiat :pac:

sashafierce wrote: »

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It depends on how much percent of your wage goes towards rent. Some people stretch themselves too far to rent.

For example, when you say

sashafierce wrote: »

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a bank may see that you cannot save after paying your current rent, and thus you may not be able to afford the mortgage if the rates increased slightly.

sashafierce wrote: »

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"Majority of people" - where did you get that figure from?

sashafierce · 29-10-2018 1:29pm

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Stheno · 29-10-2018 1:31pm

sashafierce wrote: »

I just calculated the payments on a house worth 250k with a 25k deposit over 30/35 years and the repayments were 1000approx a month. I pay almost that in rent currently....

That's not how approvals for mortgages work though?

sashafierce · 29-10-2018 1:31pm

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sashafierce · 29-10-2018 1:31pm

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Stheno · 29-10-2018 1:37pm

sashafierce wrote: »

I'm aware I'm just saying you could give some with a salary of 150k a mortgage and they could easily lose their job too. It's frustrating is all

You don't seem to be thinking straight tbh. You've been told how calculations for mortgages work. The fact you are single and do not have a high income is what is impeding you.

Ursus Horribilis · 29-10-2018 1:38pm

Could you get a job elsewhere and not have to buy in Dublin? Realistically, unless you increase your salary in a significant way or you meet someone else, you're going to struggle to buy. If another crash comes, house prices will drop but it may also get harder to get a mortgage.

sashafierce · 29-10-2018 1:44pm

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sashafierce · 29-10-2018 1:46pm

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Stheno · 29-10-2018 1:48pm

sashafierce wrote: »

Yeah but that's what annoys me. The fact I'm single is impeding me. I spent the most part of my 20s saving and now it's like I've no options to own until I climb the ladder in work which could take ten years

Have you looked into the help to buy scheme?

29-10-2018 1:51pm

sashafierce wrote: »

I'm on a decent wage for my line of work and I'm happy in my job so don't wanna leave. It's just upsetting that I've been saving for the most part of my 20s and not I'm at a bit of a dead end

I appreciate your frustration but that is the situation we are in re. mortgage lending at the moment. The banks flung money at people who didn't have the capacity to repay it for large parts of the 2000s and it ended up in disaster.

Bluefoam · 29-10-2018 2:00pm

Unfortunately there is big international business effecting the market. Giant landlords in control of large portions of housing stock and renting them to the masses. The future for young people is to rent for life. The majority of people will be in that situation from here on. Some lucky people will inherit or earn enough to avoid it, but home ownership is under threat.

Personally, I'm doing everything I can so that I'm not one of those left behind.

sashafierce · 29-10-2018 2:04pm

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Bluefoam · 29-10-2018 2:06pm

sashafierce wrote: »

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I haven't done anything as I'm just looking into options in recent times since a change in my situation meant trying to buy as an individual instead of as part of a couple.[/quote]
Look into the help to buy scheme

Heres Johnny · 29-10-2018 2:10pm

Banks are restricted in what they can lend to 3.5 times the borrowers total income. You're far from alone there's a huge amount of singletons out there. Unfortunately with the supply v demand issues in Dublin at the moment most properties are out of reach in traditional ways. I live in Lucan too. There's a huge amount of building here and some of it has to go to social and affordable housing so look up your options there.
It's not discrimination at all. I can't afford to buy a house in certain Dublin areas and I'm an actuary on a high salary but my difference is I don't want to anyway so I feel your frustration.
It's tough out there.

sashafierce · 29-10-2018 2:10pm

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sashafierce · 29-10-2018 2:12pm

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Heres Johnny · 29-10-2018 2:14pm

sashafierce wrote: »

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I never wanted to buy until a long term relationship came to an end and I had to move in with strangers. That's what made me want to look into buying so I could live on my terms of ya get me[/quote]

Yes sharing with strangers is not good. It's just a house then not a home. You haven't mentioned income yet how much do you earn?

Bluefoam · 29-10-2018 2:15pm

sashafierce wrote: »

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I never wanted to buy until a long term relationship came to an end and I had to move in with strangers. That's what made me want to look into buying so I could live on my terms of ya get me[/quote]
Now, now... Don't be taking it out on the people here who were kind enough to offer advice. Your situation is not of their making. You risk coming off as an entitled millennial, ya get me?

Ursus Horribilis · 29-10-2018 2:17pm

You can't have everything on your own terms. You said you don't "wanna" leave your job. There goes any chance of increasing your salary if you find another job in Dublin. You don't seem to be interested in finding a job elsewhere. Even if Dublin prices drop a bit, the odds are still stacked against you. Your wages are too low. You're single. It's a problem. What you need is a plan.

I ended up house sharing in my 30s after my long term relationship went tits up. It wasn't what I wanted to do but it was a means to an end. It got me my deposit and now I'm happy out. But there is no chance whatsoever that I'd have bought something anywhere half nice in Dublin. And I was earning more than you are.

sashafierce · 29-10-2018 2:18pm

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Ursus Horribilis · 29-10-2018 2:20pm

I thought I'd be buying as a couple too. It didn't work out so I changed tack and made compromises. I'm now sitting in my own house. La de dah .

power pants · 29-10-2018 2:21pm

Ursus Horribilis wrote: »

You can't have everything on your own terms. You said you don't "wanna" leave your job. There goes any chance of increasing your salary if you find another job in Dublin. You don't seem to be interested in finding a job elsewhere. Even if Dublin prices drop a bit, the odds are still stacked against you. Your wages are too low. You're single. It's a problem. What you need is a plan.

I ended up house sharing in my 30s after my long term relationship went tits up. It wasn't what I wanted to do but it was a means to an end. It got me my deposit and now I'm happy out. But there is no chance whatsoever that I'd have bought something anywhere half nice in Dublin. And I was earning more than you are.

Op seems more focused on being single than anything else . Break up maybe recent as seems to still be in the venting stage

Do some research, rebuild Ireland

Because you are single doesn’t have to exclude you from buying

sashafierce · 29-10-2018 2:21pm

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sashafierce · 29-10-2018 2:22pm

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sashafierce · 29-10-2018 2:24pm

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Ursus Horribilis · 29-10-2018 2:28pm

You do need to drop the negative mindset though.
House sharing doesn't have to be hell if you find housemates who are sound. That definitely made my later house-sharing days a lot nicer, plus I made a couple of friends from it.

You need to earn more money by the looks of things. You're going to have to leave where you work sometime unless you think you'll be there until they give you a gold clock. Unless of course there are proactive steps you can take to move up the ladder more quickly. Can you study at night or get additional qualifications?

Sarn · 29-10-2018 2:44pm

The reality for someone trying to purchase on their own is that it will take a lot longer. Realistically, a bigger deposit is needed to overcome the single salary disadvantage.

That was the approach that I took, saving up a large enough deposit to allow me to do it on my own. In the end it wasn’t necessary, but when we bought we were able to get our house in Dublin on one salary.

riclad · 29-10-2018 2:47pm

See here
https://www.daft.ie/dublin-city/property-for-sale/?s%5Bmxp%5D=175000

You can buy a house under 220k or a 1bed apartment .
Save as much as you can .
look on daft.ie and myhome.ie .
No one can predict what will happen with brexit or the economy .
Its pointless to wait for prices to fall if you want to buy in dublin .
It may never happen.
When you have 20k saved go to a mortgage broker.
He will give you advice re how much you can borrow and help you to get a loan.Save your money in aib or TSB bank.
When you apply for a loan they may look at your saving,s eg you were able to save x amount per month, every month.
You may be reliable in terms of paying a mortgage every month.
Or just go to a bank and apply for a mortgage.
I think banks would expect you to have 20k saved approx if you are buying a house for 200k.
I do,nt know what deposit they may expect a single person to have versus a couple buying the same house.
I think the banks look at could you pay the loan back if rates go up by 2 per cent ,
you salary, your deposit, what you pay in rent is not their concern.
The easiest option is just buy a 1 bed apartment for 160-180k if you can find one at that price range.

wersal gummage · 29-10-2018 2:52pm

sashafierce wrote: »

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I'm not sure you'd be a great candidate for a mortgage. If interest rates went up by 2 or 3% you could be in trouble.

29-10-2018 2:57pm

wersal gummage wrote: »

I'm not sure you'd be a great candidate for a mortgage. If interest rates went up by 2 or 3% you could be in trouble.

I'd say a very large number of people would be in trouble if rates went up by 3%. That's a massive increase. On a 300k property over 30yrs it would increase your monthly payment by the guts of 500eur per month.

wersal gummage · 29-10-2018 3:01pm

Dakota Repulsive Yawn wrote: »

I'd say a very large number of people would be in trouble if rates went up by 3%. That's a massive increase. On a 300k property over 30yrs it would increase your monthly payment by the guts of 500eur per month.

Thanks but I get how interest rate hikes work! Your example is an additional outlay of 6k per annum, or 60k per decade. The person asking is saying that, having saved for a decade, they have 17k. I'm just saying that their disposal income might be deemed by the banks to be a bit tight (if those savings are in any way representative of overall earnings). Banks will stress test now for 2% increase

Looking for some advice on my situation

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