Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

€100k deposit, €180k budget

Options
2

Comments

  • Options
    #32
    dynamited
    Closed Accounts Posts: 74 ✭✭dynamited


    donkeyoaty0099 wrote: »
    IS 35 years a long time for a mortgage? Still renting but trying to educate myself on these things to make the jump in a few years time/

    Not sure



    I'm 26 though , the repayments work out @ around 330-350 per month but i plan to save another 300e on top of that and pay it off in lump sums


    I hope to have the mortgage paid off in 10-12 years and then try buy another place to rent out


  • Options
    #33
    deathtocaptcha
    Registered Users Posts: 349 ✭✭deathtocaptcha


    wait it out... there's lots of panic buying going on at the minute and people fearing they'll miss the bottom... my guess is it's a bull trap and prices will decline again...

    Europe is in a poor situation in general... low to no growth, inflation well below targets... it's important not to buy in to the hype (again)... the general sentiment is overconfidence now...

    It's difficult to see things turning sour overnight, but closing our corporation tax loophole could result in multinationals closely examining the increasing cost of doing business here and reduced tax incentives to stay... combined with tougher US tax laws / sanctions, it's possible any competitive edge we had will be eroded slowly...


  • Options
    #34
    MouseTail
    Registered Users Posts: 1,663 ✭✭✭MouseTail


    donkeyoaty0099 wrote: »
    IS 35 years a long time for a mortgage? Still renting but trying to educate myself on these things to make the jump in a few years time/

    Yes, it would be the longest term available, but the flexibility can work to your advantage.


  • Options
    #35
    handlemaster
    Registered Users Posts: 6,003 ✭✭✭handlemaster


    As pervious poster pointed out Europes economy is still sick. Russian bullyboy antics wont help either. As regards how this affects housing !! People still need a place to live.


  • Options
    #36
    dynamited
    Closed Accounts Posts: 74 ✭✭dynamited


    Recession is far from over as to what i can see, so I won't get ahead of myself and just buy for the sake of it


    I will wait until the right deal comes along In the right Location.


    Thanks for the advice so far people !


  • Advertisement
  • Options
    #37
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    My prediction for what its worth (and it's pulled out of the same place most others are :P)

    2014 saw Capital Gains Tax (CGT) exemptions and panic buying from pent up demand. Prices soared in % terms but from fairly low levels. The cash buyers are now dropping out of the market (they'll still be some) but they'll mainly be going for longer term (than 7 years from the CGT exemption) hassle free (ish) investments - read apartments.

    2015 might see some price decreases in certain areas, D7, D8 are already seeing prices being reduced. I suspect this will continue into Q1/2 of next year eventually stabilising but increasing faster than inflation.

    D10/12 will see buyers pushed out of D7/8 and I actually think prices will increase slightly there with potential knock on effects into other areas. Perhaps D11/15.

    Overall I think we'll see single (but high) digit property price increases next year (9.5%) with localised bubbles popping and apartments rising a bit higher guessing 12%.

    There is an awful lot of sh!t (uninhabitable) out there at the moment, I can see some of these properties taking a massive nose dive in the new year.


  • Options
    #38
    Robbie32
    Registered Users Posts: 42 ✭Robbie32


    Hi dynamited.

    I agree with you, in my opinion the recession is still here in the real world.

    I am in the process of organising a wedding and the amount of suppliers that have used the phrases "in the recession days" or "now the recession is over".

    I see that alot in the housing market too. Went to view a house the beginning of last week, and I didnt even get into the house. No one else there and the estate agent said, "ok I must tell you that there has been an over the asking price offer by 25k". I said ok and thanks for your time. I turned on my heels to walk away. The estate agent asked where I was going. I told him that figures that high took me out of my budget and that there was no point in looking at it.

    Now the estate agent doesnt know this. But I was told about this particular house by my friend, who is friends with the estate agent. My friend told me that the house had been on the market with very little interest.
    Yesterday I received yet another call from the agent asking if I would reconsider viewing the property. When I asked about the other "offer", he says that fell through.

    Is this just me or is anyone else experiencing the same.


  • Options
    #39
    irish gent
    Registered Users Posts: 240 ✭✭irish gent


    Double bubble collapse next year ahead on property and stoke markets will will also burst.. clock is ticking.


  • Options
    #40
    handlemaster
    Registered Users Posts: 6,003 ✭✭✭handlemaster


    If ecb start printing euro investors will invest more not less in bricks and morter. Gold has gone through the floor so that is a good indicater investors are seeking returns not safety. Also bond rates are very very low


  • Options
    #41
    GreeBo
    Registered Users Posts: 27,084 ✭✭✭✭GreeBo


    If you can pay 300 and still save another 300 I'd arrange ashorter term, maybe 30 or even 25. If circumstances change then you can renegotiate back up to 30 or 35, but that is easier and saves you more money than paying lump sums off a variable, assume you will have penalties for early payment.


  • Advertisement
  • Options
    #42
    Robbie32
    Registered Users Posts: 42 ✭Robbie32


    There shouldnt be any penalty for early payment on a varible. Paying off in full might have a "fee".
    Before I sold my house I was paying off lump sums, with no penalty. I managed to get my 35 year mortgage down to 20 in 5 years, by lump sums and also was lucky that the rates dropped, but i cud afford to pay the same monthly repayment.

    Its always a trade off between terma nd repayment. It worked for me saving the extra during the year and paying the lump sum at the end of the year. Also gave me extra cash to pay if there was anything unexpected billwise....


  • Options
    #43
    tom_tarbucket
    Banned (with Prison Access) Posts: 2,083 ✭✭✭tom_tarbucket


    Just wondering, on the deposit, you are putting in a 100k Deposit. Is this all your savings wiped out ?


  • Options
    #44
    dynamited
    Closed Accounts Posts: 74 ✭✭dynamited


    tom_tarbucket wrote: »
    Just wondering, on the deposit, you are putting in a 100k Deposit. Is this all your savings wiped out ?


    Yes , it is life savings , 26 years old


  • Options
    #45
    tom_tarbucket
    Banned (with Prison Access) Posts: 2,083 ✭✭✭tom_tarbucket


    dynamited wrote: »
    Yes , it is life savings , 26 years old




    There are 2 options here

    1 ) The option you are taking of putting down all your savings and therefore reducing what you will owe the banks. As you say you will have to start saving all over again from scratch.

    2 ) Put in 60% of your deposit and leave the rest for a rainy day maybe.

    I don't know the ins and outs of it, but which works out better. Everything in and start saving again, or a bit in and have some savings


  • Options
    #46
    dynamited
    Closed Accounts Posts: 74 ✭✭dynamited


    tom_tarbucket wrote: »
    There are 2 options here

    1 ) The option you are taking of putting down all your savings and therefore reducing what you will owe the banks. As you say you will have to start saving all over again from scratch.

    2 ) Put in 60% of your deposit and leave the rest for a rainy day maybe.

    I don't know the ins and outs of it, but which works out better. Everything in and start saving again, or a bit in and have some savings


    Both are very good options which i have thought about and tbh i find it as more of a challenge to start saving from scratch and will motivate me more, the lower repayments should make it easier.


    Whereas if i left some savings resting in an account i wouldn't be as motivated to save as much and my repayments would be higher



    I think in the long term , option 1 is suited more for my lifestyle and finances


    Either way, thanks for the advice


  • Options
    #47
    Robbie32
    Registered Users Posts: 42 ✭Robbie32


    I might be wrong, but doesnt the amount of deposit have an effect on the amount you can borrow????


  • Options
    #48
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    dynamited wrote: »
    Not sure



    I'm 26 though , the repayments work out @ around 330-350 per month but i plan to save another 300e on top of that and pay it off in lump sums


    I hope to have the mortgage paid off in 10-12 years and then try buy another place to rent out

    Would you not be better overpaying your mortgage at the start, i.e. Putting the extra 300 into the mortgage rather than saving it? The quicker you start reducing the capital the less interest you will pay.


  • Options
    #49
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    Robbie32 wrote: »
    I might be wrong, but doesnt the amount of deposit have an effect on the amount you can borrow????

    Not in our experience, we've a large deposit and smaller mortgage approval like the OP. Obviously you can buy more because you're adding to it yourself but the mortgage amount, remains the mortgage amount.

    Also in relation to your excellent point ref offers Robbie - yes I'm finding that I'm getting a lot less BS from EAs. The very first thing I ask is what offers are in on the property. Most are upfront but the BS detector goes off with a few and I simply say thanks, not going to view it then.

    That said: There are still some high offers going in on property and a lot of stuff in Dublin is selling over asking. People are also making offers in a bid to scare off other bidders. Instead of going up 1/2K they go in at 5/10K higher hoping that they come out on top and avoid a bidding war which could see the property go higher.

    There is then the fact that they may very well try and chip (gazunder (sp?)) the vendor at the last minute, especially if the new year does see prices dip.

    EDIT: Sorry did mean to say a small mortgage and high deposit will result in a lower LTV thus giving a better interest rate. This might factor in to the amount being lent on the basis the repayments are lower but it's going to make very little difference, especially at the levels the OP is looking.


  • Options
    #50
    Robbie32
    Registered Users Posts: 42 ✭Robbie32


    Yeah its abit of a nightmare. my parents sold their house and. put in an offer over asking price for a place. The sellers wouldnt even give them an answer. After 6 weeks my parents found somewhere else and pulled out of the first place.
    They put in an offer 50k over the asking price and with the previso that 8weeks was enough time for them to be in the house for christmas. So deposit paid subject to survey.

    9 weeks later and they are no further as the bank are having discussions with the owners (apparently 2 brothers) about who owes what percentage of the negative equity.

    This is all well and good, but now my parents wont be in for christmas and their circumsatnces have changed slightly which will probably end up with them pulling out of the sale and looking else where. I know I certainly would......


  • Options
    #51
    MarkAnthony
    Closed Accounts Posts: 6,934 ✭✭✭MarkAnthony


    Robbie32 wrote: »
    Yeah its abit of a nightmare. my parents sold their house and. put in an offer over asking price for a place. The sellers wouldnt even give them an answer. After 6 weeks my parents found somewhere else and pulled out of the first place.
    They put in an offer 50k over the asking price and with the previso that 8weeks was enough time for them to be in the house for christmas. So deposit paid subject to survey.

    9 weeks later and they are no further as the bank are having discussions with the owners (apparently 2 brothers) about who owes what percentage of the negative equity.

    This is all well and good, but now my parents wont be in for christmas and their circumsatnces have changed slightly which will probably end up with them pulling out of the sale and looking else where. I know I certainly would......

    TBH I haven't even got involved until the process was further along. I know that makes me a bit of a barstard swooping in at the last minutes but it's happened to me enough times.

    I've been inquiring about the chain each time and haven't been going near properties where I can't get a straight answer.

    Buying here (and England) is a sodding nightmare, Scottish system of binding offers is much, much better IMHO.


  • Advertisement
  • Options
    #52
    GreeBo
    Registered Users Posts: 27,084 ✭✭✭✭GreeBo


    Robbie32 wrote: »
    There shouldnt be any penalty for early payment on a varible. Paying off in full might have a "fee".
    Before I sold my house I was paying off lump sums, with no penalty. I managed to get my 35 year mortgage down to 20 in 5 years, by lump sums and also was lucky that the rates dropped, but i cud afford to pay the same monthly repayment.

    Its always a trade off between terma nd repayment. It worked for me saving the extra during the year and paying the lump sum at the end of the year. Also gave me extra cash to pay if there was anything unexpected billwise....

    Sorry, I was thinking of fixed term, I purposely kept some of mine as variable so that I could pay off lump sums as I expected to be coming into cash.

    OP Saving 300 a month to pay off a lump sum will cost you money, its far cheaper to pay that off the mortgage and get a shorter term.
    You will literally save thousands over the term.


  • Options
    #53
    tom_tarbucket
    Banned (with Prison Access) Posts: 2,083 ✭✭✭tom_tarbucket


    GreeBo wrote: »
    Sorry, I was thinking of fixed term, I purposely kept some of mine as variable so that I could pay off lump sums as I expected to be coming into cash.

    OP Saving 300 a month to pay off a lump sum will cost you money, its far cheaper to pay that off the mortgage and get a shorter term.
    You will literally save thousands over the term.


    I know what your saying and this is all good and well.

    But OP is essentially pumping all his life savings and possibly all his start from scratch savings in to the house, meaning everything he has in life is tied in to this bloody house, and we all know the way house prices change etc

    I know its 6 of 1, half dozen of another really, but just annoying to have EVERYTHING tied up in a house


  • Options
    #54
    Woshy
    Registered Users Posts: 1,429 ✭✭✭Woshy


    Robbie32 wrote: »
    I might be wrong, but doesnt the amount of deposit have an effect on the amount you can borrow????

    Not in our experience either. We had 100k+ in cash when we got our mortgage and it didn't really help in getting a higher amount. That was fine with us though, the amount they did offer was just right.

    It does make your interest rates slightly lower because of the LTV ratio but that was it for benefits in our experience.

    We were also encouraged by our mortgage consultant from the bank to pay extra into the mortgage as often as we can (as we chose a variable rate). So they do encourage it.


  • Options
    #55
    TrishSimon
    Closed Accounts Posts: 206 ✭✭TrishSimon


    handlemaster wrote: »
    Thats never going to happen. Best make other plans.

    Agree with this poster I am house hunting at the moment and prices are not going down they were going up and have now steadied but they definitely wont be going down but you are in a great position with 100K deposit why not try the auctions you need cash for those and you get great houses at knock down prices.


  • Options
    #56
    dynamited
    Closed Accounts Posts: 74 ✭✭dynamited


    tom_tarbucket wrote: »
    I know what your saying and this is all good and well.

    But OP is essentially pumping all his life savings and possibly all his start from scratch savings in to the house, meaning everything he has in life is tied in to this bloody house, and we all know the way house prices change etc

    I know its 6 of 1, half dozen of another really, but just annoying to have EVERYTHING tied up in a house



    It will be annoying to begin with having to start from scratch but the way i look at it is looking at these key factors


    * Repayments will be low around 350e per month , so if i fall on hard times (redundancy ) i will still be able to keep up with repayments whilst looking for work

    * I only make 2000 per month but if i get a bit of luck a pay rise may be on the horizon of possibly an extra 200-300 per month( not banking on it though ) but it would allow some leverage in regards to possibly adding a bit to another savings account


    * I have already traveled, so i don't think i will pick up the travel bug and regret buying at my age unless i get a bird pregnant (joke)


    * I will not jump into this blindfolded, i have in my mind it's better to buy the smallest property in the best location rather than the best property in a absolute dive !


    * In giving over my life savings the most i will borrow is 80k , if all goes well i may buy more property throughout the years, but if all fails and i end up at rock bottom i will only owe out 80K (Interest on top )which i don't think will be much of a burden over the timespan


  • Options
    #57
    Thargor
    Registered Users Posts: 17,881 ✭✭✭✭Thargor


    tom_tarbucket wrote: »
    I know what your saying and this is all good and well.

    But OP is essentially pumping all his life savings and possibly all his start from scratch savings in to the house, meaning everything he has in life is tied in to this bloody house, and we all know the way house prices change etc

    I know its 6 of 1, half dozen of another really, but just annoying to have EVERYTHING tied up in a house
    He's only 26 though, a lot (majority?) of people that age don't have a pot to piss in, worse than that they're in credit card and/or overdraft debt.

    Properly insured his house isn't going anywhere and will be generating a return for him, there's feck all else places to leave a lump sum at the minute.


  • Options
    #58
    dynamited
    Closed Accounts Posts: 74 ✭✭dynamited


    Thargor wrote: »
    He's only 26 though, a lot (majority?) of people that age don't have a pot to piss in, worse than that they're in credit card and/or overdraft debt.

    Properly insured his house isn't going anywhere and will be generating a return for him, there's feck all else places to leave a lump sum at the minute.


    Agreed , I've tried stocks and bonds and it's not my thing


    Savings accounts are giving poor returns, gold isn't an option either


    Plus I NEED SOMEWHERE TO LIVE !! :)


  • Options
    #59
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    Personally op I'd hold onto at least 20k and use the other 80k for the deposit. Your repayments might be slightly higher but you never know when you might need a decent bit of cash for some reason or another so I don't think its wise at all using up all the savings.

    I'd also (as mentioned earlier) pump all you can into the mortgage at the start rather than trying to save.


  • Options
    #60
    Thargor
    Registered Users Posts: 17,881 ✭✭✭✭Thargor


    dynamited wrote: »
    Plus I NEED SOMEWHERE TO LIVE !! :)
    Well you'll be laughing then because the rent you would be paying can be classed as your return on top of everything else, or you would be laughing if it wsnt for property tax, water and all the other crap.

    Bringing in one or 2 tenants to pay all your bills and a bit left over for yourself is always an option aswell though, no rules for live in landlords you can kick them out whenever you feel like it.


  • Advertisement
  • Options
    #61
    Sadler32
    Registered Users Posts: 90 ✭✭Sadler32


    I was in the same position as OP. I was 26 when I bought my house. I got lucky it was at the height of the boom and I got a really good deal on it. Sold it recently at a loss (on paper) but still walked away with a few quid to start again. It was supposed to be my forever home but life and circumstances changed.

    For what its worth dynamited, you can ask all the advise, and it really is some good advice, but only you can decide what is right for you. Its a big decision and a daunting step. I asked the same questions when I was buying...
    You said it perfectly you need somewhere to live. If your going to be living there long term, does it matter if prices fluctuate abit.

    I pumped all my savings into the mortgage to begin with. I did wish I had kept alittle bit back as a cushion, but in hindsight I am glad I had the push to start saving again. there was a few things I had to wait to have done, but depends on how good your will power is and by the sounds of it, its quite good.... Dont know many 26yo with 100k in the bank. I had 80k when I bought mine.


Advertisement