How do single people buy homes?

frillyleaf · 23-10-2019 1:40pm

The Student wrote: »

I did not "assume" anything. I merely suggested options. Your response indicates that you have automatically gone on the defensive rather than seeing the post for the spirit in which it was intended.

The poster was just making suggestion in my opinion. Obviously if someone can move back in with parents to save for a while this is great.

Unfortunately this is not an option for a lot of people but thank you for suggestion. I do think this is how a lot of people are able to get the deposit together. I know a lot of couples that have done this and saved up nice deposits as a result. I also remember reading something about Leo Varadker suggesting people move back in with their parents to save....I didn’t pay much attention to this at the time so this may be out of context.

Paying crazy rents as they are now makes this extremely difficult for a couple never mind a single applicant.

Seanachai · 23-10-2019 1:42pm

frillyleaf wrote: »

Do you have children too? It’s very unsettling. I usually try not to think about it too much but am starting to get more and more anxious. I have priced log cabins too and would love to go that route but I don’t have anywhere that I can build it. I priced one and in desperation when I was evicted from a house a few years ago. I asked if I could build it on old family land that isn’t used to tie me over for a few years and was told this wasn’t an option.

I try to be optimistic but I was speaking with someone the other day and feel negative. She and her partner both work full time and have two kids and can’t afford to get a mortgage or save. I try to be positive but when I hear stories from dual income homes not being able to buy it scares me as I don’t have someone to buy with.

No children, I'm just at the stage where I want a decent living space and I recently had very bad issues with a tenant in my building which makes me never want to live in an apartment again.

Zulu · 23-10-2019 1:52pm

Plumbthedepths wrote: »

20 per cent? So not a first time buyer.

Nope. Like many others, I got caught by the "property ladder" mallarky back at the crash. City centre apartment not suitable for the family that happened since then/for our needs...

The Student · 23-10-2019 1:53pm

frillyleaf wrote: »

The poster was just making suggestion in my opinion. Obviously if someone can move back in with parents to save for a while this is great.

Unfortunately this is not an option for a lot of people but thank you for suggestion. I do think this is how a lot of people are able to get the deposit together. I know a lot of couples that have done this and saved up nice deposits as a result. I also remember reading something about Leo Varadker suggesting people move back in with their parents to save....I didn’t pay much attention to this at the time so this may be out of context.

Paying crazy rents as they are now makes this extremely difficult for a couple never mind a single applicant.

Ironically if the State actually gave people tax credits for the rent they paid this would go some way towards saving for a deposit.

The private rented sector of small landlords is a cash cow for the Govt. They get all of the gain of the tax revenue and none of the pain!

machaseh · 23-10-2019 2:09pm

The Student wrote: »

Ironically if the State actually gave people tax credits for the rent they paid this would go some way towards saving for a deposit.

The private rented sector of small landlords is a cash cow for the Govt. They get all of the gain of the tax revenue and none of the pain!

I find it absurd that I have to pay taxes over the % of my income that directly goes to my landlord every month. It's not like that is an avoidable expense, I can't work if I am living under the bridge now can I.

ELM327 · 23-10-2019 2:10pm

machaseh wrote: »

I find it absurd that I have to pay taxes over the % of my income that directly goes to my landlord every month. It's not like that is an avoidable expense, I can't work if I am living under the bridge now can I.

You pay tax to earn the money, then the landlord pays 50% tax on the money as well.

bikeman1 · 23-10-2019 2:14pm

I was very lucky on the actual apartment that I got during the buying process but before that it was a LOT of work, not limited to the following:

Moved Home with parents - with their agreement paid no rent to them.
Saved around €1,200 a month while living with them.

Sold the car.

Cycled to work.

Brought Lunches in, NEVER got taxis anywhere even if I was out for a night. Public transport only.

Very cheap holidays (which were still great). Plan way in advance, go off season, cheap flights and basic accommodation.

Qualified in my profession, after weekend and evening classes / lectures.

Moved job. Got two pay rises after working hard in work. Salary above the average wage.

Took a second job on an adhoc basis (as required), way below my qualification. Saved every penny from that as well.

Did some other extra work some evenings as well to add a few schillings.

Had a small amount of savings from the earlier years (like €5k).

Cleared the Credit, had no other loans.

Cleaned up my bank transactions. Don't bet. Don't smoke.

Used a mortgage broker (who was a great help).

Purchased a two bed apartment on the Northside of Dublin at age 28! It can be done, but it is not easy. It is a long game.

NSAman · 23-10-2019 2:20pm

bikeman1 wrote: »

I was very lucky on the actual apartment that I got during the buying process but before that it was a LOT of work, not limited to the following:

Moved Home with parents - with their agreement paid no rent to them.
Saved around €1,200 a month while living with them.

Sold the car.

Cycled to work.

Brought Lunches in, NEVER got taxis anywhere even if I was out for a night. Public transport only.

Very cheap holidays (which were still great). Plan way in advance, go off season, cheap flights and basic accommodation.

Qualified in my profession, after weekend and evening classes / lectures.

Moved job. Got two pay rises after working hard in work. Salary above the average wage.

Took a second job on an adhoc basis (as required), way below my qualification. Saved every penny from that as well.

Did some other extra work some evenings as well to add a few schillings.

Had a small amount of savings from the earlier years (like €5k).

Cleared the Credit, had no other loans.

Cleaned up my bank transactions. Don't bet. Don't smoke.

Used a mortgage broker (who was a great help).

Purchased a two bed apartment on the Northside of Dublin at age 28! It can be done, but it is not easy. It is a long game.

Well done it‘s not easy.

I was always told by an older fried of my (may he rest in peace) that when you reach a certain age and work hard and save it happens. I am now at the age he was when he manage to purchase his homes and it has happened. It does take time and hard work and sacrifice but it WILL happen if you have the dedication to make it happen.

Zulu · 23-10-2019 2:41pm

It's not going to happen in a vacuum OP.
Spot a house you'd like - you'd be happy to live in for the rest of your days. Note the price.
Arrange a meeting with your Bank Manager/Mortgage Adviser. Have everything ready - bring in your last 6 months of statements, savings, etc..
Ask them what you need to have, and prove in order to get the amount you want.

So now you know what the gap is.

Go home and make a 1/3/5/10 year plan (whatever it takes).

We needed a 5 year plan which included massive savings, selling a car and cycling to work, not taking holidays, not buying clothes except when needed, going back to college to at least double my salary. It wasn't easy, and at the start it seemed impossible, but here we are. For most of us there's no magic wand (or rich parents). While it's really hard work, it's worth it.

Good luck.

sportsfan90 · 23-10-2019 2:46pm

frillyleaf wrote: »

I also remember reading something about Leo Varadker suggesting people move back in with their parents to save....I didn’t pay much attention to this at the time so this may be out of context.

I think Varadkar got a bit unfairly criticised for those remarks by opposition TDs. It's not as if he told people quit complaining about him and ask your parents for a dig out instead.

All he mentioned were some of the different ways in which some people put together a deposit, which included staying with family or getting a loan off parents. I think he also mentioned that some people go to work abroad for a few years and save a deposit that way.

Obviously those aren't options for everyone and I know it's the job of the opposition parties to hold the government to account but imo on that occasion he didn't say a whole lot wrong.

Fiftyfilthy · 23-10-2019 3:12pm

OSI wrote: »

Your rent payment history is taken into account by a number of banks when deciding on your ability to pay, and first time buyers are able to avail of the 5% deposit contribution so they only need to save 5% anyway.

Only for new builds though , I was meaning for all first time buyers. But I take your point

The Student · 23-10-2019 3:36pm

machaseh wrote: »

I find it absurd that I have to pay taxes over the % of my income that directly goes to my landlord every month. It's not like that is an avoidable expense, I can't work if I am living under the bridge now can I.

You appear to have an axe to grind. If you read my post you will see I am advocating that the tenant actually gets a kick back as a tax credit or a tax rebate which could go towards a deposit for a property.

But sure hey feel free to see what you want to see rather than what's actually being suggested.

frillyleaf · 23-10-2019 3:54pm

sportsfan90 wrote: »

I think Varadkar got a bit unfairly criticised for those remarks by opposition TDs. It's not as if he told people quit complaining about him and ask your parents for a dig out instead.

All he mentioned were some of the different ways in which some people put together a deposit, which included staying with family or getting a loan off parents. I think he also mentioned that some people go to work abroad for a few years and save a deposit that way.

Obviously those aren't options for everyone and I know it's the job of the opposition parties to hold the government to account but imo on that occasion he didn't say a whole lot wrong.

I do think this is a problem if these are the options being highlighted as viable as unfortunately for a lot of people they can’t move in with patents rent free, they can’t ask parents for money and they can’t move abroad. Of course for some people this works but for people in their 30’s or 40’s with families it’s usually a non runner.

riclad · 23-10-2019 5:12pm

http://www.dublincity.ie/rebuilding-ireland-home-loan

my friend got a council mortage, 12 years ago ,
to buy a small 1 bed apartment near thomas st , dublin.
She is single.
See what you can afford ,some people live with their family while they are saving for a deposit.
At least prices are not going up.You can borrow 3-3.5 times your salary.
You,ll need at least 10 per cent deposit.
Maybe look at 1 bed apartments .
just go to daft.ie , search x amount ,see what comes up

gigantic09 · 23-10-2019 6:02pm

frillyleaf wrote: »

I do think this is a problem if these are the options being highlighted as viable as unfortunately for a lot of people they can’t move in with patents rent free, they can’t ask parents for money and they can’t move abroad. Of course for some people this works but for people in their 30’s or 40’s with families it’s usually a non runner.

Would MABS or citizens advise be of any use to you?. As a single Parent maybe you're entitled to more benefits that you're not currently claiming. Maybe MABS can help you out with a budget plan to save a deposit ?. As an earier poster said, maybe the rebuilding ireland loan might be an option if you can manage to get deposit together by whatever means. They claim to offer up to 5 times your income with interest rates fixed at either 2 or 2.5% depending on the term.

Likeabossboss · 23-10-2019 6:14pm

Move out of Dublin is the only option really if your on the average wage.

I can buy a top of the Range two bed apartment in centre of Kilkenny for 165k with a 15 year mortgage paying 1035 euro a month with a 16.5K deposit . I don’t know why people would want a longer mortgage for more than 15 years. Doesn’t make sense to me.

There’s also plenty of houses outside the city going for for 150K and under. If I get one for 150K with a 20 percent deposits it’s 906 euro a month for 15 years.

I see a lot of people renting and buying expensive, cars, fancy clothes, Latest Samsung or IPhones, out getting pissed every weekend and saying I can’t afford a mortgage which pisses me off.

Also cancel payments to your pension when saving for two years depending on how much your paying

I don’t think people realize saving for a mortgage is a commitment and cutting back on everything. You don’t need to live frugally but start doing packed lunches, pre drink at home and go out at 11PM instead of 8PM, stop buying coffees, buy budget phones or clothes, buy a cheap car for 2K with a fresh NCT, make your own take away food, freeze food.

It’s only a commitment for a year or two and then can go back to normal.

Mic 1972 · 23-10-2019 7:36pm

Guy Person wrote: »

I recently bought an apartment by myself with no help from anybody. I don't know what you're exact situation is OP but I started my job 13 years ago and only earned 18K a year. Now I'm on somewhere between 32-35k depending on bonuses. I moved out of my parents house about 10 years ago and have been renting with others since then. The way I did it was to just be frugal really, I shop in Aldi or Lidl, don't go out drinking 3-4 nights a week , don't order takeaways 2-3 times a week, don't buy the latest "must have thing" like a slightly updated iPad, I don't know what version of iPad I have but it works grand still so no need to change!, I don't buy lunches/coffee in work in Starbucks or similar every week, I make my own lunches. I still do most of those things but just not every single week. Two people I know do most of that stuff every week and then complain that they "barely get by", when it's pointed out to them how they can save money they get mad and blame the government!
I do also spend money sometimes too :P
Since I started this job I have bought 3 cars, nothing too new or fancy but they get me around, I have had a good few holidays but have had to put work into finding good deals on them, I have an iPad, laptop, iPod, still socialise etc...
I was able to pay for half of the property price myself with my savings and still have a sizeable amount left over and now half a small enough mortgage (less that 100k).
Again I'm not saying you spend too much, I'm just giving my take on my own experience. Good luck to you frillyleaf!

That's my story exactly. Very average salary here. I saved a lot for many years, i had an excel tracker where i recorded my monthly savings so that i could project how much time was left before i could buy. Eventually bought a 3bed in a non fancy estate and have been renting rooms too. Mortgage is all paid off now and planning to save up more for a second house.

If you are you good at planning and can stick to a plan it is possible for single people too

Squall Leonhart · 23-10-2019 7:46pm

Likeabossboss wrote: »

I can buy a top of the Range two bed apartment in centre of Kilkenny for 165k with a 15 year mortgage paying 1035 euro a month with a 16.5K deposit . I don’t know why people would want a longer mortgage for more than 15 years. Doesn’t make sense to me.

If that's your view and what works for you, great. More power to you. However, I'll offer a counter.

For some, me included, I have taken a 30 year mortgage, yes, it's a long time. And I could have met the monthly repayments of a 20 year mortgage or less, but it would soak up most of my money.

I prefer to pay for longer and keep the cash flow situation comfortable. I don't want to spend the next 15yrs not affording a holiday or nights out or a meal here and there. Will it cost me more money in the long term? Yes it absolutely will, but that's a price I'm happy to pay to enable me to live a comfortable enough life in the intervening years.

If my salary goes up by a good bit I might look at over payment options, but the longer term allows me the peace of mind that if my wife or I lose my job, we can meet the mortgage.

KaneToad · 23-10-2019 7:54pm

[Deleted User] wrote: »

Biggest step would be to buy outside Dublin.

Securing stable employment outside of Dublin would be an advantage. You'll, possibly, earn less but housing will be far more affordable & your lifestyle may improve.

is_that_so · 23-10-2019 7:54pm

Buying outside Dublin is really the best option. Bought outside Dublin and knew quite a few at the time who did as well. I had a decent deposit as it was in the days before crazy rent. Also know someone who bought affordable housing in a regular job so that might be worth exploring.

cefh17 · 23-10-2019 8:08pm

Squall Leonhart wrote: »

If that's your view and what works for you, great. More power to you. However, I'll offer a counter.

For some, me included, I have taken a 30 year mortgage, yes, it's a long time. And I could have met the monthly repayments of a 20 year mortgage or less, but it would soak up most of my money.

I prefer to pay for longer and keep the cash flow situation comfortable. I don't want to spend the next 15yrs not affording a holiday or nights out or a meal here and there. Will it cost me more money in the long term? Yes it absolutely will, but that's a price I'm happy to pay to enable me to live a comfortable enough life in the intervening years.

If my salary goes up by a good bit I might look at over payment options, but the longer term allows me the peace of mind that if my wife or I lose my job, we can meet the mortgage.

And don't forget the option/ability to overpay when you can so you can knock off a few years and serious interest repayments with the 30 year option

bush · 23-10-2019 11:57pm

I lived at home and saved like crazy. I had to have 30% deposit to pull it off. It was a mad amount to save in a short time when I look back on it. The first year of owning the house every penny I had went it to furnish and decorate it. It was all very hard but I'm just through it all now and I can relax.
The upside of having such a big deposit is my mortgage repayments are f all.

Sleepy · 24-10-2019 10:50am

Single income family here rather than a single parent but we managed to buy 3 years ago in North County Dublin where there can be better value than in the city proper but still good public transport links.

We got an eviction notice of 8 months and pretty much managed to get the deposit together in that time.

A few of the things we did:

Delayed paying into a pension
Cut our expenses to the bone for the 8 months
Took on a few nixers (I did some shifts in a local bar, Mrs Sleepy did a bit of babysitting)
Sold lots of stuff on Adverts and put the money into savings
Looked way outside our originally desired area
Bought something that was structurally sound though cosmetically an absolute wreck (had to re-plaster the ground floor due to damp, replace the kitchen, bathroom and decorate throughout etc.) It was the proverbial "worst house on a good street" and had been on the market for ages due to the condition. It's an older house too so came with a low BER rating and *lots* of upgrades needed to bring it up to a modern standard which we're now doing as and when we can afford to (for example we only replaced the boiler and heating controls this February, a good 2 years after we bought the house and we're still saving in order to replace the windows!). Furnishing it has all been done through IKEA, Adverts or old furniture friends and relatives no longer wanted etc.

The last and TBH key part of our plan, may not be an option for all but I'll detail it since it was crucial in us being able to get the deposit together. I looked at what rent would cost us in a new place (a lot higher than we had been paying) and compared it to mortgage repayments for a 30 year mortgage for a house in the price bracket we were aiming for (low end of the market we bought for about 230k). The difference was fairly substantial.

I asked my parents if they could take out a "home improvement loan" from the bank and allow me to take over the repayments after we were in the house. We were very fortunate that they were in a position to help us with that. I lodged that into our savings account and requested a bank statement straight away. After 6 months of our increased savings, we were then able to get bank statements for our mortgage broker which had no evidence of the loan (it showed as part of the opening balance) which made it look like the sum had been achieved in the same way that the rest of our savings had (as through the steps above we were saving heavily at the time).

The combined cost of the mortgage and loan repayments via my parents is slightly less than what we'd have been paying in rent. It's meant we've had to live very frugally for the first 5 years of our mortgage and that a lot of our plans for upgrading the house are on hold for another couple of years but it got us our home. We've about 2 years to go until the only debt we'll have to service is our mortgage (which we've since managed to switch to a much better rate and lower repayment due to an improved LTV after 12 months of DIY) and I can't wait to get a bit of financial breathing room that will allow me to start on some other projects I want to tackle on the house but these 5 years of living very frugally were the sacrifice we needed to make in order to get our own home.

sp00k · 24-10-2019 10:55am

Just bought this year. Single and 28 years old.

Spent my early 20's doing quite a bit of traveling and partying, then for the past few years I buckled down and started saving (since my friends are all settling down and getting engaged and whatnot anyway). Cut down on the amount of nights out I was having, and when I did go out I'd aim to spend a lot less. Shopped in Aldi/Lidl, rarely ate out etc. Lived with my parents though still gave them rent and bought all my own food.

Lucky enough to be in a good sector (software) in a rural county (Letterkenny, Donegal - born and raised and I like it here and being close to family and friends). Probably no use to you OP but for someone else reading perhaps it is.

nthclare · 24-10-2019 11:31am

Bought in 2003 got €190,000 inheritance

So I was lucky, got a 4 bed detached house in the Burren, well insulated and modernised in the inside, concrete barges and great view's.

Couldn't be bothered renting any rooms, great sound system s, wet Room for wetsuits, fishing gear room...
Man cave deluxe

missyb01 · 24-10-2019 11:44am

I bought on my own in 2011. I moved out and rented when I was 18 until about 24 and then moved back home. I saved in or around €38,000 over 4/5 years and then bought outside of Dublin but yet only 15 mins on the motorway to my job.

I remember at the time, the bank put me through the ringer over my savings and I had to get bank statements, credit union statements etc for 5 years prior. They were convinced that there was a lump sum payment from my parents somewhere along the line, which there wasn’t. Stress tested me over my medication (in around €160 per month) or if my wages were reduced. Eventually got there in the end.

machaseh · 24-10-2019 3:10pm

nthclare wrote: »

Bought in 2003 got €190,000 inheritance

Gee, people from rich families can buy houses. Who would've thought.

JohnnyChimpo · 24-10-2019 3:55pm

machaseh wrote: »

Gee, people from rich families can buy houses. Who would've thought.

tbf that doesn't necessarily indicate that OP's family were rolling in it - they could be an only child and the parent/relative had a good life insurance policy.

I agree it's not especially helpful as a guide to getting a mortgage, but I think they were just sharing their personal experience and they admit they got lucky, so...

pwurple · 24-10-2019 4:45pm

machaseh wrote: »

Gee, people from rich families can buy houses. Who would've thought.

Ah for crying out loud. Are you really making a dig about bereavement?

190k from death is hardly a rich person, give over. That's a fairly modest house.

And to answer the OP.

I bought as a single person after saving my tail off for 4 years for a deposit, while house-sharing.

mariaalice · 24-10-2019 4:52pm

Is the question, how do single people buy a home where they want fantastic public transport great facilities and so on versus how do they buy with a lot of compromises.

How do single people buy homes?

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