single person on average wage get a mortgage?

gercoral · 29-07-2018 11:48pm #1

is it possible for a 29 yr old single person with a modest job currently living with parents and about 5,000euro to their name to get a mortgage or some sort of loan to get a fooking house or property for themselves?

becoming increasingly frustrated at lack of rental properties within a 20mile radius of my job. at the stage now where i would prefer to build a new place anyway and not rent.

ted1 · 30-07-2018 12:28am

You could get one in Tallaght,blanch , Ballyfermont etc

Interested Observer · 30-07-2018 6:37am

You're going to need a lot more than 5k saved I'm afraid, you'll need 10% of the cost of the property as a deposit + 1% stamp duty + legal fees.

You then can borrow 3.5 times your annual gross salary. So the house value would be 3.5 times your salary + your deposit.

It's hard to do if you're single and applying by yourself. If those figures add up then the best advice is to start saving as much as you can every month and do not touch it for anything other than a life or death emergency. You'll need to be saving enough each month to cover the mortgage payments.

Cash_Q · 30-07-2018 6:39am

ted1 wrote:

You could get one in Tallaght,blanch , Ballyfermont etc

Not with 5,000 as a deposit, and not with 'some sort of loan' as OP puts it

The only type of loan you can use to finance a property is a mortgage

The usual rule is 3.5x your salary. You have not disclosed this but let's say your modest salary is 30,000 - bank could lend you 105,000. There are sometimes exceptions to this rule but usually reserved for those on high salaries

5,000 savings will not suffice, as you must have a minimum of 10% of the purchase price for the deposit, plus a few thousand to cover solicitors fees and stamp duty

Keep saving regularly is the only advice I can offer. I know it's frustrating as the house prices keep rising but all you can control is your own saving and spending.

lawred2 · 30-07-2018 6:43am

gercoral wrote: »

is it possible for a 29 yr old single person with a modest job currently living with parents and about 5,000euro to their name to get a mortgage or some sort of loan to get a fooking house or property for themselves?

becoming increasingly frustrated at lack of rental properties within a 20mile radius of my job. at the stage now where i would prefer to build a new place anyway and not rent.

29 years old, living with your folks and only €5k savings.

You'd want to have saved a lot more than that without rental payments for a bank to look at you.

You're not really showing an ability to repay.

bush · 30-07-2018 7:19am

Start saving a grand a month and you could do it by the time your 35. Its hard but can be done.

pwurple · 30-07-2018 8:52am

Three components really to figure it out. Your salary, your savings and your location.

The average wage in Ireland according to the CSO is around 45k. Based on that, the rules for primary residence are 3.5 times salary, plus deposit. So, with the average wage, you should be able to get a mortgage of up to 150k for a property, and you need to add 20% deposit to it. So, deposit of 39k. Property value of 185k would be your max. You'd need to save another while to get to the 39k.. if you've got 5k now. Couple of years.

Depending on where you live and work in the country, should be something available in that range.

Ursus Horribilis · 30-07-2018 9:18am

You might need to change jobs or upskill I'm afraid. €5k is a drop in the ocean when it comes to buying or building. I bought on my own and €5k of my savings was swallowed up by solicitor's fees, the survey, stamp duty etc. I changed career in my late twenties because I was in a dead end, low paying career path. If l hadn't, I doubt I'd be where I am now.

Mrs OBumble · 30-07-2018 10:06am

What's your actual wage and what is your local council housing list threshold?

You may not be realistically able to ever own a house.

Interested Observer · 30-07-2018 10:25am

Mrs OBumble wrote: »

What's your actual wage and what is your local council housing list threshold?

You may not be realistically able to ever own a house.

Unfortunately this is the reality for many I think. I probably couldn't afford one on my own (in an area that suits for family/friends/work) but my wife and I can together.

utmbuilder · 30-07-2018 10:25am

3 bed tallaght 195k

http://www.broe.ie/residential/brochure/47-rossfield-avenue-tallaght-dublin-24/4255172

Ballyfermot might be a safer bet , unless you know the no go parts of tallaght

Mint Sauce · 30-07-2018 10:33am

Probably not. Most of that 5k, will only cover fees, and the booking deposit.

Do you have an arrangment with your parents, for housekeeping, ie, regular payments to them, pay any utilities, or regular bills? Banks like to see you can budget, and make regular payments for bills, rent, etc, to see if you can manage the regular mortgage repayments. Thats on top of all their other checks on your banking and fininical history.

drinkingwater · 30-07-2018 10:35am

utmbuilder wrote: »

3 bed tallaght 195k

http://www.broe.ie/residential/brochure/47-rossfield-avenue-tallaght-dublin-24/4255172

Ballyfermot might be a safer bet , unless you know the no go parts of tallaght

To buy that you'd need 19.5k deposit (+5k for stamp duty, solicitor fees, etc)+ 50k salary

Pelvis · 30-07-2018 10:36am

ted1 wrote: »

You could get one in Tallaght,blanch , Ballyfermont etc

OP has 5k, and hasn't mentioned what kind of salary he's on, so who are you replying to exactly?

30-07-2018 10:38am

gercoral wrote: »

is it possible for a 29 yr old single person with a modest job currently living with parents and about 5,000euro to their name to get a mortgage or some sort of loan to get a fooking house or property for themselves?

becoming increasingly frustrated at lack of rental properties within a 20mile radius of my job. at the stage now where i would prefer to build a new place anyway and not rent.

You don't really have much right to be frustrated if you've only €5k saved.
It's widely known and accepted that 10% deposit is the absolute minimum requirement.

lawred2 · 30-07-2018 10:43am

Augeo wrote: »

You don't really have much right to be frustrated if you've only €5k saved.
It's widely known and accepted that 10% deposit is the absolute minimum requirement.

to be fair - he said he was frustrated at the lack of rental properties

professore · 30-07-2018 11:13am

With all due respect, if I was working full time, living at home, no dependents and on €30k I'd save 5k easily in 6 months.

What are you spending your money on???? Car payments or going out 5 nights a week or something? Your mortgage will be probably something like €500 / week - try saving that for a start - €5k in 10 weeks.

lawred2 · 30-07-2018 11:21am

professore wrote: »

With all due respect, if I was working full time, living at home, no dependents and on €30k I'd save 5k easily in 6 months.

What are you spending your money on???? Car payments or going out 5 nights a week or something? Your mortgage will be probably something like €500 / week - try saving that for a start - €5k in 10 weeks.

For a lad on a modest income - he's not going to be repaying a mortgage of 2k a month

That's suburban family home territory..

I would say aiming to put away €300 to €350 a week would be a more reasonable target.

Where do you live OP as that makes a massive difference to what you can afford?

Cina · 30-07-2018 11:49am

Probably not, Op. You really need to save, hard.

I got my apartment at 29, but I have a good wage due to being in IT. Had 30% of the cost of it saved over the last 9 years of employment and was able to get a 4.0x mortgage due to being employed for so long, too. Even then I still had to rely on the help to buy scheme (16k off a new build) to afford it. Saying that mine's in Castleknock and there are cheaper areas.

Basically, get saving. I would also say if at 29 you only have 5k saved, living at home, then you are in no financial position to get a property that could cost you up to 1,000e in repayments every month, to be blunt.

Cuddlesworth · 30-07-2018 11:51am

gercoral wrote: »

is it possible for a 29 yr old single person with a modest job currently living with parents and about 5,000euro to their name to get a mortgage or some sort of loan to get a fooking house or property for themselves?

becoming increasingly frustrated at lack of rental properties within a 20mile radius of my job. at the stage now where i would prefer to build a new place anyway and not rent.

Other people have said this but you spend way too much to "only" have 5k saved. If your going to live at home, you should be saving hard at your age to be able to leave.

Minimum wage at a full time 37.5 hour week is 1500 after tax. Even after college, you should have at least 7 years of working under your belt but all you have to show for it is roughly 60 quid a month, or 15 quid a week?

But at the end of the day, a near 30 year old deli worker in Wexford is not a competitive or skilled job and will most likely never offer the wages required to live comfortably on a single wage. You need to either get more money, find a partner or sacrifice a lot for a extended period of time.

JimmyMW · 30-07-2018 11:59am

gercoral wrote: »

is it possible for a 29 yr old single person with a modest job currently living with parents and about 5,000euro to their name to get a mortgage or some sort of loan to get a fooking house or property for themselves?

becoming increasingly frustrated at lack of rental properties within a 20mile radius of my job. at the stage now where i would prefer to build a new place anyway and not rent.

I think we need to hear from the OP here, is living with the parents only a recent thing and has been renting all along maybe? That might explain the low level saving of €5k

GingerLily · 30-07-2018 12:01pm

OP, are you not aware that you need at least a 10% deposit plus fees?

mariaalice · 30-07-2018 12:54pm

Nobody knows what the op circumstances are like or where they live. There are places in Ireland where you can buy a property for under a 100k.

They need some ideas.

4068ac1elhodqr · 30-07-2018 8:26pm

These glamping pod type things seem to be on the increase. Every other week someone designs one as a solution to the global housing crisis.
This weeks model is made in Chesire, costs 20k stg.

http://www.dailymail.co.uk/news/article-6006257/Former-Rolls-Royce-engineer-creates-21-000-pods-installed-gardens.html
Could always buy a few, join them together, then open up a glamping biz when no longer needed in future years.

Caranica · 30-07-2018 8:36pm

Virginia CoolS Grout wrote: »

These glamping pod type things seem to be on the increase. Every other week someone designs one as a solution to the global housing crisis.
This weeks model is made in Chesire, costs 20k stg.

http://www.dailymail.co.uk/news/article-6006257/Former-Rolls-Royce-engineer-creates-21-000-pods-installed-gardens.html
Could always buy a few, join them together, then open up a glamping biz when no longer needed in future years.

Good luck getting planning permission. There's a thread on that every other week too

4068ac1elhodqr · 30-07-2018 8:42pm

Caranica wrote: »

Good luck getting planning permission. There's a thread on that every other week too

True enough, the pod is called a conker, so just say it feel out of one of those there trees.

It's essentially a ball of sealed hex panels (heat-recovery system), so can be rolled off somewhere else (once you sellotape everything on to the walls).

If the door position could be moved, it would actually make a good bunker if can shovel out a 4x4m void in the ground for whenever Donald and Kim have another twitter spat.

CeilingFly · 30-07-2018 8:49pm

Build a garden room in your parents garden if the space is there and you get on well with neighbour.

Keep it under 40sq m.

Cost is about 30k

In Dublin, the council is turning a blind eye to this once its a direct family member and no complaints are had from neighbouring properties.

There's also a possibility that such structure will be permitted on a ten year licence. Such policy is currently being pushed by some councillors.

gercoral · 31-07-2018 12:05pm

thanks for the replies. i have 5k savings, i recently bought my car but could sell it again for about 8,5k. i work full time in admin and earn 20k per year. recently visited australia which cost the bones of 4k. i have 3 loans out which are currently coming out of my account.

upskilling is probably the way to go tbf. i know myself that this admin job is not in my future plans. i do have a degree but not in anything admin related. i am aware of the 10% deposit as i have friends currently applying for mortgages. if push came to shove, i would have 15k...that being selling everything i own.

also, i dont live near dublin and have no intentions! i used to live there before and its just not for me.

i lived away from home for about 5 years but had to return to look after my parents who, while not completely dependent on me, need help around the household. they need lifts to doctor/hospital appointments (local and in dublin), shopping must be done, gardening must be done, painting etc.
believe me, if i could move out, i would. but at the moment, its not possible unless i buy a campervan or something which will solve many issues. also, to answer another poster.. i socialise very little, i dont smoke or gamble. however, im probably a bit too generous with my money.

thanks for the replies, but as one poster commented, i am looking for ideas. apart from winning the lotto. i see ads popping up for those glamping pods as mentioned and timber houses etc. anyone know the cost of these or have them? buildling beside the folks is not an option

Pelvis · 31-07-2018 12:15pm

Before thinking of doing anything, you need to manage your money better. With a salary of 20k you have no business spending what was presumable 10k+ on a car, let alone 3 loans. No bank would look at you.

Also, start looking for another job. You're 29 with a degree earning minimum wage, know your worth. At the very least you should be asking for a pay rise.

CeilingFly · 31-07-2018 12:17pm

gercoral wrote: »

thanks for the replies. i have 5k savings, i recently bought my car but could sell it again for about 8,5k. i work full time in admin and earn 20k per year. recently visited australia which cost the bones of 4k. i have 3 loans out which are currently coming out of my account.

Zero chance of a mortgage for the near future.

Minimum required salary is 30k and that would be based on noi loans.

First thing is get rid of the loans - they are costing you about 10%-12% whilst your savings are earning 0.01%

Sharing initially and then meeting and partnering up with someone where a combined salary would be over 50k is really what you're realistically looking at.

But getting from 20k to 30k salary should be a priority and extra training or looking at other jobs that have potential is the direction you have to go in.

To give an example - regular full time staff in Aldi earn about €30k a year and plenty of opportunity to be supervisor (40k+) manager (60k+)

mugsymugsy · 31-07-2018 12:17pm

Not being harsh OP and I think it's great that you want to get on the property ladder but when you have bought a car and been on a big holiday and have three loans you want a house as well.

Some tough love but pay off the loans, stop the holidays, up skill in your job and save like mad for a year maybe even get a second job and then see what position you are in.

single person on average wage get a mortgage?

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