So, I wanna become a first time buyer

D3PO

simonbyrneno.4 wrote: »

I'm still only part time and my girlfriend is only full time for the past 9 months. The mortgage works out to be under the 35% of our monthly average pay but that isn't taking into account the likelyhood of tax rates or interest rates increasing.

35% of your montly income now maybe. tack on the extras in terms of expense.

life assurance, house insurance etc etc, then tack on the property tax that is coming i the next budget, then tack on the increased taxes,

then tack on 50% increase to the mortgage payment when interest rates rise. your 35% soon becomes 70 - 80% of your take home pay that is not affordable.

NO WAY NO HOW

Fighting Irish

snaps wrote: »

House prices here in Mayo have really slumped (Town i live in has over 200 propertys on daft). Im waiting to buy now, but really need some sort of advice when we reckon prices will be at their lowest. Ive heard about people making stupid offers on empty houses and getting a deal done (Some estates in my town dont have 1 house occupied and asking prices have dropped nearly 40%)

Its simple just wait, if and when they hit their lowest they won't shoot back up over night

JuliusCaesar

simonbyrneno.4 wrote: »

Hey guys,

Me and my girlfriend put down a deposit on a house this week on a house in Wicklow but I'm concerned about actually being approved for the mortgage. We have basically been living from pay cheque to pay cheque, we've got a combined annual salary of about 36k as I'm a college grad still just working part time. The property is valued at 200k but we have the full 8% of 16k so were only looking for a mortgage of 184k. But we both have personal loans small ammounts each month but still. What chance do you'd think we have of being approved

Don't forget you'll need about 2K for legal, survey, and other costs.
Will you be liable for Stamp Duty?
You'll need to furnish the house too.
Then on a regular basis there's buildings and contents - house insurance.
Mortgage/life insurance - if either of you die, the mortgage will be paid off. (Banks insist on this, for their own protection)
What happens if you and your girlfriend break up? Some info here

jenzo

Hi
A few questions re: mortgage applications. I have a 3rd share in a house at the present moment and wishing to buy a house with my boyfriend. The share is worth approx €50k. We applied to AIB for 270k for the new house and were declined basicly because of my share.
What other banks are giving out mortgages? We have a joint income of approx €75k and willing to apply for a smaller mortgage and rough it if necessary.
Thanks!

ntlbell

jenzo wrote: »

Hi
A few questions re: mortgage applications. I have a 3rd share in a house at the present moment and wishing to buy a house with my boyfriend. The share is worth approx €50k. We applied to AIB for 270k for the new house and were declined basicly because of my share.
What other banks are giving out mortgages? We have a joint income of approx €75k and willing to apply for a smaller mortgage and rough it if necessary.
Thanks!

go to a broker?

gamer

BE aware interest rates are likely to rise by 2percent at least so can you afford it if your mortgage cost go, s up by 400 euro per month.

Victor McDade

snaps wrote: »

House prices here in Mayo have really slumped (Town i live in has over 200 propertys on daft). Im waiting to buy now, but really need some sort of advice when we reckon prices will be at their lowest. Ive heard about people making stupid offers on empty houses and getting a deal done (Some estates in my town dont have 1 house occupied and asking prices have dropped nearly 40%)

You can relax. The property market revival, when it finally happens (still a few years away in my opinion), isn't going to start in a small town in Mayo.
If you don't NEED to buy, why not wait and pay maybe €10,000 over whatever price eventually turns out to be "rock bottom"? It'll still save you more than that if you buy now, and you'll be in a better position to see how much a house will cost you with interest rates etc.

alphamale 1

snaps wrote: »

House prices here in Mayo have really slumped (Town i live in has over 200 propertys on daft). Im waiting to buy now, but really need some sort of advice when we reckon prices will be at their lowest. Ive heard about people making stupid offers on empty houses and getting a deal done (Some estates in my town dont have 1 house occupied and asking prices have dropped nearly 40%)

Houses prices havent dropped as you reckon. While some towns in Ireland may be selling houses at knock down prices, not all are. I reckon as long as the developer has not fully completed the estate then things should be ok at some stage as the worst thing any developer could do is finish out an estate. Some estates around the country are left in an awful state. The main thing is that people can afford to hold out from selling now and that they can keep their jobs.

Where is mayo are you talking about?.

stevie.enright

Simonbyrneno.4 I would be thinking that a bank would look negatively on the fact that the couple applying are not married and are only boyfriend and girlfriend.... I do stand to be corrected there though. Aside from this have you thought about what may happen if ye did take out a mortgage and did break up? It could get very messy. Now please don't take that the wrong way, I obviously don't know know the details of your relationship but I and friends have being in great relationships in the past anf broken up a few weeks later. No disrespect intended towards you or your girlfriend though so please don't take it that way.

stevie.enright

Regarding prices I'm not so sure if they are dropping much/ dropping at all in certain areas. I myself am looking to buy in the Limerick city area as a FTB. I did view a number of properties six months ago (allbeit only half interested and just to see what was out there). All were around the 200k mark or little over and they all seemed to represent fairly good value for money. However, these properties are no longer listed on daft.ie or myhome.ie so I assume they have being withdrawn from the market or sold. Browsing through the websites presently most similar houses seem to be listed at, at least 40k more. Now you would imagine that with the departure of dell that prices would have taken a bit of a hammering but this does not appear to be the case. Perhaps I have not being looking at the market long enough to be making judgement calls on prices though

Another little bit of a scenario surrounding my own situation also. Around the same time I was doing the house hunting I went into the bank seeking mortgage approval. I have savings of present value over 95k (some of which are invested in a fund which has taken a beaten and I would expect to pick up again). I am on circa 34k per annum with non contributary pension and VHI. I presented my salary certificate to bank manageress along with details of my savings and she was well impressed and approved me in principal for up to 240k. I told her I don't necessairly intend to buy in the immediate future and asked her should I seek my mortgage approval to be reviewed every few months. She told me absolutely no need in the world and to call in when I see a house I intend to buy. This does not really tie into what other people tell me and a lot of folk told me I should get it updated every few months. Who is right? I do hold a high proportion of my savings with the bank in question if this makes a difference but what if I wanted to take out the mortgage from a different lending institution?

Just my own thoughts...Am keeping an eye on prices and if something good represents itself I might pounce but if not and even assuming prices dont go down much I would buy in 2-3 years time at which point I would expect to have around 140k saved hopefully (most likely most of the capital value). Would/ can banks refuse to give small mortgages (say 60k) or would they be inclined to penalise somebody in such a situation to make as much money as possible out of them? I have heard of people going for small mortgages (and in a few cases not so small) and banks trying to insist that they borrow more but this was more in the silly times of 2005/ 06.

Fighting Irish

Its not even funny how much prices are going to drop in the coming years