Question

BlueIsland

Right sorry if this asked loads! Myself and my girlfriend considering buying house! Both of us in safe, permanent jobs!! I am a teacher and girlfriend just got new contract with big accounting firm! We earn 45000 and 42000 before tax! Deposit saved to buy around 200000!! Question is would we be better off renting for a year! Would we be mad to buy now!?

Zamboni

BlueIsland wrote: »

Right sorry if this asked loads! Myself and my girlfriend considering buying house! Both of us in safe, permanent jobs!! I am a teacher and girlfriend just got new contract with big accounting firm! We earn 45000 and 42000 before tax! Deposit saved to buy around 200000!! Question is would we be better off renting for a year! Would we be mad to buy now!?

Sorry is that you have 200k saved or that you are looking to spend 200k?

BlueIsland

Jesus that be some saving for two 20 somethings!! No we would have the 8 or 10 % of that price!!!!any thoughts!?

Zamboni

BlueIsland wrote: »

Jesus that be some saving for two 20 somethings!! No we would have the 8 or 10 % of that price!!!!any thoughts!?

Ha, you'd be surprised what some people may have...:)
Well the property market is not going to pick up anytime in the near future so why not keep going as you are and save 20% and see how things look then?

BlueIsland

That's what I thinking!!! Pay rent for year - 7800!!! In meantime a house that we buy now could be bought for 15 grand less in years time!!! Is that the way we should be looking at it!?

Zamboni

BlueIsland wrote: »

That's what I thinking!!! Pay rent for year - 7800!!! In meantime a house that we buy now could be bought for 15 grand less in years time!!! Is that the way we should be looking at it!?

Pretty much.
There are plenty of 'rent versus buy' calculators online.
You are in a good position in that your accommodation cost is less than 15% of your combined gross income.
Do your research and keep stashing the cash.

BlueIsland

How much you reckon a 200000 property be in years time!? I know huge amount variables but an educated guess

Zamboni

BlueIsland wrote: »

How much you reckon a 200000 property be in years time!? I know huge amount variables but an educated guess

I'm not educated in economic forecasting but I'll throw a stab in the dark at >€7,800.

Gunth

BlueIsland wrote: »

How much you reckon a 200000 property be in years time!? I know huge amount variables but an educated guess

You state that you are a teacher?:D

The Rooster

BlueIsland wrote: »

How much you reckon a 200000 property be in years time!? I know huge amount variables but an educated guess

A huge amount of variables is key!

Pick 10 houses that are all currently €200,000. In 12 months time the same houses could range in price from €120,000 to €220,000. Some locations will go down quicker than others, some will rebound quicker than others. Some sellers just will not sell below certain prices, because they don't have to. Whereas other sellers will get desperate for their cash and cut the price dramatically. Some buyers may still pay a premium for a "must have" location.

Even today, its very difficult to say what a €200,000 house is. If you picked 10 houses with that asking price at random and put in bids of €180k on each one, I'm sure you'd get more than one acceptance.


When I bought my first house about 12 years ago the max the bank would lend me was 2.5 times my salary plus 1.5 times my wife's salary. While that was frustrating at the time, I'm glad my mortgage has never exceeded that guideline and I wouldnt recommend anyone exceeding it.

lainey316

BlueIsland wrote: »

That's what I thinking!!! Pay rent for year - 7800!!! In meantime a house that we buy now could be bought for 15 grand less in years time!!! Is that the way we should be looking at it!?

That's a lot of exclamation points!!!
Even short term, if you take the mortgage repayment (950*) minus the rent (650**) then that's 3600 towards your deposit per year. If the 200k house is 185k after a year, then you've saved yourself quite a chunk of money plus have more net more money in the bank. Of course you have to put it in the bank not spend it

* 180 k on the BoI % year fixed = 950 per month
* 7800/12 = 650

That said you may want to aim for a 15-20% deposit.

BlueIsland

http://www.daft.ie/searchsale.daft?id=412806 this for instance...myself and girlfriend be borrowing less than the 2.5/ 1.5 salary thing ya were saying there! that house is 199,500. it on market a good while so like how much would we biggest offer ya would put in for that. I did Maths and reckoned a bid of 150,000!!!

Mr. Loverman

Will you be commuting to Dublin or do you work in Kildare?

If I were you I would wait at least another 12 months (what's the rush), save more cash and buy the house for less money.

You have to remember every EUR 1 saved on the house price is probably EUR 3 over the life of the mortgage (due to interest).

JonJoeDali

I'd also have my savings in Rabobank rather than in an Irish bank.

If Ireland had to devalue, there'd be no warning.

lainey316

JonJoeDali wrote: »

I'd also have my savings in Rabobank rather than in an Irish bank.

If Ireland had to devalue, there'd be no warning.

Well, there'd be the pulling out of the Euro in order to have a currency we could devalue...

Mr. Loverman

JonJoeDali wrote: »

I'd also have my savings in Rabobank rather than in an Irish bank.

If Ireland had to devalue, there'd be no warning.

Big problem with your advice...

Rabo don't let you withdraw your money into a foreign bank account.

And Rabo have admitted if we leave the euro they will convert your savings into the new currency.

I have my money in www.keytradebank.com in Belgium. It's not the perfect country to put your money but it's a lot better than Ireland.