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Can PhD students get mortgages while doing degree?

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  • 29-08-2011 3:03pm
    #1
    Clomail
    Closed Accounts Posts: 7 ✭


    Hello, I'm hoping to do a PhD soon. My income will be about €16,000 per year as I will be getting funded. I am just wondering if banks would allow somebody starting a PhD to take out a mortgage if they are getting a research income every year for the 3-4 years.

    It's just that I would like a place of my own and to get on the property ladder. What would be the cost of a property I could afford to buy at €16,000 per year? I would only be looking for a tiny one bedroom apartment anywhere in the Dublin region.

    Thank you.


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    #2
    sharper
    Registered Users Posts: 1,216 ✭✭✭sharper


    Clomail wrote: »
    I would only be looking for a tiny one bedroom apartment anywhere in the Dublin region.

    Why on Earth would you buy something like that? Do you see yourself living in such a place in 10 years time? What happens if you decide you don't like the PhD after a year or you want to transfer to somewhere else in Ireland or another country?

    In addition to your mortgage you're going to need to pay apartment service charge and soon household charge as well as water rates. Plus there's wear & tear, the complex sinking fund etc. Don't forget about rising interest rates.

    Owning property is something you do maybe when you're ready to settle down and live somewhere for 20+ years. When you have ties like a job, family and kids. It's not something you do because you need a room for a few years.

    You'll be much much better off either renting yourself or sharing an apartment.


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    #3
    Fol20
    Registered Users Posts: 3,624 ✭✭✭Fol20


    Clomail wrote: »
    Hello, I'm hoping to do a PhD soon. My income will be about €16,000 per year as I will be getting funded. I am just wondering if banks would allow somebody starting a PhD to take out a mortgage if they are getting a research income every year for the 3-4 years.

    It's just that I would like a place of my own and to get on the property ladder. What would be the cost of a property I could afford to buy at €16,000 per year? I would only be looking for a tiny one bedroom apartment anywhere in the Dublin region.

    Thank you.

    With an income of only 16k you won't get a mortgage.

    A small loan maybe but nothing near as much as you need


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    #4
    Victor
    Registered Users Posts: 78,399 ✭✭✭✭Victor


    Clomail wrote: »
    Hello, I'm hoping to do a PhD soon. My income will be about €16,000 per year as I will be getting funded.
    That is an 'OK' amount of money to live on. It is an inadequate amount of income for repaying all but the smallest of mortgages, e.g. on a property where the buy is bringing a large amount of cash to the deal.
    I am just wondering if banks would allow somebody starting a PhD to take out a mortgage if they are getting a research income every year for the 3-4 years.
    While they might have 5-10 years ago, they won't now. What if the PhD funding is pulled?
    It's just that I would like a place of my own and to get on the property ladder. What would be the cost of a property I could afford to buy at €16,000 per year?
    In theory, you could afford perhaps €80,000, but you would need a deposit in the order of €15,000 and there would be the very real risk of not being able to manage repayments if there was an unexpected expense. It would mean no holidays, no parties, no car, etc.
    I would only be looking for a tiny one bedroom apartment anywhere in the Dublin region.
    Banks have not really been lending in this bracket for several years.


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    #5
    fontanalis
    Closed Accounts Posts: 3,619 ✭✭✭fontanalis


    Are you serious?


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    #6
    Bloody Nipples
    Registered Users Posts: 915 ✭✭✭Bloody Nipples


    You'd be mental to do it.


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    #7
    Tigger
    Closed Accounts Posts: 16,705 ✭✭✭✭Tigger


    I'm going to guess it's not a phd in sciences
    Mabey philosophy or art


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    #8
    noxqs
    Registered Users Posts: 413 ✭✭noxqs


    Rent is dead money, loike..


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    #9
    Victor
    Registered Users Posts: 78,399 ✭✭✭✭Victor


    noxqs wrote: »
    Rent is dead money, loike..
    And negative equity / falling house prices?


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    #10
    noxqs
    Registered Users Posts: 413 ✭✭noxqs


    I think you missed the sarcasm.

    I truly hope the OP is just a troll - because I find it hard to believe anyone with a PhD has his head buried in the sand so deeply.


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    #11
    Mr. Loverman
    Closed Accounts Posts: 4,001 ✭✭✭Mr. Loverman


    Clomail wrote: »
    I would like ... to get on the property ladder

    You need to go to thepropertypin.com and spend a few weeks reading.


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    #12
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Ok guys- lets give the OP the benefit of the doubt.
    Constructive comments please- and less of the sarcasm.
    Feel free to argue both or either side of this (that is- if there is any merit in debating it).

    Regards,

    SMcCarrick


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    #13
    Tigger
    Closed Accounts Posts: 16,705 ✭✭✭✭Tigger


    i'm saying that its the worst idea he's ever had


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    #14
    the_syco
    Registered Users Posts: 37,299 ✭✭✭✭the_syco


    Clomail wrote: »
    get on the property ladder
    This no longer exists. It's now the property trapdoor, whereby you fall down, loose lots of money on what you paid for, and get a better house for less money, but at teh same time getting waaay less money for your current place.
    Clomail wrote: »
    What would be the cost of a property I could afford to buy at €16,000 per year?
    Something that costs €45,000 to buy.
    Clomail wrote: »
    I would only be looking for a tiny one bedroom apartment anywhere in the Dublin region.
    The price for a one bed apartment now will be probably the same as a small house when you finish your degree.


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    #15
    PhoenixParker
    Registered Users Posts: 2,677 ✭✭✭PhoenixParker


    Right now, buying a one bed in Dublin, versus renting the same one bed in Dublin for four years, I'd expect to come out roughly the same financially. That's allowing for depreciation.

    but

    1) There's absolutely no point, since as others have said the property ladder doesn't exist. The idea of the property ladder was that you bought somewhere for E100k, sold it for E150k three years later and that gave you E50k to use as a deposit on a property further up the ladder.

    hint - that doesn't happen anymore

    2) The banks now look for you to have a certain amount of money each month before they will consider you for a mortgage, i.e. you need to have E1,600pcm left after your mortgage payments are made. Since as a PhD your salary doesn't cover that, there is no way you'll get any form of a mortgage. You could probably actually cover the mortgage, but if anything goes wrong you'd be completely fubarred, which makes you an extremely poor risk for the bank. (rightly so)


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    #16
    the_syco
    Registered Users Posts: 37,299 ✭✭✭✭the_syco


    PhoenixParker wrote: »
    but if anything goes wrong you'd be completely fubarred, which makes you an extremely poor risk for the bank. (rightly so)
    And the banks that do give you a mortgage are the sub-prime lenders. If there are any left, they'll charge you twice as much as the banks, and will end up taking the apartment off you when you run out of cash.


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