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Trapped in One Bedroom House

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    #32
    syklops
    Closed Accounts Posts: 18,966 ✭✭✭✭syklops


    Sugarcake wrote: »
    My Husband and I bought our home for €245k in 2006, it is a One Bedroom Cottage which we hoped to renovate and extend. In 2010 we got married but about a month before our wedding my husband was made redundant and everything started to go pear shaped. I was pregnant also which was always the plan and that we wouldn't change for anything. We found ourselves falling behind in many repayments but he always found work but never permanent and we paid what we could, we never missed a single mortgage payment though. Now our child is almost 3 and we are still in the same one bedroom house but it is becoming more and more difficult. My husband is now in a full time job but his salary is no where near what it was years ago. We cant borrow to extend as we got into arrears on loans etc so we are still struggling to pay them, after our Mortgage, Bills, Repayments, Childcare, food etc we literally have zero left. We are both pretty miserable at this stage, every day is such a struggle, our Child pretty much keeps us going.
    Our Home is our main struggle, the location we hate and spend most of the time on the road, we are about half an hour away from family. If we lived closer to family life would also be so much easier for our child. Our house is old and small so space is limited also and we really want our child to have their own room as soon as possible.
    My husband thinks because the house is so old renting really isn't an option as there is always so much maintenance with water etc involved. Plus our roof is leaking and we cant even afford to fix this now. We recently valued the house also for €75k so no way will PTSB allow us to sell so this is not an option.
    I wish I could close the door on the house and forget about it at this stage and he is the same, it causes every argument we have, we just feel so trapped there. I have looked at rental houses and we could easily and comfortably afford to rent in the area we want if we didn't have out mortgage of course...but we do and cant afford both.
    Can anyone give me any advise, we need to make changes but don't know where to start. We just have no quality of life at the moment. We don't spend stupidly, seldom go out or treat ourselves to anything.
    I hope someone can help with their advise. Thank you.

    Unless you can rent out the house for the same or more than what you can find a house to rent then it makes no sense from a financial point of view to go and rent another house. Could you partition off part of the bedroom, or part of the sitting room as a room for the child. Im sure with a bit of creativity you could come up with a cosy and fun to be in space for him relatively cheaply.

    Edit: Heres an idea. Contact TV3 and get on to Nevilles Doorstep challenge. Explain the situation to them and challenge them to create a bedroom for your child. The website is here: http://www.tv3.ie/article.php?article_id=99459


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    #33
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    syklops wrote: »
    Unless you can rent out the house for the same or more than what you can find a house to rent then it makes no sense from a financial point of view to go and rent another house. Could you partition off part of the bedroom, or part of the sitting room as a room for the child. Im sure with a bit of creativity you could come up with a cosy and fun to be in space for him relatively cheaply.

    Edit: Heres an idea. Contact TV3 and get on to Nevilles Doorstep challenge. Explain the situation to them and challenge them to create a bedroom for your child. The website is here: http://www.tv3.ie/article.php?article_id=99459

    It would want to be a hell of a lot more than where they'd be renting- as their rental income is taxable- whereas their rent isn't.


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    #34
    syklops
    Closed Accounts Posts: 18,966 ✭✭✭✭syklops


    The_Conductor wrote: »
    It would want to be a hell of a lot more than where they'd be renting- as their rental income is taxable- whereas their rent isn't.

    Either way, I think we have demonstrated that the idea is unworkable.


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    #35
    Ray Palmer
    Registered Users Posts: 8,394 ✭✭✭Ray Palmer


    Sugarcake wrote: »
    Thanks Ray, we will definitely look really closely at all our options...anything is possible when you put your mind to it!

    Remember to work out a proper plan with a list of materials you want. Be prepared to adjust measurements to fit what you get. Making sure you use the time you have wisely when it comes to hiring equipment or getting a lend of it.


    Good luck with it.

    Another link on how to make things and it covers a lot

    http://www.instructables.com/


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    #36
    Sugarcake
    Registered Users Posts: 44 ✭Sugarcake


    syklops wrote: »
    Unless you can rent out the house for the same or more than what you can find a house to rent then it makes no sense from a financial point of view to go and rent another house. Could you partition off part of the bedroom, or part of the sitting room as a room for the child. Im sure with a bit of creativity you could come up with a cosy and fun to be in space for him relatively cheaply.

    Edit: Heres an idea. Contact TV3 and get on to Nevilles Doorstep challenge. Explain the situation to them and challenge them to create a bedroom for your child. The website is here: http://www.tv3.ie/article.php?article_id=99459

    Thanks for that, will certainly look into it.


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    #37
    StillWaters
    Closed Accounts Posts: 1,799 ✭✭✭StillWaters


    If I were you I'd seriously consider Spiders option. The Irish version is a Personal Insolvency Arrangement, but that is more cumbersome as it lasts for 6 years rather than the UK's 3. You will lose your house, and have to make some contribution to your debts for 6 years, but the guidelines are Reasonable.
    The benefit is of course you don't have to move to the UK. You start fresh in 6 years.
    http://www.finfacts.ie/irishfinancenews/article_1025873.shtml


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    #38
    pippip
    Registered Users Posts: 2,249 ✭✭✭pippip


    Would the op even be able to claim bankruptcy?

    Surely if they are able to pay their bills, albeit just, then they have no grounds unless one of them lost their job?


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    #39
    No Pants
    Closed Accounts Posts: 3,347 ✭✭✭No Pants


    pippip wrote: »
    Would the op even be able to claim bankruptcy?

    Surely if they are able to pay their bills, albeit just, then they have no grounds unless one of them lost their job?
    That's a good point. Bankruptcy is for people who cannot service their debts. The OP can.


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    #40
    Sugarcake
    Registered Users Posts: 44 ✭Sugarcake


    StillWaters wrote: »
    If I were you I'd seriously consider Spiders option. The Irish version is a Personal Insolvency Arrangement, but that is more cumbersome as it lasts for 6 years rather than the UK's 3. You will lose your house, and have to make some contribution to your debts for 6 years, but the guidelines are Reasonable.
    The benefit is of course you don't have to move to the UK. You start fresh in 6 years.
    http://www.finfacts.ie/irishfinancenews/article_1025873.shtml

    Thank you for this information. We can afford to pay our mortgage, yes it is a struggle and yes we are left with virtually nothing and we are also both employed. Surely I couldn't just decide I don't want this house that I agreed to buy and turn my back on it and the debt? This Country is already a mess without people doing this?


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    #41
    The Spider
    Registered Users Posts: 1,273 ✭✭✭The Spider


    Sugarcake wrote: »
    Thank you for this information. We can afford to pay our mortgage, yes it is a struggle and yes we are left with virtually nothing and we are also both employed. Surely I couldn't just decide I don't want this house that I agreed to buy and turn my back on it and the debt? This Country is already a mess without people doing this?

    Well you can be noble if you want, but it's good enough for a lot of bankers and business people, I don't see why you should treat yourself as any different, your family should come before any country.


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    #42
    ht9zni1gs28crp
    Closed Accounts Posts: 1,011 ✭✭✭ht9zni1gs28crp


    Ray Palmer wrote: »
    You can also trade your skill for other peoples' skills on some websites.

    Any link to such websites?


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    #43
    imitation
    Registered Users Posts: 1,815 ✭✭✭imitation


    StillWaters wrote: »
    The benefit is of course you don't have to move to the UK. You start fresh in 6 years

    Isn't your credit rating permanently tanked though ?


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    #44
    Cuddlesworth
    Registered Users Posts: 13,995 ✭✭✭✭Cuddlesworth


    pippip wrote: »
    Would the op even be able to claim bankruptcy?

    Surely if they are able to pay their bills, albeit just, then they have no grounds unless one of them lost their job?

    With a mortgage of only 1k per month, the husband would have to be earning minimum wage for it to possibly be viable. A wage of 24k would mean that the mortgage is only 50% of income.


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    #45
    No Pants
    Closed Accounts Posts: 3,347 ✭✭✭No Pants


    The Spider wrote: »
    Well you can be noble if you want, but it's good enough for a lot of bankers and business people, I don't see why you should treat yourself as any different, your family should come before any country.
    Aside from being noble, don't you have to show that your debts are insurmountable and you can never pay them? The OP is paying them. Why would a bankruptcy be approved?


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    #46
    The Spider
    Registered Users Posts: 1,273 ✭✭✭The Spider


    No Pants wrote: »
    Aside from being noble, don't you have to show that your debts are insurmountable and you can never pay them? The OP is paying them. Why would a bankruptcy be approved?

    They are barely paying them and have a miserable existance, the house sounds like it will never be a viable asset.

    The only way to find out is to check and see, easily done here.

    http://www.trapped.co.uk/bankruptcy/index/v4.phtml?tracking=TL0ORVSFB7


  • Options
    #47
    No Pants
    Closed Accounts Posts: 3,347 ✭✭✭No Pants


    The Spider wrote: »
    They are barely paying them and have a miserable existance, the house sounds like it will never be a viable asset.

    The only way to find out is to check and see, easily done here.

    http://www.trapped.co.uk/bankruptcy/index/v4.phtml?tracking=TL0ORVSFB7
    So unhappiness is a grounds for bankruptcy now? I didn't know that. Not only do I have to pay my debts, but I have to stay happy? I'm not as happy as I was on the day that the bank gave me the money, does that count?

    Took this from the website you quoted:
    What is Bankruptcy?

    Bankruptcy is an option if you are completely unable to pay back your debts


  • Options
    #48
    pippip
    Registered Users Posts: 2,249 ✭✭✭pippip


    It's a terrible situation you are in.

    Getting the extra bedroom built would be the best option:
    • It will give you the extra space you need for your child for the near future.
    • It will up the value of the property, reducing your negative equity slightly
    • It will make it easier to rent when you do get in a position to move, possibly at a higher rate.

    I would firstly talk to your bank. See what options they can offer. Like others have said, DIY is the way to go.
    Contact all your friends and family and find out what trades you might be able to get your hands on. Given your situation I would expect nobody will be looking for money off you.

    You mention needing a skip, do you have enough land to just leave it aside til you can dispose of it later?
    A digger may be a needed but could it be done with a pickaxe and plenty of time? If it can then the digger is just a luxury.

    Keep your ears and eyes open for any construction. Look for planning applications in the area. You may get lucky and get bits others are just putting in a skip. Again, ask about.

    As i mentioned at the start, your situation is awful and I think your story will convince people go out of their way for you. I don't mean in a persuasive way, only in a human nature kind of way.


  • Options
    #49
    StillWaters
    Closed Accounts Posts: 1,799 ✭✭✭StillWaters


    Sugarcake wrote: »
    Thank you for this information. We can afford to pay our mortgage, yes it is a struggle and yes we are left with virtually nothing and we are also both employed. Surely I couldn't just decide I don't want this house that I agreed to buy and turn my back on it and the debt? This Country is already a mess without people doing this?

    Absolutely it's your call. You said you wanted to explore all options, so I simply laid another option on the table. And stated that it is the one I would choose, or certainly investigate further if I were drowned in NE, with a young family, a marriage under strain and a house crumbling about me.


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    #50
    djimi
    Registered Users Posts: 13,237 ✭✭✭✭djimi


    People seem to be taking bankruptcy as a bit of an easy out these days. You might be debt free after a couple of years but doesnt it affect your credit rating for years to come? As far as Im concerned it would be the absolute last straw, when you have literally no other place to turn. And even then Id be very reluctant to consider it.


  • Options
    #51
    Sugarcake
    Registered Users Posts: 44 ✭Sugarcake


    pippip wrote: »
    It's a terrible situation you are in.

    Getting the extra bedroom built would be the best option:
    • It will give you the extra space you need for your child for the near future.
    • It will up the value of the property, reducing your negative equity slightly
    • It will make it easier to rent when you do get in a position to move, possibly at a higher rate.

    I would firstly talk to your bank. See what options they can offer. Like others have said, DIY is the way to go.
    Contact all your friends and family and find out what trades you might be able to get your hands on. Given your situation I would expect nobody will be looking for money off you.

    You mention needing a skip, do you have enough land to just leave it aside til you can dispose of it later?
    A digger may be a needed but could it be done with a pickaxe and plenty of time? If it can then the digger is just a luxury.

    Keep your ears and eyes open for any construction. Look for planning applications in the area. You may get lucky and get bits others are just putting in a skip. Again, ask about.

    As i mentioned at the start, your situation is awful and I think your story will convince people go out of their way for you.

    Thank you for your answer, I agree I think an extension is the way to go for us. Our situation is not that different from a lot of people and to be honest we don't talk about it, everyone has their own problems, obviously our family know and they will help in anyway they can when we can afford to make a start. We looked at the option of leaving the topsoil to one side but it isn't a massive area so I don't think that will work but my husband was talking to a neighbour who said he "might" know someone looking for topsoil, he will just need to chase him up on it. I am going to sit down tonight and talk to him and try weigh up our options now and get some kind of a definite plan in action. I am sorry, reading back I sound like I am so hard done by, we are happy most of the time and have a wonderful child, so have a lot to be grateful for. Things will get better for us!


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    #52
    ted1
    Registered Users Posts: 23,529 ✭✭✭✭ted1


    your a double income family, surly a mortgage of 1k is easy enough.

    an extension would not be to much, you need to look at yourr spending habitats.

    without known what kind of income you both have its hard for anyone to comment.


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    #53
    ht9zni1gs28crp
    Closed Accounts Posts: 1,011 ✭✭✭ht9zni1gs28crp


    Topsoil will be easily disposed of....advertise it as free for collection only on Adverts and your off and running...

    Set out some plans of the extension...a few friends, a few pick axes and shovels with a crate of beer will have foundations dug in no time at all....

    try and make it a fun experience...


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    #54
    Sugarcake
    Registered Users Posts: 44 ✭Sugarcake


    ted1 wrote: »
    your a double income family, surly a mortgage of 1k is easy enough.

    an extension would not be to much, you need to look at yourr spending habitats.

    without known what kind of income you both have its hard for anyone to comment.

    Our spending habits are bills, mortgage, childcare, food, petrol and other motor expenses, I'm sorry but in the last few years I have been stripped of any right to spend on anything outside of this. My spending habits can not be cut back in anyway. I really don't need to be judged anymore, I already feel bad enough and as bad as I feel my husband feels so much worse, we have struggled for years and just want to see some light at the end of the tunnel.


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    #55
    Sugarcake
    Registered Users Posts: 44 ✭Sugarcake


    Serenity Miniature Newspaper wrote: »
    Topsoil will be easily disposed of....advertise it as free for collection only on Adverts and your off and running...

    Set out some plans of the extension...a few friends, a few pick axes and shovels with a crate of beer will have foundations dug in no time at all....

    try and make it a fun experience...

    Good idea, advertising it I never thought anyone might want it.

    Thank you everyone so much for all of your idea's I feel a bit more positive and am looking forward to talking about this tonight. :D


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    #56
    ted1
    Registered Users Posts: 23,529 ✭✭✭✭ted1


    Sugarcake wrote: »
    Good idea, advertising it I never thought anyone might want it.

    Thank you everyone so much for all of your idea's I feel a bit more positive and am looking forward to talking about this tonight. :D

    you don't even have to dispose of the top soil, you could just raise the height of the remaining garden, just keep a path between it and the house so it daoesn't cause damp.


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    #57
    Victor
    Registered Users Posts: 78,414 ✭✭✭✭Victor


    No Pants wrote: »
    Apart from buying a house that's too small, for an amount that you can't afford, in a location that you hate.

    I understand that the housing market was crazy and I'm sorry about your work situation and I hope that it gets better soon, but I really don't understand the location bit.

    I'm quite sure that the OP feels bad enough without you brow beating them.

    Constructive posts only please.

    Moderator


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    #58
    wrmwit
    Registered Users Posts: 416 ✭✭wrmwit


    Serenity Miniature Newspaper wrote: »
    Topsoil will be easily disposed of....advertise it as free for collection only on Adverts and your off and running...

    Set out some plans of the extension...a few friends, a few pick axes and shovels with a crate of beer will have foundations dug in no time at all....

    try and make it a fun experience...

    Extensions up to 40sq. metres to the rear of the house do not require planning permission. That's money saved already!


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    #59
    pwurple
    Closed Accounts Posts: 12,449 ✭✭✭✭pwurple


    Hang in there first of all... time can help.

    If the location is the main problem, I think you need to aim for moving, not extending. Keep your end goal in mind at all times.


    Be extremely careful if extending. You don't want to spend even more money, and make the place completely unsellable by not complying with building/planning regulations, or making a botch job of it. Extending may just delay moving to the area you want to be in. You have the option of sticking with the lack of space for now, and work on paying down that mortgage faster. How many years / amount is left? You're already 7 years into it... Is it a 30 year? If so, you've over 1/4 of the term done already. You can work on increasing your rate of paying that off. Remember all that interest is compound calculated. If you pay extra off now, not only do you reduce the capital, but you erase some of the interest amount. If you can do this at all.... calculate how long until you get that balance remaining down to that magic ~75k... bingo, you can move. You might even be able to do it in something like 5 or 6 years if you push it.

    This is a good link for working out overpayments:

    http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator
    As an example, overpaying a 210k mortgage by 150 euro a month reduces term by 4 years, and saves 12,000 euro in interest.


    If you are in a tracker, have you ever overpaid that mortgage at all? Try now if possible at all. Even as little as 50 euro extra here and there will bring down the term faster than you expect. Just transfer it into the mortgage account, and make sure the bank know to take the overpayments off the TERM, not the monthly repayment.

    Now is a good time to do it, as rates are so low. If I were you I would do anything I could to pay off all debts as much as possible. Start with any loans with the heavier interest rates, they cost you the most. Any car loans etc. then onto mortgage. Sell anything you don't need.


    Is there anyway you can reduce the childcare costs? Look into childminder instead of creche, etc.

    ECCE year can start at about 3 1/2 years old, that's 5 mornings a week of free childcare, which should save you a bit. Put that savings into loans. Then there's school to follow the year after.

    Is there any flexibility in your hours, or your husbands? Can you or he work a saturday, and take a friday off to reduce childcare costs by 20% without affecting income?

    Are you crafty? can you make something and sell it at car boot sales or markets?

    Can you run a cheaper car, or is there any portion of the journey which could be public transport? Petrol costs are a massive outlay.... even if you could drive to the nearest busstop, these things all add up.


    Can you or husband take an extra job evenings or weekends? Anything at all? Proofreading online, typing, remote customer support, local supermarket?




    You have a one bedroom house, but it's not a one ROOM house. People can get very inventive in small spaces. Pull out mattress converts living areas to sleep areas, or converting kitchen to living areas by evening. It's all possible with a bit of ingenuity.


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    #60
    No Pants
    Closed Accounts Posts: 3,347 ✭✭✭No Pants


    Browbeating...right.


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    #61
    Kettleson
    Closed Accounts Posts: 2,047 ✭✭✭Kettleson


    Real sorry to hear about your difficulties at the moment, cold comfort, but it must be a very common scenario at the moment.

    You know, I always try and remind myself that things could be much worse, like being in hospital with a serious illness. And I hope it doesn't sound patronising, but I use the poverty and hardship of our parents and grandparents endured not so long ago as a mental reference point. And the suffering and famine in many countries as we speak.

    Your husband sounds like a hard worker, I'm sure you'll get through it. Tough times, but better days are ahead for sure. :)


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