How do most people get their deposit to buy a house?

AndyBoBandy

lima wrote: »

Where I grew up many got mammy and daddy to pay their deposit during the boom to make them look like their kids were a success.

Same here, While those around me were buying shlt houses for 300-400k in 'boom' times, I was in Qatar/Spain/anywhere in the world plugging away building my deposit.

Then when I did move back to Ireland into a lower paying (but Irish based (home based)) job, I was browsing for houses while they were still at rock bottom prices.

I know a lot of people lost out big time in the 'boom/crash', but some of us did alright out of it. and I'm not going to apologise for that.

desertcircus

If you're on 2k a month after tax:

Rent a room within 10km of your workplace for max 500 per month; if you're a couple on 2k each, rent a one-bed for 1k. There's nowhere in Ireland that isn't within 10 kilometers of places for that price.

Buy a bile on the cycle to work scheme: get a decent one, as this is your new commute. Get raingear and the like in Aldi or Lidl, who do bike gear sales every few weeks. Cost: max 700 or so once-off.

Start making porridge for breakfast in work, and bring in your own lunch. Cost: less than 50 a month.

Keep your bills low and set aside 100 a month, possibly 150.

For groceries, start cooking your own meals. Avoid eating out more than once every week or two. Cost: maybe a hundred a month.

Set aside another hundred for bits and pieces (clothes, electronics etc).

Your basic spend every month is now 900 quid. Set aside another hundred a month for a nice holiday, and you're up to a thousand. Save 500 of it and do what you like with the rest; you're now saving six thousand quid a year.

LaGlisse

Plenty of "adults" out there who get a "helping hand " from there parents
Translation: Plenty of entitled manipulative schemers with the emotional maturity of a 12 year oldv who feel that personal responsibility and patience isnt their bag and lean on their parents to shell out the deposit and more. Same Gowls then whinge to all and sundry when their dream goes sour (negative equity). There are some horrific people out there

MarkAnthony

[QUOTE=BenIrishHome;93827284You'll bel icky to get a two bed in Crumlin under €200,000 now unless it is an absolute tip.[/QUOTE]

There's plenty out there that need minor work at 150K mark. You're not going to buy a walk-in at this price level.

Patww79 wrote: »

This post has been deleted.

If you can't save 20-25K a year on 100K then I've no sympathy for any predicament you find yourself in.

Saipanne

desertcircus wrote: »

If you're on 2k a month after tax:

Rent a room within 10km of your workplace for max 500 per month; if you're a couple on 2k each, rent a one-bed for 1k. There's nowhere in Ireland that isn't within 10 kilometers of places for that price.

Buy a bile on the cycle to work scheme: get a decent one, as this is your new commute. Get raingear and the like in Aldi or Lidl, who do bike gear sales every few weeks. Cost: max 700 or so once-off.

Start making porridge for breakfast in work, and bring in your own lunch. Cost: less than 50 a month.

Keep your bills low and set aside 100 a month, possibly 150.

For groceries, start cooking your own meals. Avoid eating out more than once every week or two. Cost: maybe a hundred a month.

Set aside another hundred for bits and pieces (clothes, electronics etc).

Your basic spend every month is now 900 quid. Set aside another hundred a month for a nice holiday, and you're up to a thousand. Save 500 of it and do what you like with the rest; you're now saving six thousand quid a year.

Yep. What some people fail to realise is that all these little changes add up, over time.

eviltwin

LaGlisse wrote: »

Plenty of "adults" out there who get a "helping hand " from there parents
Translation: Plenty of entitled manipulative schemers with the emotional maturity of a 12 year oldv who feel that personal responsibility and patience isnt their bag and lean on their parents to shell out the deposit and more. Same Gowls then whinge to all and sundry when their dream goes sour (negative equity). There are some horrific people out there

What's wrong with that?

I didn't get any cash help but we did get help in the form of minimal rent while we were saving. Adding that up it would have amounted to a fair amount of money. I know of other people whose parents take minimal rental from them while they are saving or help them out with childcare etc.

eviltwin

Sala wrote: »

I know in theory how people save but when it comes to putting it into practice we are rubbish Trying to save 2k a month but it could (should) be more. I'd love to be like you eviltwin! If I cut out a lot of drinks, nights out, treats, we'd be doing great.

It helped that we had a young child so nights out were rare anyway. Most of our friends were in the same boat, just starting out and crippled with rent or mortgages so it was a bit of a social wasteland. I bought my house at 24 so it was the best years of my life in many ways I was saving for but I more than made up for it in the years that followed

Alf Veedersane

LaGlisse wrote: »

Plenty of "adults" out there who get a "helping hand " from there parents
Translation: Plenty of entitled manipulative schemers with the emotional maturity of a 12 year oldv who feel that personal responsibility and patience isnt their bag and lean on their parents to shell out the deposit and more. Same Gowls then whinge to all and sundry when their dream goes sour (negative equity). There are some horrific people out there

Bt harsh. Plenty of people who save but don't earn enough to save enough and whose parents are in a position to offer a few grand to help them out.

drumswan

eviltwin wrote: »

I only had to do it for 4 years,

"Only"!

Saipanne

drumswan wrote: »

"Only"!

In fairness, if you can't save for four years, then you shouldn't be taking a 25 year mortgage.

Dog of Tears

Live frugally and save, ideally with a partner who's as committed to the idea as you are.

Work out how much of a mortgage you're comfortable taking on based on stress-testing yourself against drops in income and interest rate rises. Under no circumstances should you base your borrowing on how much a bank is willing to lend you.

eviltwin

drumswan wrote: »

"Only"!

If you want something you have to make sacrifices. That's just how it is.

Alf Veedersane

Just as well #YOLO wasn't around back in the day or I'd be sleeping on a step.

hardCopy

Alf Veedersane wrote: »

Bt harsh. Plenty of people who save but don't earn enough to save enough and whose parents are in a position to offer a few grand to help them out.

And plenty of parents who actually want to give their kids a leg up, no manipulation involved.

elly123

We have saved the guts of €20k in the last 7 months. We save 2k a month and put whatever extra money we both got over Xmas from O/T or small bonuses into the savings. Our joint salary gross is about €85k
We started with a 10k lump sum from the sale of my husbands house that he owned with his sibling.
We keep €500 each per month from our wages.
1k each into savings and then the balance goes into a Joint account for living expenses, petrol, food, mthly direct debits etc.
We are living with my parents at present and we pay them rent and contribute towards electricity and gas. Since moving in with the parents we are also living closer to both our jobs which has cut travel costs by circa 600 per month between us. i.e less petrol, no tolls etc.
It is not ideal living with my parents as its a very small house and we are recently married with a two year old so we have our own little family, but in order to buy a house in the area we want to live we had to make sacrifices.
We are sale agreed on a house since Oct, so fingers crossed we'll be closed by the end Jan.
Its not easy living with your parents and we often have to bite our tongue, but we couldn't have saved as much as we have without them.
We don't deprive ourselves of too much, we eat out once every two weeks or so, but we are not big drinkers, don't smoke and try do stuff that doesn't incur a lot of cost.
Moving back home is not for everyone but it was our only option and thankfully my parents welcomed us with open arms

Call me Al

We bought our first house in 2002. We were mid 20s, renting in Dublin for years, both independently and together, and not earning huge money. We saved as best we could, but were fortunate enough to get fairly decent bonuses that we could put fully towards our deposit. We sold three years later and used the sizeable equity on a new house.
Our parents never had it to give it tbh.

dutopia

Think of ways to boost your income.
Cut any unnecessary expenditures.
Budget yourself 'pocket money' you can use for entertainment, etc.
Come up with a target saving amount and DD that amount into a savings account every month.
Be realistic about what you can save and what property you can afford.

HerrKuehn

We had a approx 190k when we bought in summer 2013. The initial 40k was saved separately (before we met). I had 30k saved over 3.5 years in a job paying 32k. I was renting a room in a house in dublin for about 400 per month IIRC. My wife had 10k previously saved. We then saved ~150k over the following 5 years together. There were no gifts from parents towards the deposit. We bought a house for 440k and used 150k from our savings as deposit. The rest was used for solicitors/stamp duty/furniture/renovation.
We were just very careful with money over that time. We had no car for a number of years. Then we bought an old cheap car for cash and we still drive it. My salary increased a lot through the years and we were basically maintaining the same lifestyle. The decrease in rent around 2009 helped us a lot too (about 350 per month decrease I think it was).

Sala

LaGlisse wrote: »

Plenty of "adults" out there who get a "helping hand " from there parents
Translation: Plenty of entitled manipulative schemers with the emotional maturity of a 12 year oldv who feel that personal responsibility and patience isnt their bag and lean on their parents to shell out the deposit and more. Same Gowls then whinge to all and sundry when their dream goes sour (negative equity). There are some horrific people out there

That's very judgmental. I know lots of people whole got from a couple of grand up to 100k from their parents. They all still worked hard, and saved a lot themselves. None leaned on their parents - the parents had the money and wanted to help them out. Plenty of people saving also move in with their folks to save on rent or get a grandparent to mind kids to save childcare- this is exactly the same as these things have monetary value.

LaGlisse

Sala wrote: »

That's very judgmental. I know lots of people whole got from a couple of grand up to 100k from their parents. They all still worked hard, and saved a lot themselves. None leaned on their parents - the parents had the money and wanted to help them out. Plenty of people saving also move in with their folks to save on rent or get a grandparent to mind kids to save childcare- this is exactly the same as these things have monetary value.

Some things need to be judged.Theres alot of entitlement out there, loads of these people who got it handed to them now hardly paying anything towards their mortgage and the Banks are letting them away with it ,i know a few like this myself. Entitled immature children

Sala

LaGlisse wrote: »

Some things need to be judged.Theres alot of entitlement out there, loads of these people who got it handed to them now hardly paying anything towards their mortgage and the Banks are letting them away with it ,i know a few like this myself. Entitled immature children

I'm sure there are plenty of people who got 100% mortgages with no help from their parents not paying anything off their mortgages as well.

Alf Veedersane

LaGlisse wrote: »

Some things need to be judged.Theres alot of entitlement out there, loads of these people who got it handed to them now hardly paying anything towards their mortgage and the Banks are letting them away with it ,i know a few like this myself. Entitled immature children

You're tarring a lot of people with the one stick.

Yes, some of those people exist but you're lumping a lot more than those into the same category.

My mate's father died and left him a few grand, which helped him. His father probably felt oppressed by the entitlement emanating from his son as he wrote his will.

LaGlisse

Alf Veedersane wrote: »

You're tarring a lot of people with the one stick.

Yes, some of those people exist but you're lumping a lot more than those into the same category.

My mate's father died and left him a few grand, which helped him. His father probably felt oppressed by the entitlement emanating from his son as he wrote his will.

I wasnt talking about inheritances, i was talking about all the people in their 20's and 30's who just expect their parents to help them out, or to let them live rent/ living expenses free. There is a lot of them about.

Alf Veedersane

LaGlisse wrote: »

I wasnt talking about inheritances, i was talking about all the people in their 20's and 30's who just expect their parents to help them out, or to let them live rent/ living expenses free. There is a lot of them about.

Any cross section of society or subset of society will have it's proportion of idiots. Such is life.

CarpeDiem85

I envy the people who can live with their parents and save. My goal in the next 4-5 years is to buy a house in Dublin 12. I'm on career break at the minute looking after my daughter and I'll probably go back to work in September. My salary is €42,000 but I'm a single parent so I don't know how I'll do it but I'm determined. Where there's a will, there's a way!

Sala

CarpeDiem85 wrote: »

I envy the people who can live with their parents and save. My goal in the next 4-5 years is to buy a house in Dublin 12. I'm on career break at the minute looking after my daughter and I'll probably go back to work in September. My salary is €42,000 but I'm a single parent so I don't know how I'll do it but I'm determined. Where there's a will, there's a way!

I always think it must be harder for single people and parents to save. Childcare is extortionate. Hopefully over the next 4-5 years your childcare will go down (if you have any) and salary will go up which will accelerate your savings. Good luck!

Alf Veedersane

Sala wrote: »

I always think it must be harder for single people and parents to save. Childcare is extortionate. Hopefully over the next 4-5 years your childcare will go down (if you have any) and salary will go up which will accelerate your savings. Good luck!

It really must be. Our mortgage repayments are currently less than our rent used to be (which has likely gone up since) and childcare isn't far off the mortgage repayments. How I'd have saved, I don't know.

Well, I do. I wouldn't have.

MayoSalmon

Moved back in with the rents (I'm 29) have saved a grand a month for last 2 years. Have 25k now from nothing..still very hesistant to buy now though.

I don't want mortage with payments anymore than €600 a month.

Tasden

Alf Veedersane wrote: »

It really must be. Our mortgage repayments are currently less than our rent used to be (which has likely gone up since) and childcare isn't far off the mortgage repayments. How I'd have saved, I don't know.

Well, I do. I wouldn't have.

I'm a single parent and I'm only able to get casual part time work at the moment. Its a nightmare. Constantly applying for full time positions and getting nowhere, and if I'm lucky enough to get something it'll all be gone on childcare cause I've nobody to mind her. I have serious respect for those single parents that manage to save, really don't know how they do it.

Geuze

brbf wrote: »

Just something I'm wondering... When people are buying houses, how many of them get help vs saving the whole thing themselves? I see loads of people buying 350k-400k+ houses and I have to wonder how they got 30-40k for the deposit?

I'm very lucky to be in an very well paying job - but up until now I have no real savings. I'm now saving hard but still it's going to take me a long long time to save that sort of money. I cant get any help I'm on my own in that respect.

How did you guys save your deposit? Knock all luxuries on the head for 5-10 years? How much does your average person save for how long?

I saved 700 pm for deposit for several years before buying house in 2005. Plus I had an SSIA, and other savings.

Combined with a gift from parents, I borrowed 55% LTV.

I also ran a car, and had several (cheap) hols per year.

Now, my rent was 45 per week, so that helped.

I now save 1000 pm, pay mortgage, run a car, and keep wife + 2 kids, after two pay cuts.

It's tight, but possible.