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

lima

eviltwin wrote: »

Go for it. Nothing wrong with that but there is nothing wrong with wanting to put down some roots either.

Nothing wrong with it but many of the people who I know who did are quite depressed and are putting on weight and jokingly give out about me if I check in in a cool cafe :rolleyes:

um7y1h83ge06nx

We're all different.

It's easier for me and the OH as we save out of habit and we live in Limerick where things are a little cheaper.

I still have a decent lifestyle but manage to save a good bit too, I find there is only so much I need or want so may as well save the rest even before we considered a house purchase. I like a rainy day fund.

When I get paid monthly I transfer money to my savings accounts and 'pay' myself a sum to live on until the next payday. Next month when I get paid I'll save the usual plus anything left from what I paid myself the previous month and continue on.

We hope to buy this year and would have a big sum saved, enough to cover maybe 40% of a 3000sq ft plus two storey in the countryside close to Limerick. Thankfully prices are cheaper here and haven't really picked up yet.

jester77

Just always saved since I started work. Around 400 a month on average. Less when I was younger, more as I got older and earned more. There was also SSIA and work bonuses over the years. Had over 100k saved for deposit.

Doesn't take much effort really, just start as you mean to continue. I don't understand why some people decide 3 or 4 years before they want to buy a house, that they suddenly must start saving and then they go into ultra scrooge mode and live a miserable existence.

Alf Veedersane

FURET wrote: »

If you can find a job that pays well while making you happy, grand. If not, the happiness gleaned from whatever job you have may well rub up against the oppositional force of worries about debts and bills and a feeling that you're stuck.

I have a job that doesn't pay brilliantly but I enjoy it and all the while I don't worry about bills.

Mostly because I managed to make my way through my 20s enjoying myself without being wasteful.


I do appreciate the general point you made earlier about the renting being made more secure for tenants in Ireland though.

eviltwin

lima wrote: »

Nothing wrong with it but many of the people who I know who did are quite depressed and are putting on weight and jokingly give out about me if I check in in a cool cafe :rolleyes:

As supersonic says we're all different. It was important for me to have my own place due the situation I was in at the time. If travel etc was a priority I'd probably be agreeing with you.

wandatowell

Starscream25 wrote: »

Can't stress enough, cook your own food and make your own lunch, you'll save packets over the course of time,

+1000

Supercell

Once our kids get a job they will be charged "rent" if they are still at home, which we will save for them until its enough for a deposit.
Myself, I saved about 1k a month until I had a deposit, which was tough as rent had to be paid as well and my wife is a stay at home mother, but we managed it.

skooterblue2

Larbre34 wrote: »

Renting may be dead money, but at least you are living in the world.

there are is no dead money in Rent.... someone somewhere has to pay even if you dont ie living at home

Alf Veedersane

Supercell wrote: »

Once our kids get a job they will be charged "rent" if they are still at home, which we will save for them until its enough for a deposit.

Got my first weekend job at 15 and was told to contribute to the housekeeping. I did. It didn't cost me a thought as I just thought that that was how it was and since I was earning a few quid, it was only right.

Got a surprise a couple of years back when my Mam me handed the bank details for the account it had all been put in. Life lessons had been learned and I had money in my pocket because of it.

eviltwin

Alf Veedersane wrote: »

Got a surprise a couple of years back when my Mam me handed the bank details for the account it had all been put in. Life lessons had been learned and I had money in my pocket because of it.

That is a great idea.

mariaalice

drumswan wrote: »

There are loads of alternatives - putting the career on hold and spend a year or two travelling the world or attempting to start a business in a field you love knowing it might not work out, or writing a novel, or doing charitable work for self-fulfillment, or moving elsewhere and starting from scratch learning a new language, or attempting to reach a serious level as an athlete, or becoming a religious devotee, or growing a beard and studying Kantian philosophy or one of a dozen other things. Choose life etc.

They are all wonderful to do with you life and doing any of them for a year or two wouldn't stop you from eventually deciding to save and buy a home if that what you want to do. Its this idea that you have to live a miserable life if you save and that somehow living in the suburbs is a sort of living death its that I don't understand.

Galwayguy35

Started putting a bit aside every week when I was 20, then took out the Government Savings Plan (will never see the like of that again) and had a 25 k deposit by the time I needed the mortgage when I was 32.

Black_Knight

bigdaddy2010 wrote: »

We have been saving for a few years now and have accumulated 120k.

My income 2550 a month after tax and my wife 3290.

Savings per month:
Me- 1516. Wife- 1000

Rent- 700

Free to air TV

Both on tesco mobile 15e each

It can be tough but we have sacrificed and have 2 10 year+ cars which take us from a to b.
Will be worth it hopefully when we get a house.

Just really examine what your priorities are in life.

Myself and my girlfriend (fiance now) are in a pretty similar situation income wise, but our expenses are in a different league. Our rent in a 2 bed apartment is €1450. We've talked about moving elsewhere, but the savings would be maybe 100-200 a month, but it would mean I would have to drive to work vs. the tax saver on the train. I would gladly go FTA satelite, but apartments dont allow it.

We're recently engaged, so trying to save 750 each a month for the wedding, and as much as we can into a savings account for a house. Realistically could be saving €1250 each per month for a deposit (after the wedding).

Our rent easily covers a sizable mortgage, its the deposit we haven't got together.

karenalot

Started saving around 19 with the SSIA scheme. In 5 years had 20k deposit and bought first house in 2006. Since then I have saved 1k per month which has now given me another 85k in savings which I want to put towards my next house. It should be 95k but I don't put away money in December so I can enjoy Christmas each year without guilt.

Throughout I have always gone out at least once a week and still do but haven't seen the inside of a "normal" supermarket in years (only Aldi, Lidls or Tesco Express Bargain shelf), use Groupon for meals out, stay in the cheapest hotels on holidays and my car is 10 years old. Oh and my fashion has taken a bit of a nose dive too.

It's doable but you cant have it all I guess!

karenalot

Started saving around 19 with the SSIA scheme. In 5 years had 20k deposit and bought first house in 2006. Since then I have saved 1k per month which has now given me another 85k in savings which I want to put towards my next house. It should be 95k but I don't put away money in December so I can enjoy Christmas each year without guilt.

Throughout I have always gone out at least once a week and still do but haven't seen the inside of a "normal" supermarket in years (only Aldi, Lidls or Tesco Express Bargain shelf). I use Groupon for meals out, stay in the cheapest hotels on holidays and my car is 10 years old. Oh and my fashion has taken a bit of a nose dive too.

It's doable but you cant have it all I guess!

ireland.man

All this talk of parents being able to help their children but is it not common for children to contribute something regularly to their parents these days? I don't save very much, I can't, but I do send my mother money every month and it's something I expect to do in the longterm. About life satisfaction, it makes me feel I don't waste my money either.

Black_Knight

ireland.man wrote: »

All this talk of parents being able to help their children but is it not common for children to contribute something regularly to their parents these days? I don't save very much, I can't, but I do send my mother money every month and it's something I expect to do in the longterm. About life satisfaction, it makes me feel I don't waste my money either.

Different strokes for different folks I guess. Depends on a persons parents situation. I think every son or daughter would help their parents out if needed, but for some people their parents just dont need that helping hand, and would much prefer to ease the burden on their children - putting their money to good use and reducing repayments.

Alf Veedersane

Black_Knight wrote: »

Different strokes for different folks I guess. Depends on a persons parents situation. I think every son or daughter would help their parents out if needed, but for some people their parents just dont need that helping hand, and would much prefer to ease the burden on their children - putting their money to good use and reducing repayments.

My Dad came into a small bit of money (less than 2K). I asked him what he was going to spend it on. He said he didn't know.

A week later, a third of it had been transferred to my bank account (I'd assume my 2 brothers got the same).

If I offered him money, he'd either refuse or take it and slip it into my jacket pocket when I was out of the room.

MarkAnthony

This thread has exploded somewhat and I have to admit I've not read every post but to pick up on some points:

Money from parents: It should not be expected and many parents are not in a position to give but where a parent is many do. Firstly with wealth being focused in the hands of older people its only logical to do so, it's also advisable give the tax implications. This is of course if the offspring is reasonable with money in the first place.

That said it's not normally the 'deposit' the parents are gifting - if it was the offspring is unlikely to get a mortgage as a history of saving is required. It's normally a case of letting them get a bigger house/more desirable area or less of a mortgage.

On parasitic landlords: Even at huge rents accidental landlords struggle to break even on places. The tax rate is just too high. I personally don't have an issue kicking in a few hundred a year, after all it's asset for me at the end but this can only go so far when there are better investments out there.

ronjo

drumswan wrote: »

Me too, thank god for IT contracting

I am with you there..... Got my house for cash after 7 years of it around Europe.

MarkAnthony

Black_Knight wrote: »

Myself and my girlfriend (fiance now) are in a pretty similar situation income wise, but our expenses are in a different league. Our rent in a 2 bed apartment is €1450. We've talked about moving elsewhere, but the savings would be maybe 100-200 a month, but it would mean I would have to drive to work vs. the tax saver on the train. I would gladly go FTA satelite, but apartments dont allow it.

We're recently engaged, so trying to save 750 each a month for the wedding, and as much as we can into a savings account for a house. Realistically could be saving €1250 each per month for a deposit (after the wedding).

Our rent easily covers a sizable mortgage, its the deposit we haven't got together.

Tis all about the priorities though.

1 bed city centre Dublin apartment: €900 (D8/7)
Wedding could be a nice registry office affair

There alone is €1200 a month for a deposit. Two years of that and you'd be able to whack down a deposit on a two bed in Dublin with repayments in the €800 range.

Black_Knight

MarkAnthony wrote: »

Tis all about the priorities though.

1 bed city centre Dublin apartment: €900 (D8/7)
Wedding could be a nice registry office affair

There alone is €1200 a month for a deposit. Two years of that and you'd be able to whack down a deposit on a two bed in Dublin with repayments in the €800 range.

-1 bed wouldnt fit our stuff, and city center wont fit our cars. (not at that budget)
-Wedding wont be a registry office affair. As posters have said, you gotta live a little.
-Dont want to live long term in Dublin. Buying an apartment in Dub 2 years ago would of made sense, but only I was working then.

MarkAnthony

Black_Knight wrote: »

-1 bed wouldnt fit our stuff, and city center wont fit our cars. (not at that budget)
-Wedding wont be a registry office affair. As posters have said, you gotta live a little.
-Dont want to live long term in Dublin. Buying an apartment in Dub 2 years ago would of made sense, but only I was working then.

As I say priorities. Yours are different.

You will get CC (south and north) dublin apartments with a parking space @ €900. You might not have to engage with the usual OMG 20 years ago that was rough so there's no way I'm living there malarkey but having lived for over a decade a stones throw from Oliver Bond it's blown out of all proportion.

Again running two cars when you don't need to drive to work will be another reason you haven't (through choice which is fair enough) put together a deposit.

Also Netflix > UPC/Sky

T-K-O

Alf Veedersane wrote: »

My Dad came into a small bit of money (less than 2K). I asked him what he was going to spend it on. He said he didn't know.

A week later, a third of it had been transferred to my bank account (I'd assume my 2 brothers got the same).

If I offered him money, he'd either refuse or take it and slip it into my jacket pocket when I was out of the room.

Well played, say nuthin.

lima

Alf Veedersane wrote: »

If the house someone buys is worth half now what it was when they bought it but they haven't any intention of moving, then the value is meaningless and their investment in their own roof over their head is still a sound one.

It's dead money!

Alf Veedersane

lima wrote: »

It's dead money!

Why?

Mrs OBumble

Tasden wrote: »

Yes, and that something may not be through any fault of their own.

And those are the people who social housing should be for: ones who through no fault of their own cannot afford to house themselves.

I paid rent to my parents from the day I turned 18. Lower than market rate, but still rent. And I didn't see it back in their lifetime. Or expect to receive anything after they died either - they set very clear expectations about that from when we were quite young.

leanonme

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.

LOL I detect a hind of envy. I have found this to be the case in a lot of people I know who look at me and my partner who live my father rent free. But us living with my father was less of a choice and more of a need for everyone involved. As my dad was living alone and has health issues, which he requires support with, and my self and my partner were both unemployed at the time we moved in, but are now working full time, and although we could do with moving out, as my drive to work is now an hour and a half each week, we cant due to being here to help my father. So we are saving for a mortgage as I'm aware we will be moving out when another sibling moves back. Myself my take home pay is 2400, i'm saving a grand a month, but the cost of fuel and toils is crippling as its costing about 400 a month. The OH is less, but he has began working full time so hopefully he will be able to put by a fair bit now.

nelly17

Me and the missus were both living at home so were able to save a 1300 a month then ramped it up to 1600 to get us there finally after a bit of a push over 6 months to a year, but this was 10 years ago

heldel00

My godmother left me a considerable inheritance and this along with a little bit of our own savings was enough for deposit to build.
So the important point is - pick your children's godparents wisely! (In saying that my godfather must have forgotten his duties the minute his sank his first pint at my christening meal!)