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New mortgage rules will they change for 2016 and going forward??
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Bryan Victorious Zirconium wrote: »Is getting a second income into the house not an option? Most people buying would be dual income in order to be able to save and meet LTI rules.
Not at present. My GF would be typically looking at work in areas that would be deemed low income. So we ran some numbers and I actually avoided a stereotyping/awkward situation when she offered to stop working to take care of our child (which sprung the requirement to move, and landed us into the higher rent. But I love my daughter and she is amazing, so I'll never hold it against her
)
Childcare costs would in isolation absorb most of my GF's earnings, so we just decided there was more benefit in her stopping working to look after our child. So for the sake of what was a small amount in my eyes, we both felt it a better situation. And it gives me a great piece of mind, and to see the development in my daughter(not to say it wouldn't happen in childcare) I'm pretty happy with that decision for the sake of what might have been an extra €150-200 a month.
I've looked into securing a second job, but in reality the focus and attention required in my current position, I feel it might be a negative in me burning myself out and it having impacts on my main employment.The fact is these rules are protecting you. If they were not in place, house prices would have risen significantly more. Without sufficient building, the market price would settle at the edge of lunacy.
The situation you face is deplorable. It isn't going to get better either.
I very much accept it is a crisis and fully aware of the situation going on. I was just conveying my situation to the thread, from a perspective of a young family of three with a single income, and it's frustrating that the new rules while required, crush a certain section of our society.If you accept that we have a national crisis, what could you do to actually treat it like a crisis?
I've given up on saving to ensure that we as a family can enjoy life. We wouldn't be big spenders. We both arn't consistent or big drinkers, and you could probably count on one hand the amount of times we go out a year for a meal or a drink. Our interests and hobbies are relatively low cost, and I've knocked most things on the head the last few years like Airsoft, Golf and some other things I'd do recreationally that contained a cost.1. Save more. Pennies count. You've given up on saving.
I'm not in mortgage distress, or owe someone money. so while I need to save, I've very little left a month to do so, and we just decided that for now we won't bother. We are talking €100-€200 a month capabilities for savings here if even. I have mentioned to the O/H that my next two bonus' I'll try squirrel away savings that won't be touched(hopefully) That will go a long way.
But as anyone knows, life can throw **** up at you. Previous savings I did have, got chipped away with unforseen situations. Car repairs, incurance hikes, hospital visits, GP visits, Dental work etc. etc. So when you have little disposable income, those variables are a massive hit. So any savings there, can sometimes be required in emergencies.
Addressed that to the previous poster. It's a year and a half before a second income becomes reasonable, as my child can then avail of the childcare sceheme the government brought back in.2. Get a second income.
I'm not applying for social housing, and am not in mortgage distress. There is a certain aspect of "wanting to live where I want to live". We have kept an eye out and done some viewings for places that looked good on paper, but we've not found something that would make us moved. Where we are at the moment, was also picked before our daughter was born, which a certain aspect of "laying roots".3. Move and rent somewhere cheaper.
somewhat part of my predicament4. Move and buy somewhere cheaper.
Yeah I've got in touch with some of the local TD's in my area, and am looking forward to having them knock on the door in the coming election to hear their piece. Typically TD's in my area (the elected ones) form part of the independants or fringe groups, who can never instigate change. Claire Daly is an elected TD from my area, so you know what I'm dealing with. (I also wouldn't entertain speaking with her, especially on housing)5. Lobby for more house building.
The last point is almost free. You have 3/4/5 TDs. Visit each of them and tell them you need them to increase the number of housing starts. Tell them you need the amount of red tape in construction reduced - because you are paying for it.
Money was being saved away when I was on the €700 p/m rent. We then moved to a house suitable for a family and even then at the higher rent my savings were intact. I then went through a redundancy and had a serious of calamitous events that quickly smashes my savings. I won't go into all of them as some are personal and family related, but issues with my car and a few other variables like that happened.OfflerCrocGod wrote: »Same for me but I have enough to save up a deposit for a cheap house (what were you doing with the money when you were paying €700 a month in rent instead of €1300? In a year that's €8400 that you could have saved all those years ago, I thought you said you were financially prudent?). You should be on at least €51K if you want to buy a house for €200K and are going to put down a 10% deposit (€180K / 3.5), if you can't save anything on that wage then I think the rules are doing a good job.
I'd have a tangible track record from my bank, who for some reason(even though i ask they stop sending paper bills) which shows my saving history. I kept them in the event they would actually help when it came to mortgages etc down the line.MarkAnthony wrote: »I don't wish to jump up and down on you 'TheDoc' as I very much sympathise with your position I don't get how someone paying €1200 rent is not a good bet on a €800 mortgage bar two points:
i) If someone has no track record of saving then there is a possibility that they are not financially prudent. I'm not suggesting that's the case with you. The issue there is the person comes on to an €800 repayment and spends the €400 on a better car rather than saving for maintenance of the property. From a mortgage providers point of view, what happens if the market crashes again, the person loses the job and the house is repossessed sans roof and is essentially worthless.
Yeah that the indication I got from a number of banks when I spoke to them on this point. However some of them mentioned that in days gone by, they probably would take great interest in it.ii) Tangentially to this thread but rent does not affect credit rating as it does in the states. Banks have no concrete proof rent has been paid, on time and in full, over a long period of time.
It's been a good thread to vent to be honest. I've been feeling the pressure big time in I'd say the last six months. I guess what probably drives me mad is the stories I read and hear on the radio of families who took some outragous gambles, and basically getting themselves sorted. It can be easy for me to point the finger at the CB and say their rules are too strict, but I do appreciate why they are there.
I've put in hard work this year, and as I mentioned earlier in the thread I've had a salary growing in an upward trend year on year for a while now, so I expect that to continue. And I might just get to the point in the coming months where I get actual breathing space when it comes to our disposable income per month, and I can start back up my savings with additional income I receive.0 -
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