How many people here have bought property on their own?

cormie

I think it would be a good idea for anyone who has bought on their own, to give an indication of how much they actually got approved for in terms of their salary VS property price VS deposit. Actual figures not necessary if you don't wish, but % would be interesting to see. All the posters saying they bought on their own above could be all high earners and fortunate beneficiaries. Also to indicate whether you used a guarantor etc.

The 3.5x salary is definitely going to limit the amount of people who can put themselves in trouble financially, but it's also restricting those who would be able to pay it back no problem through the likes of renting a room, airbnb etc ever getting their own place if they are only on an average salary. Not all 3 bedroom houses are going to be occupied by non paying kids for the next 20 years.

*I realise the above may come across as ignorant, my economics knowledge is very limited :pac:

lanos

Augeo wrote: »

Bought on my own twice, once in 2005 and the 2nd time more recently, still have the 2005 purchase but don't live in it.

Thinly veiled I'M A SUCCESSFUL PROPERTY INVESTOR post

Earleybird

cormie wrote: »

I think it would be a good idea for anyone who has bought on their own, to give an indication of how much they actually got approved for in terms of their salary VS property price VS deposit. Actual figures not necessary if you don't wish, but % would be interesting to see. All the posters saying they bought on their own above could be all high earners and fortunate beneficiaries. Also to indicate whether you used a guarantor etc.

The 3.5x salary is definitely going to limit the amount of people who can put themselves in trouble financially, but it's also restricting those who would be able to pay it back no problem through the likes of renting a room, airbnb etc ever getting their own place if they are only on an average salary. Not all 3 bedroom houses are going to be occupied by non paying kids for the next 20 years.

*I realise the above may come across as ignorant, my economics knowledge is very limited :pac:

Deposit of 15% was required due to EBS underwriting rules for apartments over a certain story, needed a bit of help from the folks as a result but had been approved for nearly x5 of salary which I subsequently didnt need to fully draw down.

The x3.5 is obviously quite restrictive but I would think the 20% deposit is a bigger problem for young people trying to get their own place. Will be interesting to see what impact Mortgage Indemnity Guarantee insurance could have if the scheme was adopted here.

lanos

lanos wrote: »

Thinly veiled I'M A SUCCESSFUL PROPERTY INVESTOR post

Not at all, 2005 purchase is in negative equity and has cost me (out of my pocket) circa €5K/annum every year it's been rented out.

Recent property is literally a humble abode.

pkvader

Bought on my own in 2004,an apartment that I still have and rent,bought a house with my wife in 2009.

Leogirl

I bought on my own in 2011. Got it at a great time+ never went into negative equity, it's about worth about 40k more now than what I paid for it. It's a struggle at times but it was a good time to buy+ its a good investment I think. I'd pay more than double to rent similar.

Mrs OBumble

BDJW wrote: »

Not in Dublin. Let's look at somebody on an average wage.....€35k * 3.5 = €122,500. 10% deposit is obviously €12,500, but lets just say the person had €22,500 saved. So this person has €145k to spend. You'd be doing well to even get a one bedroom apartment in Dublin for that price (unless you want to live in very undesirable areas)

Also worth noting that in Fingal (for example), the social housing eligibility threshold for a single adult is 35k. ref: http://www.fingalcoco.ie/housing/social-housing/apply-for-social-housing/

This means that if you earn less than 35k in this area, then there is no expectation that you are able to buy a property by yourself.

The issue is, of course, that earning 35,001 makes you totally ineligible for all housing support, while earning 34,999 makes you eligible for a council house (sooner or later, probably later!).





As a sideline, all the people here posting about buying on their own and now years later having more than one property. I hope ye all have good income protection insurance: if you ever get sick or unemployed for more than a few months, then owning a property that you don't live in seriously adds to how "wealthy" Welfare see you as.

froog

interesting discussion. i'm looking to buy next year on my own, short of living way out in the country it looks like smallish 2 bed apartments are the only thing i could afford (i'll be buying in cork). i often was told over the years never to buy an apartment as you'll never sell it again, is that good advice? worst case scenario if you move up later on you could just rent it out no?

Mrs OBumble

Mrs OBumble wrote: »

.....................


As a sideline, all the people here posting about buying on their own and now years later having more than one property. I hope ye all have good income protection insurance: if you ever get sick or unemployed for more than a few months, then owning a property that you don't live in seriously adds to how "wealthy" Welfare see you as.

I'm oh so sure that you honestly hope that :pac:

I'm self employed so realistically have no expectation of getting anything off the state until OAP time. I don't even expect that.

If I'm ever sick to the extent that I cannot work for more than a few months how wealthy I am (or deemed to be) will be very low on my list of concerns.

johnnyskeleton

Jaketherake wrote: »

But I think the days of one wage buying a property are well behind us.
One example of a huge change in affordability is
Women are now an important part of the workforce and not made or expected give up work as soon as they get married anymore.
This change is a major factor in house prices and here to stay.

So basically two incomes means it costs more to have the same quality of life?

Higher prices in 2007 was due primarily to artificially low interest rates. High prices currently is due to artificially low supply.

If we have gone from needing one income sustaining a family to two, then we are running to stand still.

What next, will a couple have to work two jobs each just to afford somewhere to live and that will then become the status quo?

heroics

cormie wrote: »

I think it would be a good idea for anyone who has bought on their own, to give an indication of how much they actually got approved for in terms of their salary VS property price VS deposit. Actual figures not necessary if you don't wish, but % would be interesting to see. All the posters saying they bought on their own above could be all high earners and fortunate beneficiaries. Also to indicate whether you used a guarantor etc.

The 3.5x salary is definitely going to limit the amount of people who can put themselves in trouble financially, but it's also restricting those who would be able to pay it back no problem through the likes of renting a room, airbnb etc ever getting their own place if they are only on an average salary. Not all 3 bedroom houses are going to be occupied by non paying kids for the next 20 years.

*I realise the above may come across as ignorant, my economics knowledge is very limited :pac:

Mortgage at the time was 4.5x my salary and had 10% Deposit

pkvader

froog wrote: »

interesting discussion. i'm looking to buy next year on my own, short of living way out in the country it looks like smallish 2 bed apartments are the only thing i could afford (i'll be buying in cork). i often was told over the years never to buy an apartment as you'll never sell it again, is that good advice? worst case scenario if you move up later on you could just rent it out no?

I bought an apartment in a town just outside cork city,renting it 7 years now,have had no problem renting it out.

johnnyskeleton

cormie wrote: »

I think it would be a good idea for anyone who has bought on their own, to give an indication of how much they actually got approved for in terms of their salary VS property price VS deposit. Actual figures not necessary if you don't wish, but % would be interesting to see. All the posters saying they bought on their own above could be all high earners and fortunate beneficiaries. Also to indicate whether you used a guarantor etc

Being able to live rent free while saving a deposit is also a serious benefit to some people.

cormie

cormie wrote: »

I think it would be a good idea for anyone who has bought on their own, to give an indication of how much they actually got approved for in terms of their salary VS property price VS deposit. Actual figures not necessary if you don't wish, but % would be interesting to see. All the posters saying they bought on their own above could be all high earners and fortunate beneficiaries. Also to indicate whether you used a guarantor etc.

2005 property, 95% mortgage with BOI, I was 24, property price, borrowed 4.2 times my income (my income was more than my actual salary due to shift premium which BOI accepted as my salary) at the time.

Recent property, 20% deposit, under 3.5 times income borrowed and demonstrated capacity to pay both mortgages with no rental income.

No fortunate beneficiaries & no guarantor & never lived rent free

jasonb

I bought on my own in 2001. I can't remember my exact wages at the time, but I think the mortgage was about 3.5 times my salary, and I had around 30% of the price saved as a deposit. Got the house for €129,500 in Kildare (that part I do remember 'cos I was so happy they took my 'less than asking price' offer! ). 10.5 years left on the mortgage now...

J.

Jamaican Me Crazy

mcgovern wrote: »

Got one on my own in 2008, but got something like 8 times my basic salary.

Uriel. wrote: »

bought on my own in 2008.
The madness still existed at that time - I applied for and received mortgage approval (subject to giving the bank copies of various documents) in 25 minutes on loud speaker driving home from work... mad.

Yep this ^^^

Bought in 2008 on my own. 100% mortgage, only needed €3k for a booking deposit. Madness really.
If I had waited a few more months I would have gotten a much nicer house for the same money although the mortgage would have been harder to come by.
I was also given a tracker mortgage 'by mistake' although I suspect the broker knew what she was at. I started paying €1200 per month and paying less than half that now so can't complain really.

I also know a few people who bought on their own although not very recently.

Mrs OBumble

Augeo wrote: »

I'm oh so sure that you honestly hope that :pac:

I'm self employed so realistically have no expectation of getting anything off the state until OAP time. I don't even expect that.

If I'm ever sick to the extent that I cannot work for more than a few months how wealthy I am (or deemed to be) will be very low on my list of concerns.

I'm not quite sure why you think I'm being sarcastic.

I'm not.

If you get any illness which stops you from working, but is not so bad that you need permanent hospital care, then how wealthy Welfare deem to you to be will be very important, because means-testing with determine if you are eligible for any benefits at all.

Fair play if you have provided yourself with some serious savings that enable you to live without any income for a long time. But most people haven't, can can get seriously caught if they have property assets but little cash.

NIMAN

Bought on my own in 2001, don't think I'd qualify these days on my own.

John_Rambo

Mrs OBumble wrote: »

I'm not quite sure why you think I'm being sarcastic.

I'm not.

If you get any illness which stops you from working, but is not so bad that you need permanent hospital care, then how wealthy Welfare deem to you to be will be very important, because means-testing with determine if you are eligible for any benefits at all.

Fair play if you have provided yourself with some serious savings that enable you to live without any income for a long time. But most people haven't, can can get seriously caught if they have property assets but little cash.

Self employed people aren't eligible for social welfare.

Jaketherake

johnnyskeleton wrote: »

So basically two incomes means it costs more to have the same quality of life?

Higher prices in 2007 was due primarily to artificially low interest rates. High prices currently is due to artificially low supply.

If we have gone from needing one income sustaining a family to two, then we are running to stand still.

What next, will a couple have to work two jobs each just to afford somewhere to live and that will then become the status quo?

Its all about buying power and competition to buy (and supply of course but to a lesser extent).
Too many double income couples now for the single income to compete against. Only the very good single income can possibly hope to compete with even the average double income buyers.

karenalot

Bought house on my own at 23 in 2006. 8 times my salary with a 6% deposit. Rented out spare rooms to cover mortgage. Somehow managed it, low rate tracker helped a lot.

Bought a second house on my own in 2015 with cash savings.

froog

are they still refusing mortages outright if they find a single bookies record in your bank history? or was that just a rumour?

Earleybird

froog wrote: »

are they still refusing mortages outright if they find a single bookies record in your bank history? or was that just a rumour?

Most of the banks will look unfavourably but if you only have a couple of transactions scattered here and there its not usually something that will hold up an application.

Stojkovic

Yes moving in next week !!!!

twignme

I won €100 in a competition in 1980, I had no savings other than that. As a single woman I got a 95% mortgage at 3.5 times salary and I got the other 5% as a separate bank loan for the tiniest most basic two up, two down terraced house. I paid my solicitors fees by instalments (I didn't tell him I would be doing that until after the deal) and then worked 3 jobs to pay my bills. Since then and on my own, I have bought, renovated and sold four properties at the right time and now live mortgage free, still on my own. Too busy renovating properties to find romance I guess!! In all cases, I had no problem getting the mortgages.
I sometimes think there are folk who aren't prepared to start on the bottom step of the ladder.

Deer

Person I know well on 100K salary received mortgage of 295 for house 395k on their own. They would have gotten more but had funds from previous house sale and savings of 50K. Hope this helps the person looking for figures as an indication.

Mrs OBumble

John_Rambo wrote: »

Self employed people aren't eligible for social welfare.

That is not correct.

Going into details of this is way off topic.

But the short version is that their access is means tested, and that properties they own but do not live in count as "means", and the formula which Welfare use to convert the capital value of the property to a nominal weekly income is not kind towards property owners: you would struggle to get as much in rent as their formula gives.

The same thing applies to PAYE-employed people, when their automatic benefit eligibility (9 months for unemployment, less for sickness) runs out.

This is a risk of property ownership which I think many people don't consider when they are climbing up the property ladder by owning multiple properties. as a number of posters in this thread say they are doing.

James Bond Junior

Deer wrote: »

Person I know well on 100K salary received mortgage of 295 for house 395k on their own. They would have gotten more but had funds from previous house sale and savings of 50K. Hope this helps the person looking for figures as an indication.

This I think is very important. My mortgage was about 75% of what I was allowed get. I looked at how much I was saving for the deposit a month after bills and the rent I paid in my house share and decided that was all I wanted to spend on a mortgage a month. What it means to me is I have a very manageable monthly repayment and I still have a life. I've was able to do sizeable renovations before moving in, the house is now fully furnished, I was able to go on 3 foreign holidays last year and another one booked for a few months time. I'm not in 6 months yet so I've been able to do a lot by not stretching to the max.

selous

Yep, got a tracker in 2008 off Halifax which is now Bank of Scotland Ireland, Had savings too though.
But ass fell out of the estate due to substandard build and seems it isn't planning compliant now (cant sell them)and it's worth less than a 1/4 of what I paid,
(Paint and render covers a multitude till the render falls off after it freezes)
On the Brightside I got a tracker,

Mrs OBumble

Mrs OBumble wrote: »

That is not correct.

Going into details of this is way off topic.

But the short version is that their access is means tested, and that properties they own but do not live in count as "means", and the formula which Welfare use to convert the capital value of the property to a nominal weekly income is not kind towards property owners: you would struggle to get as much in rent as their formula gives.

The same thing applies to PAYE-employed people, when their automatic benefit eligibility (9 months for unemployment, less for sickness) runs out.

This is a risk of property ownership which I think many people don't consider when they are climbing up the property ladder by owning multiple properties. as a number of posters in this thread say they are doing.

You will also pay little or no tax on the rental income from your second property if you are unemployed. So lets say things are very drastic you could rent a room or two in your primary residence tax free and your tax credits could be used towards rental income from second property.

You could actually end up better than someone who is on the dole with no properties especially if one of the properties was mortgage free.