How old were you when you bought your first house

Mycroft H

This is a bit depressing. I'm 25, blowing the savings on getting education for the dream job. I've not even thought about a house....

MarkAnthony

I bought my first place when I was in college. Now to be fair this was in Scotland and I had the benefit of a 100% mortgage and a guarantor in my parents. It was cheaper than renting somewhere and prices were sensible.

Friends saved and bought later in more expensive towns and cities.

Whether it's to buy a house or simply being prudent it's wise to save a bit each month although you still need to live life.

Jen44

I got a 100% mortgage too at 22

SarahMollie

Jen44 wrote: »

I got a 100% mortgage too at 22

Jesus wept :eek:

Hope it worked out for you all the same! I'm glad people are a bit older these days however, as I'm not sure I would have made a good long term choice at 22, and because I didnt buy until my late 20's, I'd already rented in different parts of the city by then, so I probably bought somewhere that wouldnt have occurred to me at 22.

Jen44

yea it worked out for us I suppose. I have had to become a reluctant landlord with it but luckily just for a year planning on selling the first house now to do up our second. I was always about too sensible for my age!

Hollister11

OP here, just spent half my savings on a trip to France for the Euros.

Michael D Not Higgins

Hollister11 wrote: »

OP here, just spent half my savings on a trip to France for the Euros.

Plenty of time to save for a house, enjoy your trip!

keavebm253

22

al_E_kat

27


All going to plan we get the keys in 3 weeks!

Chronicler

28.

Spent a couple of years travelling in my earlier 20's after graduating Uni.

Was able to save the 10% deposit in a year.

I was lucky though, bought in 2001 just before things went completely nuts price-wise and I'd already met my partner - so there was two of us to split the costs.

I think a lot of it comes down to timing, if we'd waited even another 9 months, prices in the location we'd wanted would have spiralled outside of our range.

We sold in 2009 before things went pear-shaped and rented for a year while we built the place we have now. Through mostly blind-luck, we've ended up mortgage-free in the house of our dreams in our early-40's.

I know a lot of my friends and colleagues that are the complete opposite, stuck in a tiny place not suitable for the kids they now have and not a chance of getting another mortgage because their in negative equity .

pwurple

Mycroft H wrote: »

This is a bit depressing. I'm 25, blowing the savings on getting education for the dream job. I've not even thought about a house....

People go into education a bit later these days so I wouldn't worry about it. I did the leaving at 17, undergrad at 21. I know people these days doing the leaving at 19, maybe repeating at 20, starting into college at 21, bachelor of something or other by 25.

Eric Cartman

What ive taken from this thread so far (now people can correct me if im wrong here)

People who bought before 25 were either :

Buying in punts in the old days when a single income could afford a mortgage

Or

Buying during the cusp / the middle of the boom , when banks were handing out 90-100+% mortgages with very little care in the world .

It would seem that in a post recession era, the avenues available for somebody under 25 , and even a lot of those under 30 to get a mortgage that people have discussed here are now all pretty much dried up.

Lux23

If I have a house by 40, I will consider myself lucky, I am 34 now.

jester77

I was 35 when I purchased my first and only house. I don't get this nonsense of 'starter' homes. I was too busy in my 20's and early 30's enjoying life, moving countries, jobs and travelling to give any thought to it.

When I finally landed in a city that was perfect for me I decided to purchase a place to raise the kids. Worked out cheaper than rent plus I fixed the mortgage for 20 years, so no worrying about rent or interest rates going up. Will sell again and rent in 20 years after the kids have moved out.

eviltwin

Eric Cartman wrote: »

What ive taken from this thread so far (now people can correct me if im wrong here)

People who bought before 25 were either :

Buying in punts in the old days when a single income could afford a mortgage

Or

Buying during the cusp / the middle of the boom , when banks were handing out 90-100+% mortgages with very little care in the world .

It would seem that in a post recession era, the avenues available for somebody under 25 , and even a lot of those under 30 to get a mortgage that people have discussed here are now all pretty much dried up.

I bought my house in euros during the boom at 24. Paid 143k for it in Dublin. I bought a small ex council house, I felt the bank were pushing me for something bigger and more expensive but the house I bought suited my needs. I had a 15% deposit. I left college at 22 and didn't spend any of my wages on holidays, nights out etc for two years. It was difficult enough but well worth it.

jester77

jester77 wrote: »

I don't get this nonsense of 'starter' homes. I was too busy in my 20's and early 30's enjoying life, moving countries, jobs and travelling to give any thought to it.

Like a lot of people I have zero interest in moving countries or moving around (aside from moving back to my home area when the opportunity arises which will be a few years) I also don't want to pay rent as I see it as a total waste. So buying a home to live in for a few years isn't nonsense at all. It can then be sold on or rented when I'm ready (i.e. have the funds) to move up to a bigger more long term home be it bought or a self build. If I was in a position to buy at 25 I would have in an instant but hopefully I'll own a place before turning 32 (which is next year).

Also if prices rise you have the big advantage of selling the place you live for profit thus you don't have to worry as much about rising prices as your next house might be getting more expensive but the sale price of the place you own is also going up.

jlm29

Everleigh Echoing Mermaid wrote: »

Like a lot of people I have zero interest in moving countries or moving around (aside from moving back to my home area when the opportunity arises which will be a few years) I also don't want to pay rent as I see it as a total waste. So buying a home to live in for a few years isn't nonsense at all. It can then be sold on or rented when I'm ready (i.e. have the funds) to move up to a bigger more long term home be it bought or a self build. If I was in a position to buy at 25 I would have in an instant but hopefully I'll own a place before turning 32 (which is next year).

Also if prices rise you have the big advantage of selling the place you live for profit thus you don't have to worry as much about rising prices as your next house might be getting more expensive but the sale price of the place you own is also going up.

The idea of buying a starter home to avoid "wasting" money on rent is only a good one if people are actually paying money off the principle of their mortgage though. I've soooo many friends who have 30 yr mortgages, that if they sold after 5 years, they wouldn't have paid much more than interest. There's not much difference between wasting money on rent, and wasting money on interest/solicitors fees/stamp duty etc etc.

jlm29

jlm29 wrote: »

The idea of buying a starter home to avoid "wasting" money on rent is only a good one if people are actually paying money off the principle of their mortgage though. I've soooo many friends who have 30 yr mortgages, that if they sold after 5 years, they wouldn't have paid much more than interest. There's not much difference between wasting money on rent, and wasting money on interest/solicitors fees/stamp duty etc etc.

You also have to remember rent far exceeds the mortgage payment on an equivalent property.

One place I would be interested in would have a mortgage repayment around 600 euro on a 30 year mortgage. The last place that was rented in the complex a few weeks ago went for 1350 per month. That's an astronomical difference. You could over pay by 400 a month knocking chunks off the capital and still be paying far less per month than the rent. Or you could just pay the 600 per month for a few years and live in a place that's yours and save loads of money compared to renting.

Even taking a few k for solicitors, stamp duty etc the monthly repayment difference would balance that in about 6 months.

jlm29

Everleigh Echoing Mermaid wrote: »

You also have to remember rent far exceeds the mortgage payment on an equivalent property.

One place I would be interested in would have a mortgage repayment around 600 euro on a 30 year mortgage. The last place that was rented in the complex a few weeks ago went for 1350 per month. That's an astronomical difference. You could over pay by 400 a month knocking chunks off the capital and still be paying far less per month than the rent. Or you could just pay the 600 per month for a few years and live in a place that's yours and save loads of money compared to renting.

Even taking a few k for solicitors, stamp duty etc the monthly repayment difference would balance that in about 6 months.

I suppose it depends on where in the country you are too! I know people who've bought 70k houses and put them over 30 years. It just doesn't make sense! Rent might be higher than the repayments, but down here, they're not at Dublin levels.

jlm29

jlm29 wrote: »

I suppose it depends on where in the country you are too! I know people who've bought 70k houses and put them over 30 years. It just doesn't make sense! Rent might be higher than the repayments, but down here, they're not at Dublin levels.

I'm not in Dublin either (thankfully) but the above would be typical of Cork city and Galway city for instance where rents are gone wild also, particularly in cork where rents have rocketed in the last few months even.

4ensic15

Everleigh Echoing Mermaid wrote: »

You also have to remember rent far exceeds the mortgage payment on an equivalent property.

One place I would be interested in would have a mortgage repayment around 600 euro on a 30 year mortgage. The last place that was rented in the complex a few weeks ago went for 1350 per month. That's an astronomical difference. You could over pay by 400 a month knocking chunks off the capital and still be paying far less per month than the rent. Or you could just pay the 600 per month for a few years and live in a place that's yours and save loads of money compared to renting.

Even taking a few k for solicitors, stamp duty etc the monthly repayment difference would balance that in about 6 months.

The property market is cyclical. Rents rise and fall every few years. Interest rates rise and fall also. Today's no-brainer can become tomorrows disaster and todays lunacy can become tomorrows stroke of genius.
People told me I was mad and paying over the odds when I was buying my first house at 26. Within a year it had increased in value by over 50%.
In addition to paying interest, insurance and maintenance and possibly service charges have to be paid. Furniture and appliances have to be bought and maintained so taking a crude comparison between rent and repayment is unwise.
Not buying at all at some stage is not a good idea. Timing is vital.

pwurple

Eric Cartman wrote: »

What ive taken from this thread so far (now people can correct me if im wrong here)

People who bought before 25 were either :

Buying in punts in the old days when a single income could afford a mortgage

Or

Buying during the cusp / the middle of the boom , when banks were handing out 90-100+% mortgages with very little care in the world .

It would seem that in a post recession era, the avenues available for somebody under 25 , and even a lot of those under 30 to get a mortgage that people have discussed here are now all pretty much dried up.

Nope, that's completely head in the sand stuff. My youngest brother bought a house 2 years ago, under 25. Post recession. He saved his arse off and had a big deposit.

My other brother moans and groans like you about how it's impossible, even though he earns more money than the younger fella. The only difference between them is lifestyle. One spends every penny he has on going out, travel, nice wine etc before the next payslip arrives, the other funnelled it straight into savings accounts so he never had it in his hand to spend.

Benevolent Misanthrope

pwurple wrote: »

Nope, that's completely head in the sand stuff. My youngest brother bought a house 2 years ago, under 25.

2 years ago was the nadir of the market, to be fair.

4ensic15

4ensic15 wrote: »

In addition to paying interest, insurance and maintenance and possibly service charges have to be paid. Furniture and appliances have to be bought and maintained so taking a crude comparison between rent and repayment is unwise.
.

Put it this way over 3 years the difference between rent and mortgage would be 27k in this comparison and considering apartments are usually partially or fully furnished all you really need to account for is the small possibility of an appliance breaking and management fees. Neither which will come anywhere near 27k. If you sell you also get back a good deal of the money paid in the mortgage which further widens the gap especially if the sale price is gone up.

The issue for me is by the time I get my approval (if I get it) this place will be long sold.

Benevolent Misanthrope

Everleigh Echoing Mermaid wrote: »

Put it this way over 3 years the difference between rent and mortgage would be 27k in this comparison and considering apartments are usually partially or fully furnished all you really need to account for is the small possibility of an appliance breaking and management fees. Neither which will come anywhere near 27k. If you sell you also get back a good deal of the money paid in the mortgage which further widens the gap especially if the sale price is gone up.

We were all told that rent was 'dead money' and other braindead nonsense the last time prices were rising, if I recall correctly.

Benevolent Misanthrope

Benevolent Misanthrope wrote: »

We were all told that rent was 'dead money' and other braindead nonsense the last time prices were rising, if I recall correctly.

I fully believe rent is dead money, I've always had and always will have that opinion of it. Hence I'm living in a very medocire house share despite working full time and being in my early 30's as I refuse to pay the price of rent to live alone despite being well able to afford it. Buying is top priority for me at the moment.

Benevolent Misanthrope

Everleigh Echoing Mermaid wrote: »

I fully believe rent is dead money, I've always had and always will have that opinion of it. Hence I'm living in a very medocire house share despite working full time and being in my early 30's as I refuse to pay the price of rent to live alone despite being well able to afford it. Buying is top priority for me at the moment.

I rented from about 24 to today (nearly 40). With the missus, I've 400k in savings, and have lived well in several different countries. I'll buy at some point, but I'll miss the flexibility of renting when I do.

Benevolent Misanthrope

Benevolent Misanthrope wrote: »

I rented from about 24 to today (nearly 40). With the missus, I've 400k in savings, and have lived well in several different countries. I'll buy at some point, but I'll miss the flexibility of renting when I do.

I've no interest in flexibility and moving around, I'll spend a few more years in area I am now and then live back to my home area to stay for good. So ideally buy now for a few years, then sell or rent it and buy/build the place I'll stay for good.

Also the thing is it's far easier now to save for your next house with a mortgage than if renting with the astronomical level rents are at.

OU812

Benevolent Misanthrope wrote: »

I rented from about 24 to today (nearly 40). With the missus, I've 400k in savings, and have lived well in several different countries. I'll buy at some point, but I'll miss the flexibility of renting when I do.

You mind me asking, without going into specifics, what you work at that you've managed to xmas savings of €400k at such a young age? I'm constantly amazed when I see how people have managed sums like this.

Benevolent Misanthrope

OU812 wrote: »

You mind me asking, without going into specifics, what you work at that you've managed to xmas savings of €400k at such a young age? I'm constantly amazed when I see how people have managed sums like this.

If you save 1k per month for a decade each, that's 240k. Our jobs have been pretty normal - me in ICT and she's a public sector worker. Most I ever earned was about 55k per year, although she's earning a bit more than that.

If you have 6k per month coming in between two, you can spend 1.5k on your rent, and 2.5k on everything else, and still save your 2k per month. Some can get by on a lot less spending than that too, and of course you can save on rent by house-sharing (have done that) living at home for a while (did that) etc. etc.

Obviously if you have a couple earning 3k between them, you'll be doing well to save 1k per month.

Of course I'm more of a saver than a 'blow it all on stuff' person, but there you go.