What kind of deposit amount do people have?

jayjay2010

Just wondering what size deposits do people have/ or had in the past when buying a property?

10K? 50K? 100K?

I have kept an eye on property prices for the last 2-3 years and the values are shocking, thankfully I bought a place 2 years ago and my deposit was approx 40k but if I hadn't bought then I definitely wouldn't be able to buy now as prices have jumped by at least 50k in the areas where I was looking.

To give you an idea, in April 2015 I saw a 1 bed in Harolds Cross sale agreed 158k. An apartment in the same block sale agreed last month for €220k -identical apartment.
A 2 bed in Tallaght in April 2015 - 149k, now €225k.

I can imagine that there are people who decided to hold back and save for another year or 2 -those people haven't a chance of buying now.

jayjay2010

...I didn't mean to upload that poll -theres lots of gaps!! Anyone know how I can edit it??

catrionanic

We were first-time buyers in July 2015, and as per rules then we needed an approx 13% deposit, as the house price was more than 220k. Which was just shy of 40k. Although prices have risen, a FTB would still need a similar deposit, in fact probably slightly less than what we paid as a deposit, because they only need 10%.

We saved it ourselves by living as frugally as possible for 3-4 years. There was no family assistance.

myshirt

How long to save a deposit and did you get family assistance is another dynamic that's interesting. Also, did people save or invest, as prices are growing faster, much faster, than you can save or your money can grow.

Assistance from family is an interesting one. A lot of overhang of poor fiscal policy and low CAT rates on familial transfers has seen a gap in social mobility emerge. Stats would show more than 50% or so get assistance from family now. Something that likely needs to be heavily taxed to redress the balance for those who can't get this.

quadrifoglio verde

myshirt wrote: »

How long to save a deposit and did you get family assistance is another dynamic that's interesting. Also, did people save or invest, as prices are growing faster, much faster, than you can save or your money can grow.

Assistance from family is an interesting one. A lot of overhang of poor fiscal policy and low CAT rates on familial transfers has seen a gap in social mobility emerge. Stats would show more than 50% or so get assistance from family now. Something that likely needs to be heavily taxed to redress the balance for those who can't get this.

It is taxed and taxed quite punitively through inheritance tax.

myshirt

quadrifoglio verde wrote: »

It is taxed and taxed quite punitively through inheritance tax.

Thresholds are too high. I am not saying it from a social justice warrior perspective, but from an economic perspective; this younger generation is already paying for the excesses of the previous generation in their tax today, paying the defined benefit pensions for public sector, and paying 50%+ in takehome in rent to this generation. They can't afford to also pay for Mary's deposit.

Where direct government intervention has benefited one generation above another to the extent it did here, and particularly where another generation pays for it and finances it, it is only right that that generation get heavily, heavily taxed on death or gift in order to redress the balance. That's only sensible and fair tax policy. Remember, sensible and fair tax policy that allows and encourages active participation in the economy is what we need, not a perpetuating of the errors and overhang of piss poor fiscal policy.

Tax it, and tax it very, very hard.

In any event, the point is Deposits, how many here have found they needed to be getting assistance via gifts?

VW 1

We had enough for the deposit, but had help on the stamp duty/legal fees from family.

It was only temporary as when we received the rebate from the mortgage company we paid the borrowed cash straight back.

Between rent and creche fees it took 3 years of frugal living to be able to afford a very modest 3 bed house.

myshirt

VW 1 wrote: »

We had enough for the deposit, but had help on the stamp duty/legal fees from family.

It was only temporary as when we received the rebate from the mortgage company we paid the borrowed cash straight back.

Between rent and creche fees it took 3 years of frugal living to be able to afford a very modest 3 bed house.

Inside or outside Dublin?

3 years sounds is an achievement, well done. It is hard graft.

RiseToMe

We bought at the height of the boom, a 2 bed apartment, thankfully it's quite big as we now have baby #1 on the way. Come July it's saving time again and we hope to buy a house in 2020, and should have a deposit of 100k alongside a mortgage of about 300k which will hopefully secure us a decent size home for the three of us. House prices these days are scary!

Zascar

How the hell people on average wages get 50k+ for a house is beyond me. Fair play, you must have had almost no life for years so save that amount. Almost anyone I know who has done it has had help. I bought a tiny apartment with a 10k deposit yeas ago but its still negative equity. But now because I'm not a first time buyer I need 20% - saving 60-80k seems impossible.

Brego888

The inheritance tax issue confuses me. I own my apartment but will be looking to trade up to a house in the next few years. My partners father is planning to give her some money (let's say 20 grand) towards a deposit when we do buy a house.
Does this need to be taxed? Is this gift or inheritance tax and what's the difference? If he transfers it to her savings account who enforces tax payment? Does the bank questions it when reviewing for a mortgage?

RiseToMe

Zascar wrote: »

How the hell people on average wages get 50k+ for a house is beyond me. Fair play, you must have had almost no life for years so save that amount. Almost anyone I know who has done it has had help. I bought a tiny apartment with a 10k deposit yeas ago but its still negative equity. But now because I'm not a first time buyer I need 20% - saving 60-80k seems impossible.

Not too sure if that's aimed at me, however we haven't started saving yet. We'll save that over the next 2.5/3 years. But standard of living will remain the same, 2 cars and a few holidays a year and dinner out once or twice a week.

We haven't decided if we'll sell or keep the current apartment however we should just about break even on it or take a small hit unless prices start rising a bit faster over the next while.

VW 1

myshirt wrote:

Inside or outside Dublin?

Inside Dublin. Although I should mention 1.5 years were somewhat rent free as we both moved home to save for that period.

myshirt

Brego888 wrote: »

The inheritance tax issue confuses me. I own my apartment but will be looking to trade up to a house in the next few years. My partners father is planning to give her some money (let's say 20 grand) towards a deposit when we do buy a house.
Does this need to be taxed? Is this gift or inheritance tax and what's the difference? If he transfers it to her savings account who enforces tax payment? Does the bank questions it when reviewing for a mortgage?

20 grand is fine tax wise, it is father to daughter, there will be no tax on that.

Bank won't question at all, but important to remember to save some yourself and show bank you can manage your finances.

myshirt

VW 1 wrote: »

Inside Dublin. Although I should mention 1.5 years were somewhat rent free as we both moved home to save for that period.

Still. Well done nevertheless. If you hadn't it'd be 5 years saving.

mel.b

I purchased in 2013, so pretty much at the bottom of the market and bought outside Dublin. At the time FHB could get a loan with a 8% deposit which is what i had. My deposit and legal fees were in the region of €14 - 16,000 and was saved in around 12months. I was renting a room at the time, so rent was low, although I was actually the only one in the house, so had to pay for all household expenses myself. During that time I really learnt and thought of wants vs needs. I didn't have any trips away (not even a weekend), didn't buy any treats, new clothes etc, avoiding going into town on Saturdays so I wouldn't spend money and definitely didn't go out on weekends! My smart phone died and I replaced it with a €20 cheapie and would think twice and three times about using the car for anything other than work so I wasn't spending money on petrol. Admittedly I'm on a good salary, however it was 12mths of tough sacrifice and I'm proud that I did it without any help. I bought a house that is a forever house as well, so fingers crossed I won't have to face the property market for many years to come.

myshirt

myshirt wrote: »

Thresholds are too high. I am not saying it from a social justice warrior perspective, but from an economic perspective; this younger generation is already paying for the excesses of the previous generation in their tax today, paying the defined benefit pensions for public sector, and paying 50%+ in takehome in rent to this generation. They can't afford to also pay for Mary's deposit.

Where direct government intervention has benefited one generation above another to the extent it did here, and particularly where another generation pays for it and finances it, it is only right that that generation get heavily, heavily taxed on death or gift in order to redress the balance. That's only sensible and fair tax policy. Remember, sensible and fair tax policy that allows and encourages active participation in the economy is what we need, not a perpetuating of the errors and overhang of piss poor fiscal policy.

Tax it, and tax it very, very hard.

In any event, the point is Deposits, how many here have found they needed to be getting assistance via gifts?

What a load of absoulte and utter horse s*ite! Inheritance tax should be abolished not increased it's a disgusting tax and plenty of countries have got rid of it or reduced it to very low levels.

Why on earth should a family's money go towards helping some randomer rather than their own children, what sort of thieving mentatility is that? Any family should strive to help the next generation of their own family and if they have the money to gift deposiats etc then that is their business and their right to give their children a head start in life. A family's money is a family's money, but the begrudgers like yourself are blind to that.

Fol20

myshirt wrote: »

Thresholds are too high. I am not saying it from a social justice warrior perspective, but from an economic perspective; this younger generation is already paying for the excesses of the previous generation in their tax today, paying the defined benefit pensions for public sector, and paying 50%+ in takehome in rent to this generation. They can't afford to also pay for Mary's deposit.

Where direct government intervention has benefited one generation above another to the extent it did here, and particularly where another generation pays for it and finances it, it is only right that that generation get heavily, heavily taxed on death or gift in order to redress the balance. That's only sensible and fair tax policy. Remember, sensible and fair tax policy that allows and encourages active participation in the economy is what we need, not a perpetuating of the errors and overhang of piss poor fiscal policy.

Tax it, and tax it very, very hard.

In any event, the point is Deposits, how many here have found they needed to be getting assistance via gifts?

Wow oh wow.. i highly doubt many will agree with you here and this is coming from someone who still hopefully has a good few more decades to live.

Basically you want people who works hard all their life, paid tax of 50pc to be heavily taxed when they pass away and give their inherritance to family/friends. Sorry but if one person is smart with their finances, work hard and pay their dues, the last thing im sure anyone wants is to give as much as possible to the taxman instead of hopefully helping out their descendants.. Its not their fault that some people dont plan their future.

davo10

Belle Odd Cookie wrote: »

What a load of absoulte and utter horse s*ite! Inheritance tax should be abolished not increased it's a disgusting tax and plenty of countries have got rid of it or reduced it to very low levels.

Why on earth should a family's money go towards helping some randomer rather than their own children, what sort of theveing mentatility is that? Any family should strive to help the next generation of their own family and if they have the money to gift deposiats etc then that is their business and their right to give their children a head start in life. A family's money is a family's money, but the begrudgers like yourself are blind to that.

Have to agree with this, previous poster must have a serious odour.

The reason inheritance tax is so unfair is that tax has already been paid on the earnings. It's money earned, taxed, then inherited and taxed again.

IronSteve

Zascar wrote: »

How the hell people on average wages get 50k+ for a house is beyond me. Fair play, you must have had almost no life for years so save that amount. Almost anyone I know who has done it has had help. I bought a tiny apartment with a 10k deposit yeas ago but its still negative equity. But now because I'm not a first time buyer I need 20% - saving 60-80k seems impossible.

Saving 2 grand a month is doable for a lot of couples, but very difficult if you're paying current Dublin rents obviously. Moving in with parents, or moving outside the pale for 2 years and saving every penny, it can be done.

eringobragh

davo10 wrote: »

Have to agree with this, previous poster must have a serious odour.

The reason inheritance tax is so unfair is that tax has already been paid on the earnings. It's money earned, taxed, then inherited and taxed again.

only someone due to potentially inherit feck all would champion a cause like that

athtrasna

Mod note

Please stick to the topic and take inheritance tax discussion to the taxation forum.

desertcircus

quadrifoglio verde wrote: »

It is taxed and taxed quite punitively through inheritance tax.

On the specific case mentioned of parents giving gifts to assist with deposits: I'd take a guess and say that I doubt a single person paid a penny in inheritance tax in 2016 on foot of a gift from a parent to assist with a first house purchase. The tax free threshold for a gift from a parent is 310,000 per child; unless someone is buying their first house for over three million euro, without a penny in their own savings, then they're not being taxed on it.

Source: http://www.revenue.ie/en/tax/cat/thresholds.html

helimachoptor

Zascar wrote: »

How the hell people on average wages get 50k+ for a house is beyond me. Fair play, you must have had almost no life for years so save that amount. Almost anyone I know who has done it has had help. I bought a tiny apartment with a 10k deposit yeas ago but its still negative equity. But now because I'm not a first time buyer I need 20% - saving 60-80k seems impossible.

How people do it with kids especially is mind boggling!

We bought a 100% mortgaged place in tallaght in 2007, realised then it was a mistake so we're lucky that we have it rented long term to the LA. We pay our tax but basically it looks after itself (for the most part)

We started saving then, both pretty lucky that even through the recession our jobs paid well so we saved a lot, yeah sometimes it was **** but we had some great trips away during those years. We bought our now home 2 years ago, with a 6 figure deposit and a 6 figure renovation bill.

Conversely my younger brother at the same age earns more than i did at his age.. he doesnt have 20 quid left at the end of the month, 1 because of his child (his wife has a pretty good job too) and two they have no spending discipline. So they are living with her relatives.. when in reality they should have bought a house a couple of years ago

RiseToMe

helimachoptor wrote: »

How people do it with kids especially is mind boggling!

We bought a 100% mortgaged place in tallaght in 2007, realised then it was a mistake so we're lucky that we have it rented long term to the LA. We pay our tax but basically it looks after itself (for the most part)

We started saving then, both pretty lucky that even through the recession our jobs paid well so we saved a lot, yeah sometimes it was **** but we had some great trips away during those years. We bought our now home 2 years ago, with a 6 figure deposit and a 6 figure renovation bill.

Conversely my younger brother at the same age earns more than i did at his age.. he doesnt have 20 quid left at the end of the month, 1 because of his child (his wife has a pretty good job too) and two they have no spending discipline. So they are living with her relatives.. when in reality they should have bought a house a couple of years ago

I think it depends on your salaries and your budgeting ability. We'll be saving 3k a month with a baby, two cars, two holidays and a few weekends away as well as dinners out etc. We'll see no change to our lifestyle as such as at the moment the 3k we'll be saving is currently mass paying off of cars, loan, mortgage.

py

helimachoptor wrote: »

How people do it with kids especially is mind boggling!

We bought a 100% mortgaged place in tallaght in 2007, realised then it was a mistake so we're lucky that we have it rented long term to the LA. We pay our tax but basically it looks after itself (for the most part)

We started saving then, both pretty lucky that even through the recession our jobs paid well so we saved a lot, yeah sometimes it was **** but we had some great trips away during those years. We bought our now home 2 years ago, with a 6 figure deposit and a 6 figure renovation bill.

Similar enough to ourselves. Originally bought a couple of years earlier then yourself on a tracker. Tracker plus 2 good jobs allowed us to save well to get us to 6 figure deposit, even with a little one added to the family in the last few years. Since finalising the forever home, both sides of the family have offered us some money (low 4 figures) but would prefer them to keep it as they're at the other end of their lives and should use it to enjoy themselves. Any time either one of us received a raise, ~80% of it (after the tax man gets his pound of flesh) was added to the monthly savings total.

jamesthepeach

I asked. My father in law about when he bought his house. They were saving for about six years before the building society would lend then the money to buy. This was in the 80s.
I think it's much easier now.
He also said that nowadays everyone wants to start off with the 3 bed house with garden these days. In his day you struggled both before and after you bought whatever you could afford and then hoped to trade up later.

MHickman

About 50k saved as a single person over about 5 years and my OH has a similar amount. I used to live (and rent) down the country so on a gross salary of around 40k managed to save around 1k per month - since moving to Dublin a couple of years ago with rents here as they are I barely manage half that now. No particular help from family other than giving me a leg up with a car deposit a couple of years ago so I wouldn't have to dip into my savings.

Lu Tze

Zascar wrote: »

How the hell people on average wages get 50k+ for a house is beyond me. Fair play, you must have had almost no life for years so save that amount. Almost anyone I know who has done it has had help. I bought a tiny apartment with a 10k deposit yeas ago but its still negative equity. But now because I'm not a first time buyer I need 20% - saving 60-80k seems impossible.

I went to work abroad for a year, saved approximately 25K in that year alone as the pay rates were more than double what I was on at home (and income tax was less). I would imagine a lot of people have come back after several years abroad with deposits ready to go.

mirrorwall14

20-40 range. Legal fees bumping us nearer to the top of that category. All our own savings in the Dublin commuter belt (while paying rent jointly and childcare) but we do have good jobs luckily. It took a while. We did get help from family with a car needed at just the wrong time. There was a car swap deal and we paid them the balance back after we got the house

Sleepy

We only had about 5 months to get our deposit together (our landlord passed away and the kids liquidated his property portfolio) so I borrowed the majority of it from my parents. Managed to save about 10k in the 8 months before we actually bought the house which covered the legal and some of the renovations.