Average monthly mortgage repayments

Interested Observer · 22-03-2018 1:13pm

Beanybabog wrote: »

Ours is around 18% of take home pay, it was originally more though. Bought in Dublin in 2016 and between paying a lump off, regular over payments, switching to a new bank and then fixing we knocked 550euro a month off! A house beside us went up for rent at €1000 per month more than our mortgage. With a toddler and a baby on the way and myself only part time I thank my lucky stars we bought then. At the time I thought it was a poor time to buy but I was pregnant and now I'm so glad, I can't imagine renting in this market- a dingy two bed flat over a shop near me is asking more per month than my mortgage on my house.

Wow, that's good going. An extra €550 a month is a massive difference, well done.

Dread Pirate Roberts · 22-03-2018 1:41pm

Avatar MIA wrote: »

Half of take home pay on a €60k salary? Where were you living?!?

Malahide

Dread Pirate Roberts · 22-03-2018 1:53pm

Captain Flaps wrote: »

I'm sorry, but that's b*llocks. If the house we're bidding on comes good we'll be paying about 28% of our mortgage, living in a 3bed in a nice part of Rathfarnham and our salaries are decent but not quite hitting 6 figure territory. If you're pulling that and you think there's nothing worth buying then I think you're just being picky.

I think there is nuance to what i said that is being missed or uncharitably interpreted. "With a chunk of overtime i make 6 figures". I don't make it all the time and i have only started to earn to those levels just now.

i make 80,000 guaranteed which is all i can plumb into the calculator. This gives me an available mortgage of 270,000 as I am single.

For example its 377,000 for the place i used to rent, so it would take me an eternity while I rent AND save up the other 107,000 to buy it even if i eat just rice and water.

Dread Pirate Roberts · 22-03-2018 1:55pm

Captain Flaps wrote: »

I'm sorry, but that's b*llocks. If the house we're bidding on comes good we'll be paying about 28% of our mortgage, living in a 3bed in a nice part of Rathfarnham and our salaries are decent but not quite hitting 6 figure territory. If you're pulling that and you think there's nothing worth buying then I think you're just being picky.

Both your salaries almost hit 6 figures or combined they almost hit 6 figures?

Caliden · 22-03-2018 1:58pm

Captain Flaps wrote: »

I'm sorry, but that's b*llocks. If the house we're bidding on comes good we'll be paying about 28% of our mortgage, living in a 3bed in a nice part of Rathfarnham and our salaries are decent but not quite hitting 6 figure territory. If you're pulling that and you think there's nothing worth buying then I think you're just being picky.

2 people earning 50k each will have 11k more disposable income that 1 person earning 100k.

The other poster would have to earn ~122k gross salary to be equal.

Avatar MIA · 22-03-2018 2:13pm

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Tar.Aldarion · 22-03-2018 2:13pm

Dread Pirate Roberts wrote: »

Yes I lived alone . Rent was almost half my take home pay. Then I had all the bills to pay alone ,car, health insurance etc.

I didn't have any family nearby to live with. Im sharing now, and while I am saving more I am deeply unhappy. It really gets to me.

For some people (like me) it's just not worth being miserable and sharing, would rather it take a decade longer to save the money while being happy living alone than go through years of crap. Suppose it depends on how much people want to get a house fast, I am in no hurry to buy, if ever. Can life quite a good life on salary renting and saving into pension + regular savings.

Dread Pirate Roberts · 22-03-2018 2:22pm

Tar.Aldarion wrote: »

For some people (like me) it's just not worth being miserable and sharing, would rather it take a decade longer to save the money while being happy living alone than go through years of crap. Suppose it depends on how much people want to get a house fast, I am in no hurry to buy, if ever. Can life quite a good life on salary renting and saving into pension + regular savings.

I am surprised by the atmosphere to be honest. There seems to be this penance you have to go through in order to "deserve" a house.
If you admitted you had the odd pint or bought some Adidas they would be telling you that you didn't work or save hard enough.
Another poster even suggested "you are too picky" without even knowing my preferred criteria.
Of course one should be picky - its the biggest purchase i'll ever make! And i'll have to live in it for a long time and pay it off probably until I retire at 67.
Just because one in my price range is in Cavan doesn't mean i should commute from up there.

All I am saying is as a society we are all fighting among ourselves.
I understand that there should be prudence and due process before giving a mortgage but these prices are making me wonder if the juice is worth the squeeze.

22-03-2018 2:34pm

The % of takehome isn't a great gauge IMO.

Someone taking home €4k month with 25% of that going on their mortgage has €3k left to live, save, pay bills, run a car etc. Loads really.

Someone taking home €2.5k / month with 25% of that going on their mortgage only has €1875 to manage on.

mloc123 · 22-03-2018 2:41pm

Augeo wrote: »

The % of takehome isn't a great gauge IMO.

Someone taking home €4k month with 25% of that going on their mortgage has €3k left to live, save, pay bills, run a car etc. Loads really.

Someone taking home €2.5k / month with 25% of that going on their mortgage only has €1875 to manage on.

That is true and I think now banks use salary bands to determine what an affordable level is for monthly repayments. IIRC it ranges up to about 40% for applicants on 120k+

But that 40% is not from your net take home... it is 'net - creche fees - cost per child - loan repayments etc..'

So maybe that is a better way to look at it, what % of your monthly net after fixed outgoings are removed.

suilegorma · 22-03-2018 2:55pm

Just did this excercise. Bought in 2013 and currently could have payments of 17% of combined take home. We overpay by 70%. Just did a switch to get a 2.75% variable. Ltv is now 38%. What's more scary is childcare is 23%!!! Have switched twice from our original bank and would highly recommend it.

22-03-2018 3:08pm

Dread Pirate Roberts wrote: »

I am surprised by the atmosphere to be honest. There seems to be this penance you have to go through in order to "deserve" a house.
If you admitted you had the odd pint or bought some Adidas they would be telling you that you didn't work or save hard enough.
Another poster even suggested "you are too picky" without even knowing my preferred criteria.
.

I dont think anyone is saying you can't have the odd pint but unless you are on a massive salary then living alone and saving at any sort of reasonable rate just isnt going to happen. The vast majority of people who buy a house have to make some sacrafices and a major one is not renting alone. I am not a frugal person, I spend money on cars, regular nights out, gadgets etc but I never even considered paying rent to live alone as its just a waste of money when you have an aim of buying. If you plan to rent all your live then its not as big a deal but if you want to buy a house then I dont see why you think sacrafices should not be made and as I said the most monetary rewarding sacrafice is to houseshare (or even better again if possible live at home).

Housesharing might be painful but its more than balanced out when you watch your savings account growing every month because if it.

....... · 22-03-2018 3:15pm

This post has been deleted.

22-03-2018 3:32pm

....... wrote: »

This post has been deleted.

Don't get me wrong I really didnt like it at all but the fact is that it started out as being a necessity as I was a postgrad student and could just about afford to rent a room. Then I got a job and proper salary and suddenly that room rent was small compared to my income and I was finding I was able to save a fair amount so I said I'd tollerate it for a few years.

In fairness I was lucky in that the house I was living in while working was with 2 other people and neither spent anytime in the house (one of them didnt even sleep there most nights) so it was sort of half my own place in ways, always having the living room in the evening etc. If it had been like the previous houseshares Id been in with people around all the time I may not have stuck it out for as long.

Beanybabog · 22-03-2018 3:33pm

Interested Observer wrote: »

Wow, that's good going. An extra €550 a month is a massive difference, well done.

Thanks, the mortgage has gone from terrifying to simply disturbing

. Thankfully we didn't get stung in the recession but it plays on our mind a lot... while things are going well for us financially we are committed to just overpaying as much as we can while keeping the mortgage term as long as possible to knock the repayments down in case the country goes to s**te again

Irishcrx · 22-03-2018 4:51pm

Mine is 16% of my income , single income . I bought in 2008 but got a very good price and fixed the house up myself over the years , delighted I did it that way it's worked out well..

3 Bed Semi D in Dublin..

Michael D Not Higgins · 22-03-2018 5:03pm

I'm in the process of buying and it will be about 20% of our net income.

2 bed new build apartment in Edinburgh.

Tar.Aldarion · 22-03-2018 5:21pm

Is there some calculator for various priced houses andtypical interest rates to see what repayments would be?

AndyBoBandy · 22-03-2018 5:32pm

Tar.Aldarion wrote: »

Is there some calculator for various priced houses andtypical interest rates to see what repayments would be?

About 5 pages back there is a link to such a calculator

Michael D Not Higgins · 22-03-2018 5:53pm

Tar.Aldarion wrote: »

Is there some calculator for various priced houses andtypical interest rates to see what repayments would be?

https://www.bonkers.ie/compare-mortgages/

Captain Flaps · 22-03-2018 6:32pm

Dread Pirate Roberts wrote: »

Both your salaries almost hit 6 figures or combined they almost hit 6 figures?

Combined we're roughly where you are alone.

aloooof · 22-03-2018 6:36pm

Captain Flaps wrote: »

Combined we're roughly where you are alone.

As explained in this post, you may be far better off.

Caliden wrote: »

2 people earning 50k each will have 11k more disposable income that 1 person earning 100k.

The other poster would have to earn ~122k gross salary to be equal.

Interested Observer · 22-03-2018 6:50pm

Tar.Aldarion wrote: »

Is there some calculator for various priced houses andtypical interest rates to see what repayments would be?

Posted earlier in the thread.

https://www.drcalculator.com/mortgage/ie/

Augeo wrote: »

The % of takehome isn't a great gauge IMO.

Someone taking home €4k month with 25% of that going on their mortgage has €3k left to live, save, pay bills, run a car etc. Loads really.

Someone taking home €2.5k / month with 25% of that going on their mortgage only has €1875 to manage on.

This is true but I'm guessing more salaries would be closer to €2.5k per month tan €4k per month. Just spitting out a figure isn't massively useful either imo because the same applies, a high earner can pay a lot more than a low earner.

TheAnalyst_ · 22-03-2018 7:40pm

Squall Leonhart wrote: »

You take home 12K a month!!?

Our mortgage payment is 15% of combined take home, purchased in Limerick City summer 2017.

Yeah had the good sense to move a few countries over in 2015.
11ish...

Mortgages are also a lot cheaper when you don't have to pay for your defaulting neighbours in their forever homes.

Dread Pirate Roberts · 22-03-2018 10:11pm

Captain Flaps wrote: »

Combined we're roughly where you are alone.

Ah I figured. I cant compete with that. You take home more.

Its tough on your todd.

Dread Pirate Roberts · 22-03-2018 10:11pm

TheAnalyst_ wrote: »

Yeah had the good sense to move a few countries over in 2015.
11ish...

Mortgages are also a lot cheaper when you don't have to pay for your defaulting neighbours in their forever homes.

Fair play chief.

lmimmfn · 22-03-2018 11:45pm

Beanybabog wrote: »

while things are going well for us financially we are committed to just overpaying as much as we can while keeping the mortgage term as long as possible to knock the repayments down in case the country goes to s**te again

This is why were paying off our mortgage early. The economy will go to s**the soon enough and the stress of just buying a gaff, having a kid, spending a fortune per month on medical expenses( even having medical insurance most not covered ), I never ever want to be back there

We saved around 28k in interest so far by overpaying.

viper5 · 23-03-2018 12:52am

lmimmfn wrote: »

This is why were paying off our mortgage early. The economy will go to s**the soon enough and the stress of just buying a gaff, having a kid, spending a fortune per month on medical expenses( even having medical insurance most not covered ), I never ever want to be back there

We saved around 28k in interest so far by overpaying.

Why is the economy going to go to sh*t? Some posters like yourself tend to throw statements like this out there but frankly none of us know how it going to play out.

The housing issue, rents , Brexit and Trump etc are of course all big unknowns that can impact the country but at the moment alot of people are all doing ok (if not pretty well) and even should a recession hit doesn't mean everyone is suddenly broke and losing their house. Dont get these "the economy will go to s&it" statements at all

lmimmfn · 23-03-2018 3:49am

viper5 wrote: »

Why is the economy going to go to sh*t? Some posters like yourself tend to throw statements like this out there but frankly none of us know how it going to play out.

The housing issue, rents , Brexit and Trump etc are of course all big unknowns that can impact the country but at the moment alot of people are all doing ok (if not pretty well) and even should a recession hit doesn't mean everyone is suddenly broke and losing their house. Dont get these "the economy will go to s&it" statements at all

Ireland has been in a boom/bust cycle since the 80s. When recessions hit its not just individuals that are hit, local shops close, things are harder to get etc.
Its just the way it is and the next bust will come, especially with Ireland's over reliance on income tax vs not taxing companies and over reliance on FDI. Its not a sustainable economy, previously it was based on housing. Ireland is always a 1 trick pony, it will crash in the next few years.

23-03-2018 10:50am

lmimmfn wrote: »

............... over reliance on FDI. Its not a sustainable economy, previously it was based on housing. Ireland is always a 1 trick pony, it will crash in the next few years.

The FDI was strong during the recession here.
In Dublin there are 3 or 4 huge bio pharma capital investment projects. No sign of FDI reducing in the next few + years, a few is three btw.

Whenever the next crash comes it won't be because of anything FDI related IMO. Most multi national operations here are making good money and are ever expanding be it med devices, pharma or the googles of this world. Air B&B plan to double their Irish workforce.

Randomly selecting FDI as a comparison the the housing bubble of 2007/2008 is a feeble enough stab at guesseconomics.

The next housing building boom hasn't even started really despite the demand.

Average monthly mortgage repayments

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