Can't afford to buy or rent and no assistance available!

Evd-Burner

Hi All,
I’m stuck in a catch 22 here, I have about a year to find my own place to live but I can’t afford to buy and I can’t afford to rent. What can I do?

I’m currently living in my parents house and paying them a relatively low amount of rent. This has worked well over the last 3 and a half years since moving back in but the original agreement when I moved back home was that I had until I turned 30 (a little more than a year from now) to stay in the house, I think they are considering either moving abroad or downsizing, or perhaps they just want their own space back after raising 4 kids. I have been using the time to save as much as I possibly can towards buying a house.
I am a single Father to a boy and a girl where overnight access usually takes place at the weekends in my parents house. I’m from north Co. Dublin and I work for a large multinational along the M50 on the southside. Due to where my employer is located and by the fact that I have 2 children I am very limited in my options, I need somewhere that:
• Has a minimum of 2 bedrooms
• Is within reasonable commutting distance from work (currently 2 hour round trip)
• Is within reasonable commutting distance from my kids in north Co. Dublin
• Is affordable
• Sharing is not possible with the kids

Wherever possible I have reduced my expenses by being frugal, for example I need a car and I am forced to cross the M50 toll twice a day, to reduce the cost of commuting from €550 down to €350 I purchased a second hand electric car.

The first thing I did was contact a few banks and because I have dependants none of them will give me the full 3.5 times my salary as a mortgage, the most I can get is €130k. Add to that what I will have as a deposit and considering other costs associated with buying a house I can only afford to buy for €150k in a years time. There are properties in Balbriggan which are advertised for in and around €150k but they are further out than I would like and add to my commute to both the kids and work, but even those house are borderline affordable and I reckon they will likely sell for more than the advertised price which will put me over budget. I also looked into that council mortgage scheme but unfortunately I don’t qualify.

I then looked into renting and worked out the costs associated with my normal monthly costs vs what it will costs to rent. I did a lot of searching, I went to a few viewings and spoke to estate agents etc. Although there is a limited number of properties advertised for less than €1600 in north Co. Dublin it seems that the interest in these properties is so astronomical that it is basically impossible to succeed in securing one.

Normal Monthly Costs:
€710 = Child Maintenance & Related Expenses
€350 = Car Loan/Tax/Tolls/Upkeep/Fuel:
€300 = Food etc
€215 = Clothes, health, gym, birthdays etc
Total = €1575

Estimated Rental Monthly Costs:
€1600 = Rent
€75 = Electricity
€65 = Gas
€30 = Bins
€45 = Internet
€13 = TV Licence
Total = €1828

Based on the above combined costs of €3403 is way over my budget, even if I was to cut down on spending elsewhere I still wouldn’t be able to cover the bare essentials. I then looked at going down the HAP route which at first looked promising. To qualify I just have to qualify for social housing, so I contacted Fingal County Council but I was instantly told that I do not qualify to be put on the list as I am over the income limits based on my circumstances.

I looked at going further out where the rents are cheaper but the daily commute would be well over 3 maybe even 4 hours a day and although the rent is about €500 cheaper I would also be adding about €110 a month on tolls and still be a good bit over budget. I know I could go back to court and reduce maintenance but I would rather not have to reduce maintenance as it would cause way too much hassle and the money is needed. If I go with a house share I have to say goodbye to overnights with the kids and I if I went even further out I don’t know if I would be able to hack the driving.

I’ve already spoken to my parents who reaffirmed the out at 30 rule, which I fully understand from their point of view as they have gave me 4.5 years to get ready to go it alone. If only I was earning more money in my previous jobs I would have had more money to go towards buying.

Anybody any advice? Is there any other initiatives that can help me?

Evd.

Tiddlypeeps

If you only usually see your kids at the weekend then I'd focus on being as close to work as possible over being closer to your kids. A bit more travelling at the weekend is worth a shorter commute everyday imo.

I don't understand your estimate for rent. Daft.ie shows up a lot of places to rent for under 1600 in Dublin with at least 2 bedrooms. Most of them are apartments so I can only assume that is the issue, are you unwilling to live in an apartment?

AndrewJRenko

Any options to move employment to something closer to home

Evd-Burner

Tiddlypeeps wrote: »

If you only usually see your kids at the weekend then I'd focus on being as close to work as possible over being closer to your kids. A bit more travelling at the weekend is worth a shorter commute everyday imo.

I don't understand your estimate for rent. Daft.ie shows up a lot of places to rent for under 1600 in Dublin with at least 2 bedrooms. Most of them are apartments so I can only assume that is the issue, are you unwilling to live in an apartment?

I've no problem living in an apartment, I had just wanted to stay in Co. Dublin because I would have social ties and I would usually bring my son GAA training during the week.

I expanded the search to the rest of Dublin and seen there are less than 10 that are lower than 1500 and the rest are 1500. From what the estate agents have said these tend to have very high demand and are hard to get. Even 1400 is out of budget. I could afford 1100 for a 2 bed, it would be tight and I wouldn't have anything left over at the end of the month.

AndrewJRenko wrote: »

Any options to move employment to something closer to home

There's nothing in my line of work at the moment, it's all based either over in south or west Dublin. I would jump at anywhere that opened up north of Dublin along the M1!

judeboy101

Cut out the gym, TV licence and interweb for starters, you can use laptop/tablet with a hotspot from €20 pm. Move closer to work. Avoid the toll at weekends (costs extra €1 in petrol using strawberry beds detour). Go 1 bed, when kids visit let them hv the bed u sleep couch.€710 is a lot of maintainence, is her indoors working?

Lux23

So your max budget is €1100? Mate, that is tough. I think your only option is to try using your network of friends and family to see if anyone has a suitable property that they may rent to you at a cheaper rate. And that isn't impossible given that you have a year to find somewhere, just start putting the feelers out and see if anyone comes up with anything. And keep an eye on the job boards.

o1s1n

€1600 = Rent
€75 = Electricity
€65 = Gas
€30 = Bins
€45 = Internet
€13 = TV Licence
Total = €1828

I think your electricity and heating is going to come in a lot lower than that if you're living alone.

If you're in an apartment the heating will more than likely run off electricity, so there'll be no gas bill.

My electricity bill for February and March (two of us living in an apartment) when it was freezing and I had the heating blasting constantly, came in at 210 euro. So that's 105 a month for all my cooking/appliance/heating use. It will be far lower than that once the weather warms up a bit.

Bins are included as it's an apartment, so you don't have to pay that.

TV license - just use an LCD monitor with a kodi box or laptop and your internet connection. No license required.

BetsyEllen

Keep an eye on local papers, you might find somewhere to rent privately (without the assistance of an estate agent) which will cut out fees and reduce the rent.

My own landlord charges me €700 for a 2 bed house (not in Dublin but only an hour out) as we've never used estate agents and I maintain the property myself (painting etc) and only contact him if something breaks.

Even place an ad in the papers yourself with what you're looking for, you never know what may come up.

The option of renting a one bed and sleeping on the sofa when the kids are over as mentioned above could be an idea too, I know it's not completely ideal but even if you done it for a year whilst keeping an eye out for a cheap 2 bed it could work.

LashingLady

It might not help but I think you should bring your first post to your local TD. I see Housing Minister Eoghan Murphy sitting in his shop window in his office on Ranelagh Main St often too. I’d be interested in his view on this. They seem to think that housing policy means social housing, when the whole f*ing system is all over the place.

At least put your first post into a letter to him asking what his policies will do for you.

I know this won’t solve your problem but they’re dragging their feet and hardworking people like you who are trying to meet all their obligations cant even live in this city.

Have a look to see if there are any Airbnb’s in the area that would be suitable and make an offer of long term renting. Worth a shot....

gerard2210

If you're a first time buyer you could look into the "rebuilding Ireland" scheme, it's a home loan scheme run through the county councils. It gives you a good interest rate over the life time of the loan.
Good luck.

Chris_5339762

Live nearer to work if possible. Less commute time plus traffic at the weekend to head to the northside will be a fraction of that during the weekday rush hours.

budgemook

What about Leixlip, Maynooth, Celbridge, Kilcock etc? Rent any cheaper there? You'd avoid the toll on the way to work too.

draiochtanois

This post has been deleted.

shivermetimber

Unfortunately it is going to be very difficult to find what you want, even with cutting some of your costs. Your best bet is to try get a 1 bed somewhere half way between both locations and sleep on couch / floor when kids are over. I'd say even then you will be stretched a bit. The accommodation situation is insane and depressing at the moment.

CircleofLife

I would seriously suggest that you look at renting in Kildare. It would be much closer to your work, and much cheaper. Here is one example: http://www.daft.ie/kildare/houses-for-rent/newbridge/eyre-street-newbridge-kildare-1824921/

CircleofLife

Also, consider approaching the Money Advice and Budgeting Service as well as seeking rent supplement from the council.

Mrs OBumble

300 is a lot to be spending per month on groceries. Try shopping in Lidl/Aldi.

Any chance of finding a better paying job, maybe one a bit further out of Dublin?

Since you only have the kids at weekend, consider sharing with someone who's only in Dublin during the week?

TJ Mackie

Likewise, 215 per month on Clothes, Gym and Birthdays is crazy

jimmycrackcorm

710 is a a lot for child maintenance. If you consider that your ex should be providing an equal amount and then have children's allowance on top then it just seems that spending over 1600 an month on two kids is out of whack.

I think it should be reviewed based on your needs also to have to provide somewhere for them to spend time with you at the weekends.

The_Conductor

TJ Mackie wrote: »

Likewise, 215 per month on Clothes, Gym and Birthdays is crazy

+1 - I thought you must be in a high paying job- when I saw you were shelling out for gym membership.

The first things that have to go are: Gym memberships, TV subscriptions, Internet- and pretty much any discretionary expenditure.

Clothes- honestly- try second hand shops- and the likes of adverts.ie and ebay for reasonable second hand clothes- its what the rest of us do.

Bringing your kid to GAA during the week- I'm sorry- I thought you said access was only at the weekend- which is why your maintenance is so high? If you're minding the kids during the week- fine- you can afford to be as choosy about the location- but your maintenance should be reduced by a commensurate amount.

As for ruling out renegotiating the maintenance- I'm sorry- its a large lump of your income- at the moment you're getting away with handing over maintenance of this amount- because you are being subsidised by your parents. If you are no longer subsidised by your parents- you are going to have to renegotiate this- its non-optional- at this rate you'll be living in a tent- and your children won't have access- you're not being fair by ruling it out- it is whats killing you (and its also why the bank won't countenance giving you 3.5 times income multiple for a loan).

If you do apply for 3 separate mortgages @ 3.5 times income- and are turned down- it opens the door to you to apply for the Local Authority Housing Scheme Affordable Mortgage (if your income is under 50k).

Honestly- at this point- you're getting sunk by the high maintenance- you're not getting cognisance of the part you're playing in your children's lives- your parents are cross-subsidising you- and your income is just above where it needs to be to open HAP, Affordable Housing Scheme loans (which is 50k) etc.

Any chance you could go part time for the next year- to bring you under the 50k threshold where you'd qualify for the low interest mortgage- and then go back full time again- once you have qualified for the loan (satisfying all the criteria obviously)?

You're getting sunk by the maintenance at the moment- and if you're not willing to revisit that, or where you want to live- you are on the street- simple as.

bleary

If you're earning 50,000 then you are working at least a week and a half every year just to pay the toll to go to work.before fuel costs.

Move to the other side cut the commute and drive over at the weekend. If you're spending over 2 hours commuting it makes little difference being in your community.

Or get a lower paid job on northside

Evd-Burner

Sorry it took so long to reply, it's been a busy evening since finishing work. There's a lot of different ideas and pointers and a lot are fairly common so instead of quoting I'll just provide more detail etc.

€215 = Clothes, health, gym, birthdays etc Is split out as:
€ 25 gym - I go to the gym 4 or 5 times a week. It literally pays for itself in showers
€ 80 clothes - It's smart casual in work, I already buy from Dunnes and the like anyway & I wouldn’t be fussy either.
€ 90 health costs - Can't be reduced unfortunately
€ 10 birthdays
€ 5 misc

I’m only estimating the shopping as being roughly €70 a week. Currently it’s at €50 including my lunches etc, I estimated saving €70 not having to buy toilet rolls, cleaning stuff, spices and other stuff that is in my parents house already. Moving out I would have to pay them.

The maintenance would consist of a weekly payment and then putting by to pay towards extra at Christmas, back to school, medical/dental and extra curricular. It’s court ordered and I could only change it by going back in, if at all possible I’d try and keep this as is but if needed I’ll apply for variation.

I’ve been keeping my eye out for other jobs that pay more for what I do but they all require a few more years experience which I am currently in the process of getting. With my yearly review I will probably get a 2-4% increase. Reducing hours isn’t an option at the moment as it’s too busy in work.

If I moved towards Dublin west and factored in cheaper gas electricity without a TV licence and with an internet dongle I could afford about 1200-1250 per month which is a little more doable. If I rented at that for 2 years and left my savings aside I might be able to get more of a mortgage with the yearly salary increments and potential promotions in work, there is constantly new roles that pay better but I’m just not there in regards to experience, but that will naturally change as time goes on.

One of the things that is eating away at me constantly is the tax situation, anything extra I earn is charged at about 50% and there is no tax relief for renting.

vectorvictor

The maintenance figure seems pretty hefty.

Regarding Hap you will probably find that changing job and taking a minimum wage one (or indeed one under 35k) will leave you substantially better off as Hap would be worth €18000 (or about 25k in salary terms given tax) a year to you given that you have two kids with access arrangements . There's a moral question there but this approach is the logical if not ethical answer to your dilemma.

wonski

I guess you get additional tax credit on child maintenance, op?

Just throwing it there as some tax payers are unaware of this.

Fol20

Evd-Burner wrote: »

Sorry it took so long to reply, it's been a busy evening since finishing work. There's a lot of different ideas and pointers and a lot are fairly common so instead of quoting I'll just provide more detail etc.

€215 = Clothes, health, gym, birthdays etc Is split out as:
€ 25 gym - I go to the gym 4 or 5 times a week. It literally pays for itself in showers
€ 80 clothes - It's smart casual in work, I already buy from Dunnes and the like anyway & I wouldn’t be fussy either.
€ 90 health costs - Can't be reduced unfortunately
€ 10 birthdays
€ 5 misc

I’m only estimating the shopping as being roughly €70 a week. Currently it’s at €50 including my lunches etc, I estimated saving €70 not having to buy toilet rolls, cleaning stuff, spices and other stuff that is in my parents house already. Moving out I would have to pay them.

The maintenance would consist of a weekly payment and then putting by to pay towards extra at Christmas, back to school, medical/dental and extra curricular. It’s court ordered and I could only change it by going back in, if at all possible I’d try and keep this as is but if needed I’ll apply for variation.

I’ve been keeping my eye out for other jobs that pay more for what I do but they all require a few more years experience which I am currently in the process of getting. With my yearly review I will probably get a 2-4% increase. Reducing hours isn’t an option at the moment as it’s too busy in work.

If I moved towards Dublin west and factored in cheaper gas electricity without a TV licence and with an internet dongle I could afford about 1200-1250 per month which is a little more doable. If I rented at that for 2 years and left my savings aside I might be able to get more of a mortgage with the yearly salary increments and potential promotions in work, there is constantly new roles that pay better but I’m just not there in regards to experience, but that will naturally change as time goes on.

One of the things that is eating away at me constantly is the tax situation, anything extra I earn is charged at about 50% and there is no tax relief for renting.

Sorry now but you need to get your priorities straight and make up your mind what you want, as Dave Ramsey says, go beans and rice, beans and rice and youl be able to get the place you want, or you can enjoy the niceties in life. Its entirely up to yourself.

You might like the gym but at 25 per month, thats an easy saving of 300 a year. Can you do not exercise outside to save money?

Why do you need to get clothes every month. What is wrong with your collection of clothes already. How about every second month or third month you get them instead?

The rest seem fine but it might be worth shopping around to see if you can get any cheaper medical insurance.

As another poster mentioned, it might be cheaper to move to kildare and also save on those toll fees.

A2LUE42

wonski wrote:

I guess you get additional tax credit on child maintenance, op?

wonski wrote:

I guess you get additional tax credit on child maintenance, op?

You have more details on this please?

vectorvictor

A2LUE42 wrote: »

You have more details on this please?

This is wrong. Spousal maintaince yes but there is definitely no relief on payments made for the benefit of a child. The simplified version of the below is that they are treated like they never happened

http://www.citizensinformation.ie/en/money_and_tax/tax/income_tax_credits_and_reliefs/maintenance_and_tax.html

Maintenance payments that are made for the benefit of a child or children are ignored for tax purposes:

The payments are made without deduction of tax (gross)
The person making the payments is not entitled to a tax deduction for the payments
The payments are not taxable
The payments are not regarded as income of the child.

Pelvis

OP, cancel the gym membership, leave the car at home and cycle to work at least 3 out of 5 days, or alternatively move closer to work and cycle every day.

_Brian

The fact that OP insists that it costs €80 a month to have “smart casual” clothes for work just signals that they want help but not help themselves, they want help delivered on top of the current lifestyle they have.

You can’t insist on staying in Dublin for “social reasons” and expect a dig out to hold onto your social reasons.

We all have to make sacrifices to have the things and life we want.

I spent 13 years driving 2 hours each way to a 12.5 hour shift job including nights to privide the life I wanted. Yes I left it the minute I could, but I sacrificed social life and home life so I could provide for my family.

I really galls me to see people complaining that there’s “no assistance” available, while refusing to give up social aspects and justifying a stream of new clothes every month.

You need to cut back and compromise, move far enough out to save sufficient rent that the even with a commute you will have money left to live the life you want. Maybe in a few years things will change and you can move back to Dublin.

Brego888

As a man I can't get my head around spending €80 a month on clothes. Do you use disposable shirts?

December2012

Have you a deposit saved at all? Are you looking to rent or to buy? Maybe contact the local authorities and find out what rent allowances you can get if any.

How about looking at new developments in Kildare, and see if you can avail of the 5% Help to Buy scheme.

And cut down on the 80 per month for your clothes.