Stressed about House Deposit/Finances etc.

lalal

Hi all,
Together with my boyfriend we have decided that we are going to knuckle down and we plan on saving 20,000e (between us) in the next few years to apply for a mortgage to build. However this now feels like a pipe dream. From reading posts I'd be closer looking at a deposit of 30-40k. I've never felt further away from owning my own home. It scares me that I am looking at a deposit of 30-40k without even considering the costs of interiors? Can anyone give me some advice regarding ball park figures? We are struggling to come up with regular savings, despite staying in, and living a relatively frugal life in comparison to our peers, considering we both rent and have cars and have multiple weddings a year. I really don't want to give up on our dream of owning a house but it feels like it's a million years away.
Any advice welcome.

CWF

lalal wrote: »

Hi all,
Together with my boyfriend we have decided that we are going to knuckle down and we plan on saving 20,000e (between us) in the next few years to apply for a mortgage to build. However this now feels like a pipe dream. From reading posts I'd be closer looking at a deposit of 30-40k. I've never felt further away from owning my own home. It scares me that I am looking at a deposit of 30-40k without even considering the costs of interiors? Can anyone give me some advice regarding ball park figures? We are struggling to come up with regular savings, despite staying in, and living a relatively frugal life in comparison to our peers, considering we both rent and have cars and have multiple weddings a year. I really don't want to give up on our dream of owning a house but it feels like it's a million years away.
Any advice welcome.

You'll get there don't worry. I'm in the same boat my partner and I are teachers late 20s and renting in Dublin looking to save a 50k deposit. Find what works for you in terms of saving, for me I've been transferring 500 euro every time I get paid and aim for 1k a month. By January 2020 we should be at our target, I started this 5 months ago. In terms of weddings my advice would be to book accommodation as early as possible, maybe drive to one of them you don't care so much about and just make the most of the free wine etc. Don't buy a new outfit for each one if you can avoid it and don't go to both the wedding and stag/hen, pick one. Everyone is in the same boat trying to save these days so ppl understand that we all can't go to every part of the wedding. Hope that helps and good luck. Keep the faith

TeaBagMania

Never Give Up!!!

it's always daunting in the beginning but you have to start somewhere

CWF

Yeah once you get a few k saved it'll be easier. It's like a diet the first few days are always the hardest

JaMarcus

I was in the same boat as yourself a year or two ago. We didn't have the savings for a deposit yet we were looking at houses all the time on daft. Reading stories about queues for new developments and every second headline being about the housing crisis stressed me out hugely. In addition, work was really stressful and it all jist combined into one big crescendo of stress and I had a mini breakdown! Worrying about buying a house in a market where prices were increasing was a big factor.

In the end, we just stopped looking at houses online, and stopped going to see new developments. Decided to just put away whatever money we could each month and not worry about houses until we were in a position to buy. We'll come back to it in a year or two when we have a bit more savings behind us and worry about it then.

So my advice is just set up a standing order to transfer whatever you can afford on pay day and try put any other thoughts about houses to the back of your mind. Your savings will accumulate in the mean time.

I wouldn't agree with those who completely cut out luxuries and save every penny, as your sanity is just as important as saving! Don't be afraid to treat yourself to a restaurant or weekend away every now and then to keep your spirits up.

lalal

Really appreciate the responses here. It's nice to know what others are doing and you're also totally right to wait until you have enough saved, I've been driving myself mad looking at houses.

dellas1979

Hi OP,

So you are looking to build? Do you have a site? What do you mean by deposit (deposit for a site?)? If you have a site, you dont necessarily have to have a deposit. If you own/were gifted a site, youre a bit further along than you think.

I have a site (was gifted to me). I will have a mortgage on the house. 3.5 times my salary. I will also have to put in about 17k of my own money.
That is just the cost of the build. I gots to get the savings skids under me to then finish the house (kitchen and stairs and one bathroom a priority, also flooring. I reckon I can live without doors for a bit - you dont need to walk into a finished house).

I also pay rent at the same time. When it comes to drawing down stages, and actually start repayments, I think things will be tight, but I remain optimistic. Ive been told many many times that I couldnt/wouldnt be able to do this. And shur, look at me now lolssss.

Am building and doing all this on my own (no "john" as I imaginary call him, to pump money in). It is tough balancing it all. But it can be done!

I also get from people/builders/architects that am incredibly organised. Ive said this before here. Organisation is half the battle. Have a folder into which you pop all your paperwork/receipts etc. I carry this around with me, even at work. I might have to take a call, as calls come in, and I have it all with me. Also, a spreadsheet with costings etc (down to if a branch needs to be cut off a tree), i.e., good details, could save you money. I also went to the bank 6/8 months before making a mortgage application to see what I needed to do to look as good as possible. So, maybe that is where you should start. Actually know what you need to save (as ye are paying rent, this might be taken into consideration).

Also, dont be scared to negotiate. I've saved about 8k negotiating with builders and suppliers.

Engineers, architects, percolation, fencing, solicitors, development fees (this depends on where you live), ESB, water, will be an additional 15-20k.

Edit: Just to say, building my own home was never a dream of mine. It just happened/opportunity presented itself. So, what am trying to say is that, I didnt/dont put any pressure on myself to have that "dream". Things happen when they happen. There is no quick solution when trying to build. So, batton down for the long-haul, take each week as it comes, and dont be too hard on youself. One day, it will happen for you.

Get your ducks in a row, speak to the bank(s) and know what is your target for say 6 months time.

Vmash

Hey there, just wanted to say we have been in your shoes with 2 kids in tow. We're early thirties and got approved by two banks last month.
We saved like crazy although we had 10k in savings previously, we managed to save 15k in one year and in addition to a couple 3k in cu applied for mortgage. My advice is to keep saving and you will get there.