How can someone in their 30s afford a house - PLEASE READ MOD WARNING IN OP

Geuze

Yurt! wrote: »

Didn't realize they published this. Any figures for individuals before tax and transfers and not on a household level? I'd imagine It would fall at somewhere between 34-37k looking at the above numbers?

SILC 2017 income data

https://www.cso.ie/en/releasesandpublications/ep/p-silc/surveyonincomeandlivingconditionssilc2017/income/


Read the detailed tables.

Table 2.3 is a good starting point.

2017 median hh incomes

Gross = including transfers = 45,631

Disposable = after direct taxes = 39,499

Disp pp = 20,869

mariaalice

Trow it open then, has anyone on 40k say in Dublin managed to buy themselves something in Dublin or dose anyone know someone who has done it.

Wanderer78

The Student wrote:

Whether people accept it or not prices have risen since your parents time, this is as a result of build costs and the quality of the building material, labor costs, land costs etc.

Banking, and the availability of cheap credit has hardly had an effect on house prices, has it?

mariaalice

mariaalice wrote: »

Trow it open then, has anyone on 40k say in Dublin managed to buy themselves something in Dublin or dose anyone know someone who has done it.

Its a no from me. 3.5 times of 40 is just 140.
Even with a deposit and some self fund you would be looking at properties for about 160K.
I'm fairly sure you can't get a mortgage for a one bed apartment either.

klaaaz

mariaalice wrote: »

Trow it open then, has anyone on 40k say in Dublin managed to buy themselves something in Dublin or dose anyone know someone who has done it.

Depends when. I know a few who bought houses(not duplexes\apartments) on their own in Dublin a few years ago. They earned less than 40k, one earned about 30k. All had built up alot savings with hefty deposits and ignored the rubbish spouted by the media and politicians that prices can only go up. Hence the reason I say here is to keep saving no matter what way the market goes.

Brian201888

mariaalice wrote: »

Trow it open then, has anyone on 40k say in Dublin managed to buy themselves something in Dublin or dose anyone know someone who has done it.

Rebuilding Ireland will give €200k to someone on that salary so an apartment is completely within reach once the deposit is saved.

Yurt2

Geuze wrote: »

SILC 2017 income data

https://www.cso.ie/en/releasesandpublications/ep/p-silc/surveyonincomeandlivingconditionssilc2017/income/


Read the detailed tables.

Table 2.3 is a good starting point.

2017 median hh incomes

Gross = including transfers = 45,631

Disposable = after direct taxes = 39,499

Disp pp = 20,869

Cheers. Back of a beermat estimate, the median per person in the country is likely less than 34k then if the disposable after taxes is 21k.

GreeBo

abcabc123123 wrote: »

If by average we're talking 45k, then without a rebuilding Ireland loan I'd say its beyond them.

Not sure why a single person really needs a 3 bed house with front and back gardens though...

Because 40 years ago their dad bought and its not fair if they cant do the same.

Bigmac1euro

mariaalice wrote: »

Why would rebuilding Ireland not touch you?

The calculator on their website tells me a person on the average income could possibly take out €202,000

Meaning you would need an 88k deposit. Not including all the other fees to go along with it.

Also that's maximum loan term with 0 monthly commitments and no kids.

This brings you up to needing about 100k before you start filling out forms and still you may get refused.


And that's just the calculator online.

Now actually apply for it and see how much they offer you.

No offence meant here but why are you posting here when you don't seem to know what you're actually talking about.

GreeBo

Brian201888 wrote: »

Rebuilding Ireland will give €200k to someone on that salary so an apartment is completely within reach once the deposit is saved.

Tens of apartments went in Belmont, Sandyford last year for under 200K, from memory of Property Price Register they were 175K.

GreeBo

Bigmac1euro wrote: »

The calculator on their website tells me a person on the average income could possibly take out €202,000

Meaning you would need an 88k deposit. Not including all the other fees to go along with it.

Also that's maximum loan term with 0 monthly commitments and no kids.

This brings you up to needing about 100k before you start filling out forms and still you may get refused.


And that's just the calculator online.

Now actually apply for it and see how much they offer you.

No offence meant here but why are you posting here when you don't seem to know what you're actually talking about.

No offence, but why are you trying to buy a 3 bed house when you have one income and no kids?

GreeBo

Geuze wrote: »

Yes, the CSO don't publish median earnings.

Eurostat does publish median earnings for Ireland, see their 2014 SES survey.

Now, you can get median incomes, as distinct from earnings, in the SILC, published by the CSO.

Median household earnings for Dublin are the stat we need and they dont seem to be available anywhere unfortunately.

caff

mariaalice wrote: »

Trow it open then, has anyone on 40k say in Dublin managed to buy themselves something in Dublin or dose anyone know someone who has done it.

I did three years ago in cabra, 2 bed for 190 bit of a fixer upper.

GreeBo

Deleted User wrote: »

Nobody can deny that the goalposts have been well and truly moved.
My own parents, a factory worker and a person working in retail could buy a house in Drumcondra in Dublin.
Now there is ONE awful looking 1 bed apartment for 196K.

Its that injustice of not having the same opportunities that hurts the most.

Its even worse that people can't just acknowledge how difficult it is.

In the future, I think it will become more common to see 2 couples or 2 groups of people, put their 2 strongest salaries together and use those to get a mortgage were they can all live under one roof. Thats how serious the crisis is getting.

How much did the population of Dublin grow by since your parents bought?
How much did the available residential zoned land grow by since the same time?

Yurt2

GreeBo wrote: »

Because 40 years ago their dad bought and its not fair if they cant do the same.

Because vast swathes of the working population are locked out of the property market and the rental market doesn't provide stability (unlike other countries).

Just say that you don't care, it's ok.

Mod Edit
Personal attack removed.
Attack the post, not the poster.

Bigmac1euro

GreeBo wrote: »

No offence, but why are you trying to buy a 3 bed house when you have one income and no kids?

Are you actually reading the posts here ???
I was replying to someone who posted a link for 290k house saying it would be possible on the Rebuilding Ireland.

I think you're just purposely trying to get on peoples nerves here.

Also I noticed you dodged my last post directed at you.

DubJJ

mariaalice wrote: »

https://www.myhome.ie/residential/brochure/291-brandon-road-drimnagh-dublin-12/4302739

There is a fully renovated one on at 290k

The point is, would that be beyond a single buyer on average salary.

If the average salary is 40k, the current lending rules mean you could borrow a maximum of 140k (3.5 x your 40k salary) and this is only providing you have no other debts or dependents.
This means to purchase a property at 290k you would need a minimum of 150k deposit plus stamp duty and legal fees.
As you can imagine this would be very difficult (if not impossible) for a single earner on an average salary.
Historically this may have been different but due to the high rents and restrictions on borrowing I don't think it's even a possibility now.

I hope this answers your question.

GreeBo

Bigmac1euro wrote: »

Are you actually reading the posts here ???
I was replying to someone who posted a link for 290k house saying it would be possible on the Rebuilding Ireland.

I think you're just purposely trying to get on peoples nerves here.

Also I noticed you dodged my last post directed at you.

Your last post directed at me was regarding people being angry...I'm not sure what response you expect.

I've proven multiple times that there is housing available, its just not where these people want to live.

This is akin to the "there are no jobs" argument, when what they really mean is "there are no jobs that I deem worthy".

GreeBo

DubJJ wrote: »

As you can imagine this would be very difficult (if not impossible) for a single earner on an average salary.

Which is why a single earner on the average salary shouldn't be looking to buy a 3 bed house in the capital city.

Nermal

Deleted User wrote: »

Nobody can deny that the goalposts have been well and truly moved.
My own parents, a factory worker and a person working in retail could buy a house in Drumcondra in Dublin.
Now there is ONE awful looking 1 bed apartment for 196K.

Its that injustice of not having the same opportunities that hurts the most.

You have many opportunities your parents didn't have - in terms of education, travel, living standards and so on. They lived in a backwater in one of the poorest countries in the EU. You live in a global city, on a par with Amsterdam or Stockholm (https://www.lboro.ac.uk/gawc/world2018t.html).

Eric Cartman

GreeBo wrote: »

Which is why a single earner on the average salary shouldn't be looking to buy a 3 bed house in the capital city.

Nobody is asking for that in the city.

Yet again, we are trying to come up with a solution that would allow building of a lot more affordable houses outside the city but still near it , that people on 50k a year could afford and isnt in an area that you cant go out at night in.

Think like building a new adamstown or ashtown but with minimal social housing.

GreeBo

GreeBo wrote: »

Which is why a single earner on the average salary shouldn't be looking to buy a 3 bed house in the capital city.

Exactly this. Five years ago, I owned a 3 bed semi deatched house. On my own. Single woman. Out of 5 single friends, 4 also owned 3 bed semi detached houses, in their own. One friend has since got married & had a baby, so filling her house.
Ridiculous, considering no one wanted to share with anyone......
I don't need a house like that in the suburbs, I'm now looking for a smaller place, closer to town.
People should be buying what they need now, what they can afford, & where they can afford to buy it.

GreeBo

Eric Cartman wrote: »

Nobody is asking for that in the city.

Yet again, we are trying to come up with a solution that would allow building of a lot more affordable houses outside the city but still near it , that people on 50k a year could afford and isnt in an area that you cant go out at night in.

Think like building a new adamstown or ashtown but with minimal social housing.

Well you keep ignoring posters when they ask you where you think these should be built and what will stop them from turning into exactly the places you are afraid to live in if they are so affordable?

You also ignore the question on where the social housing should go if its not allowed into your new, affordable estates?

Bigmac1euro

GreeBo wrote: »

Your last post directed at me was regarding people being angry...I'm not sure what response you expect.

I've proven multiple times that there is housing available, its just not where these people want to live.

This is akin to the "there are no jobs" argument, when what they really mean is "there are no jobs that I deem worthy".

I'm talking about oranges and your talking about toasters. We're going in circles. Goodluck!

PS. Nice dodge on the reply for that post. :o:o:o:o

Eric Cartman

bubblypop wrote: »

Exactly this. Five years ago, I owned a 3 bed semi deatched house. On my own. Single woman. Out of 5 single friends, 4 also owned 3 bed semi detached houses, in their own. One friend has since got married & had a baby, so filling her house.
Ridiculous, considering no one wanted to share with anyone......
I don't need a house like that in the suburbs, I'm now looking for a smaller place, closer to town.
People should be buying what they need now, what they can afford, & where they can afford to buy it.

Thats a brilliant idea , except banks dont like lending for 1 bed apartments, having a 2 bed apartment is great when you only have 1 child, you have a second on the way and having the money and the ability to throw more effort at working towards upgrading to a 3 bed house becomes a hell of a lot harder

Pur market is distorted in that the first rung of the ladder has been kicked out , so has the third and fourth , people are working a lot harder to buy the 3 bed place before they have kids and fill the house because they wont have the money and effort to buy a bigger house when they need it.

GreeBo

Eric Cartman wrote: »

Thats a brilliant idea , except banks dont like lending for 1 bed apartments, having a 2 bed apartment is great when you only have 1 child, you have a second on the way and having the money and the ability to throw more effort at working towards upgrading to a 3 bed house becomes a hell of a lot harder

Pur market is distorted in that the first rung of the ladder has been kicked out , so has the third and fourth , people are working a lot harder to buy the 3 bed place before they have kids and fill the house because they wont have the money and effort to buy a bigger house when they need it.

This is getting very tiresome.
The first rung is there waving at you but you dont want to live there.
A 3 bed for a single person is not the bloody first rung on the housing ladder!

Graham

Banks will now lend for a 1 bedroom apartment and given the increasing number of 1 person households 1 bedroom accommodation is appropriate for many people.

The Student

Wanderer78 wrote: »

Banking, and the availability of cheap credit has hardly had an effect on house prices, has it?

People were not forced to access credit, people choose too. How many people took out 100% or 110% mortgages with little or no savings.

People made a choice to take these loans, in some instances they made the wrong choice. Nobody twisted their arm to take the credit.

I took the liberty of looking at some simple calculations to expand upon my original post.

AIB will current give a couple a mortgage of €275k over 35 yrs at a repayment rate of €972 per month. This is based on both earning €35k each and with 10% deposit.

A person on a gross wage of €35k has a net wage of €29k so a couple would have a net wage of €58k a year and the mortgage repayment would be circa €12k a year. Leaving a net disposable income of €46k a year or circa €900 per week.

I am sorry but if a couple can't live on €900 a week after mortgage payments then there is something wrong.

Wanderer78

The Student wrote: »

People were not forced to access credit, people choose too. How many people took out 100% or 110% mortgages with little or no savings.

People made a choice to take these loans, in some instances they made the wrong choice. Nobody twisted their arm to take the credit.

I took the liberty of looking at some simple calculations to expand upon my original post.

AIB will current give a couple a mortgage of €275k over 35 yrs at a repayment rate of €972 per month. This is based on both earning €35k each and with 10% deposit.

A person on a gross wage of €35k has a net wage of €29k so a couple would have a net wage of €58k a year and the mortgage repayment would be circa €12k a year. Leaving a net disposable income of €46k a year or circa €900 per week.

I am sorry but if a couple can't live on €900 a week after mortgage payments then there is something wrong.

...i always quote bill black on this one, 'behind every bad borrower, is a bad lender'!

its clearly obvious, theres something deeply rotting within our financial sectors

GreeBo

Wanderer78 wrote: »

...i always quote bill black on this one, 'behind every bad borrower, is a bad lender'!

its clearly obvious, theres something deeply rotting within our financial sectors

There goes that personal accountability out the window again.

"someone elses fault".