Boomer Wealth

HerrKuehn

lainey_d_123 wrote: »

Have you seen interest rates today? You would nearly be as well sticking your money under a mattress. I have money in a 'high interest savings account' and the interest I've earned from it is laughable. Another person stuck in the 80s.

you would need to invest it to get proper returns.

Wanderer78

HerrKuehn wrote: »

you would need to invest it to get proper returns.

which of course is higher risk, the more you get into investments, the higher the risk

lainey_d_123

Wanderer78 wrote: »

which of course is higher risk, the more you get into investments, the higher the risk

And then no doubt you'd then be blamed for taking silly risks and not just putting your money in an old fashioned savings account like our parents did.

Literally cannot win.

HerrKuehn

Wanderer78 wrote: »

which of course is higher risk, the more you get into investments, the higher the risk

or don't, stick it under your mattress

Wanderer78

HerrKuehn wrote: »

or don't, stick it under your mattress

and risk being robbed

lainey_d_123

lainey_d_123 wrote: »

No, and no.

I moved here because even after living costs are taken into account, I'm better off than I was in Dublin, and far better off than I would be working in a 'lower cost of living' city like Manchester or Leeds. The money I have left over after paying for essentials is still more than it would be elsewhere.

But don't let truth and logic get in the way.

There are other cities in Ireland also. Of course if you live in the centre of main European cities you are going to pay though the nose for rent.

Or you can live in the country and commute to work etc thus opening up a much greater choice of more reasonably priced property.

Wanderer78

Leilani Fast Windbreak wrote: »

There are other cities in Ireland also. Of course if you live in the centre of main European cities you are going to pay though the nose for rent.

Or you can live in the country and commute to work etc thus opening up a much greater choice of more reasonably priced property.

effectively increasing the length of your working day

Yellow_Fern

lainey_d_123 wrote: »

Have you seen interest rates today? You would nearly be as well sticking your money under a mattress. I have money in a 'high interest savings account' and the interest I've earned from it is laughable. Another person stuck in the 80s.

Those aged between 18-60 need to be investing in the stock market with a portion of their savings

lainey_d_123

Leilani Fast Windbreak wrote: »

There are other cities in Ireland also. Of course if you live in the centre of main European cities you are going to pay though the nose for rent.

Or you can live in the country and commute to work etc thus opening up a much greater choice of more reasonably priced property.

Did you read what I wrote?

I can still save more money by living here than I could just about anywhere else. That is why I am here. My priority at this point in my life, when I'm mid thirties and pretty much at peak earning potential having upskilled hugely, is putting as much into savings as I can. My rent might be a lower proportion of my salary in Belfast or Leeds but I still have less money left over to save.

I also already covered the issue of living further out - what you save in rent, you pay in transport, AND you lose the time.

Like, do you think people haven't already thought of this stuff?

Love that you think I live in the 'centre' of London for what I pay in rent, BTW. Very cute. I'd be paying three times what I pay now for a comparable property in the centre.

lainey_d_123

Yellow_Fern wrote: »

Those aged between 18-60 need to be investing in the stock market with a portion of their savings

I have always been told you should never invest what you can't afford to lose. If someone is scrabbling together 200 quid a month to put into savings while they're on a low wage in an expensive city (i.e. most 20 somethings), it's hard to tell them to invest that rather than keeping it somewhere secure so they can access it in an emergency, for example.

Wanderer78

Wanderer78 wrote: »

effectively increasing the length of your working day

A minor compromise for me anyway. A 40 min commute to build my own house (and all the advantages that go with that), next door to family, privacy, space etc etc

vs. a shoebox in a city for similar prices just so I can get to work a bit faster? No thanks.

Even less of an issue now with WFH being normalised, I haven't been in the office since March (and even prior to covid I was mostly working remotely) and in the long run I would intend to always be doing 2/3 days from home and 2/3 days in the office per week so the commute won't even be everyday.

GreeBo

lainey_d_123 wrote: »

Where did I say I wanted to live in Rathgar? I don't want to live in Dublin at all.

I'm simply refuting that poster's baseless statement that single professionals expect 3-bed houses in Dublin city. I'm saying that even a studio flat in Rathgar (which, again, is the kind of normal, nice suburb which a generation or two ago, people were buying houses in no bother) is out of reach of even quite a well paid professional, so that statement is utter bollix.

Nonsense.
A generation ago people were not snapping up houses in Rathgar no bother!

Where on earth did you get this idea from?

GreeBo

lainey_d_123 wrote: »

Well, Nox, not everyone has the option of living at home with Mammy rent-free until they're 30. I've been paying rent since I turned 18.

Yes, I could have saved up a deposit easily if I could have stayed at home, but how is that relevant?

I love that you think most 30 somethings stay at home to save up and then are gifted a nice chunk of money by the parents. I'm sure that's lovely for those who have that option, but many of us don't.

You moved out for personal reasons when you were 18, you can hardly complain that the world owes you a cheap house.

Wanderer78

Maximus Uptight Rabbit wrote:

A minor compromise for me anyway. A 40 min commute to build my own house (and all the advantages that go with that), next door to family, privacy, space etc etc

Some commutes can be as much as 2 hours a day (total time), you ll find that 'minor' compromise will become a fairly significant one, when you're health deteriorates, particularly your mental health.

Maximus Uptight Rabbit wrote:

vs. a shoebox in a city for similar prices just so I can get to work a bit faster? No thanks.

Some of these individuals don't work or live in city centres

Wanderer78

GreeBo wrote:

You moved out for personal reasons when you were 18, you can hardly complain that the world owes you a cheap house.

A cheap house! Many factors of house prices are almost completely out of control of the individual

GreeBo

Geuze wrote: »

Yes.

We need a politician to come out and say:

"rents and house prices, especially in urban areas, are too high"

And then we need them to commit to actually causing rents and house prices to fall.

If urban rents and house prices fall, that should be seen as a success.


NB: I don't mean a sudden collapse, causing negative equity, I mean a slow, gradual fall.

In a growing population, how do you keep prices down?
Demand > Supply = Price Increase

atticu

lainey_d_123 wrote: »

Have you seen interest rates today? You would nearly be as well sticking your money under a mattress. I have money in a 'high interest savings account' and the interest I've earned from it is laughable. Another person stuck in the 80s.

I have seen interest rates.
And I also know that not one single investment, including property has increased in value in the last ten years - True Fact!

Wanderer78

Wanderer78 wrote: »

Some commutes can be as much as 2 hours a day (total time), you ll find that 'minor' compromise will become a fairly significant one, when you're health deteriorates, particularly your mental health.

1 hour each way commute is very reasonable. My 40 min each way commute can occasionally take an hour if there is a crash etc and that to me is acceptable.

It would have no impact on my health mental or otherwise in fact its can be nice at times to just relax and listen to the radio etc. Ive been doing weekly 3 hours (each way) drives for many years also and again it doesn't bother me.

My father has been commuting 45 mins each way 5 days a week for decades, never had any impact on him whatsoever.

GreeBo

lainey_d_123 wrote: »

I don't have a 'mentality'.

I set the price at 200K and had a quick scan of what came up. My point was that that's how high you have to go to have a realistic choice of one-bed properties to choose from, and most of those are nowhere near the city centre.

My point is that contrary to what was said, there are hardly any flats priced at 150K, and those that do exist are in some of the worst areas of the city.

Why is it so hard to grasp?

There are 9 1 bed apartments for sale 200K or under at the moment, all in or around the city (mostly in Inchicore)

Why would you be expecting nice, cheap apartments in the best parts of the city to be available for the same price as not nice, cheap apartments in the worst parts of the city?

That makes zero sense. Why would anyone buy the bad ones so? And, following logically on, if everyone is buying the good ones, wont that push the prices up?

Geuze

GreeBo wrote: »

In a growing population, how do you keep prices down?
Demand > Supply = Price Increase

Plentiful growth in supply also.

SVT taxes to prevent land hoarding.

Local Govt masterplans to have plenty of sites zoned and serviced.

Structures/institutions put in place to have plentiful housing finance at low cost.

No need for new agencies, we already have both a Housing Agency and a Housing Finance Agency.

GreeBo

lainey_d_123 wrote: »

No, and no.

I moved here because even after living costs are taken into account, I'm better off than I was in Dublin, and far better off than I would be working in a 'lower cost of living' city like Manchester or Leeds. The money I have left over after paying for essentials is still more than it would be elsewhere.

But don't let truth and logic get in the way.

Well frankly maths seems to be getting in your way as I worked it out based on all the figures you provided.

lainey_d_123

GreeBo wrote: »

You moved out for personal reasons when you were 18, you can hardly complain that the world owes you a cheap house.

What on earth is your point here? You are babbling on about complete nonsense.

I moved out because I had no choice. I've been working hard for years and I'd like to be able to buy a one-bed flat now than I'm 35. Who said anything about a 'cheap house'? I am saving up for ONE BED FLAT.

You Daily Mail reading bots are all the same. Just parroting on and on, the same worn out clichés and pointless nonsense.

lainey_d_123

GreeBo wrote: »

There are 9 1 bed apartments for sale 200K or under at the moment, all in or around the city (mostly in Inchicore)

Why would you be expecting nice, cheap apartments in the best parts of the city to be available for the same price as not nice, cheap apartments in the worst parts of the city?

That makes zero sense. Why would anyone buy the bad ones so? And, following logically on, if everyone is buying the good ones, wont that push the prices up?

So you're saying yourself that even 200K gets you a tiny selection of one-bed flats in not-great parts of the city....which is my ENTIRE POINT. That an average earner (what's that in Ireland now? 38Kish?) would find it extremely hard to save for a deposit and get a mortgage on such a property while paying market rate rent the entire time.

Are you honestly just a bit slow?

OwlsZat

GreeBo wrote: »

In a growing population, how do you keep prices down?
Demand > Supply = Price Increase

Indeed it's that simple increase supply and prices will drop.

You make it cheaper to build. So yield goes up. Money comes in and more projects get build.

Yurt2

OwlsZat wrote: »

Indeed it's that simple increase supply and prices will drop.

You make it cheaper to build. So yield goes up. Money comes in and more projects get build.

It's actually not.

TRANQUILLO

PokeHerKing wrote: »

I'd have to say that a 37yo pilot earning 109k who doesn't have their own house either made some poor choices or prioritised other areas of life. Simple as imo.

I have a fairly diverse crowd of people that I'm friendly with for varying reasons and none of them have these Charles dickensesque tales of misery.

Presume you are on about me? Im not a Pilot and haven't claimed to be at any time.


I spent 24 grand on a 787 type course about 8 years ago, 15 on an A350 type course 4 years ago (because i could stay with a friend instead of 9 weeks in a hotel) and i recently completed a masters in aviation leadership in DCU. That was 12 grand over two years. There were more courses of 1/2 grand sprinkled from 2010 to now all paid off.

As I alluded to I recently was able to command a salary of 109 k for three years but am now unemployed. All the above debts are paid off and i just about had 40k squirrelled to buy a house. Now im unemployed, the industry I worked in is in ruins and that 40k wont last jig time.

I don't own a car, im an avid triathlete so i run or cycle to work ( when i had a job).

Another thing to note is relationship breakdowns, if you break up with your significant other in Dublin you are ****ed. Trying to find somewhere alone is really difficult. Having worked in 6 or 7 other european cities it struck me there was plenty of housing for all types including single people working in the city. Im thinking of bordeaux,toulouse,Copenhagen , Munich.

Geuze

lainey_d_123 wrote: »

So you're saying yourself that even 200K gets you a tiny selection of one-bed flats in not-great parts of the city....which is my ENTIRE POINT. That an average earner (what's that in Ireland now? 38Kish?) would find it extremely hard to save for a deposit and get a mortgage on such a property while paying market rate rent the entire time.

Should a single person on average FT earnings (47k) be able to buy an apt inside the M50?

I think they should.

47 * 3.5 = mortgage of 165k

This means we need 80 sqm 2-bedroom apts for 200k inside the M50.

I don't mean in Donnybrook, etc., I mean in places like Glasnevin, Crumlin, etc.

Wanderer78

GreeBo wrote:

In a growing population, how do you keep prices down? Demand > Supply = Price Increase

Once again, one of the main reasons, in most recent times, for the rapid increase in the price of housing, is in fact due to the increase in availability of credit, largely created by private sector financial institutions, I.e. bank's.....

HerrKuehn

lainey_d_123 wrote: »

So you're saying yourself that even 200K gets you a tiny selection of one-bed flats in not-great parts of the city....which is my ENTIRE POINT. That an average earner (what's that in Ireland now? 38Kish?) would find it extremely hard to save for a deposit and get a mortgage on such a property while paying market rate rent the entire time.

Are you honestly just a bit slow?

One thing to bear in mind is that the 40k average earner on their own will probably be competing with a dual income couple. Due to the way the tax system works the 40k earner will have ~ €31600, so 2 times this for a dual income couple on 40k would be €63200. A single earner would have to earn a little over €100k to have the same after tax. So a single earner needs to be a very high earner to compete with the couple.

SusieBlue

Just out of curiosity I threw some numbers into an online mortgage calculator.
The average house where I live costs 300k, to be entitled to a mortgage of this size a person would have to earn 86k a year (either on their own or with a partner) which is significantly higher than the average wage.
Monthly repayments would be €936 for a 35 year mortgage with a 30 grand deposit.

Then on the rental market, you have properties going for €1800 pm. So shouldn’t a person need to earn about 160k a year to live there, if we applied the same rule to the rental market?
So why are we expecting people on 25k to afford this when if the same rules as mortgages applied, only someone on 160k (ish) would be considered financially eligible to have a property where the repayment was €1800 a month?

That just shows the blatant ridiculousness and hypocrisy of both systems.
I don’t know anyone on 86k and I’m struggling trying to think of a couple that jointly earn that much. It prices out the vast majority of buyers.
These aren’t 5 star turn key properties either, these are bog standard properties, many of which would definitely require some work and aren’t located in sought after areas.

It’s completely illogical that we expect people on low wages, or indeed even average wages, to pay €1800 pm when we’re telling them they ‘can’t afford’ a mortgage that would cost them HALF of that amount of money pm out of the other side of our mouths.
It’s actually insane.
That’s what’s wrong with the system and that’s why people feel like they aren’t even being given a chance.

My parents bought their first home in their early 20’s, a modest 3 bed semi detached house in Cork city, on one construction labourers wage. The idea that a young person would be able to do what nowadays if they simply god rid of the iPhone and gave up the avocado toast is actually laughable.