How long and how much did you save for a mortgage

IamMe33

poker--addict wrote: »

sorry brief thread creep but what is or was general point of limiting the FTB support to new builds? Would buying an older house not still drive liquidity, movement, building all around...?

The HTB's purpose is to encourage developers to build by ensuring there's enough profit motive for them. Its acronymic alternative is 'Help the Brickie' for good reason.

Brandon75 wrote: »

So if your on a lower tax rate the better ?
I will still save for sure and keep to my saving target.

A lower tax rate could be better as it could mean you're so wealthy you can afford to hire accountants to perform their alchemy on your tax rates.

In the PAYE's thrall, though, it most definitely does not indicate you are better off.

Remember, you can only claim what you have paid in total tax over the last four years. If you are on a lower tax rate you pay less tax and probably won't have paid anywhere near the €30K over four years.

This is probably irrelelavant anyway as on a lower income banks won't loan a single person anywhere near the €210K minimum needed for a €300K house to qualify for the full €30K HTB grant. Banks will typcially cap their morgage loans at 3.5 times an individual's gross salary, or combined salary of a couple.

HotMama89

Bought mine in 2016 when I was 26 and a single parent (outside dublin but another city) Moved back home but still paid about 300 pm in rent bought our food etc took me about 18 months of saving 1000pm. Some banks reduced what they would give me but the majority would give me the 3.5 times amount.

Had thought about trading up since and have mortgage approval for 300k but have decided to hold off for another 2-3 years I just can't justify paying 300k for the houses currently on the market the supply just isn't there.

Brandon75

HotMama89 wrote: »

Bought mine in 2016 when I was 26 and a single parent (outside dublin but another city) Moved back home but still paid about 300 pm in rent bought our food etc took me about 18 months of saving 1000pm. Some banks reduced what they would give me but the majority would give me the 3.5 times amount.

Had thought about trading up since and have mortgage approval for 300k but have decided to hold off for another 2-3 years I just can't justify paying 300k for the houses currently on the market the supply just isn't there.

Well done good saving.
How much was the house you bought outside Dublin?
Did you have to travel back to dublin for work ?

HotMama89

It was 135k no I have a job in the city I live in so no commute.

almostover

Have been saving around 2.5 years with my partner. Have just over €40k between us. Nothing near what others have done here but we have rent costs of €1100 per month. Dont have the option of living with parents, mine are too far away from both our workplaces and hers still have 2 adult children at home, our sanity would suffer too much. I have a 7 year old car, herself a 16 year old car. I have a golf membership and that is an expensive hobby. Neither of us are big drinkers and I don't mind spending money of golf, better than spending it down the pub. We go on 1 foreign holiday a year, normally a week to 10 days. I play GAA still with my home team so end up racking up the fuel costs, again I love that too and would never give it up for money reasons. Hoping to buy in the next 6-12months and we are mortgage approved for €300k with combined salary of €105k. Hopefully will only need €250k mortgage. Want to live a good life and dont want to be paying a mortgage into pur 60s. I'm close to 30 and herself is 28.

Neither of us from money, gifting won't be something we will need to worry about. Neither of us wanted for anything important growing up but we had nothing luxurious if you get my drift.

jlm29

true-or-false wrote: »

They look at all your savings, it doesn't have to be in a joint account.

I don't have kids so I didn't have to deal with the childcare costs piece, but my understanding is that they ask you about childcare costs and deduct that. At the same time, they also increase the minimum amount of disposable income you're expected to have left over after the proposed mortgage payment.

Yes. We were asked how much childcare was and that was deducted when they were looking at affordability.
At the time with aib after mortgage/childcare/loans were paid, there had to be €1050 per adult and €250 per child left to live off

DubLad69

It took us 6 months to get up our 10% deposit. Then we saved for another 6, and along with some gifts and one off income we had 25% down payment and no are ready to buy.

That was living with very small rent, eating out once a week, takeaway once a week but cutting out any vacations, trying to reduce buying coffee out, expensive clothes and most optional purchases like new phones etc and cooking our lunches at home.

ChewBerecca

A year of moving cities, hard savings (no holidays, no nights out, no Asos hauls etc), and we got mortgage approval of 330k (we got an exception as we were only on gross combined salary of 70k, plus overtime/bonus). We had rent of 1300, bills etc, but put away close to 50k in that year (which probably helped towards us getting an exception).

It was a tough year, we had very little in terms of splurges aside from takeaways every so often. But it got us to where we are today.

We were offer accepted when I was 26, but the sale took a while to complete so I was 27 when we moved in. But had we stayed in Dublin, we'd probably still be renting.

brisan

Brandon75 wrote: »

brisan wrote: »

True I have made a list of good advice I have come across on here. Wont be getting a cheap mattress and bed that's for sure .

Any other good advice you got when buying your first home or bad ?

You can change everything about a house except its location and the orientation of the garden
When you buy do not rush in to major changes .
Live in the house use the kitchen ,see what works for you and what does not
Low level oven works when you are young ,not so much the older you get etc
Same with the rest of the house
Why add 2 extra bedrooms when you may have only 1 child
If you rarely use a dining room table why spend big on one ,if you entertain a lot then do ,an island with stools may do just as well and be more useful
Never leave a bath out in favour of a 2 person fancy dan shower
Buy at your leisure and buy the best you can afford

brisan

Geuze wrote: »

Paid 278k, borrowed 155k, so had 123k deposit.

That was accumulation of maybe decade of saving, plus some gifts.

Gifts from parents are okay, parents may have to get legal advice.

You will need a gift letter from your parents so the bank will know where the money came from ie you are not a drug dealer

brisan

poker--addict wrote: »

sorry brief thread creep but what is or was general point of limiting the FTB support to new builds? Would buying an older house not still drive liquidity, movement, building all around...?

Its not Help To Buy
Its either
Help The Builder
Or
Help The Brickie
Builders have built the HTB in to the price of a new build
When the HTB ends the prices will drop the same way they increased when it was introduced

8-10

brisan wrote: »

Never leave a bath out in favour of a 2 person fancy dan shower

Agree with everything you said except this one. I don't see the need for a bath at all, easy way to waste water.

Only thing I had to think about was for kids but I just used a plastic half-size bath that was easier to fill and wash than a static full size tub until old enough to use the shower.

brisan

8-10 wrote: »

Agree with everything you said except this one. I don't see the need for a bath at all, easy way to waste water.

Only thing I had to think about was for kids but I just used a plastic half-size bath that was easier to fill and wash than a static full size tub until old enough to use the shower.

For one reason as you said kids
Sickness is another
As you get older you will take more baths ,I don't but my wife does
Sale value in the future
Kerb appeal ,bathrooms and Kitchens sell houses

8-10

brisan wrote: »

For one reason as you said kids
Sickness is another
As you get older you will take more baths ,I don't but my wife does
Sale value in the future
Kerb appeal ,bathrooms and Kitchens sell houses

Yeah maybe a lot of it is preference but elderly people in my family (I'm not quite there yet) use a seat in a wet room shower with support handles, over a bath which is pretty dangerous for those with limited mobility. I have more than one example where the bath - having not been used in over a decade as a bath - had to be removed to make way for the walk in shower.

Unless you have really long showers, baths are always going to be worse for the environment.

On re-sale value, I'd hope that this is something that starts to change in future but you are correct for now. But I'd still say a well desinged and finished shower room would still appeal to many if presented correctly, especially in a smaller bathroom.

brisan

8-10 wrote: »

Yeah maybe a lot of it is preference but elderly people in my family (I'm not quite there yet) use a seat in a wet room shower with support handles, over a bath which is pretty dangerous for those with limited mobility. I have more than one example where the bath - having not been used in over a decade as a bath - had to be removed to make way for the walk in shower.

Unless you have really long showers, baths are always going to be worse for the environment.

On re-sale value, I'd hope that this is something that starts to change in future but you are correct for now. But I'd still say a well desinged and finished shower room would still appeal to many if presented correctly, especially in a smaller bathroom.

While the environment is a major concern ,I do not think it plays a big part in people's decision making when buying a house
A rated house are built because that is the regulations set by the Government
Every new build has a bath because
A ) Its cheaper
B ) Its what people want

8-10

brisan wrote: »

While the environment is a major concern ,I do not think it plays a big part in people's decision making when buying a house
A rated house are built because that is the regulations set by the Government
Every new build has a bath because
A ) Its cheaper
B ) Its what people want

Yeah but many are now opting out of a bath for new builds. I don't disagree with your points I just disagree with the advice that it's "never" a good idea

brisan

8-10 wrote: »

Yeah but many are now opting out of a bath for new builds. I don't disagree with your points I just disagree with the advice that it's "never" a good idea

Have you a link to a new build House without a bath as standard ?
I am only going on my own experience of 38 years of buying 4 family homes and flipping 30 plus properties
A bath will always be prefered to a shower ,both if possible granted
Maybe you are right and trends are changing and I am behind the times

Paul_Mc1988

I never really saved I just didnt waste money and it built up in my current account. After going back to college post downturn I got a job in 2015. After 4 years I had 75k. Herself saved for two years and had 35k. So 110k in total. Bought a 440k house and used the whole 110k as a deposit. So 330k mortgage (parents paid for stamp duty and solicitors fees)

House was a gutter and we done it up with cost 40k we managed to save the 40k in 7 months of pure frugality. So no loans taken out.

Currently 11 months into the mortgage and with ulster bank you can overpay on a fixed so I'm plowing it off. Should have it played off in 8 years all things going well.

8-10

brisan wrote: »

Have you a link to a new build House without a bath as standard ?
I am only going on my own experience of 38 years of buying 4 family homes and flipping 30 plus properties
A bath will always be prefered to a shower ,both if possible granted
Maybe you are right and trends are changing and I am behind the times

No I mean buyers opting out of the bath prior to the build. You're correct that they're standard but some people are paying extra for a shower instead before the bathroom goes in.

Part of that may not just be not wanting a bath, but instead preferring a stand in shower than a shower where you have to stand in the bath

Shoden

poker--addict wrote: »

sorry brief thread creep but what is or was general point of limiting the FTB support to new builds? Would buying an older house not still drive liquidity, movement, building all around...?

The whole idea of it is to inventivise building. It applying to new builds is the most direct way to do that.

GingerLily

brisan wrote: »

Its not Help To Buy
Its either
Help The Builder
Or
Help The Brickie
Builders have built the HTB in to the price of a new build
When the HTB ends the prices will drop the same way they increased when it was introduced

I'm not so sure, plenty of houses in our estate were 495k 2 years ago and crept up to 500k now and they all sell out for each phase. 500k is above the HTB threshold so they're not using the grant. I'm sure some developments will witness a drop in prices but where the prices are competitive compared to second hand houses in the area (Dublin Suburbs for examples) I think HTB doesn't make as significant a difference.

whomitconcerns

Paul_Mc1988 wrote: »

I never really saved I just didnt waste money and it built up in my current account. After going back to college post downturn I got a job in 2015. After 4 years I had 75k. Herself saved for two years and had 35k. So 110k in total. Bought a 440k house and used the whole 110k as a deposit. So 330k mortgage (parents paid for stamp duty and solicitors fees)

House was a gutter and we done it up with cost 40k we managed to save the 40k in 7 months of pure frugality. So no loans taken out.

Currently 11 months into the mortgage and with ulster bank you can overpay on a fixed so I'm plowing it off. Should have it played off in 8 years all things going well.

Your going to repay about 50k a year... That's fair going!

Paul_Mc1988

whomitconcerns wrote: »

Your going to repay about 50k a year... That's fair going!

That's the plan. We have no loans. A 98 car and an 06 car and no plans to buy new. We have two decent jobs so we are not living frugally but were not living the high life at the same time.

The overpayment is great every month the mortgage payment goes down and we use that to add to the overpayment.

TheW1zard

Sinn Fein are getting me a gaf

Carter D

How does a gift work do they just need a letter from parents to say they are giving this much as a gift towards a mortgage?

How much tax would I pay if got a 30k gift from parent towards a mortgage ?

pooch90

Carter D wrote: »

How does a gift work do they just need a letter from parents to say they are giving this much as a gift towards a mortgage?

How much tax would I pay if got a 30k gift from parent towards a mortgage ?

If its from a parent then you wouldn't have to pay Capital Gains Tax on it. Parents sign a gift letter stating they have no claim to the property.

Carter D

pooch90 wrote: »

If its from a parent then you wouldn't have to pay Capital Gains Tax on it. Parents sign a gift letter stating they have no claim to the property.

Thanks for the reply I thought thought you had to pay tax if it was a good amount.
Does my parent have to do a bank transfer or does the bank care once they have the letter . Say they gave me 15k cash then 15k a few weeks later ?

TheW1zard

Carter D wrote: »

Thanks for the reply I thought thought you had to pay tax if it was a good amount.
Does my parent have to do a bank transfer or does the bank care once they have the letter . Say they gave me 15k cash then 15k a few weeks later ?

You can recieve 300k. Might be a bit more.

Geuze

pooch90 wrote: »

If its from a parent then you wouldn't have to pay Capital Gains Tax on it. Parents sign a gift letter stating they have no claim to the property.

CGT is on the disposal of an asset.

You are thinking of CAT.

The parent to child allowance is 325k or 335k.

Yyhhuuu

brisan wrote: »

For one reason as you said kids
Sickness is another
As you get older you will take more baths ,I don't but my wife does
Sale value in the future
Kerb appeal ,bathrooms and Kitchens sell houses

Baths can be dangerous getting in and out of for older people.

Can I ask for a rental property would a walk in shower be better than a bath? My brother asked me this question. Would appreciate input.