Why do renters equate the ability to pay rent to mortgage eligibility?

For Forks Sake

For Forks Sake wrote: »

So were interest rates of 13-18%, so swings and roundabouts.

When interest rates were 13-18% income was increasing at about that level per year. Inflation made those payments insignificant after a while. I am ten years into a mortgage and paying about the same percentage of my income as I was ten years ago.

Flinty997

He watched "Office Space" hence the TPS reports...lol

nolivesmatter

JizzBeans wrote: »

A mortgage also consists of substantial savings/deposit, solicitors fees, stamp duty etc, etc. Making monthly re-payments does not reflect these elements in the eyes of the bank.

Obviously it should be understood that the person would have to have those things in place first. Once those things are established monthly rent payments are as good an indicator that someone can meet similarly priced monthly mortgage payments. Unless you need to see them actually pay a full mortgage first to know whether or not they can pay a mortgage.

Flinty997

[Deleted User] wrote: »

If somebody can afford to make payments on very high rent he can afford a lower mortgage. Same thing.
...

Great now just go convince the banks of that....

Flinty997

nolivesmatter wrote: »

Obviously it should be understood that the person would have to have those things in place first. Once those things are established monthly rent payments are as good an indicator that someone can meet similarly priced monthly mortgage payments. Unless you need to see them actually pay a full mortgage first to know whether or not they can pay a mortgage.

I wonder if you went looking for a 20yr rental would the deposit be the same as normal...

nolivesmatter

nolivesmatter wrote: »

Why the bolded part? Paying a high rent over a long period of time shows reliability. That money would then be freed up to go towards a mortgage. Surely it's less impressive to have been just living at home for free?

Yes. If two couples on 80k are looking for a mortgage, both couples with savings of 50k the banks will clearly look more favourably on the renters.

Flinty997

Flinty997 wrote: »

Great now just go convince the banks of that....

The banks are (rightly) constrained by the central banks. Nevertheless paying X in mortgage is the same as paying X in rent.

ineedeuro

Tacitus Kilgore wrote: »

Would love to know the answer to that myself, even the residents association facebook page regularly refers to 'renters' as temporary residents who should not be added to the estate watsapp group (there's about 400 houses in the estate btw)

The attitude shown by the op both in the thread title, and subsequent posting - shows a disdain for "renters"

Sorry but why would anyone want to be added to a watsapp group with 400 houses in it? :eek:

nolivesmatter

Flinty997 wrote: »

I wonder if you went looking for a 20yr rental would the deposit be the same as normal...

Don't be silly.

ineedeuro

Flinty997 wrote: »

Great now just go convince the banks of that....

The Central Bank was asleep at the wheel in the last crash. They have implemented some guidelines to the bank to stop this sh*tstorm that happened here the last time,.

Doesn't seem to be working does it?

JizzBeans

JizzBeans wrote: »

How exactly? Where is the disdain? I asked a legitimate question in my OP. If there is to be a legitimate discussion around the housing crisis, then all aspects of it must be included.


An element of the of the problem is in fact a sense of entitlement and unrealistic expectations. These are just facts.


Why are you choosing to take offense here?

Your question wasn’t legitimate. And if you are a house owner then it’s smug. There’s no sense of “entitlement” in hoping to buy a house. It’s what should be possible, as it was, for most workers.

c.p.w.g.w

Nika Bolokov wrote: »

Your spot on.

Deco if he qualified as en electrician at say 21 or 22 would be on about 55k these days in no time working for someone else and then doing nixers on top of that. If he works for himself hes likely earning even more.

Fintan who has a Business degree gets 2% pay rises every now and again at Big Box company X, earns less than Deco and is treated much worse but feels superior.

His day to day job involves producing TPS reports that nobody reads or can remmber asking for and he is at a loss as to how Deco who does something actually useful is earning more given he did everything right. (Likely has a Masters too).

I was sold the who thing if get a degree and travel...did that...packed in my job a few years ago to get a factory job(the look I get off some folks)...

But without any experience vin the field I started an alright salary(relative to industry) but it was 47% pay increase from my previous job...I go to work, do my job, manage my machine and go home... previous job had phone calls at 9-10 at night to discuss KPI's...

Will soon be permanent and have pension and health insurance

Flinty997

ineedeuro wrote: »

The Central Bank was asleep at the wheel in the last crash. They have implemented some guidelines to the bank to stop this sh*tstorm that happened here the last time,.

Doesn't seem to be working does it?

Well the Govt was complicit in that.

What this thread is looking for, is basically what happened the last time, lifting of the restrictions, so that people can borrow up to the maximum their paycheck allows and ignore any adherence to common sense.

Last time it over fueled the market, and thats what it would do this time. This thread wants to borrow to buy an extremely overpriced property at the peak (or near peak) of the market. If it falls at some point in the next 5yrs, there will be many who will wish it was a rental.

But if people won't listen that fire will burn then, let them learn for themselves. Its not mistake you'll make twice. (usually).

Wanderer78

JizzBeans wrote:

Are they valid points? Its a little more complicated that points suggest I would have thought.

All valid, buyers are getting screwed, and screwed nicely, the next ge will be a blood bath

Tork

fvp4 wrote: »

Your question wasn’t legitimate. And if you are a house owner then it’s smug. There’s no sense of “entitlement” in hoping to buy a house. It’s what should be possible, as it was, for most workers.

Being a teacher or any sort of public servant makes it far easier to get a mortgage anyway. Unless you're utterly ****e at your job, you're not going to lose your job. Your job is about as gold-plated and secure as it can be. As a teacher, you get an increment of approx. €1,000 every year and it takes a long time before you reach the top of your payscale. Again, unless you balls (or jizz) things up, you're not going to lose out on that.

Wanderer78

Tork wrote:

Being a teacher or any sort of public servant makes it far easier to get a mortgage anyway. Unless you're utterly ****e at your job, you're not going to lose your job. Your job is about as gold-plated and secure as it can be. As a teacher, you get an increment every year and it takes a long time before you reach the top of your payscale. Again, unless you balls (or jizz) things up, you're not going to lose out on that.

Many Public sector workers, including teachers, are currently unable to purchase, so......

Tork

Not according to Jizzbeans

Flinty997

fvp4 wrote: »

Your question wasn’t legitimate. And if you are a house owner then it’s smug. There’s no sense of “entitlement” in hoping to buy a house. It’s what should be possible, as it was, for most workers.

It was possible in Vegas before it became Vegas.

Its a bit like traffic complaining about traffic. All these people complaining about prices, are demand which is part of the reason for the prices.

Same thing has happened internationally, and the one place Austria, which had approached it differently and had some success initially, eventually had the same issues with investors, and demand. If you want to buck the tend, you have to do something different than, following everyone else on property ladder in the same locations.

Wanderer78

Flinty997 wrote:

if you want to buck the tend, you have to do something different that, following everyone else on property ladder in the same locations.

Our governments have been following the herd for decades now, so here we are, a right mess

Tork

There's going to be carnage at the next general election but I think people are going to find out that SF are as ineffective as the rest of them.

Wanderer78

Tork wrote:

There's going to be carnage at the next general election but I think people are going to find out that SF are as ineffective as the rest of them.

Definitely carnage, but I have a feeling sf will surprise us all, they're definitely doing their homework in regards housing

Flinty997

nolivesmatter wrote: »

Don't be silly.

I'm not the one making daft comparison between renting and 20~30yr mortgage.

Banks in Ireland don't allow you hand back the keys either.

Flinty997

Wanderer78 wrote: »

Our governments have been following the herd for decades now, so here we are, a right mess

Worse they lead the charge. It was worse last time.

This time at least they kick started the economy. But unfortunately they used housing and property to do it. The main losers being the people in need of housing.

But hey we keep voting them in.

Flinty997

Wanderer78 wrote: »

Definitely carnage, but I have a feeling sf will surprise us all, they're definitely doing their homework in regards housing

The polls look good anyway...

JizzBeans

JizzBeans wrote: »

How exactly? Where is the disdain? I asked a legitimate question in my OP. If there is to be a legitimate discussion around the housing crisis, then all aspects of it must be included.


An element of the of the problem is in fact a sense of entitlement and unrealistic expectations. These are just facts.


Why are you choosing to take offense here?

Your question wasn’t legitimate. And if you are a house owner then it’s smug. There’s no sense of “entitlement” in hoping to buy a house. It’s what should be possible, as it was, for most workers.

Wanderer78

Flinty997 wrote: »

Worse they lead the charge. It was worse last time.

This time at least they kick started the economy. But unfortunately they used housing and property to do it. The main losers being the people in need of housing.

But hey we keep voting them in.

i think its coming to an end now, they and their ideologies are done, a complete failure, theyre causing their own falling now

...Ghost...

Mackwiss wrote: »

The joys of the internet is that you can create a thread like this, write a comment like this, and on top of all of this, pretend to be a homeowner teacher to try and validate your point.

Well done OP. You win the internet today.

You should have used the internet to do your own checks. The OP said she was a teacher 7 months ago. Makes you look a bit foolish

goose2005

Oymyakon wrote: »

Most working people can pay for a mortgage, the issue is that if everyone was offered mortgages, house prices would go up even more due to increased competition.

if only there was some way to produce more houses. Oh well.

JizzBeans

Tork wrote: »

Being a teacher or any sort of public servant makes it far easier to get a mortgage anyway. Unless you're utterly ****e at your job, you're not going to lose your job. Your job is about as gold-plated and secure as it can be. As a teacher, you get an increment of approx. €1,000 every year and it takes a long time before you reach the top of your payscale. Again, unless you balls (or jizz) things up, you're not going to lose out on that.

Here we go... teachers are lazy, teachers paid too much bla bla bla

For Forks Sake

For Forks Sake wrote: »

So were interest rates of 13-18%, so swings and roundabouts.

meh, during the 1980s:

earnings increased 10.3% on average per annum, driven by the pressure on earnings from high inflation

https://www.cso.ie/en/releasesandpublications/ep/p-hes/hes2015/aiw/


They were able to buy houses for a song, interest rates were high but so was wage growth.