Getting Over Ourselves when it Comes to Housing

discogurl

Im 32 and got on the property ladder late last year. I bought a small 1 bed in Drogheda last year and I want to share my two cents.

Firstly, the cost of being a homeowner, decorating it, insurance costs, paying your own wifi adds up fast. I was paying 800 for a room in Dublin a few years back and I had an idea that I would be so much better off as a homeowner, reality is I am not

Secondly Dublin, and never wanting to leave Dublin is the problem. I grew up in West Dublin, I seen Saggart as the edge of the world. Now my commute is 90 mins each way to my office on the South Circular Road, but thats only an extra 30 mins on top of the journey to the family home from the office. Also, I kid you not, I and many of my friends had this idea, likely based on holidays to small towns in the 90s, that outside our cities we have nothing. Drogheda is much more Urban, with better facilities and shops and yes avocado toast joints then Tallaght. It even has hipster bars

Here's how I bought, I earn 40,000 a year. I moved home for 3 years. I saved 1700 a month (bar 2 months a year with christmas costs and 1 holiday), I gave my folks 300 towards the bills and lived off 650 a month. After 3 years I had 50,000. I bought a 1 bed for 150,000, though the asking price was at first 130,000. My fees and solicitors cost 5000. I put 30,000 down. I spent 5000 between Power City and Ikea and put 5000 in a deposit towards a car for commuting. The other 5000 is my rainy day fund for anything that may go wrong.

Heres the point, all my childhood friends are renting in Dublin, rooms mostly or living at home. All are complaining yet all can do what I did, and most are saving but would never consider a 1 bed, never consider moving an hour out of Dublin (or even moving to Balbriggan) and will never consider a kip that a few grand in Ikea can add some sparkle to

I had to accept after years of feeling like I was screwed that we are simply the tech capital of Europe, and in Dublin you are in competition with the highest paid people in the most niche industries in the world, from all over the world. We simply cannot live in it like our parents could, just like Londoners accepted maybe 20 years ago. Its not oppression, its simply the impact of being an open global economy.

EmmetSpiceland

That accent, though.

Xidu

But isn’t every big city being impacted the same?

like in London, HongKong, Shanghai, Tokyo, NY…

working class struggles to buy a just ok house.

And it’s been like this for many many years.

i have colleagues in Shanghai they have to buy house outside the city center and commute 1.5 hrs by bus or subway. If you drive then the traffic is mental and you can’t find parking space.

HK is 100 times worse, you pay 1million for a cage apartment maybe.

You have a great attitude and well done. Myself and my wife done similar.

It is still ok though to be frustrated by the housing situation in Dublin, especially when they're handing out social houses to people not working and the cost of tolls/fuel means we spend a fortune a month for the pleasure of working.

discogurl

https://www.boards.ie/discussion/comment/119016458#Comment_119016458

Exactly my point, but I think we are dealing with a after effect of prosperity. My parents live in what is now a decent part of Dublin, one of the nicer estates in Tallaght. When they bought in the late 80s their families would have looked on it like moving to a commuter town. Also those houses where cheaper because people had 10 kids to a house sharing rooms, couples could not divorce, single people lived with their mam (like Whacker in Christy Moores Joxer song). Maybe, and I could be wrong, everyone going to college has made them have higher expectations

discogurl

https://www.boards.ie/discussion/comment/119016463#Comment_119016463

And the fact that the train from Drogheda to Heuston is 270 quid a month is a joke, and then the fact that you would always have another 20+ mins to get from the station to work. A lot of what is needed in this country is better transport and better commuter towns and not free housing for the work shy to keep parts of Dublin as ghettos

magicbastarder

fair play - but it shouldn't be like that. having to do a three hour daily commute in a car will be bad for your health, mental and physical.

a 1 bed in a commuter town for 150k is ludicrous.

Mongfinder General

Higher and unrealistic expectations.

Xidu

This is called opportunity.

Not sure if you know about Shenzhen in China. 80% products are manufactured there. Back in 1980 it was a village and people live there were considered poor. China government decided to make it a city for overseas investors to build factories, local people became so rich by just selling the land or rent the land to investors to build factories and houses. Still after 50 years the locals don’t need to work, they have so much rent money.

and people who moved to Shenzhen earlier then of course is much richer than the new generation as they had opportunity to invest while things were still cheap.

I think that’s why nowadays people are moving away from big cities.

https://www.boards.ie/discussion/comment/119016480#Comment_119016480

riclad

the situation is worse in dublin since theres a height limit on buildings, other modern citys allow 20 storey apartment blocks to be built, in certain area,s , the tech companys could allow workers to work from home 4 days a week ,this would allow people to move to rural areas instead of all competing for scarce housing in city centre areas. theres no such thing as free housing, every local authority charges rent based on the annual income of the adults living in the house . look at america, the cost of housing is rising, even middle class workers will find it hard to afford to buy a house unless they are willing to live in a small rural town.

https://www.cnbc.com/2021/11/10/home-prices-are-now-rising-much-faster-than-incomes-studies-show.html

In effect, the pandemic-induced run on housing only worsened the affordability crisis for many potential home buyers, even with record-low interest rates on mortgages.

To afford a home in 2021, Americans need an average income of $144,192 — far more than the median household income of $69,178, Clever Real Estate found.

i think buying a 1bed for 150k, is a better choice than paying rent for 20 plus years

SuperBowserWorld

Re rail travel

You can get a 12 month commuter rail ticket for the price of 10 months and it's deducted from your gross salary, so you effectively don't pay tax on it.

Or at least you used to.

And yeah, heuston station is in a stupid location. But now you have the cross town Luas

And all the interesting things to see on the Luas. 😨

wotzgoingon

I cannot get on the property ladder and I'm not entitled to a council house or what ever they call them these days. I know three people who got houses and flats off council. Two single males I know each got a one bed bungalow off the council and my cousin and her daughter got a flat. She has a partner but not officially. Where did I go wrong. I should have stayed sitting on my ass and applied for a council gaff.

SuperBowserWorld

https://www.boards.ie/discussion/comment/119016641#Comment_119016641

It's not a property ladder.

It's a greasy pole.

Buddy Bubs

You've a good attitude disco gurl, the reality is the housing market is a mess but you've twigged it and done something about it, made some compromises and are happy with what you have.

magicbastarder

And the fact that the train from Drogheda to Heuston is 270 quid a month is a joke

you sure you don't mean connolly?

discogurl

https://www.boards.ie/discussion/comment/119017129#Comment_119017129

Yes I do! I drive so I had only researched prices

landofthetree

A 1% rise in interest rates will reduce the borrowing capacity of the average buyer by 100k.

That will take the heat out of it.

magicbastarder

https://www.boards.ie/discussion/comment/119017137#Comment_119017137

it's €2110 a year drogheda to connolly (works out at €176 a month if you buy an annual pass). and since you're on 40k, with taxsaver that'll actually cost you about half that, about €20 a week.

Ubbquittious

Its still a load of sh1t. Being the tech capital of whatever is overrated. People queuing up way over the odds for a simple brick box to live in is not something to strive for.

Tisnt just Dublin either if you try to rent out a granny flat for 1K a month in the backarse of nowhere you'll get about 100 enquiries on daft and your phone will redden.

wotzgoingon

https://www.boards.ie/discussion/comment/119017287#Comment_119017287

I agree. I have been searching for a place for a year. Admittedly not constant but I have sent many emails on Daft.ie and went to view a few different places in all different counties. I travelled in the beginning really far and when I got there I found out it is a open house and loads are looking now I just ask is there is many people interested and answer is always yes so I just leave it. My option now is save up and pay a really high rental price as I'm hoping anyway that there is not a tonne of people going for an expensive place.

Madness that you have to pay a really high price just to secure a place to live. I'm lucky though that I'm not stuck for a place as then I would be homeless.

riclad

As far as I know if you are a single male you in reality have to be over 65 or on disability allowance to get offered a local authority apartment but maybe I'm missing something . Dublin is a modern city with many people on high salarys but since 2007 building has not kept up with demand , the no of private or council housing units being built is low. Many small landlords have left the industry since the regulations and taxation system is mediocre. When bedsits were made illegal many landlords opted to sell up rather than build conversions adding bathrooms for each tenant

BattleCorp

https://www.boards.ie/discussion/comment/119016511#Comment_119016511

You sometimes gotta take some pain to get some gain.

I bought a nice three bedroom house in a small town in the South East for €195k back in 2009. Those houses are now making about €230k - €250k. Not a mad price increase. The downside is that it's about 1.5 hours into the city from there. So that's an approx. 3 hour commute every day.

I stuck the job for about 10 years until something good came up closer to home. Was it tough, yes the commute was tough at times. But it was worth it. I now have a house in an area I like, am not paying mad mortgage repayments and have a job closer to home.

I'm not saying "Look at me, I'm brilliant", I'm just saying I could have sulked and not done anything to improve my situation but I didn't. Not everything is going to fall into your lap. Sometimes you just gotta take the pain of a commute until something better comes along.

timmyntc

OP paying 150k for a 1 bed well outside of the cities is not something to boast about.

Neither is the "getting on the ladder" plan. last time, it was the people trying to get on the ladder who got stung by price drops and negative equity for years. A 150k 1 bed is definitely a contender for negative equity if prices crash.

As for the rant about being a "tech capital", even the well paid tech workers cannot afford houses in the city anymore. Also the likes of London is actually more affordable than Dublin relative to salaries paid there. The current situation in Dublin and infact in all of Ireland is not normal - property markets are not supposed to function this way.

BattleCorp

https://www.boards.ie/discussion/comment/119018140#Comment_119018140

Correct me if I'm wrong but isn't negative equity is only a problem if you have to/want to sell your house/can't pay your mortgage?

timmyntc

https://www.boards.ie/discussion/comment/119018902#Comment_119018902

It also affects the interest rates you can avail of, lower LTV will usually yield you lower interest rates and in turn lower repayments.

Also the OP talked about "getting on the ladder", which means they have some intention of selling and moving to a bigger place in future. Negative equity will leave you unable to sell.

discogurl

https://www.boards.ie/discussion/comment/119018962#Comment_119018962

For me getting on the ladder is a stage of adulthood, it doesn't mean moving to somewhere new. For it means making it as a homeowner

Fair play to Op

Hope it works out well for you

Furze99

https://www.boards.ie/discussion/2058244496/getting-over-ourselves-when-it-comes-to-housing

You're right OP, we did similar 25 years ago, except the other direction south. Helps to work from home office, but reality is that it can be a pain when family events arise as it effectively takes the arse out of the day. You can't just pop over for an afternoon or evening.

As far as I can see, if you're from the likes of Dublin, the only way you'll live near relatives now is either to be pretty wealthy or on social housing list. If you want to or need to pay your own way, then be prepared to move away.

timmyntc

https://www.boards.ie/discussion/comment/119018997#Comment_119018997

Well I hope for your sake you dont need to move up to a larger place in future, because a 1 bed at that price potentially has a long way to fall in the event of a price crash.

Typically when people talk of getting on the ladder the idea was you bought a small place/apartment at first, and then after a few years sold up and moved to somewhere bigger with the equity you had acquired. It was a flawed idea that relied mostly on prices rising constantly

NIMAN

Unfortunately we live in a country where the media and many politicians continually push the argument that its every citizens right to own their own home.

Furze99

https://www.boards.ie/discussion/comment/119019025#Comment_119019025

Take no notice of jealous/ spiteful begrudgers.

discogurl

https://www.boards.ie/discussion/comment/119019038#Comment_119019038

I think everyone should own their own home, I think as a country we need to change culture and rights for renters if we do want the private rental market to make up a large section of our housing market

magicbastarder

https://www.boards.ie/discussion/comment/119019043#Comment_119019043

i don't think people are taking away from what she's done, they're saying the fact that she had to do it that way is not ideal.

Glaceon

deleted

2ndcoming

https://www.boards.ie/discussion/comment/119019025#Comment_119019025

I am not begrudging anyone, the system is broken and jumping through whatever ridiculous hoops you have to rather than advocating to change it is just becoming part of the problem, frankly. "Ownership" as a notion is also part of the lunacy we get wrapped up in. Ownership to what end? For the sake of it? You admit you knew nothing about Drogheda, it barely suited your needs and yet you committed a huge chunk of your future earnings to the idea anyway. This is akin to summit fever where mountaineers get so engrossed by the idea of achieving their dream they give up their life trying to do it. Sometimes you have to take a step back and list the pros and cons fully with a clear head.

Also listening to anyone over 60 complaining about younger generations is definitely a sign you're listening to too much Newstalk. Anyone of their generation halfway useful could afford a house and family on a single income and many of them are the ones charging the exorbitant rents to this generation on their investment properties now. They're part of the problem, not the solution.

Fandymo

https://www.boards.ie/discussion/comment/119019025#Comment_119019025

I feel sorry for people with this mindset. I NEED to own a property. I want people to know I OWN a property. I judge people based on if they OWN a property. It screams massive insecurity on the part of the person spouting it.

Ah yes, globalisation is great, get over the downsides.

Furze99

https://www.boards.ie/discussion/comment/119019335#Comment_119019335

Absolute rubbish - the OP has looked after their needs and are simply explaining some of the upsides and downsides.

You can do the same if you wish. Or like others, just moan on about how dreadful the housing market is and sit on yer hands. If/ when you reach older age, then you'll learn who made the best decisions in life. God helps those who help themselves.

Mad_maxx

150 K sounds very expensive for a one bed apartment in Drogheda but perhaps its a very high quality unit ?

nothing wrong with Drogheda as a choice , good big town and not far from the capital

Cape Clear

https://www.boards.ie/discussion/2058244496/getting-over-ourselves-when-it-comes-to-housing

Good for you OP. I'm a firm believer that the wheel always turns when it comes to things like house prices. Looks like you have taken on a manageable amount of debt.

89897

Well done OP and thats great for you but its not going to work for everyone and is quite Dublin centric. The system is broken in this country and the cost of housing is far through the roof.

In my case i work and live in Dublin, and have done for over 10 years. Im from the west coast so moving home to save isnt an option for me. I rent with my partner and want to buy what will eventually become our family home, so 150k or even multiplies of it wont work. We have more than enough for a deposit and both decent wages in secure jobs but houses within a commutable area are simply out of budget! We dont just want to be property owners, we actually want our family home.

To me, its not a ladder, its an end point.

There are also so many more considerations to take into play, being near family/friends, not having a mental health damaging commute, having a community of people around, decent access to health and leisure. Theres no reason that in any modern country asking for this is looking for too much. They are the basics.

thegetawaycar

https://www.boards.ie/discussion/comment/119019038#Comment_119019038

Just adding to what you said : In their preferred location too

magicbastarder

well, the OP was banned so they're not going to have much chance to respond.

touts

But if you waited a couple of years then Sinn Feinski and Putin before People will give you a 5 bed mansion with a garden for a trampoline next door to your parents. Just vote for them and you'll be sorted. And all for free because someone else will pay for it all.

Oh wait. I see you have a job. Sorry about that. You fall into the someone else definition. Empty your pockets like a good socialist there please.

timmyntc

https://www.boards.ie/discussion/comment/119019887#Comment_119019887

wha??

I see sheep

https://www.boards.ie/discussion/comment/119019887#Comment_119019887

Yawn.

FF & FG are great I agree, lets keep them in for another 100 years.

Furze99

https://www.boards.ie/discussion/comment/119019827#Comment_119019827

Banned? Based on post which seems as genuine as any, this place is a mystery sometime.

SunnySundays

https://www.boards.ie/discussion/comment/119017141#Comment_119017141

I would love to see how you calculated this?!

Fair play op but think it comes down to personal choice. Your commute & the lack of a spare room would be huge downsides for me.

firminjo

Good god man, drogheda is very grim

wotzgoingon

https://www.boards.ie/discussion/comment/119021055#Comment_119021055

It was obviously not this thread that led to the banning. Depends on how bad the offence was. I've been banned many times over the years in different forums and it's usually a banning for a week or two weeks or sometimes a month to be banned completely off the site takes some deliberate action.

Fandymo

https://www.boards.ie/discussion/comment/119019468#Comment_119019468

"I wanted to be a homeowner because ownership is very important to me, for me ownership is more important than location or the type of property."

No, the poster, in a now deleted post, clearly stated that she didn't give a shiny shite what type of property she owned, or where in the country it was. She just wanted to OWN a property. Didn't matter what type or where, once they OWN the property. It's a form of mass psychosis in Ireland. She hasn't looked at what she needs, or what's best for her now/in the future, she just jumped in because she'd OWN a property.