Couples on 107K can’t afford a home

Potential-Monke

https://www.boards.ie/discussion/comment/122597948#Comment_122597948

20 years ago on min wage I was renting a 2 bed apartment on William St myself. Tips paid for nights out and an eventual second job paid for weekends away/extra purchases. Now it's 850 to rent a room with randoms. Things have changed. The average rent in Limerick is €1907. MISC says I, as a single individual with no other form of income and no dependants, need to earn €23.60/hour full time to meet the minimum needs. The best I can get right now is €14.50/hour because life.

Donald Trump

https://www.boards.ie/discussion/comment/122598030#Comment_122598030

Well everyone has to to start somewhere. Let me know when you have that one figured out and I can send you links for more complicated ones.

Lofidelity

Another expert opinion below. I feel sympathy for people in their 30's, especially single people, who's dream of independence is like a mirage in the desert. I

Only top income earners can afford to buy homes in Ireland, says developer

https://www.irishtimes.com/business/2024/09/14/only-top-income-earners-can-afford-to-buy-homes-says-developer/

GreenPanda99

https://www.boards.ie/discussion/comment/122596690#Comment_122596690

We spent a lot of years telling ourselves that the property ladder was only a social construct.

Then we realized it really is a thing. It was crazy for us to be thinking we were going to jump straight into our forever home. So we lowered our expectations and thought about what we could realistically aim for.

When we had our target property type that we could afford, we then went about saving for our deposit. On my Dads advice we decided that some pain for a few years would be worth it in the long run. We gave up going out for pints (cut it down dramatically anyway). Cancelled Netflix, Amazon, Disney plus and Apple TV. Gave up the takeaways (our now waistlines thank ourselves from 2 years ago for that one). Took one holiday a year at the cheapest time possible (i used top take a lot of time off work to travel. I do again now, but only after we got our deposit and mortgage together). Gave up the Sunday carvery and gave up buying coffees altogether. Just drink it at home and at work now.

That was a lot of money we saved just giving up those things. It was nearly a mortgage every month tbh.

Then when we got enough for the deposit we bought a 1 bed apartment that was in our price range in a location that we wanted.

So now here we are with our own place. Not paying someone else rent. Paying nearly €1000 a month less for the mortgage than we used to rent for and saving the difference every month.

Never bothered getting back the streaming services again. Never bothered with the takeaways or the carverys again. Never got back into buying coffee out again either. But we do go out a bit more now and more holidays again.

So the end result is we now live in our own place, we arent renting anymore aso we cant get kicked out. We are still saving more than we used to even though life is back to normal after the hard saving time. And we are saving also the difference between mortgage and rent.

All because we decided there was actually a property ladder and we needed to get on at the first rung and bot keep trying to reach higher ones out of our reach. We also looked at our spending and our health, so all good now. We will trade up if we ever need somewhere bigger, using all the money we still save (incl nearly €1000 difference in rent and mortgage on top), but in the meantime we have our own place that suits us and we can enjoy life.

Just by way of example - Coffees, takeaways, streaming services were costing us over €1000 per month. Oh and i forgot to mention the gym memberships above that we gave up too and never went back to - turns out a run in the park and giving up the takeaways was all we needed. They were about €150 a month too.

I should say as well that any properties that would have qualified us for help to buy and all the other schemes seemed to have that priced in, so we didnt bother with any of those. Just found something we could buy without any help or hoops to jump though and knuckled down.

Witcher

https://www.boards.ie/discussion/comment/122620594#Comment_122620594

God that was fast, you were only looking to stop renting and buy less than a month ago on page 7 and you got it all boxed off in that time. That was some knuckling down.

Amazing how similar your story is to your 'sisters' in regards to the type of home you bought, your savings on rent every month and how you can trade up if you want, fantastic.

Link >

https://www.boards.ie/discussion/2058364493/couples-on-107k-can-t-afford-a-home

Rocket_GD

https://www.boards.ie/discussion/comment/122620594#Comment_122620594

Netflix most expensive package €20, Prime €10, Disney Plus €14 Spotify €16 AppleTV €8 total €68.

Takeaway twice a week at €30 each is another €60. Throw in a coffee each a day at €4 per coffee and that's €240.

So all your streaming, 2 takeaways a week and a coffee a day each totals at roughly €368 a month.

Just by way of example - Coffees, takeaways, streaming services were costing us over €1000 per month.

Where did the extra over €600 in savings come from in this made up nonsense tale of knuckling down and saving?

Not once did I state that I should be buying my dream forever home. I stated that it was a start and myself and my partner will soon be on the property ladder.

GreenPanda99

https://www.boards.ie/discussion/comment/122597823#Comment_122597823

In the 80s there was another huge difference. If you couldnt afford a house you couldnt get one. Your only option was renting or council from the council stock, and you bought one yourself if you could afford one from the private stock that builders were building.

Now though a hell of a lot of people who cant afford to buy houses and shouldnt be able to be buying houses are getting houses bought for them, out of the private build stock. That leaves less for the people who have good jobs, leads to more competition, leads to higher prices.

Also gone are the tiers. someone who has a house bought for them gets one as good as what other people would pay good money for, for free.

The whole mix and dynamics of the market and who can and cannot afford to buy has totally changed. Its not even close to the same market dynamics as it was in the 80s. And thats not even going into the fact that nowadays if you want to be able to afford to buy you nearly always have to be a 2 person buying unit.

GreeBo

https://www.boards.ie/discussion/comment/122598255#Comment_122598255

https://www.boards.ie/discussion/comment/122598317#Comment_122598317

You are both comparing today to Ireland of literally decades ago.!
It was a very different place with a much smaller population of people vying for property.

GreeBo

https://www.boards.ie/discussion/comment/122598255#Comment_122598255

If you are "close to spending €1K month on rent and bills" where on earth is the rest of the income going?

An individual on €30K takes home over €2K/month. So what happened the other €1K+?

Rocket_GD

https://www.boards.ie/discussion/comment/122621353#Comment_122621353

Ok, so let's add food and household groceries in at €200, public transport, phone, haircut, they all add up very quickly. With frugal living they could probably save €500 a month, it would take them 6 and a half years to save a €40k deposit and that's without any unforeseen large expenses or God forbid they'd want to go on a holiday at some point in those 6 years.

Potential-Monke

https://www.boards.ie/discussion/comment/122621353#Comment_122621353

MESL states a single person needs to earn €14.80 an hour for the minimum standard of living. And that's based on rural household (rent/mortgage) cost of €168/week, or just over €672 a week. Now show me somewhere in Limerick one can rent for that amount on their own/not sharing.

30k is feck all today. I know.

GreeBo

https://www.boards.ie/discussion/comment/122621572#Comment_122621572

"frugal" living is spending over €500 a month on stuff outside of rent and bills?
A phone is €15 a month, I think you are reaching a little here.

Also, this is 1 person earning €30K. Its far more likely that there are 2 people and that they are earning more than €60K between them.

So, even using your numbers thats under 3 years to save a deposit. Not exactly hardship, considering most of us with houses today saved for at least that.

As for "God forbid the want to go on a holiday" nonsense. Either you are saving or you or not.

GreeBo

Are there many cities in the world where someone on the "minimum standard" can afford to live on their own?

Mr. teddywinkles

https://www.boards.ie/discussion/comment/122597784#Comment_122597784

To be fair. They proably look at the price of a house now n say to hell with it. May as well enjoy myself cause that ain't happening

limnam

https://www.boards.ie/discussion/comment/122655562#Comment_122655562

Sounds exactly like them alright.

As long as mammy still doing their washing and looking after em

We're turning into Italy. 30+'s still on mammys nipple

GreeBo

https://www.boards.ie/discussion/comment/122655562#Comment_122655562

I dont see how "to be fair" covers that argument.

Potential-Monke

https://www.boards.ie/discussion/comment/122655587#Comment_122655587

Would you prefer I live rough? Or share with randomers? I simply cannot get a job within my skills and experience that would pay enough for me to live by myself. And as I'm single, and the thread title is couples on 107k can't afford, what hope do I have? That means I need a job with an income of €110k+... not a lot of people earning or will ever earn that.

That's the reality of some of these 20, 30 and 40 year olds that have no choice but to live at home. And no sign it will ever improve. What are they, we, do to?

ednwireland

Interesting in Finland this year stayed in 3 flats that were in blocks of basically bedsits with a fold up bed (separate bathroom). You wouldn't be allowed to build that in ireland

limnam

https://www.boards.ie/discussion/comment/122666428#Comment_122666428

I'd rather be sharing with randoms than depending on my mother.

whats the alternative?

Hang off mammy's nipple till she dies?

The thread title is incorrect.

Couples on 107k can afford a home.

Maybe not the "4 eva" home they were dreaming of but they can afford a home.

Potential-Monke

https://www.boards.ie/discussion/comment/122666952#Comment_122666952

Anyone ever tell you you're very judgemental? You think I want to be there? You think at 41 I wouldn't rather have my own place? The country doesn't want me to, that's the difference between now and 20 years ago. I won't get approved for any mortgage on my current wages and no amount of saving will help me get more of a mortgage than I can.

And who said I'm hanging off her nipple? Lovely phrase by the way, really shows your mentality. It's mutually beneficial, especially since my father passed away. Do you hate your parents so much you'd rather live with randomers? Or maybe in your mind if you're living at home you'd be hanging off your mother's nipple so you can't fathom others not doing the same.

Must be great to have been lucky in life so far. You managed it so anyone else who is struggling is a waster in your book. You sound lovely. I hope you find yourself in the same situation some day, a dose of reality would do you no harm.

PixelCrafter

https://www.boards.ie/discussion/comment/122597762#Comment_122597762

There was also huge inflation in the era when they took on mortgage debts which just evaporated. Most of them mortgaged to the hilt and then by margin their £15,000 loan became so small that it was very easily cleared.

Accessing housing was affordable and while it might have been a stretch for a few years, it didn’t remain so and then became seriously lucrative.

Inflation caused other problems, mostly making savings worthless, but the economic environment in those days was very benign in many ways if you were on the housing ladder.

The state also transferred a lot of assets to people who had been very poor, in the form of easily purchased social housing. That gave many a family an enormous ‘leg up’ as a serious asset became theirs.

Lecturing a younger (and often not all that young, especially in Dublin) who’ve been screwed over renting at huge cost and being caught up in an economic crash is utter nonsense.

Ireland in the 70s and 80s had major economic issues, but generally not for those who did manage to get a foot on the housing market and who had reasonable jobs. They generally saw their boats float upwards and the Celtic tiger era saw their assets becoming very valuable.

GreeBo

https://www.boards.ie/discussion/comment/122667735#Comment_122667735

"the country doesnt want me to"

What does that even mean?

Wanderer78

https://www.boards.ie/discussion/comment/122668127#Comment_122668127

the reality is, if we dont fix this pronto, we ll all end up fcuked, theres clearly something fundamentally wrong with our approach to housing, and its never gonna change, so get ready for the serious societal dysfunctions this will bring, and eventually this will lead into serious economic dysfunctions, so we better get ready for that to!

blanch152

https://www.boards.ie/discussion/comment/122621055#Comment_122621055

Throw in a SKY package, gym memberships, a phone contract etc. for two and you easily hit €1,000.

Rocket_GD

https://www.boards.ie/discussion/comment/122668127#Comment_122668127

I think they mean that current Government policy is not doing what they need to be able to rent/afford they're own home.

I agree with a lot of what the poster says but disagree with the "renting with randomers" being a negative scenario. I've rented multiple places with people I didn't know. It was never a bad experience and it was all that I could afford at the time so it's what I did.

I'd always pick my own independence living out of the family home with "randomers" rather than with my parents in my 30's.

Rocket_GD

https://www.boards.ie/discussion/comment/122668263#Comment_122668263

Sky package at most expensive €120, phones €120, gym €120 = €360 that brings you up to €728 a month at max and that's 2 people pissing away their money to a silly degree. Their post is nonsensical and doesn't add up.

This poster was saying 2 months ago that they were only looking to stop renting and buy, then they magically had a one bed apartment after a year of "knuckling down".

Their "sister" also had the exact same situation, same 1 bed apartment purchased, same knuckling down, same amount in savings they're making now after purchasing.

They're spoofers.

Potential-Monke

https://www.boards.ie/discussion/comment/122668127#Comment_122668127

Single male on just above minimum wage that no one cares about. The choices the government have made have basicslly excluded me from ownership so the country doesn't want me to as far as I'm concerned. No one cares about the single males. Just shut up and pay tax.

And I'll take living at home with the company of my mother, where I can help her in her waning years vs living with God knows who. I too have lived with randos and friends, it sucks eventually. Can only imagine what it's like at 41. I like my privacy.

Ye make it sound like ye hate your parents... must be great to always have life work out for ye too.

Stephen_Maturin

https://www.boards.ie/discussion/comment/122668267#Comment_122668267

It is absolutely an issue for the country if people on average salaries are forced to live with randomers into their 30s because securing independent accommodation is not an option due to an incredibly dysfunctional housing market and rapidly rising population.

This is the age where people settle down and begin families. That is not happening if they’re stuck living with randomers. It’s grand when you’re a student or in your twenties getting on your feet.

It is absolutely not ideal for people into their 30s and certainly should not be waved away or normalised

Rocket_GD

https://www.boards.ie/discussion/comment/122668322#Comment_122668322

I love my parents, I just would choose not to live with them when I've the option to rent somewhere with others.

Everyone's situation is different and yours seems a lot more suitable for your mother and for yourself if you cannot afford to rent a place by yourself, unfortunately.

I think 99% of people would rent a place by themselves over with friends/people they don't know, it just isn't feasible in this economy unless of a very large wage.

Potential-Monke

I don't know a single other person in their 40s renting with randoms, friends or otherwise. I would find it a highly unusual situation tbh. But it looks like it may become the norm. As tou said, my situation suits me and my mother, but I get that not everyone is lucky enough to have the option I have. If I didn't, it would be renting and onto the free house list, not that there's many if any of them available either.

Just rubbed me the wrong way saying I'm hanging off my mother's nipple just because I'm at home in my 40s. I work full time, I pay my way, and it's not like I don't want my own place. I had one. But I had to give it up, take the negative equity hit and only finally debt free since 2001 this year, but that was because I was able to clear it after having been made redundant 3 times in a row in 7 years...

I've tried, I'm still trying, but the country is leaving me behind because I don't earn enough and no hope on the horizon for increased wages, especially not to be able to afford to rent/own again.