Getting Over Ourselves when it Comes to Housing

"getting on the ladder" is not a flawed idea, nor do I think you understand the point of it.

The number one reason behind it is that it is better to be spending money on repaying a small mortgage (and thus building up equity) rather than just burning it on rent. Secondly, rather than trying to go from zero the a large house, that you buy something suitable for the interim. i.e. while single and/or no kids, that you buy a 1/2/3 bed and only buy the 3/4 bed 10 years later when you have the kids etc. You also benefit from getting the experience of owning a place and discovering what is and is not important to you before you take the plunge on buying the "forever home". Yes, should prices increase over that time, owning the smaller house will give you some padding in that regard, but that is more of a bonus feature, not the primary reason.

The huge problem facing people today trying to buy is that they are stuck in the vicious circle of it being difficult to save for a deposit while renting. Thus, it takes them longer to build up the deposit before they are ready to buy. Therefore, they end up renting for longer wasting even more money and so on. And because this drags on, instead of buying a small place in their 20's/early 30's, they are now still trying to buy in their late-30's/40's and have to go straight for the "family home" which costs even more and requires an even bigger deposit and the circle continues (except once they hit their 40's, the term of the mortgage they can get is constantly reducing).

People already on the ladder will tell you how important getting on the ladder is.

People who were never on the ladder are the ones hurting the most now. And the older you get the more you feel it when you are not already on the ladder.

People who are already on the ladder and need the demand for 1 beds to be sustained (so they can sell on) will tell you how important taking small steps up the ladder is.

The concept of getting a foot on the ladder is a flawed one, as your entire future housing plans (family sized home) are contingent on your starter property still holding its value. If the valuation drops you may not be able to sell it at all, and are effectively tethered to a property that does not fit your needs.

People talk about how its great to be paying toward equity for 10 years instead of rent - very few people buy a 1 bed starter home and then plan to move on after 10 years, anyone doing that will find it almost too late to have a family by that stage. The 1 bed is too small for a family, absolutely. And waiting 10 years would put you approaching 40 or beyond it, as the median FTB age nowadays is ~35.

Unless you have costed it and are certain that the equity you amass in the next 5 years is more than any potential drop in equity if prices crash, then its not worth doing. The OP buying a 1 bed for 150k is not a good investment - exactly the kind of foot on the ladder you should not do, as when prices dip those expensive 1 beds will be the first to drop.

I'm curious to why you think this?

A roof over your head that noone can take away from you means security to most people. For most people the value of the home is immaterial - it's a place of their own that's important. Years and years of paying rent is pointless. I feel so sorry for elderly people who are still renting - it must be a huge worry for them.

I would have serious concerns for someone who has no wish to own a property - it's wreckless And shows no ambition. If everyone took your view society would have huge issues.

When you are renting, the chickens come home to roost when you retire. Unless you have accumilated a large pension or other provision for your living expenses, you are well and truly goosed. And if you had a generous pension and had money, well you probably would have bought a home at that point anyway.

The rental crisis is going to cause an absolute catasphophe in about 30 years when todays renters who cannot buy retire and have nothing left to pay rent.

Ah c'mon, course it is. West Tallaght must have the largest concentration of social housing in the country. Saying you'd get the same anywhere just isn't the case.

You buy a house in Blackrock or Terenure, highly unlikely to have large scale social housing near you.

Jaysis 🤦‍♀️.... I hope that works out for you but your plan could backfire. You would want to live like a pauper and stick all the money you can into your avc to ensure your plan works.

Have you ever sat down and calculated all the rent you are going to pay from potentially age 18 to 60? You could probably have bought 2 houses with the amount you will spend. Your crazy not to buy as soon as you can. Paying rent is paying someone else's mortgage for them - that's all your doing.

I used to ignore the "rent is dead money" comments from the bubble years. Especially when I lived in a 2-bed apartment in a nice area at a knockdown rent from 2010 to 2016. But then the reality of the Irish rental market hit me. I hadn't seen the landlord at all in the time I was there but he knocked into me to tell me that the building had been repossessed and I was given notice. I had to move further out to somewhere I didn't really want to be and even then I ended up in a house share at 32 years old for not much less than my previous rent. That experience taught me to buy no matter what. Not as a snobbery thing but as a security thing. The possibility of being turfed out for no fault of my own was something I couldn't go through again.

Some people would say that Irish tenants have too much protection. I say they have the wrong type of protection. Not being able to turf someone out promptly for non-payment of rent or anti-social behaviour is the wrong protection. Instead we should be able to have long term leases, 20 years or more, like you'd have on the continent. I'd also like to see unfurnished lettings that you can make your own for the most part. In the absence of this, I completely respect the opinion of anyone who wants to own their own place. We don't have the mechanisms in place for long-term renting.

International finance is screwing the world! Billions are being pumped into companies that never make a profit yet have skyhigh stock prices.

I own a car, TV, 3 guitars, a treadmill, exercise bike, stereo system, 3 watches… and other stuff, mine ! to have a place you own, that security, the only outgoings to service the mortgage and running of said house…. That no landlord can decide you, he or both are going…that’s why…people are entitled to own a home as they are anything else.

Citizens need to become priority now to get housing.

Fair play but do people really not factor their time and place a value on it?

Three hours per day, 15 hours per week driving to work is an absolute age over a lifetime. How much is an hour of your time worth monetary wise? Something I would consider when calculating time spent commuting. Sounds like you're devaluing yourself tbh.

I think it’s a smart move OP, much better than renting. Drogheda for its flaws it’s a great location. There’s a chronic housing shortage so it’s unlikely to dip in value any time soon. Meanwhile you’re paying for a tangible asset instead of spiralling rents. No brainer to me.

OP- I assume you know that Cromwell sacked Drogheda in the 17th C.

This, it’s a numbers game…

29271 people were granted asylum here between 2017-2020.

About 7318 people a year..or around 22 people a day…

About 5000 new build social houses are made available every year…

im at a loss to see how those numbers can ensure Irish taxpayers are getting fair bang for the buck.

...so we should just accept our governments implementing polices that support such outcomes, i.e. fcuk our youth over??