Brendan Burgess, founder of askaboutmoney.com
Last year, the Central Bank set down the following rules in regards to obtaining mortgages.
First-time buyers have to have a deposit of 10% on homes valued up to €220,000, and a 20% deposit on any excess over €220,000; other home buyers must have a 20% deposit on the entire amount.
The Central Bank is reviewing these rules and is to hold a press conference on its review this afternoon.
Further to this…
On Today with Seán O’Rourke this morning.
Brendan Burgess, founder of askaboutmoney.com, and Michael Dowling, chairman of the Irish Brokers’ Association mortgage committee, spoke about the rules.
From their discussion.
Brendan Burgess: “The rules are helping first-time buyers if anything and that might sound, that might appear difficult to understand for somebody who’s trying to buy a house but if I’m the only one that can get 100% mortgage, then it’s in my interest to get a 100% mortgage but if we give everybody 100% mortgages, all that will happen is the price will go up. And that’s not good. The vast majority of first-time buyers are responsible and they understand that they need to save money and acquire a deposit. And if you give, what I’d call, you know, the irresponsible borrowers a 100% mortgage, you push the prices up for everybody. There’d be no increase in supply so it just not does not help the overall problem.”
“When I bought my first house and I’m sure it’s the same for you, when you bought your first house, you had to save for a few years, you didn’t get your first job, and just go out, borrow a 100% and buy a house.”
Sean O’Rourke: “The problem was though, or the problem now is, is that people have to spend so much on renting properties that they don’t have anything left to save.”
Burgess: “No, that’s not actually, that’s not true. I mean if you look at the figures. I mean, people say a guard and a nurse can’t buy a house in Dublin. That’s absolute nonsense. A guard and a nurse, without about three years experience, have a combined income between them of about €65,000. Paying rent for an apartment in Dublin and with their living expenses, they would save around €20,000 a year. So, after three years, they would have a deposit of €60,000, that’s with no previous savings, and with no help from parents or anywhere else. They would save up €60,000 over three years… the point about it is, they would not be able to go out every night of the week, they would not be able to buy coffee on the way in to work or three times a day. They would have to budget, they would have to save. But if they don’t do that, and they’re given a 100% mortgage instead, they’d be scrimping and saving for the rest of their life.”
And what about single folks?
Right so.
Listen back in full here
Central Bank to announce outcome of mortgage rules review (RTE)
UPDATE:
David Murphy, RTÉ’s business editor, reported on News At One that the €220,000 cap on mortgage lending for first-time buyers, who have a deposit of 10%, will be removed in January 2017.
What about single folks?What about families?That’s even before I start going thru is numbers.
What about me? It isn’t fair
I’ve had enough, now I want my share
Can’t you see, I want to live
But you just take more than you give.
you’re punished in this country for not having a family. “not goin out every night of the week” .. thats what he thinks we’re all at. that garda and nurse would have to live on bread and water, and thats only if water charges dont come back, then they’d be able to bet a 1 bed apartment in the suburbs.
https://www.youtube.com/watch?v=z2q7bBVAo74
“Irish banks are very well regulated, Irish banks are very sound….. we’re going to look back in a few times at the state of Irish banks [and ask] how did we not fill our shoes with those shares?”
oh i’m sorry, i didn’t realise i was lying about not being able to afford to save for a mortgage after rent. my fault for being a sexy singleton i spose
and going out every night and buying coffee three times a day?! what planet does he live on?!
was thinkin the exact same. he’s completely clueless. one of those “sure im grand, so i presume so is everyone else”
Wow you’re
So sexy
Saying almost 1700e a month from your net income when neither of the couple is in the upper income bracket? And paying extortionate Dublin rents to boot? That seems exceptionally unlikely.
Are they those stick-on lips you get in cheap Christmas crackers?
Better not go to any weddings, or visit home
This the same guy who banned any talk of a downturn on his website and then went on the news at the start of the crash to proclaim the banks where we’ll regulated and that we should all go out and buy shares in them.
I’m not saying its not feasible but maybe unrealistic given the cost of living in Dublin.
So I did my math and to save 60k in 3 years you would have to put a side €1,666 per month to reach this figure in 3 years. €1,666 x 12 (per month) x 3 (years) = €59,976.00
Based on the combined income of 65k in total from the examples above, the combine wages per month is €4,513 (Based on a 35k salary and 30k salary respectively) http://www.hookhead.ie is where I got the figures.
Average rent in Dublin is €1,464 according to the recent Irishtimes with daft poll.
So, €4513 minus average rent total of €1,464 = €3,049 – €1,666 savings for the 60k = €1,383 expendable income for 2 adults living in Dublin per month. Utilities and food would have to be taken from this amount as well. Lets say this is €600 per month for argument sake. That would leave an actual expendable income left of €783/2 = €391.50 per person
AND.. the 600 pm for arguments sake, is defo lower than what it would be. AND again, if these people had a wedding to go to down the country, or god forbid, if they wanted to have a child, what then?
I was simply outlining the breakdown of expenditure based on a little googling. I think this guy is talking through his bum if I’m completely honest. I completely agree with you on the utilities number for 2 people. Would be more in the region of €750-€850. What I was really trying to do is highlight the actual disposable income left for 2 people. €300 quid isn’t a realistic amount to live on judging by what he said in the above piece. Christmas could be a very difficult time for anyone if they stuck to his 60k in three years plan. A load of horsesh*t and completely unrealistic…now if you don’t mind…I’m going to finish off my 4th bought coffee for the day….(he sips while backing into the shadows)
i agree, he’s totally talking out his bum. and he’s a money advisor. if he’s that clueless, i pity the fools who go to his company for advise.
+1.. Good breakdown there. He is talking out of his hoop.
“€300 quid isn’t a realistic amount to live on judging by what he said in the above piece”
That’s per month too.
And that’s not including petrol, car insurance, tolls etc..
Unless you’re like the other Anne below who walks 50 minutes to work each day.
You could always get yourself a horse I suppose.
They poo a lot
It’s easier to have a kid if you’re unemployed. And probably more prudent to have a few.
but the garda and nurse with combined 65k arent employed, but if they have a baby while tryna save for a house.. logistically impossoble.. well, more impossible than if they tried to save without a baby. they’ve really made this country so difficult to live in.
With the figures broken down like that its seem it wouldn’t be to hard to do. Thats assuming you want no other savings, unforseen expenditure. I Mean around €80-95 free cash a week after paying for everything is not bad.
Saying that, no way could I do it.
it’s unbelievably hard to live on that kind of cash per week – it’s pretty much what I do and you’re screwed for the rest of the week after one splurge. I’m not talking Brown Thomas, I’m talking dinner in Neon and a pint in An Seo one night, or a trip to Penneys.
It’s hard relative to what one may be used to but not impossible. People make much bigger sacrifices in the short term for a medium or long-term gain.
@Tucker Done, I don’t consider 2+ years of bread and water to be short-term
€600 a week, roughly €150 a week, was allowed for utilities and food, hardly bread and water. I agree it’s not easy to change habits in order do this, but it is absolutely feasible and 2-3 years is neither short nor medium term in that light. The question is more around priorities. Having said that, all this does is address a personal situation rather than the clusterfupp that is housing in Ireland at present
very tough to live on that week to week .. and then birthdays, christmas, weddings.. just have to say “no, sorry, im money managing myself for a few years.” id say this plan sounds reasonable and fine to gov. officials, but why does this guy, a money management advisor, think these sums are grand?
According to the AA, the average cost of running a car is €11,000 per year. http://www.independent.ie/business/personal-finance/revealed-how-much-hardpressed-motorists-spend-on-running-a-car-each-year-35020742.html
So assuming you have one family car, if you sold the car and took to a bicycle or bicycles, you could save €33,000 in three years; if you have two cars, it would take you 18 months.
is that figure of 65k a net amount bruce? cos after taxes and pension levies, a nurse and a garda would have to be earning closer to 85k gross. new entrants to either of these services wouldn’t get within an ass’s roar of 85k.
he’s saying 65k before tax = 54K after tax.
Mortgage repayments should never be more than one third of your income (rule of thumb) so 20k a year on a 60k income is about right. Still a shocking amount though especially for people not in permanent well paid work
I think your logic is a bit flawed there. The mortgage payments would be instead of their rent.
+60,000
minus dignity :-)
Burn him! He’s a Witch!
But seriously, he’s talking through his anus. These are not people he’s referring to. He’s talking about a couple of actual robots, who earn 65K, don’t need to eat, just some oil and a recharge. Who don’t socialize in any way at all, never mind going to weddings, wedding gifts.
This is the class system that exists now in Ireland, created by FF and FG. They cannot understand or see from a modern non home owners (tenants) point of view. They are protected entirely from a completely different way of life so they think “how hard can it be?” There’s a massive class divide in Ireland, and its getting bigger. We’re going backwards.
“To the Yeoman class of of 17th century! Tally-Ho!”
Never a truer word, junkface
Bingo and well put…there is no connection to the numbers. Just figures plucked out of the air and say well if you REALLY REALLY want it….Its feasible…You’ll be robbing jacks paper from work and checking the parking meters for change but its all good….in three years you to can have the dream of a crippling mortgage (plus the additional costing that go with it like life assurance, insurance etc)
except you are going from paying 1400 pm rent and 1600 savings; to paying 1600 mortgage.
So once you have your dream house you have a lot more disposable income.
Those figures seem a bit off to me.
A garda with 3 years experience will earn €32,407 gross (http://www.garda.ie/Controller.aspx?Page=12252), circa €26,854 after tax. A nurse with similar experience will earn €30,537 gross (https://www.inmo.ie/salary_information), €25,535 net. That’s a combined total of €62,944 gross, or €42,389 net. (Net salary figures calculated using http://www.virtualaccountant.ie/Tools/tax2016.jsp)
So, with a combined take home income of €42,389, you’d be expected to save €20,000 (47% of your income) p.a.
Add to that, the average rent in Dublin is around €1,400 p.m., or €16,800 (https://www.daft.ie/report/ronan-lyons-2016q1-rental/infographic). That leave you with €5,589 per year to pay for everything else, i.e., food, utilities, etc. That’s €53.50 per person, per week to eat and stay warm, and to travel to/ from work.
Not to mention your 3 cups of coffee a day.
FFS, live in the real world for a while, Brendan, see what it’s like.
+1 I was surprised how everyone seemed to be forgetting about PAYE, PRSI, pension etc…
Surprised everyone seems to be forgetting about the massive overtime payments Garda get…….
If this were a real-life Garda and/or nurse they would be earning more than these figures you quote. In both cases this is their basic wage. Through a mixture of allowances (shoes; rental allowance; plain-clothes allowances; education level allowances) and being paid extra for shift work their gross would go up.
However, if we are talking about an ordinary Joe/Josephine Soap on a total take-home earning of ~32K then your numbers are valid.
oops, Brendan mentioned the 65K.
Asides from food and utilities, are health insurance, pension contributions, or keeping a small car on the road considered luxuries now? Hopefully you don’t get sick or need a dentist in those 3 years. Obviously any nights out, holidays or Christmas are out. Don’t even think about marriage or children. Those clothes on your back will have to last as well. Ignore any articles that show cost of living in Ireland is 5th highest in the EU – then again you won’t be able to afford a newspaper anyway. €60k in 3 years. GFTO.
Seems legit: https://s14.postimg.org/9dsk4vce9/Ire.jpg
Our combined income is approx 95k (before tax obviously). We rent in Dublin. Our lease is up soon so are expecting an rent increase of approx 300-400 per month to 1600-1700 (if we’re lucky). We have a child in a creche, that’s 1100 gone there. Bills, commute, groceries. We don’t go out, cook all of our food. No gym memberships, no expensive holidays. How do we save 20k a year? Our income might seem high but at the end of the month there isn’t that much left. We put some away in savings every month but not enough to be able to afford a house in 3 years time.
and with inflation, by the time you save up what you planned to save, you’ll need to save a bit more
If you had waited to have a child until you owned you’re own property you’d have an extra €13k in annual savings……..
Ah yeah, sure everyone should just stop having children while they’re young and healthy. Or they should have predicted the massive rental spiral before they procreated.
Ireland:
Waste your 20’s on the beer & doing 2 years back packing in Central Asia or Australia instead of being an adult and building up a savings pot to help fund you through the 2 or 3 years you’ve kids in creches……….
Men are fully able to have kids into their late 40’s. Women can typically have kids without issues into their early/mid-30’s. From late 30’s onward their ability to conceive start to decline at a high-ish rate. That provides 10 to 15 years or working age in which to save to fund a future for a family.
But sure, it’s everyone elses fault…….
Must be nice to be so perfect in life. Tell us, how do you manage to be better than everyone else? And how do you know the intimate details of every individual’s past and habits? That’s some skill you’ve got there. Or a mighty big brush for painting everyone with.
How do I manage to be perfect?
Talent, hard work & a bit of luck. Mainly talent though.
Also, your argument seems to be that everyone should go against the natural order of things. Sure, men can father a child into their 40s, but there are trade-offs for having kids at an older age. That’s okay and acceptable to some people but not to all. But since you seem to not operate in the grey areas of life at all, I guess you’re happy with one-size-fits-all suggestions like that.
I’m not saying don’t have kids in your twenties.
I’m just saying don’t go whinging about not having any assets in your 30’s cause you spent your 20’s focusing on yourself and not building up savings.
How many couples on high salaries with good savings in their early 30’s have had kids in their 20’s? Very few that I know of. I do know some but they’re the exception to the rule.
“Talent, hard work & a bit of luck. Mainly talent though.”
Waaaa haaa.. English ain’t one of your talents Andy.
So, everyone should aim for the high salaries to be able to afford a house then? Your average plumber or retail manager or even full-time shop assistant should give up on owning a house?
And so what if people want to have kids in their 20s? Having children didn’t seem to be an impediment to home ownership when I was growing up. My mother was a stay-at-home mother. My father was a factory worker. They managed to buy a home in the 1980s.
That would be completely out of the realms of possibility now. Your argument is that people need to change to suit the economy as it stands; not that the economy should change to suit the needs of the people. Maybe we just fundamentally disagree on the place of the economy in society but to me, the former prospect is very wrong and places more import on a capitalist system than on the people who reside within it.
FWIW, many of the people I knew who went backpacking did so because they had no prospects here, bar taking an internship for a little over what the dole paid or sitting with their fancy degrees in their parents’ houses because they couldn’t find work and couldn’t afford to move out.
No need to give up. Maybe just lower their expectations (i) on location, and (ii) life style unless something is done about the cost of building/developing*.
Houses in Dublin were much much cheaper in both nominal and relative terms in 1980’s.
– Dublin had 1mm people in the 1980’s, it now has 1.4mm yet public transport hasn’t expanded (outside of buses there’s now 2 luas lines which effectively offer the same efficiency levels as a bus lane).
– Building regulations and levies/Part V add approx 40 to 60k to the price of a house – not an issue in the 1980’s. DLR CoCo have brought in near-passive house compliance standards – was your parents house built to passive house standards? No it wasn’t.
– Did a site cost 50k in the 1980’s? No.
– Similarly, did your parents have cell phones, annual holidays, fancy furniture, designer clothes, sky tv, broadband, gas central heating, weekly trips to the nightclub. Probably not.
– Were your parents paying high health & car insurance premiums? No as (i) half the procedures and medicines available today weren’t available in the 1980’s, and (ii) Ireland was a much less litigious place.
My argument is, life is now much more expensive than in the 80’s and people need to accept that the economics of house ownership “are what they are”. Until the costs change then people who’s 20’s are wasteful from a wealth creating perspective will struggle to own a property.
And that’s the reality of it.
*personally I think things should change including (i) building as high as you like wherever you like, (ii) introducing a proper property tax to force out pensioners & vacant house owners from houses others could better use, (iii) introduce a land tax with no exemptions or deferrals for charities, sports clubs or farmers, (iv) removing all levies from development cost and (v) direct social housing development by CoCo’s with proper cost & social management.
Correct on all 80s points. Your suggestions are all rubbish tho. “Build as high as you like anywhere” cmon now…
“introducing a proper property tax to force out pensioners..others could better use ”
That one was the best.. Senicide basically.
Why not send the elderly out on an ice floe altogether when they become too much of a burden.
Or how about forcing out landlords and vulture funds?
We are a couple in our 30s and had our child last year. In our 20s we didn’t earn enough to be able to save for a house. We did save enough for a small family wedding and lovely honeymoon. We are also from that generation that never really benefited from the Celtic Tiger. In college during it and entered the workforce just before the recession so didn’t see inflated salaries and 120% mortgages. It’s only been in the last 2 years where we have seen our income increase by a good bit. We have certainly not backpacked in Oz or Asia or wasted money on other frivolous things.
My point is that a family like ours, well educated, with decent paying jobs, living in Dublin, with a young child, cannot afford to save 20k a year. We could afford to pay for a mortgage but we cannot get the necessary first payment and that is my issue.
“Our lease is up soon so are expecting an rent increase of approx 300-400 per month to 1600-1700 (if we’re lucky). ”
@ Wilhelm.
Just FYI.
The gouger needs to give you 3 months written notice. As you say the lease is up soon, I’ll take it the gouger hasn’t provided you with written notice yet, as you say you ‘expect’ an increase.
http://www.threshold.ie/advice/dealing-with-problems-during-your-tenancy/how-to-deal-with-rent-increases/
They must provide you with at least three comparable rents of similiar properties in your area which have been advertised in the previous four weeks to your review
The written review must also advise you that if you wish to dispute the review you can refer a case to the RTB within 28 days of reciept of the notice or before the date when the review is to take effect. whichever is later.
You can tell him, on your bike until 3 months time. (3 months from whenever you receive the written notice)
Thanks I’ll keep that in mind. Unfortunately other apartments are going for those kind of sums in our building. Closer to 1800 to 1900 per month for a 2 bed. We are currently living in a 1 bed and would like to move to a 2 bed next year. Our landlord is a vulture fund and will do their best to take as much their can.
Of course they will take what they can, the gougers. 1900 a month.. Christ on a bike. No tax being paid on it either.
They invite these vultures into the country, to make a killing off the backs of people here and don’t seem to provide them with the basic information on the minimal requirements they should follow.
3 months written notice is what’s required for any increases. I wouldn’t bother paying any increase until 3 months after I get the notice.
http://www.threshold.ie/advice/seeking-private-rented-accommodation/do-i-have-to-sign-a-lease/
You should be able to move if you want too. Fupping awful situation for some people.. Enda thinks people want to be homeless then. The fupping half wit.
blushirts will look after their fellow td landlords and the tax free vulture funds
He’s right though, people do say a guard and a nurse can’t buy a house in Dublin. He should listen to those people.
The average cost of a dwelling in Ireland is a little under €200k.
Average earnings are €36k.
In most parts of Ireland a couple on average earnings should be able to accumulate WELL above a 20% deposit over a three-year horizon without too much scrimping.
This logic does not hold for below-average wages in high-cost locations (inner Dublin) of course. But about 80% of the population actually lives outside the M50.
What about the commuter belt? Have you seen the prices in Co. Kildare and Co. Wicklow for average rental prices? Or any of the secondary cities? They’re lower priced but not amazing. (https://www.daft.ie/report/ronan-lyons-2016q3-rental) If you want to cut down rental costs, you have to go to the midlands or to parts of the country with a lower population density. That means sacrificing amenities and potentially job prospects. You also increase your need for a car.
3 quarters of people working are on 28k or less.
Averages don’t mean much Fact Checker. You can’t get a caravan for 200k these days.
I remember we got a physics exam years ago and one of the lads asked the teacher “what’s the average mark, sir?” and the teacher looked at him and said “why would you want to know that?”.
“Just because…sir…”
“an average is meaningless; if i put one of your hands in water boiling at 100 degrees and another in ice at 0 degrees, then you’re experiencing an average temperature of 50 degrees which you could probably handle. Except the average temperature to you is meaningless because by now, one of your hands is probably beyond use for the forseeable future and the other mightn’t be far behind”
Nobody asked about averages again for a while…
That was my point.
There is no problem with affordability in large parts of the country.
Obviously if you pick below-average wages and areas with above-average prices you will have an issue.
@Ricky: most people in Ireland do not live within 50km of Dublin city centre.
A good portion of the country’s population does. I can’t find it broken down location by location for 2016 but take the population of just Counties Dublin, Wicklow, and Kildare from the 2011 Census: http://www.cso.ie/en/statistics/population/populationofeachprovincecountyandcity2011/
Combined, from those three counties, that’s more than 1.62 million people in a small radius. In a population of less than 4.6 million, that’s a sizeable chunk in a 50 kilometre radius. That’s not counting Meath or Louth either. Add those two in and it’s 1.92 million people. Without even leaving Leinster.
So maybe it’s not “most” but it’s by no means as small a detail as it appears you are implying.
ETA–Not a 50km radius, apologies, but within 50km, give or take a few kilometres from Dublin.
Oh shurrup whinging Ricky.. just move to the country, eat beans and walk everywhere.. you too can be living the dream of having a semi d, in maybe 5 to 10 years.
And no need for bubble bath either. Those beans will do just the same job with less of the cost, Anne.
Yes Ricky.
You could walk that 50km too.
Take a nurse and a guard living somewhere unfashionable to Broadsheet readers like the Clare/Galway border. Lots of people live happily in these places and have no desire to live in an urban centre by the way.
They will be able to buy a 115sqm house less than ten years old for maybe €180k.
Five years savings to get them to €80k will then leave them with a mortgage of maybe €700k a month. This is affordable by any standard.
Fact Checker, I really don’t think you’re seeing my point here. People move where jobs are–not generally because they want to be somewhere fashionable (though of course there are always some who will move for the sake of being somewhere fashionable. They’re small percentage though).
The point I’m trying to make is that it is all well and good buying a $180K house on the Clare/Galway border if you have good employment prospects there but what about the rest of the people who can’t say the same? The population density isn’t higher around Dublin because people are moving there for the craic. People live in those more expensive places because they have to.
Also, speaking as someone who moved across the country for the sake of a job (away from Dublin, actually), I can tell you it’s not an easy thing to leave your entire support system–family, friends, etc.–to start anew somewhere unfamiliar. Not everyone can up sticks and just move somewhere cheaper.
Move to the Clare/Galway border. lol And do what on the Clare/Galway border?
Be a hunter, gatherer..? Live off the land?
The majority of jobs in Ireland are outside the 50km radius of Dublin too.
It depends on your industry of course. You won’t get much work in TV production in Monaghan, but you won’t get much work mushroom farming in Dublin either.
Yes of course moving is not easy, but none of us is assigned a lifetime job and location by a central planning bureau.
In my (limited) experience, friends of mine outside Dublin have a generally higher material standard of living than those inside even though wages are lower. The big difference is their much lower cost of housing.
Unfortunately us Irish are social animals. I couldn’t stay in for 3 years, let alone 3 weeks :(
I like to own and drive a car, too. My luas to work alone is 25 quid a week. I like to have health insurance too :(
I guess I’d have to forget about going to any local sports teams matches
But……..I do have cousins from mainland Europe who could easily live on a pittance, they’re pretty scabby in fairness but they can’t believe the money we spend on a night out, let alone have a night out, money we spend on birthdays, christenings, communions, CHRISTMAS, WEDDINGS, gifts, house warmings. We are actually spend crazy as a nation. Which is even worse when we get ripped off left right and centre. Don’t get me started on insurance costs! Even the feckin bus/public transport something most European cities have managed to get right is a rip off.
Bort – get yourself an annual Luas ticket if you can.
It’s €910 [=€17.50 per week] – and you can get tax back so it’s either €459.55 (if you’re paying 40%); or €641.55 (if you’re paying 20% PAYE).
This means if you’re on the top rate of tax it cost only €8.85 per week.
A sister is finally moving into new gaff.
The 3 bed house she was paying €1200 a month up til last month is now back on the market for €1,700.
How on earth are families to try to save as well, assuming 2 incomes plus childcare and the need to eat.
Maybe wait to have kids until you own you’ve bought your own property? It’s not exactly rocket science.
“Maybe wait to have kids until you own you’ve bought your own property?”
Maybe wait to have kids until you can write English. It’s not rocket science.
Touche
In my previous job I earned €1,666 a month net. I paid €600 in rent, €45 for bill pay phone, €100 UPC/ESB, saved €140 and had €195 a week left over. I didn’t get my hair done except a trim twice a year, I bought makeup on 3 for 2 (cheapest brand too) in boots and I bought most of my limited wardrobe from Pennies and often from the sales section in pennies!! The great thing about weddings is you tend to know at least 6 months to a year in advance that they’re on so I would save extra from my €195 a week for them. I walked 50 mins to and from work regardless of the weather and I bulk bought cheap food. I barely went out and if I did it broke me for the month. I met friends for a walk or a coffee rather than dinner & drinks and I planned for Christmas/Birthdays in advance too similar to weddings. It wasn’t fun ( I did it for 4 years until I got a better job). But it can be done. If you really want to own your own home you need to make sacrifices. On that basis I think his example above is very doable. The couple above are on much more than I was and together would be able to save a deposit in 4 years.
Do Penny’s do gear for weddings?
Can you recommend any brand of beans that are good?
Hope you’re enjoying your yeastless existence
So at the end of 4 years you had saved €6,720. Another 12 years and you’ll have a modest deposit for yourself.
Yes, that’s correct – 6,720 in 4 years saving €140 a month. As the example above are on a much higher income than me they could say double that – €280 a month each. Meaning after 4 years they would have a deposit of almost €27k after 4 years of hardship. Give it another 6 months and they have a deposit of 30k which gets them a house of 300k or higher/lower with the help to buy scheme/depending on the LTI limits. 4.5 years of saving €280 each to own your own home sounds pretty good to me. Yes it is hard and a fairly crap existence having done it but if you really want to own a home that’s what you need to do sacrifices need to be made.
However. I forgot that all that is welcome here is complaining so I probably should’ve stuck to the standard moaning and saying it’s everyone else’s fault.
POMA* figures there, right out of the Anglo playbook, He assumes everyone else is grand because he is presumably well cossetted from the realities of living in our little defective republic, not the worst place in the world by any stretch, but compared to the rest of Northern Europe – the set-up is barbaric and governed by an anti-social mindset.
*Pulled Outta My Arse
Anyway. I’m not sure what good dropping the rate to 10% will do to help the housing market if they aren’t being built. If the houses aren’t there to buy, people will be forced to rent anyway.
This lad is living in fairy land
“A guard and a nurse, without about three years experience, have a combined income between them of about €65,000. Paying rent for an apartment in Dublin and with their living expenses, they would save around €20,000 a year. So, after three years, they would have a deposit of €60,000, that’s with no previous savings, and with no help from parents or anywhere else.”
Ye couldnt make that kinda fiction up
“Ye couldnt make that kinda fiction up”
There’s lots of them at it too. TV3 am had that Karl Deeter on a few weeks back talking about the housing crisis. A fupping estate agent on to talk about the housing crisis.
He was spouting the same nonsense. Eat beans, skip the latte, ask for pay increase he said too.
Gobshite.
He’s a Mortgage Broker too
And is a cohort of Burgess
Another ‘expert’ that can’t kick a ball but talks a good game
I keep meaning to tell him I think he’s a stupid c*** on twitter.. He posts utter nonsense there too. Linking to his pals who write their opinion on why rent controls are bad.. bad for their business basically.
These people should be introduced to any audience with a caveat of their biased interests.
http://www.independent.ie/life/home-garden/the-world-according-to-karl-deeter-31130184.html
“”Disabled people should be catered for but the reality is they are not the rump of society. So why do we need to provide disabled access to a private residence that never had any? We have created incompatible regulations which prevent housing on a vast scale. ”
I’ll just leave that there.. not the rump of society.
They should make it 30% for first time buyers – millennials will just get it off the old folks anyway, roysh.
Absolutely feasible for a spherical person existing in a vacuum
Realistically though the average one among us below 30 isn’t getting a house of their own within 100 miles of where we grew up until our parents die or a mysterious spate of murders dramatically lowers house prices.
It’s OK though, I’ve come to terms with it. I can live out of a van. We all can, if we really try.
Enda the goon, admitted to not knowing that the 2 year rent review is up for some tenants next week..
Responding to a question from Social Democrats TD Roisin Shortall, the Fine Gael leader admitted that he was unaware that rent certainty measures for tenants who signed leases in 2014 are set to expire on December 3.
http://www.irishmirror.ie/news/irish-news/politics/taoiseach-enda-kenny-slammed-saying-9313034
It was retrospective to Dec 2014, when brought in in Dec of last year, so the 2 years is up for some people soon. He admitted to not knowing about it. He also mentioned that some people want to be homeless.
Here’s the video –
https://www.facebook.com/socialdemocratsireland/videos/1349855698359531/
People before profit posted this earlier –
David Ehrlich of IRES RIET is Ireland’s biggest landlord. He gets a wage of €753,000 a year, a bonus of €376,500 and owns shares in the company. IRES RIET made €30.8 million in 2015 alone. They got 2,377 flats from NAMA. The government gave these vultures a leg up and now we face a homelessness and housing crisis because of inflated rents. We need rent controls now.
People before profit are idiots. We face a homelessness and housing crisis because of lack of housing.
Do you think that the 2,377 flats that IRES RIET are empty now? or are filled?
It’s disgusting inequality and the concentration of ownership of property drives up rent.
Those 2500+ properties could have been used as social housing.
AND WHERE WOULD THE PEOPLE CURRENTLY LIVING IN THOSE 2,500 APARTMENTS MOVE TO?
They could join the end of the housing list.
An interesting thing about the other lad Michael Dowling
In addition to Mortgage Brokering
He’s an Insolvency whatnot and Debt firm
So even if your Mortgage is affordable or not
He’s got your business
And the Banks commission
A big Buddy of David Hall too
They could be twins even
Even their bluffery indignation is identical
As is a sizeable income source;
Banks
BTW. Pretty poo sick of Radio 1, especially O’Rourke, bringing in the same self-serving conflict-of-interest riddled men who get introduced as “experts” while talking scutter and drumming up business.
What is it with RTE? The same talking heads all the time.
Give someone else a go FFS.
Annuder ‘ting
Tis a long time since Burgess looked like that
A joint income of €65,000 would net down to €4,514 per month (only since the 2017 budget).
In order to have saved €60,000 in 3 years they would have to save €1,666 per month. Assuming they pay rent of €1,800 per month, this would leave them €262 per week to live on, before paying for food, utility bills, phone, car or anything else.
So I guess it is possible to save this money, if you believe it is reasonable for them to live on shit food, in the cold without any modern means of communication or transport. What a fool Burgess is.
But €1800 is above average rent EVERYWHERE in Ireland except south county Dublin. See here: http://www.daft.ie/report
About 8% of the population live in south county Dublin. People who live elsewhere face lower rents. For example in Limerick city they are over 50% lower.
If you pick extreme examples affordability will always look poor.
and that €1800 average is for a 3-bed house. Why would a couple need to rent a 3-bed if they are saving to buy?
I’ve just ran Patrick’s net income calc above; € 4,514.00
and applied the standard RLE (reasonable living expenses) calculator that Banks, Courts, etc all use to work out affordability of loan/ maintenance agreements.
Couple – no dependents or special circs, with a Car; before Rent: € 1,486.62
above but no car € 1,509.59
so say they are paying € 1,000.00 a month to rent a one bed and they have a car
thats €2,027.38 for ‘savings’ (4514-1486.62-1000)
or
€ 2004.41 if they’ve no car
there is also the single Bachelor lad living with Mammy and uses her car foc
RLE: € 938.14 plus what ever he hands up to Mam
or if he has his own car: € 1,050.48
(again assuming no dependents or special circumstances)
still a bit of an ask, but this it what the Central Bank might have used during their process
Do you have a link for RLE calculator? There is only a €23 difference between car and no car above. That looks *very* strange. Running a car costs €275 per year?
found it: http://www.isi.gov.ie/en/ISI/RLEs_Background_Information_July_2016.pdf/Files/RLEs_Background_Information_July_2016.pdf
here is their breakdown for a couple:
Food € 369.37
Clothing € 67.00
Personal Care € 73.70
Health € 49.39
Household Goods € 30.71
Household Services € 40.87
Communications € 61.70
Social Inclusion & Participation € 232.47
Education € 38.13
Transport € 287.05 (with car this is € 238.26)
Household Electricity € 73.30
Home Heating € 106.65
Personal Costs € 1.93
Home Insurance € 12.25
Car Insurance € 0.00 (with car is €25)
Savings & Contingencies € 65.07
Total set costs € 1,509.59
Interesting how no allowance is given to health insurance, life or disability cover or pension contributions
http://backontrack.ie/rle-calculator/?gclid=CNi76bCFutACFc277Qod52MCIA
I’d say this guy won at Monopoly every time AND won the beauty contest.