# Should we buy a home or continue to save?



## SteveW9 (20 Nov 2008)

My girlfirend and I are trying to decide whether to buy a house now that prices are falling dramtically or continue renting. W
e currenly save 1k each a month. 
If we dont buy what should we do with our savings? 

Age: 33
Spouse’s/Partner's age: 34

Annual gross income from employment or profession: 60000
Annual gross income of spouse:80000

Type of employment: PAYE worker

In general are you spending more than you earn or are you saving? YES

Rough estimate of value of home :renting

Amount outstanding on your mortgage: 0

Monthly rent:550 each 

*What interest rate are you paying? 0*

Other borrowings – 0
Credit card - 0 

Do you pay off your full credit card balance each month? yes 
If not, what is the balance on your credit card? 

Savings and investments:
50,000 between us 
Do you have a pension scheme? 
Yes
Do you own any investment or other property? 
no
No of children: 0


----------



## Guest116 (20 Nov 2008)

*Re: Really Need some Advice*

With an 80k salary you should be saving more than 1k per month. After the 550 rent thats about 3950 net per month - where is it all going?


----------



## Flax (20 Nov 2008)

*Re: Really Need some Advice*



aristotle25 said:


> With an 80k salary you should be saving more than 1k per month. After the 550 rent thats about 3950 net per month - where is it all going?


 
That's exactly what I was thinking.

I earn less than 80k per month and I easily save €1750+ per month.


----------



## SteveW9 (20 Nov 2008)

*Re: Really Need some Advice*

yes i think its definately time to cut bacl on some things 
I'm on 60k and save 1k a month 
my girlfriend who is on 80k tells me she saves 1k a month....maybe she is isn't telling the truth


----------



## PaddyW (20 Nov 2008)

*Re: Really Need some Advice*

The general vibe is that house prices will continue to fall, so may be worth holding off for now. But, if you do plan to stay in the house long term and it will be your home as such, well, then I guess buying now wouldn't be so bad. Just haggle a lot!


----------



## MugsGame (20 Nov 2008)

*Re: Really Need some Advice*



> I earn less than 80k *per month*



Poor you! 

All: Please remember discussion on the future of the housing market is suspended. Plenty of other sites out there if you want to talk about this hot topic. MugsGame (moderator)


----------



## SteveW9 (20 Nov 2008)

*Re: Really Need some Advice*

didn't realize it was sorry


----------



## SteveW9 (20 Nov 2008)

*Re: Really Need some Advice*

Why is that by the way?


----------



## MrMan (20 Nov 2008)

*Re: Really Need some Advice*

If I was in your position with such low rent and high wages, I would stay where I was for 12 months and save as hard as possible. You will be in a great position then regards deposit and if something comes along in the next few months that really takes your fancy then keep an eye on it and go for it if you feel the price is right. I wouldn't buy because you think the prices are falling only buy together if that is exactly what both of you want for more personal reasons.


----------



## SteveW9 (20 Nov 2008)

*Re: Really Need some Advice*

Thanks we are on good wages now but both of us in IT so who knows if the IT market will collaspe like the consrtuction or financial ones. 
I think we really should hold on a year anyway although we would love to own our own house now.


----------



## Mr DT (20 Nov 2008)

*Re: Really Need some Advice*

You should draw up some kind of agreement so, god forbid, if things go pear shaped with the girlfriend in the future, it doesn't get too messy.

If you are looking at a 500k house you'll will need to use yr 50k as a deposit + with other expense you'll need more. So in a years time aim for 70k, that would give ya a choice of 700k houses (if you choose to borrow 4.5 times joint income, which could be seen as a high level of borrowing)


----------



## SteveW9 (20 Nov 2008)

*Re: Really Need some Advice*

Yes that is a good idea. I suppose you never really know if we will split up. 
I'd be thinkinh more along the lines of getting our savings up to 80k and getting a house for 300k in a year....hopefully


----------



## PaddyW (20 Nov 2008)

*Re: Really Need some Advice*

Yup, 300k house sounds a much better plan all round, well, to me anyway


----------



## Flax (20 Nov 2008)

*Re: Really Need some Advice*



MugsGame said:


> Poor you!


 
Sorry, I meant less than 80k per week!

I still can't get a mortgage though


----------



## Mumha (20 Nov 2008)

*Re: Really Need some Advice*



SteveW9 said:


> Yes that is a good idea. I suppose you never really know if we will split up.
> I'd be thinkinh more along the lines of getting our savings up to 80k and getting a house for 300k in a year....hopefully


 
Nothing is certain in life but it is really difficult to imagine Irish residential property going any way other than down not just over the next 12 months but potentially the next 24 months, in which case you should stay in rented accomodation, but research your preferred area and monitor it monthly over the next year or so. The longer you can save while the house prices are dropping, the less you have to pay back. That 300K house could well be 280K this time next year. 20K in your pocket rather than someone else's.


----------



## deedee80 (20 Nov 2008)

I would save save save!  You are in the lucky position a lot of people wish they were in.  Also, you could be saving a hell of a lot more than 1k per month, I can't imagine what you could be spending the rest on!


----------



## SteveW9 (21 Nov 2008)

I net 3400 per month 
550 - rent
Bills - 250
Transport -200
Food- 200
Entertainment - 800
Save - 1000
Other(must be a combination of the above) - 400


----------



## Bronte (21 Nov 2008)

You should be saving an amount montly that is at least equal to the costs of whatever mortgage amount you propose to have.  This will give you an idea of what you can afford.  You should not necessarily try to get the max amount based on your salary.  As a couple, finances, in my opinion, should be open and transparent.  Based on previous posters on AAM one should think seriously before buying with a partner as versus a spouse.


----------



## PaddyW (21 Nov 2008)

*Re: Really Need some Advice*



Flax said:


> Sorry, I meant less than 80k per week!
> 
> I still can't get a mortgage though



80k per week? Do you play in the premiership??!!

I'm hoping 80k a year is what you mean?!


----------



## deedee80 (26 Nov 2008)

800 a month on entertainment!  Is it just me or is this an awful lot?


----------



## bren1916 (26 Nov 2008)

deedee80 said:


> 800 a month on entertainment! Is it just me or is this an awful lot?


 
Might be an awful lot to some people - even a to lot of people but the chap is single,no kids,renting and is entitled to spend what he likes on entertainment... - I'd rather have my wifey and 2 boys though


----------



## mell61 (26 Nov 2008)

Well in the OP defence I'd say a lot of couple have spent €200 a week on entertainment, a couple of meals out, a movie, maybe a concert... its easy to rack up.   

My tuppence for what its worth, I'd say see if you can both save €1k each per month for the next 12 months... that will get you to about €75k mark in savings, which is a significant deposit on your €300k house, and gives you wriggle room for furnishing / kitting out, without having to depend on credit.
I'd also agree on putting in place an agreement at the start on what happens if it all goes wrong (hopefully not, but...).   Define now what would happen, would you buy her out or she you?  
Also check what would happen if you were to start a family in the next 2-3 years, can you easily service a mortgage on 1 salary?
For the rest, good luck to you both.


----------



## Bob_tg (26 Nov 2008)

What about saving for a wedding too??


----------



## Brianne (26 Nov 2008)

If you are serious about this , then you should be able to live on one salary and save the rest. You can still have a good time and the payback will be a small morgage in two years time. Sit down with the bills , see where you are prepared to economise. Set you a treat/holiday account, a bills account and a joint savings account which you can look at monthly to cheer you up. With very good jobs that potentially may not be there next year, whilst Im not saying live like hermits, if you save hell for leather , you'll be in a great position for whatever.


----------



## deedee80 (27 Nov 2008)

> mell61*Re: Should we buy a home or continue to save?*
> Well in the OP defence I'd say a lot of couple have spent €200 a week on entertainment, a couple of meals out, a movie, maybe a concert... its easy to rack up.


 
I agree with this but the 800 relates to the op alone, he posted that amount explaining where his wages goes every month.  If his girlfriend was spending the same then it would be 1600 a month (19,200 per annum!) on entertainment and I for one would love to know what they get up to  I don't think that anyone is really that serious about saving when they budget 800 a month for entertainment.


----------



## SteveW9 (1 Dec 2008)

deedee80 said:


> I agree with this but the 800 relates to the op alone, he posted that amount explaining where his wages goes every month. If his girlfriend was spending the same then it would be 1600 a month (19,200 per annum!) on entertainment and I for one would love to know what they get up to  I don't think that anyone is really that serious about saving when they budget 800 a month for entertainment.


Thanks for all the updates. 
 800 a month on entertainment is a lot and I have now started to cut back on this big time. Im now planning on just one meal out a month and fewer nights in the pub, i reckon once a forthnight is enough. Im going to shop in cheap supermarkets and by drink there too. I hope to get a nice house in 2 years then with as little a mortgage as possible.


----------



## SteveW9 (1 Dec 2008)

mell61 said:


> Well in the OP defence I'd say a lot of couple have spent €200 a week on entertainment, a couple of meals out, a movie, maybe a concert... its easy to rack up.
> 
> My tuppence for what its worth, I'd say see if you can both save €1k each per month for the next 12 months... that will get you to about €75k mark in savings, which is a significant deposit on your €300k house, and gives you wriggle room for furnishing / kitting out, without having to depend on credit.
> I'd also agree on putting in place an agreement at the start on what happens if it all goes wrong (hopefully not, but...). Define now what would happen, would you buy her out or she you?
> ...


 good advice thank you


----------

