# Want to buy 1st house within 5yrs, need to organise personal finances



## john77 (27 Sep 2009)

Age: *32*
   Spouse’s/Partner's age:  *N/A*

   Annual gross income from employment or profession: *23,000*
   Annual gross income of spouse: *N/A*

   Type of employment: e.g. Civil Servant,  self-employed: *private sector employee*

In general are you:
(a) spending more than you earn, or
(b) saving?

*Saving*

   Rough estimate of value of home
   Amount outstanding on your mortgage: 
                What interest rate    are you paying? 
*
N/A, renting a room for EUR250 per month.*

   Other borrowings – car loans/personal loans etc

*N/A*

   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: *Regular Savings with Anglo Irish, about EUR500 p/m
*
   Do you have a pension scheme? *Used to work for Eagle Star & was paying into a pension there, but that was three years ago & haven't transferred it elsewhere.  Not sure if I can at this stage, or if i'm better to open a PRSA with Zurich & see if I can transfer over.  There's a pension scheme where I work now, but I think it's only thru Irish Life. *

   Do you own any investment or other property? *No*

   Ages of children: *N/A*

   Life insurance: 


                                            What specific question do you have or what issues are of concern to you?

I want to be in a position to buy a property within 5 years (within 2-3 if possible).  I've only started looking at my finances earlier this year after getting back to work after a year & a half out.  

I'm fairly good at saving I think, & have done so in the past for specific reasons: degree course at night, sports therapist course, year out, etc.  I came into a sterling lump sum (c. £10,000) last year which is currently with Anglo.  I started a regular savings with Anglo as well earlier this year.  

I'm prepared to take on a bit more  risk as well though & was thinkin of investing a regular amount in something that's  stock market-related, maybe through something like Quinn's Freeway or maybe a managed fund with Irish Life.  

I'm also not sure what to do in relation to my pension (see above).  I'm thinkin (if I can re-activate the pension I had) of just putting a small amount per month into something just to keep it ticking over until I have a house & then see if I can focus a bit more attention on it then.

I don't own a car & have no loans to pay off, & I reckon i can put aside up to EUR800/900 per month so just wondering if anyone can suggest ways to maximise how my finances are organised in order to be in the best position to buy a house.


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## missdaisy (27 Sep 2009)

Hi, if you are looking to buy a house in 3-5 years I wouldn't invest in something risky as you will have to be sure you will have a guaranteed lump sum that can be used as a deposit when the time comes to purchase. Personally I would concentrate on getting together as much savings as possible and once you have purchased a home looking at your pension options at that stage but that is just my opinion. Good luck!


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## D8Lady (27 Sep 2009)

You have a specific goal (house deposit) with a specific time frame (3-5 years). 
Stick with cash savings and look for the highest deposit rate you can. 
Stock market investing for such a short time frame would not be advisable.


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## goingforgold (27 Sep 2009)

You are much better off than most people your age despite your low income. You have about €13K savings and no negative equity. With the house prices tumbling you could be in a position to buy in a year if you save €800 p/m. However your low income may be a stumbling block to getting a substantial sum from the bank. Good luck.


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## so-crates (29 Sep 2009)

Check out house prices in your local area or the area you wish to buy in if it is different. Work out what a 10% deposit would be, that is your basic savings target. So if houses cost €200k a 10% deposit will be €20k, you'd need to save (based on goingforgold's estimate) €7k. At 800pm, it will take you 9 months to reach that. 

Realistically though, you should aim to have a higher level of deposit as your income is relatively low (a mortgage of €100k would be four times your salary), also the lower your LTV (loan to value) ratio the better the rate you can negotiate on a mortgage application.

Best of luck, you definitely seem like you will reach your target.


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## john77 (29 Sep 2009)

Thanks for all the advice ladies & gents.  Much appreciated.


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