# Is getting a mortgage realistic on this income?



## magicalmoney (12 Aug 2010)

1. Is getting a mortgage realistic on this income
Annual Income 28k
Savings 10k
Mortgage value required 160,000

2.Savings spread as follows-is this a good mix
Aib online 7 notice 6000
Rabo 2000
Prize bonds 2000

Thanks


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## Maynooth (12 Aug 2010)

No. 
You are looking for a LTV of over 94%. 
You are looking to spend over 6 times your annual salary. 
Your net pay is going to decrease in the next budget.
Interest rates are most certainly going to continue increase in the next few years.


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## magicalmoney (12 Aug 2010)

Thanks,do you have an idea how much i would need to save?


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## byrnsey09 (12 Aug 2010)

You will need at least 8-10% deposit (lenders offer 90-92% LTV maximum), funds for legal fees, house furnishings and any unexpected costs.


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## niceoneted (12 Aug 2010)

Is 160k the value of the property you wish to buy?


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## magicalmoney (12 Aug 2010)

Yes,i realise you not get 100% mortgage.was trying to figure out what savings target should be?thanks


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## Mpsox (12 Aug 2010)

Allowing for deposit, legal fees, furnishings, decorating you're looking at a minimum of €20k, if you can get a mortgage for the rest.

However, based on your current salary, you may struggle to get a mortgage for what would be 5.3 times your basic salary. If you assume the bank will only give you 4 times your salary, then you'd be looking at needing in excess of €50k to cover deposit and costs

I


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## goingforgold (12 Aug 2010)

I'm not sure if you are single or what your circumstances are but it would appear you may be better off trying to buy a place with somebody else if at all possible. Otherwise you will be looking at getting a place in the region of 100K, not 160K.


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## mtk (12 Aug 2010)

could i suggest also just asking your bank aib for example


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## canicemcavoy (12 Aug 2010)

goingforgold said:


> I'm not sure if you are single or what your circumstances are but it would appear you may be better off trying to buy a place with somebody else if at all possible.


 
That has it's own problems; fine if you think you can sell up whenever you want. Otherwise, you are stuck living with someone for the foreseeable future; not ideal if you suddenly decide to get married, for example.


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## SteveW9 (24 Aug 2010)

Why would you even consider buying a house in todays market


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## magicalmoney (24 Aug 2010)

Thanks all for replies.SteveW9 regarding your qs its something everybody wants to do at some stage.Think you are correct though and better wait as things will be getting cheaper is we are to believe all reports


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## SparkRite (24 Aug 2010)

SteveW9 said:


> Why would you even consider buying a house in todays market




Ehh........now let me see..........Maybe because they are........ehh........cheap?


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## canicemcavoy (24 Aug 2010)

SparkRite said:


> Ehh........now let me see..........Maybe because they are........ehh........cheap?


 
Cheap compared to what?


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## lionstour (24 Aug 2010)

SparkRite said:


> Ehh........now let me see..........Maybe because they are........ehh........cheap?


 
Ehh............... now let me see.................... half a mill for a 3 bed semi in Templeogue cheap? 

Houses today are certainly not cheap


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## SparkRite (25 Aug 2010)

lionstour said:


> Ehh............... now let me see.................... half a mill for a 3 bed semi in Templeogue cheap?
> 
> Houses today are certainly not cheap




Ah look, they are way way *cheaper* than they were 18/24 months ago.

Even the dogs on the street know that its a buyers market at the moment.

Re: the semi above, has it sold for half a mill??? 
What was the asking say 2 years ago??? 
Have a look and see what similar houses in the area were *realizing* then !!

See what I mean somewhat cheaper to buy now.


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## SparkRite (25 Aug 2010)

canicemcavoy said:


> Cheap compared to what?



What would you think???

Why even bother replying with such a inane question?


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## tvman (25 Aug 2010)

I think he means they seem cheap compared the prices we've seen during the bubble, compared to prices in a normal market they remain very expensive (based on historical prices, prices in other countries or using metrics like price to rent, price to income and so on)

tvman


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## lionstour (25 Aug 2010)

SparkRite said:


> Ah look, they are way way *cheaper* than they were 18/24 months ago.


 
If a mars bar was 2.5 million 3 years ago and I get a "bargin" mars bar at 1 million today am i really getting a good deal?



SparkRite said:


> Even the dogs on the street know that its a buyers market at the moment.
> .


 
You have been listening to way to many estate agent types


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## lionstour (25 Aug 2010)

canicemcavoy said:


> Cheap compared to what?


 
An excellent question.


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## canicemcavoy (25 Aug 2010)

I highly recommend reading this article (and the followup) before you decide on what is "cheap":

http://www.gavinsblog.com/2009/09/11/a-floor-in-the-market/

P.


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## SteveW9 (27 Aug 2010)

SparkRite said:


> Ah look, they are way way *cheaper* than they were 18/24 months ago.
> 
> Even the dogs on the street know that its a buyers market at the moment.
> 
> ...


 
Are you insane..... they are cheaper compared to the biggest property bubble this country has ever seen just look at all the trouble caused by these crazy prices....and you are comparing todays prices against this and think their is value to be had....madness


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