Buying an Apartment on Single Income

G

Growing Rates

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Hi,

I'm looking to get some advice in regards to buying an apartment on an average single income.

I'm 31 and work as a pharmacy technician in the HSE and currently earn €44,572 before taxes, however that figure will see a modest increase every few months due to the current pay increase for public health workers.

I have no debt and at the moment I'm saving €1500 every month. I currently live at home with my mother and have no dependents. I have €50000 saved at the moment.

I currently live and work in East Galway though I'm looking to or closer to Galway City as I like being closer to the sea, Connemara and offers more social opportunities.

I realize apartments can in cases be a bit dodgy and the management fees could be a concern, however it seems the most realistic if I want to have my own home.

I'm not sure to speak to a mortgage advisor or financial advisor about, but hoping by posting here I will be nudged in the right direction.
 
Also I'm aware of Galway Citys traffic problems and think Bohermore would be the furthest I would move towards Galway City, however ideally I would like somewhere like Roscam and have the best of both worlds. Having a 40 minute commute to work doesn't bother as I can listen to the radio or podcasts to keep me busy.
 
Are the figures supposed to be in £ or are they actually €?

You should probably be aware of the Central Bank mortgage lending measures which dictate (in most cases) what deposit might be needed and the maximum loan that can be advanced:
www.centralbank.ie

What are the Central Bank Mortgage Measures?

Our mortgage measures are designed to ensure that banks are other lenders lend money sensibly. Find out more.
www.centralbank.ie www.centralbank.ie
In some cases there may be some flexibility but probably best to assume that these rules dictate how much you need up front and how much you can borrow.

Don't forget to budget for stuff like conveyancing fees, stamp duty if applicable etc.
 
You could probably get a mortgage of €170k
As you have €50k, that would give you €220k buying power.

Doesn't sound as if you would get much for that.

A way to get on the housing ladder would be to join forces with a friend and buy. If you do this, have a 5 year view with an exit strategy.

A lot of people here will tell you about the dangers of this and they are right. But the dangers of waiting are probably higher.

However, by staying where you are, you are saving €15,000 a year which will help too.

Brendan
 
ClubMan said:
Are the figures supposed to be in £ or are they actually €?

You should probably be aware of the Central Bank mortgage lending measures which dictate (in most cases) what deposit might be needed and the maximum loan that can be advanced:

In some cases there may be some flexibility but probably best to assume that these rules dictate how much you need up front and how much you can borrow.

Don't forget to budget for stuff like conveyancing fees, stamp duty if applicable etc.
Click to expand...

Sorry the figures are meant to be in euro.

I'm also taking into property surverys, solicitor fees, stamp duty and any other potential costs. I think I would have to save between €5000 - €10,000 for this.

Thank you for sending that link even if most of it goes over my head.
 
Growing Rates said:
Thank you for sending that link even if most of it goes over my head.
Click to expand...

All you need to know is that, in general,
Banks will lend you up to 4 times your salary
And 90% of the value of the apartment.

However, they are allowed to exceed these limits in exceptional circumstances. As an HSE technician with a guaranteed job and increments, they might go a bit more.
 
Growing Rates said:
Sorry the figures are meant to be in euro.
Click to expand...

ClubMan said:
Are the figures supposed to be in £ or are they actually €?
Click to expand...

On my computer keyboard if you hold down the Alt Gr button and press the € you should get the euro sign and not the £. It is also available on page 2 of the symbols section on your phone.

For ease of reading for everyone and to save confusion I've corrected this on your posts.

I saw a recommendation from Charlie Weston in the Indo last Saturday for a book on mortgages by Joey Sheahan called The Mortgage Coach. I borrowed it from the library and found it very easy to follow so it might help you out. His website is good and called www.mymortgages.ie

Don't forget that the credit unions are also doing mortgages now so if you are a member of the HSE one https://www.hsscu.ie/ it might be worth your while to seek advice from them too after you familiarise yourself a bit more about mortgages in general.

This key post List of Credit Union mortgage rates might be useful https://www.askaboutmoney.com/threads/list-of-credit-union-mortgage-rates.231716/
 
I wonder might you be eligible for any of the State schemes to help FTB:

For first time buyers​

  • a supply of an unprecedented 4,000 affordable purchase homes, on average, every year for families, couples and single people
  • a new local authority-led ‘Affordable Purchase Scheme’
  • a new ‘First Home’ shared equity scheme for buyers of new build homes in private homes
  • a reformed ‘Local Authority Home Loan’ scheme
  • an ‘Owner Occupier Guarantee’, to secure homes for first-time buyers and other owner-occupiers
 
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