A question for 'mature' home owners

Just to say in relation to Angies point above FTBs having the house done up perfectly with the best of everything that it isn't necessarily true of all FTBs. I know couples who, having bought their first property, slept on camp beds for months, had their friends around for 'painting parties' and ate from cardboard boxes disguised as 'retro furniture' (i.e. covered with sheets) etc until they could gradually afford to finish their homes. These people are probably the minority though but I wanted to make the point that its not all roses in the garden for FTBs.
 
aonfocaleile said:
These people are probably the minority though but I wanted to make the point that its not all roses in the garden for FTBs.
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Yup i slept on a bloody sun lounger for a couple of months while saving for a bed though i bought about 7 years ago.

Of the two most recent ftbs i know one is working 3 nights a week in the local pub collecting glasses and bringing drinks to tables to break even each month (This in addition to a normal permanent job that pays about €35k). The other has a bed but is using donated stools as the only living room furniture until finances improve.

Two others who bought last year have just remortgaged to repay their credit card debts (used to furnish the houses) and credit union loans (used for deposits) but will still happily tell anyone who's interested how they've made €40k profit since they bought.
 
If I was starting now I wouldn't be buying a three-bed in the sticks - I'd buy an apartment near my work with any owner occupier tax breaks I could get.

I don't get the obsession of young people or newly weds having to have a family home from day one...what's that all about?

Property and your primary home is a great CG tax free investment. No-one will ever lend you that sort of money for any other investment.

So yes, do it. But do it as smart as possible to start with.
 
aonfocaleile said:
Just to say in relation to Angies point above FTBs having the house done up perfectly with the best of everything that it isn't necessarily true of all FTBs. I know couples who, having bought their first property, slept on camp beds for months, had their friends around for 'painting parties' and ate from cardboard boxes disguised as 'retro furniture' (i.e. covered with sheets) etc until they could gradually afford to finish their homes. These people are probably the minority though but I wanted to make the point that its not all roses in the garden for FTBs.
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I'm sure there are those couples but I haven't seen any in a while. To do something like that would be to 'kill one's social standing in the community.'
If one doesn't have a 52" tv isn't one slumming it these days??

I know of one girl who has bought a 4,500 euro fridge (And shes only a poorly paid teacher. So why don't we all have one? Rant over, back to the thread)

Whereas back in the 'good old days' most people did a little saving before they bought everything for their house cheap credit & a me me me, now now now, attitude means that people consume today, pay tomorrow.

How many 2006 Opels Astras have you seen on the roads recently? But the thing about them is they are 'free'. Well until next year after the SSIA payout anyway. Not that everyone thats got one has the luxury of an SSIA to fall back on. A couple of the people I know are just going to get a top up on the mortgage to pay for the car, "sure you won't notice it" on the mortgage over 30 years.

This is from people who are saving for weddings and building houses with walk in wardrobes and en-suites in every room.

If one of them loses their job or gets ill for one month and can't work they are instantly in debt. They don't have a safety net.

Are the Jones's worth keeping up with?
 
CN624 said:
I A couple of the people I know are just going to get a top up on the mortgage to pay for the car, "sure you won't notice it" on the mortgage over 30 years.
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The number of times i've heard this in the last year or so in particular is amazing, even more so the number of people who've told me "We've just gotton rid of all our debts" by remortgaging....
 
The number of times i've heard this in the last year or so in particular is amazing, even more so the number of people who've told me "We've just gotton rid of all our debts" by remortgaging....
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Yeah, there are a helluva lot of people in this boat, but by definition these are not FTB's - as the banks are'nt that keen on releasing equity on the 2 bed duplex in the the sticks!!
The people I know releasing equity are the people who bought 10 yrs ago, they release equity for the car, for the creche, for the holidays, for the conservatory, for the whirlpool bath........
And sure feck it, it's a life style choice for them - if people want the extra debt then why not, it's not for fuddy duddy conservatives like us to criticise (and I do mean that) (of course some people have no choice, as given the near impossibility of surviving on one income these days they may have to fund their relatively frugal life somehow).
 
Thing is vast majority dont realise the extra cost of buying consumables that will be gone/obsolete over the longer period of 20-30 years.
on the question in hand,its far harder for young buyers nowadays,my fathers generation could afford a decent house in a good suburb on a single average wage over 20 years and not a box in outskirts of dublin with two full wages over 30 or 35 years like nowadays.
 
Glenbhoy said:
The people I know releasing equity are the people who bought 10 yrs ago, they release equity for the car, for the creche, for the holidays, for the conservatory, for the whirlpool bath........
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Most of the people i know who are releasing equity have only bought in the last few years, the most recent of whom did so to clear the credit union & credit card debts used to fund the deposit and furnishings, install decking plus another few grand on completely superfluous rubbish within the house.

As far as they're concerned they've now 'cleared their debts', despite taking only weeks to run up another grand or so on the freshly cleared credit card.

They'll still quite happily brag over dinner out how they've already 'made €30k on the house' in the year since they bought it.

They're far from alone. Many of my own peers (i'm 30) seem to be of the same mentality. I know personally another girl who has remortgaged every year for the last three years in order to fund a lavish lifestyle of 'bling' purchases including buying a racehorse with her brother.

Most of them believe sincerely they've earned the amounts somehow and none give a second thought to the long term repayments. I've long given up on voicing any opinion to the contrary as it just creates tension.

I honestly find it bloody scary to be frank. I've had experience of debt in the past when i had difficulty maintaining repayments and i have a sick stomach just thinking of it.

I honestly couldn't sleep at night taking on the debts many young people have today.
 
Most of the people i know who are releasing equity have only bought in the last few years, the most recent of whom did so to clear the credit union & credit card debts used to fund the deposit and furnishings, install decking plus another few grand on completely superfluous rubbish within the house.
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Maybe, but do banks not tend to release equity only up to LTV's of about 80%? (I don't know, but thought I read it somewhere recently, and that certainly used to be the case).
I know personally another girl who has remortgaged every year for the last three years in order to fund a lavish lifestyle of 'bling' purchases including buying a racehorse with her brother.
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In fairness, I like her style!! May have higher maintenance costs than the outdoor jacuzzi, but at least it's cool!!
 
Glenbhoy said:
Maybe, but do banks not tend to release equity only up to LTV's of about 80%? (I don't know, but thought I read it somewhere recently, and that certainly used to be the case).
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Never heard of that, but everyone i know bought at 90% or 92% and remortgaged as soon as they could arrange a suitablely higher valuation, in the 'decking etc' case that was less than a year (via EBS if it matters).
 
woods said:
As one of the more mature (had my first house in 1975) here I will have to say yes but only if I was married. I dont think that I would worry about it if I was single.
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This assumes that you would get married one day and that you would stay married once you were! What if you were, say, 35 and still unmarried? Or just divorced and your other half got the house? Would you still hold out for Mr/Miss Right before buying or would you take the plunge?
 
autumnleaf said:
This assumes that you would get married one day and that you would stay married once you were! What if you were, say, 35 and still unmarried? Or just divorced and your other half got the house? Would you still hold out for Mr/Miss Right before buying or would you take the plunge?
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Point taken. I was just reflecting on my own circumstances at the time that I got my first house and it was unheard of for single people to go out and deliberatly get a house at my age. The question was "would we do the same again"
Even though we were married one of us was under 21 and had to get parents to sign to say that they did not object to us getting a mortgage as the age of consent had not been lowered.
 
It’s interesting because I also used to assume that houses and marriage went together like a horse and carriage. In the mid-90s an unmarried work colleague in her late 20s bought an apt in Dublin. I remember thinking it a bit unusual at the time. As it turned out it was a smart move. I’ve lost touch with her since but I assume she didn’t regret it. Whereas the only time I considered buying a place was when I was in a serious relationship (actually got to the "looking at estate agent windows together" stage) and sometimes I worry this has led me to miss the boat (on the property, not the marriage thing!)

I’ve noticed in recent years that a lot more single people (men and women) of all ages are buying places. I wonder if this is one of the factors pushing up demand. OK, some are buying with a friend or sibling but others are buying alone, and obviously this means a larger number of single-person dwellings.
 
autumnleaf said:
It’s interesting because I also used to assume that houses and marriage went together like a horse and carriage. In the mid-90s an unmarried work colleague in her late 20s bought an apt in Dublin. I remember thinking it a bit unusual at the time. As it turned out it was a smart move. I’ve lost touch with her since but I assume she didn’t regret it.
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Hey, might be worth your while to look her up now. That was a smart move on her part. She probably bought it for a song. If she's still there you could be on to a good thing. ;)
 
I am a mature home owner. (40 +) My current home is "valued" at a sum which I could never afford to buy on my salary.
Equity is not cash.
My concern for anyone purchasing a home at the current levels is if they are mid thirties and take out a forty year mortgage. Will they still be working when they are 70 - 75? Most companies like young profiles. Have a look around your office! I know in mine (private company) sixty would be stretching it.
Or if they wait until they are forty to start a family. (Having bought their home at thirty five). Will they be elderly parents with all the associated risks?
Just my thoughts on the question.
I would not encourage my children to buy while there is an asset (property) bubble.
 
When I purchased my first house back in 1975 it had been on the market for a year, there were no buyers about. In fact I remember as a buyer there was a shortage of houses available. People couldn't sell so they didn't bother to try and sell them. It cost me £7k.
Six years later I put this house on the market I couldn't sell it for 6 months. I eventually sold it for £26.5k after great difficulty. It had gone up in value in six years by about 3.75 times.
I purchased my next house for £42.5k, kept it for 13 years and again had difficulty selling it. Eventually sold it for £95k, but the thing is it had only increased by 2.25 times in 13 years.
Look at my present house, since purchasing it, it has increased in value by 11 times its purchase price in 11 years.
Absolutely crazy stuff. I am absolutely certain that those difficult to sell times are coming around again. I would not recommend anybody to purchase a house. Having to sit on a 40 year mortgage, with no capital appreciation and a glut of people waiting to sell. Why?
 
Grizzly said:
When I purchased my first house back in 1975 it had been on the market for a year, there were no buyers about. In fact I remember as a buyer there was a shortage of houses available. People couldn't sell so they didn't bother to try and sell them. It cost me £7k.
Six years later I put this house on the market I couldn't sell it for 6 months. I eventually sold it for £26.5k after great difficulty. It had gone up in value in six years by about 3.75 times.
I purchased my next house for £42.5k, kept it for 13 years and again had difficulty selling it. Eventually sold it for £95k, but the thing is it had only increased by 2.25 times in 13 years.
Look at my present house, since purchasing it, it has increased in value by 11 times its purchase price in 11 years.
Absolutely crazy stuff. I am absolutely certain that those difficult to sell times are coming around again. I would not recommend anybody to purchase a house. Having to sit on a 40 year mortgage, with no capital appreciation and a glut of people waiting to sell. Why?
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What was inflation during those same periods?
 
Summer said:
My concern for anyone purchasing a home at the current levels is if they are mid thirties and take out a forty year mortgage. Will they still be working when they are 70 - 75? Most companies like young profiles. Have a look around your office! I know in mine (private company) sixty would be stretching it.
Or if they wait until they are forty to start a family. (Having bought their home at thirty five). Will they be elderly parents with all the associated risks?
Just my thoughts on the question.
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The term of the mortgage can't be longer than (65 - your age), so if you are 35 then you can only get a 30 year mortgage
 
darex said:
The term of the mortgage can't be longer than (65 - your age), so if you are 35 then you can only get a 30 year mortgage
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Are you sure about that? I would have thought that banks would have circumvented that rule by now
 
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