Advice for FTB worried about amount we are borrowing

Mag2006 said:
  • The bank have been reckless in lending you the money (in multiples of your salaries)
I disagree here, we are earning good salaries which increase every year and we have excellent earning potential in our jobs so that was a big factor with mortgage application.
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It's either 6 times salary is reckless or it is not. Earning a high or low salary does not come into it when working out a multipe . Eventhough earning a high salary is better as you will have greater flexibilty of disposible income.
 
Mag 2006, if you want to buy your own home you have to be prepared to make some sacrifices. That might include not having the same standard of living that you enjoy now. We can't have it every way. When we bought our first home (London) a long time ago, we could only afford sausages for dinner. I remember wanting to go to Chessington zoo one sunday and we couldn't afford the £15 that it cost then for three of us to go in.Everything went to pay the mortgage. But this doesn't last and after the first few years you begin to get ahead. Just dont expect to still have everything the same as it is now. You always need to have two months mortgage put away just in case of an emergency, one of you might be sick or some other problem. That is my advice. I say go for it, But!!! be realistic in where you have to economise. It probably wont hurt the kids either if they can't have new shoes or whatever. Cut back on what you can and put the money away. After the first few years you can probably sell and move if you need to.Its unlikely there will be much of a crash in your part of the country and by then you should have equity in your house. Good Luck.
 
Anyone listening to the news this morning..very interesting. According to the Auctioneers Association the "boom" has come to an end and there are fewer viewings of properties and prices are being dropped....about time I think as it's a total joke people paying €320k for a 3 bed house in Arklow and commuting plus Dublin prices are ridiculous.
Well we signed on Friday, all happy, completion date 17th October and we put a deposit on dining room table & chairs, sofa & beds on Saturday. Then celebrated with a chicken chow mein from the chinese & a bottle of wine (€5.99) between us!!!...we laughed at ourselves though!!!. It's a nice feeling we must admit!!.
 
Mag2006 said:
..about time I think as it's a total joke people paying €320k for a 3 bed house in Arklow and commuting plus Dublin prices are ridiculous.
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With all due respect Mag, I find paying 440k for a "4 bed semi €440k in Wicklow town" equally ridiculous. The country has lost all concept of the value of several hundred thousand euro.
 
I agree, it's a mad price but it's our descision and it's a better location. We are lucky that we can buy such a house and the future is bright there. The majority of people I know that live in Arklow commute daily and it's tough going plus paying that for a house. The childcare fees down there are not cheaper either, was chatting to a friend who is looking down there & in Gorey at the moment and it's not a big saving at all. I would have thought is would have been a considerable difference. I totally blame the Estate Agents, their marketing and selling attitude has things the way they are. I recentley saw a house for sale in a certain area advertised on myhome.ie, thing is it actually was not on the market yet and they had "register your interest now" and a ridiculous price for a 3 bed at 943 sq foot!!. As long as they keep marketing like this,people are going to still panic buy and I can understand why. It's so unfair on FTB's who are on a tight budget.
 
Mag2006 said:
I totally blame the Estate Agents, their marketing and selling attitude has things the way they are. I recentley saw a house for sale in a certain area advertised on myhome.ie, thing is it actually was not on the market yet and they had "register your interest now" and a ridiculous price for a 3 bed at 943 sq foot!!. As long as they keep marketing like this,people are going to still panic buy and I can understand why. It's so unfair on FTB's who are on a tight budget.
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I blame the buyers as well as the EAs. The buyers can analyse the hard economic data and make their own minds up objectively. Many are being panicked into irrational herd like behaviour nowadays and simply will not listen to advice .

The 440k house in N Wicklow or Mid Wicklow is not likely to fall as much in value in % terms as the 330k house in S Wicklow IF there is a downturn . I will say that much .
 
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