Am I saving enough for a house deposit??

C

curiosityfornow

New Member
Messages
3
Hi all,

I am 25 and saving €650 every month towards a house deposit.
I have €19,500 saved at the moment, but fear I am not saving enough.
*adding more info*
My gross salary is 45k.
I live out of home in Dublin and pay 800€ pm in rent.
My bills monthly are roughly 80€.
I do have other savings for other things but this €650 is strictly for a deposit.

I would also be buying with my boyfriend when the time comes. So really I would need my half of the deposit.
 
Last edited:
Where do you want to buy ? What are the prices there at the moment ? Are you a first time buyer ? What is your annual income ?
 
Hi curiosity,

Welcome to AAM.

It might be a better idea if you were to do a Money Makeover and you may get tips to help with your saving as you do not appear to give enough information here on your salary and outgoings.
 
Protocol said:
Not enough information.

650 seems good, but if your net wage is 3500, and you live at home, then maybe 650 is low?
Click to expand...
My net wage is 45k I live in Dublin and pay 800€ in rent pm excluding bills. I feel like buying a house in Dublin would be unattainable but do not want to buy anywhere else.
I have also added more info to the original post, thank you!
 
Last edited:
Are you confusing gross and net salary here?

Almost 4000 a month seems high for a 25-year-old, but not impossible.

At your age, I was saving about 25% of my net income for a house deposit and I think that’s a good target.
 
How long is a piece of string? In an ideal world 'saving enough' should means you can buy a property that meets your needs. Perhaps you have modest requirements perhaps you really want a castle.

With that level of savings you won't be a cash purchaser -then again most of us are not. From the perspective of maximising what you can borrow it's a good start.

Assuming you qualify as a first time buyer you can borrow 4x your income. That's assumes you've a 10% deposit to match. So to maximise your leverage, on your income, you need €20k savings (likely a couple of grand extra to cover purchasing costs). For every Euro you save up to €20k you may be able to borrow €4. I.e., save 1 spend 5 on housing. So it's worth your while reaching this point.

With €20k deposit you can borrow 4x income. That gives you a budget of roughly €200k. Between existing rent and monthly savings you should comfortably afford the repayments on that.

If that's enough to cover your share of the property you want - and your boyfriend can stump up his share - then you have saved enough. If it isn't enough you may need to save more or look at getting a higher loan multiple than 4x.

Remember if you're a first time buyer looking at new properties there are government support packages which will help bulk up your level of savings.
 
€45k gross equates to around €3k per month net.

Saving €650 of that, while paying €800 in rent, is pretty impressive IMO.

If your BF is putting away a similar amount then I would have thought that you are well on track to purchase your first home in a couple of years.
 
You must log in or register to reply here.
Back
Top