I beg to differ. People spend tens of thousands on cars, which are heavily depreciating assets. It should be a bonus if the house you buy increases in value, but first & foremost it's about putting a roof over your head.
I beg to differ. People spend tens of thousands on cars, which are heavily depreciating assets. It should be a bonus if the house you buy increases in value, but first & foremost it's about putting a roof over your head.That is the way the world works to answer your specific quote. Maybe in Utopia it maybe different. Why should there be a risk of a loss on the reverse of that situation which has happened.
It's the way the world works because that's how we've set up the world to work. It might be time to think about whether this is the appropriate way for the world to work. There is something toxic in the political pandering to home owners, with every policy designed to keep house prices rising, because home owners are great voters. The younger generation (and perhaps not so young now, into the 40s in some cases) are paying the price for this.That is the way the world works to answer your specific quote. Maybe in Utopia it maybe different. Why should there be a risk of a loss on the reverse of that situation which has happened.
Median house price Dublin €477k - KPMG Analytics - two people save €50k each by 30, require mortgage €377k , divided by 3.5 ( the multiple used by banks on joint income) = €107.7k required joint income / €53.8k per individual. While still high enough , think this is achievable for many by 30 who say have 7/8 years work experience behind them.
Median income in Dublin , according to the KPMG report for 2021 is €54.9k
Even without the 'bank of mum and dad', the spare room of mum and dad is coming into play no?Its a lot more complicated than that. Have you tried saving 50k by the age of 30 when starting out on your career and paying nearly two grand a month in rent?
Factor in that you are assuming no woman decides to have children before the age of 30.
The median income for Dublin is 54k. The median income for 30 year old in Dublin is less than 54k.
There are thousands of people like nurses, teachers, guards, retail workers, transport workers, hospitality workers who are not earning anywhere near that.
No help. I'd been working summers, Easters and mid terms since I was 14, usually around 60 hours a week. I'd been working fulltime since I was 17 and had started my apprenticeship, usually around 60-70 hours a week. Therefore I had saved quite a bit. When I read about the pending drop in interest rates I knew there'd be a corresponding rise in prices so I sold my car and bought the most expensive place I could afford. That happened to be a small 2 bed in Dublin city centre.Purple.
Well done to buy at only 23. Did you get help with the deposit ?
Well Done Purple (this is not the first time I've commended you on your early achievements). Purple was not alone in the general thinking back then. We bought our first house for €9175.00 (3 bed semi) - age 21. The mortgage was "made available" to us 12 months after the house was completed and we were forced by the mortgage institution (AIB) to take out a Bridging Loan from completion. Whatever way you look at this it added a year to your repayments and was a form of legal extortion used by all the banks in Ireland. I'm not going to mention interest rates rising to 19.75% where many now would not believe me, but rates like that were not unusual and I have the Home Loan summaries to prove it. I look through them occasionally and they keep me pretty well grounded.No help. I'd been working summers, Easters and mid terms since I was 14, usually around 60 hours a week. I'd been working fulltime since I was 17 and had started my apprenticeship, usually around 60-70 hours a week. Therefore I had saved quite a bit. When I read about the pending drop in interest rates I knew there'd be a corresponding rise in prices so I sold my car and bought the most expensive place I could afford. That happened to be a small 2 bed in Dublin city centre.
Jasus Leper, I'm not as old as you!Well Done Purple (this is not the first time I've commended you on your early achievements). Purple was not alone in the general thinking back then. We bought our first house for €9175.00 (3 bed semi) - age 21. The mortgage was "made available" to us 12 months after the house was completed and we were forced by the mortgage institution (AIB) to take out a Bridging Loan from completion. Whatever way you look at this it added a year to your repayments and was a form of legal extortion used by all the banks in Ireland. I'm not going to mention interest rates rising to 19.75% where many now would not believe me, but rates like that were not unusual and I have the Home Loan summaries to prove it. I look through them occasionally and they keep me pretty well grounded.
Most people back then (70's) were married by the time they reached their 26th birthday. These days the average blushing groom and bride would be nearer 40. Purple is one of many people who bought their first property in their early 20's. Like I already said, I commend his achievement, but he was only one of many. Most of people back then left school at 17/18 and went immediately to work wherever they could find it. In my case, it was the UK where I helped make the M1 a safer place for motorists by painting the amber on crash barriers.
But, we were good people back then. You learned mainly from experience and didn't have your mind influenced to any great extent at 3rd Level. Most of us could think clearly earlier than what I think people do nowadays.
Times were different then, much different. I'm not saying they were better times because they weren't. But, people had priorities and when the first house was bought it was empty except for a bed, cooker and a few necessities. Female Civil/Public servants had to give up their jobs on marriage (think about this for a while) - try that now and there'd be a revolution. Do I want to return to those times - No Way!
On your second point you are underselling yourself. In today's terms you were ahead of the posse. No molly-coddling for young Purple. And it seems to have stood you in good stead.1. It's also worth pointing out that the absolutely best time to buy a house is when interest rates are as high as possible so you were very lucky to buy when you did. Not only does it mean capital prices (the price of houses) are depressed but inflation will also be high and so will eat big chunks out of the real cost of your mortgage each year. Remember that inflation compounds, interest rates don't.
2. I don't think I was more worldly or mature.
Multi-Nationals have been around for nigh on 30 years; some of us have managed to raise children to adulthood in that time!The share option wealth generation tend to be younger, so do not have children old enough to require money from their parents yet
I remember those days too; no sooner had you figured out how to re-align your budget, then the next increase was announced days later.increased my interest rate almost willy-nilly reaching a max of 19.75%
And Granny will pop her clogs soon and leave a few bob and when the parents retire they'll get their lump sum form a State pension they haven't paid for or a private pension inflated by that same pesky quantitative easing. Then when the young home owner is in their 50's their parents will die and the real impact of intergenerational wealth will be felt. This problem isn't going away and the deeper it takes root the harder it will be to deal with.I think it definitely has an impact.
To the point where if you’re looking at a place there can nearly always be someone with that additional firepower.
Very hard on someone with no support and simple mortgage approval who comes up against someone with support.
Especially as when, for example, parents give their kids €50k to help out, there tends to be more in the tank if a battle ensues.
That's the thing though, if you are talking about money in property and pensions/investments then you didn't earn it. Your assets have been grossly inflated by the political decisions which lead to vast amounts of money being created out of thin air to replace everyone's savings after the banks went bust and to generally maintain the financial markets. Capital growth has outstripped real wage growth by a factor of ten or more in just about every country in the developed world since 2008. Do you think that just happened all by itself?Edit to add: it's my money, I earned it.
And there’s more wealth being created.Families are much smaller nowadays so inheritances are larger.
Yes, I did, have, and do.you didn't earn it
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