Re: FTB: have mortgage approval in principle for €232,000, in DCC shared ownership sc
Sure its only affordable because its over 35years. Over 35years you are paying more than the price of the house in interest to the bank.......!
Try it over 20-25years and then see how you get on. Its this kind of financial stupidity that has got us all in the mess we are in. We will now all be pay more tax for this.
Wake up and smell the coffee. 6x income over 35 years is NOT a sensible financial position to put yourself in. There are people who don't want to know this or listen to this and i'm sure it will fall on deaf ears.
So its not the times salary thats the problem now . . its the term . .
For gods sake, people will always look for a problem with anything.
A loan is a loan. Nobody needs to take out any loads ever if you go by your reckoning. We should all do without until we can afford something . . Prudent but unrealistic for a majority of people in todays environment. I dont see why we should all HAVE to wait until we are in our mid thirties or 40s to enjoy material things available to us now.
Why do people have mobile phones? Its not a necessity, people lived without them before. This could be an extra 40e a month to their savings for a mortgage, yet you would probably not attack them for this little luxury . .
You obviously have access to the internet and a computer, why did you spend money on this when you probabley could of saved it for something more important. Or are you in the comfortable position of speaking from an ivory tower, debt free, throwing stones at the rest of us . .
A mortgage is not the perfect way of buying a home by any means, but it makes sense if you have not got the full lump sum available and you desperatly want or need a place of living. Why buy a tv, go on a holiday, go out on a session . . . All these things are wants, not needs but yet we all do them. Life is not about doing what we only need to do for a majority of people, its about what we want.
Some people have differant motivations like starting a family, moving out of their parents house and getting on the property ladder to look after themselves. If a person rents, again this is fine, but to anybody looking to buy a house soon, this just doesnt make sense (if you can avoid renting). It reduces your ability to save so you can take out this lower term mortgage you discuss.
Get out of collage at 23-24. Havent a bean (unless we assume mummy and daddy are going to give them the deposit, but we arent all that lucky). . At age 34 you might have a deposit on a house and just might be able to afford a mortgage over less then 30 years or so.
In an ideal world we could take out mortgages when it suits us most. Some people dont mind staying at home until their mid thirties and some people dont like the idea of saddling themselves with debt . .Fair enough , theres nothing wrong with that.
I personally waited to move out until I could get a mortgage. I believed that Renting was a waste of money, in essence it was living for the moment at the expense of the future. But thats just me, people are entitled to feel differantly on big issues.