Should we buy a home or continue to save?

S

SteveW9

Registered User
Messages
87
My girlfirend and I are trying to decide whether to buy a house now that prices are falling dramtically or continue renting. W
e currenly save 1k each a month.
If we dont buy what should we do with our savings?

Age: 33
Spouse’s/Partner's age: 34

Annual gross income from employment or profession: 60000
Annual gross income of spouse:80000

Type of employment: PAYE worker

In general are you spending more than you earn or are you saving? YES

Rough estimate of value of home :renting

Amount outstanding on your mortgage: 0

Monthly rent:550 each

What interest rate are you paying? 0

Other borrowings – 0
Credit card - 0

Do you pay off your full credit card balance each month? yes
If not, what is the balance on your credit card?

Savings and investments:
50,000 between us
Do you have a pension scheme?
Yes
Do you own any investment or other property?
no
No of children: 0
 
Re: Really Need some Advice

With an 80k salary you should be saving more than 1k per month. After the 550 rent thats about 3950 net per month - where is it all going?
 
Re: Really Need some Advice

aristotle25 said:
With an 80k salary you should be saving more than 1k per month. After the 550 rent thats about 3950 net per month - where is it all going?
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That's exactly what I was thinking.

I earn less than 80k per month and I easily save €1750+ per month.
 
Re: Really Need some Advice

yes i think its definately time to cut bacl on some things
I'm on 60k and save 1k a month
my girlfriend who is on 80k tells me she saves 1k a month....maybe she is isn't telling the truth
 
Re: Really Need some Advice

The general vibe is that house prices will continue to fall, so may be worth holding off for now. But, if you do plan to stay in the house long term and it will be your home as such, well, then I guess buying now wouldn't be so bad. Just haggle a lot!
 
Re: Really Need some Advice

I earn less than 80k per month
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Poor you!

All: Please remember discussion on the future of the housing market is suspended. Plenty of other sites out there if you want to talk about this hot topic. MugsGame (moderator)
 
Re: Really Need some Advice

If I was in your position with such low rent and high wages, I would stay where I was for 12 months and save as hard as possible. You will be in a great position then regards deposit and if something comes along in the next few months that really takes your fancy then keep an eye on it and go for it if you feel the price is right. I wouldn't buy because you think the prices are falling only buy together if that is exactly what both of you want for more personal reasons.
 
Re: Really Need some Advice

Thanks we are on good wages now but both of us in IT so who knows if the IT market will collaspe like the consrtuction or financial ones.
I think we really should hold on a year anyway although we would love to own our own house now.
 
Re: Really Need some Advice

You should draw up some kind of agreement so, god forbid, if things go pear shaped with the girlfriend in the future, it doesn't get too messy.

If you are looking at a 500k house you'll will need to use yr 50k as a deposit + with other expense you'll need more. So in a years time aim for 70k, that would give ya a choice of 700k houses (if you choose to borrow 4.5 times joint income, which could be seen as a high level of borrowing)
 
Re: Really Need some Advice

Yes that is a good idea. I suppose you never really know if we will split up.
I'd be thinkinh more along the lines of getting our savings up to 80k and getting a house for 300k in a year....hopefully
 
Re: Really Need some Advice

Yup, 300k house sounds a much better plan all round, well, to me anyway
 
Re: Really Need some Advice

SteveW9 said:
Yes that is a good idea. I suppose you never really know if we will split up.
I'd be thinkinh more along the lines of getting our savings up to 80k and getting a house for 300k in a year....hopefully
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Nothing is certain in life but it is really difficult to imagine Irish residential property going any way other than down not just over the next 12 months but potentially the next 24 months, in which case you should stay in rented accomodation, but research your preferred area and monitor it monthly over the next year or so. The longer you can save while the house prices are dropping, the less you have to pay back. That 300K house could well be 280K this time next year. 20K in your pocket rather than someone else's.
 
I would save save save! You are in the lucky position a lot of people wish they were in. Also, you could be saving a hell of a lot more than 1k per month, I can't imagine what you could be spending the rest on!
 
I net 3400 per month
550 - rent
Bills - 250
Transport -200
Food- 200
Entertainment - 800
Save - 1000
Other(must be a combination of the above) - 400
 
You should be saving an amount montly that is at least equal to the costs of whatever mortgage amount you propose to have. This will give you an idea of what you can afford. You should not necessarily try to get the max amount based on your salary. As a couple, finances, in my opinion, should be open and transparent. Based on previous posters on AAM one should think seriously before buying with a partner as versus a spouse.
 
Re: Really Need some Advice

Flax said:
Sorry, I meant less than 80k per week!

I still can't get a mortgage though
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80k per week? Do you play in the premiership??!!

I'm hoping 80k a year is what you mean?!
 
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