Will the credit union lend for house deposit

roball said:

I know but I've a kid and hate the thought of renting when I could be paying for my own home especially now when the prices are so low.

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You do know that low interest rates, unlike death and taxes, are not permanent, and that rents are plummeting?

As previously mentioned, you would be also committing fraud.

roball said:

Sick of being asked by everyone "are you still renting, oh that's dead money etc..."

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Are there really people saying that even now? The stupidity of the Irish sheeple never ceases to amaze me.

Keep saving your 1K a month, sounds like you are doing well, and sit and wait 'til we hit the bottom (don't worry, house prices will not miraculously soar after we hit the bottom, you're not going to miss it). The amount of places for sale and rent is still rising:

http://daftwatch.atspace.com/

Chris said:

Best response to this is that a mortgage is just as much "dead money"

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Or ask them how much interest they pay on their mortgage? My 248k apartment would cost €428,036 if I took the full 35 year term. I'd call 179k of interest extremely dead money!

markpb said:

Or ask them how much interest they pay on their mortgage? My 248k apartment would cost €428,036 if I took the full 35 year term. I'd call 179k of interest extremely dead money!

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That actually makes the point even better.

markpb said:

Or ask them how much interest they pay on their mortgage? My 248k apartment would cost €428,036 if I took the full 35 year term. I'd call 179k of interest extremely dead money!

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Your interest is payment for the use of money you don't own in the same way rent is payment for the use of property you don't own. So interest is simply rent of money.

Saying rent is dead money would be like saying that you should never pay to stay in a hotel because you don't get to keep the room at the end of it.

If you think interest is dead money you should be indifferent to giving someone €100 now and getting it back in 35 years.

Also with regard to rent it's possible to negotiate a significant reduction at present due to the enormous supply out there, i've just negotiated (though that's stretching it, i asked for a reduction and was given it) a reduction of €200 a month in my rent to renew.

Er, Der Kaiser, I believe markpb was backing up your point with a further example...

yoganmahew said:

Er, Der Kaiser, I believe markpb was backing up your point with a further example...

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My point is that neither rent nor interest is dead money. I thought markpb was implying that interest is a worse waste of money than rent.

I've seen people make the point elsewhere that its much better to pay off a mortgage as quickly as possible as your total mortgage outgo will be lower, the implication being that there is zero benefit from being able to spend money you do not yet have