Not true - I know two people who've remortgaged their apartments within 12 months of purchase to buy new cars. They didn't use car loans, they used 'equity extractions'. They're both FTB's on average salaries.
How are people paying for their lifestyle
- Thread starter Buddyboy
- Start date
Not true - I know two people who've remortgaged their apartments within 12 months of purchase to buy new cars. They didn't use car loans, they used 'equity extractions'. They're both FTB's on average salaries.
There is no such thing as credit rating in Ireland - the Irish Credit Bureau records debts and repayment performance but it is not actively managed.
Sarah
www.rea.ie
They are the guys with all the investment properties.
Hi Sarah, what are your views on the extent of re-mortgaging activity in the market? I know people who are in the habit of tapping the equity in their homes on a regular basis to pay for holidays; home improvements, credit card debts, etc.
Everyone knows someone in the same position. I seem to be surrounded by them but Babytooth is right, it won't last forever. The only thing is they don't seem to understand that because the majority of them weren't around for the last construction famine, they just don't see a day when they have no job to go to. I once tried to explain to a friend of mine that its risky business working in a trade while owning 3 houses rented out to immigrants working in other trades. If things go bust then you have no job and 3 unrented houses to pay for. I told him it may never come to that but its over exposure none the same. He looked at me like I had 2 heads and told me to lighten up!!!
I agree but a lot of these guys got in a few years ago and have a very low LTV ratio.
Agreed but alot of these guys have been adding to their property portfolios over a period of time so the last acquisition is often bought using the initial properties as collateral. Correct me if i'm wrong but that leaves the most recent house bearing the brunt of the total portfolio exposure, which ironically is the property with the lowest LTV.
I'm not bearish when it comes to economic forecast regardless of any particular industry including construction but i'm a firm believer in diversifying and that mindset seems to be out of fashion in Ireland.
I'm not bearish when it comes to economic forecast regardless of any particular industry including construction but i'm a firm believer in diversifying and that mindset seems to be out of fashion in Ireland.
W
Willesden
Guest
"How is everybody else surviving? "
Joint income: €60k/year
2 kids
no mortgage, but living in a small apartment in a good-ish area in Dublin
creche fees: €1500/month
have one, loan-free car, which we bought new a few years ago
kids benefits/allowances go to savings
only one of us has pension
€20k savings
no credit card, loans r borrowings
rarely go out, 1 budget holiday a year, with second child, no hope for moving into a house or saving
both of us are teachers
This is how we are surviving the 'celtic tiger'.
Joint income: €60k/year
2 kids
no mortgage, but living in a small apartment in a good-ish area in Dublin
creche fees: €1500/month
have one, loan-free car, which we bought new a few years ago
kids benefits/allowances go to savings
only one of us has pension
€20k savings
no credit card, loans r borrowings
rarely go out, 1 budget holiday a year, with second child, no hope for moving into a house or saving
both of us are teachers
This is how we are surviving the 'celtic tiger'.
J
Johnny1
Guest
Is €60k gross income or net income?
Raskolnikov
Registered User
- Messages
- 350
I'm referring to the ICB. What exactly do you mean by the debt and repayment performance being 'not actively managed'? If a person even defaults in a car loan or can't even pay their telephone bills, this sort of information is recorded by the ICB. If people are living beyond their means, then it's only a matter of time before their ICB record is tarnished and a bank will refuse to touch them with a ten foot pole.
Mortgages and loans with institutions registered with the ICB are recorded by the ICB as are MBNA credit cards. Utility bills are not recorded by the ICB. Yes, if you miss payments the ICB will reflect this but it does not mean that you will be subsequently refused credit. The ICB have no way of knowing if an individual is living 'beyond their means'.
Sarah
www.rea.ie
Sarah
www.rea.ie
we sound a bit similar Willesden....
Joint income: €90k gross
2 kids
Mortgage repayments monthly: €1,150
Childcare monthly: €900
Car loan monthly: €300
nights out: once a week (on the cheap!)
holidays (one or two ..again on the cheap)
Savings: childrens allowances only (approx €8k at the moment)
Pensions: we both have
Investments: none
cash to spare at the end of each month: none
We're managing but there isn't much room for error.
Joint income: €90k gross
2 kids
Mortgage repayments monthly: €1,150
Childcare monthly: €900
Car loan monthly: €300
nights out: once a week (on the cheap!)
holidays (one or two ..again on the cheap)
Savings: childrens allowances only (approx €8k at the moment)
Pensions: we both have
Investments: none
cash to spare at the end of each month: none
We're managing but there isn't much room for error.
J
Johnny1
Guest
You must have about €900/week after tax and these expenses. what about people that have only €44k gross joint income? I know of married couples with a single income of €15-€20k gross and they have to manage with that amount no holidays no nights out no savings or no pensions, what are you complaining about? I was not referring to you willesden it is fly I am referring to.
W
Willesden
Guest
W
Willesden
Guest
With 60K gross/year joint, I was not complaining, simply stating the fact. Anyway, after myself & DH studying our arses off for 8 years at university, looking for better paid jobs with no result in the past 3-4 years, I may even have the priviledge to complain, don't you think?
You do have a right to complain. Its hardly a great advertisement for third level education or even a vocational job when you hear of people like yourself struggling. In saying that there are alot of people out there that are alot worse off. So yes complain but within reason.
kramer2006
Registered User
- Messages
- 214
Nope. Simply getting a degree does not entitle you to a highly-paid job. You may not have done enough research into your chosen discipline before setting off on your career.
B
baby_tooth
Guest
but do ppl not find it a bit funny that some of the most untrained and unskilled are making huge amounts of money.
take for example blocklayers.
they make the most of all tradesmen and yet their trade is by far and away the simpleist.
or perhaps beauticans, who make a packet waxing and what-have-you...
it just seems that the reward system of pay is somewhat out of line with contribution to society....
it seems strange that country where builders are the richest classes for providing a basic,none too compicated and non technological industry.
how do researchers fare, or perhaps bio-technicians, or anyone of the driving industries for the future. Or waht about entrepreners...the only ones creaming it are in the constrcution related industries...scary to think of the lack of diversification
take for example blocklayers.
they make the most of all tradesmen and yet their trade is by far and away the simpleist.
or perhaps beauticans, who make a packet waxing and what-have-you...
it just seems that the reward system of pay is somewhat out of line with contribution to society....
it seems strange that country where builders are the richest classes for providing a basic,none too compicated and non technological industry.
how do researchers fare, or perhaps bio-technicians, or anyone of the driving industries for the future. Or waht about entrepreners...the only ones creaming it are in the constrcution related industries...scary to think of the lack of diversification
Badly in comparison to tradesmen! PhD graduates get offered roughly the same as degree graduates in the IT and bio-tech industries. Jobs aren't exactly plentiful either.