On 30k, single, how does one buy a house?

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Khublei

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Just have a genuine question for those who may have been in a similar situation. None of my family are good with money and my friends are all married so got mortgages with two incomes.

How does someone on 30k buy a decent house? Do people rely on inheritance or just save like crazy? I have very bad lung problems so my main requirement is that the house be a B3 rating or above, maybe a C but I get wheezy when it's cold. In Cork right now there are 7 three bed semi D houses and all bar two are way above my price range (and those two are very far from my work).

I get lonely so would really like somewhere with a spare room or two to rent out. Income wise I should be on 40k in the next two years. I've always studied and worked hard but it seems the main requirement in this country in order to get a mortgage is to be married and have two incomes.

So, genuine question. Should I suck it up and live an hour from work? Or just save like mad? I figure I'd need 60-70k to add to the 120k the bank would give me. I know the obvious answer would be to rent forever but Ireland isn't set up for long term rental. I did it abroad but not here.

Thanks.
 
You could buy a house with a friend.

That is how a lot of single people get on the housing ladder.

I would think that it's better to own half a very suitable and convenient house than a whole house which is neither suitable nor convenient.

Brendan
 
The problem is when it stops being convenient for one or other party. You would need a very solidly nailed down agreement on how things will go in case someone wants to "cash in" for work or relationship reasons, becomes unable to pay the mortgage, or any of the host of other unplanned eventualities that may arise.
 
Khublei said:
I've always studied and worked hard but it seems the main requirement in this country in order to get a mortgage is to be married and have two incomes.
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It's not about being married or having two incomes it's about having the income.

So in reality it is very hard for anyone single/married/cohabitating with an income of €30k to buy a €200k house.

Now back to your case in two years time your income goes up to €40k so your 3.5 times goes up to €150k so now you need €50. Minister Noonan will give you €10k so you have to come with €40k, what's your rent currently? Can this be reduced? Is there a relative that could assist with a some support to allow you accumulate the deposit you could repay them for the tax free rental income you receive.
 
Khublei said:
Income wise I should be on 40k in the next two years.
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Joe_90 said:
Now back to your case in two years time your income goes up to €40k so your 3.5 times goes up to €150k so now you need €50. Minister Noonan will give you €10k so you have to come with €40k
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Can you live on 25k a year? i.e. save 5k? If so you can save 5k each of the next 2 years.

If you keep your spending to current levels you'll have an extra 10k per year once you're on 40k (15k a year savings in total).
5+5+15+15=40.

In four years you could have the 40k deposit that Joe_90 mentions.

Do not buy a house with another person. Worst mistake I ever made.
 
PGF2016 said:
Can you live on 25k a year? i.e. save 5k? If so you can save 5k each of the next 2 years.

If you keep your spending to current levels you'll have an extra 10k per year once you're on 40k (15k a year savings in total).
5+5+15+15=40.
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OP do you mean 30k and 40k gross? which is closer to 25k and 30k net. Also what age are you? (this might affect the responses)

I agree though, that the only strategy is to save like crazy, and keep the long term goal in mind. I'd avoid buying with another single person too (but you may find this works for you). I'd also be striving for a 2 bed, close to amenities, with one room let - than 3 bed, further out and sharing with 2 or more.

If you find you can live well within your means, there's nothing to stop you moving to a bigger house down the line. Good luck!
 
You are below average income but you want to buy a relatively new 3 bed semi d close to Cork city and wondering how others do that? Well generally they don't.
What you want and what you can afford right now are very different,this is probably not going to change unless your income changes hugely.
In a city 3 bed semi ds will mainly be bought by dual incomes.
Look at apartments, look at surrounding towns , newer houses are for sale in Cobh, carragaline, etc for example for much less than 200,000
 
Why a semi detached? Why not go for a two bedroom terrace or an apartment and then later on when you salary improved you can strive towards the semi or even the detached.
 
Thanks all for the input. That sounds good PGF2016. I have been looking into all types of homes moneybox, was just wondering about the people who has 3 bed semi Ds. I'm not talking about Cork city by the way, I've been looking in satellite towns.

Thanks again, lots to think about.
 
Brendan Burgess said:
You could buy a house with a friend.

That is how a lot of single people get on the housing ladder.

I would think that it's better to own half a very suitable and convenient house than a whole house which is neither suitable nor convenient.

Brendan
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dub_nerd said:
The problem is when it stops being convenient for one or other party. You would need a very solidly nailed down agreement on how things will go in case someone wants to "cash in" for work or relationship reasons, becomes unable to pay the mortgage, or any of the host of other unplanned eventualities that may arise.
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Both good points.

I can't put my hand on it, but I was reading an article a little while ago about a crowd (in the UK ?) that were helping bring people together to buy residential properties jointly - something between small property investment syndicates of 3-4 people and an introduce a house share type thing. Nice idea, but as dub_nerd correctly points out, anything like this needs to be correctly documented and all eventualities prepared for.

Obviously, there are logistics to be worked out such as if all parties want to live in the house at the same time (and if there's any spare rooms, should the extra room be rented out to avail of the tax free income - imho, yes !) but these thnigs can all be managed.

Personally, I think if the documentation is correctly put in place by a solicitor in advance, then it's an excellent idea to join forces with others - particularly where you have young single people looking to get a foot on the property ladder. Obviously, there's a better chance of success when you are talking about one of the larger cities given the size of population etc.
 
I've known quite a few instances where friends or siblings clubbed together to buy their first property.

It always ended in tears.
 
Khublei said:
Thanks all for the input. That sounds good PGF2016. I have been looking into all types of homes moneybox, was just wondering about the people who has 3 bed semi Ds. I'm not talking about Cork city by the way, I've been looking in satellite towns.

Thanks again, lots to think about.
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Here are two 3 bed houses less than 100k?

http://www.daft.ie/cork-city/property-for-sale/gurranabraher/

Which areas have you looked in, which satellite towns?
 
Hi Bronte, the OP mentioned that he/she needs a BER of at least B3, due to health issues. From what I can see, most of those properties are F or less.
 
PaddyW said:
Hi Bronte, the OP mentioned that he/she needs a BER of at least B3, due to health issues. From what I can see, most of those properties are F or less.
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in fairness to Bronte there is plenty of "fiscal space" to invest to bring the properties she listed up to B3, though the OP might have to decide on an apartment or newer build as there's only so much lipstick can be put on older properties.
 
Sarenco said:
The parties involved ended up in dispute.
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Well, ending up in dispute is one thing... ending up in a mess that cannot be resolved is another.

People disagree and from time to time fall out, that happens in all walks of life.

Once the documentation is put together correctly when they first enter the arrangement, then there's a binding agreement on what happens in the event of a dispute....so the problem is ultimately solved.
 
MrEarl said:
Well, ending up in dispute is one thing... ending up in a mess that cannot be resolved is another.
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Fair enough.

Let me try and be clearer -

In every case that I have seen where two or more friends or siblings bought residential property together to live in, it ended in rows that put a huge strain on the relevant relationships and which, in some cases, were irretrievably damaged.

With the best will in the world, it is simply not possible to anticipate and provide for every conceivable eventuality that might arise in the future.

I'm sure it works out fine for some people but I would advise anybody to proceed with extreme caution before going down this road.
 
Bronte said:
City centre Cork, under 100k

http://www.daft.ie/cork-city/property-for-sale/cork-city-centre/?s[mxp]=100000&s[mnb]=1&s[mxb]=2
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I am familiar with this area, its not great which reflects the cheaper prices. Also many of the houses are very old and would require alot of work to bring them up to scratch. Maybe they would be eligible for the inner city initiative Scheme or whatever it's called where grants are available to modernise old city center houses.

This one looks like a real bargain for anyone with a bit of flair.
http://touch.daft.ie/cork/houses-for-sale/cork-city/24-vicar-street-cork-cork-city-cork-1324944/
 
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