"Ditch the lattes if you want to save up the deposit on a house"
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I actually agree with Brendan's piece in today's paper regarding what people themselves can do in order to save for a deposit. Always had a bit of a smile when looking at those people with their coffee's and croissants in hand rushing to work like there would be no tomorrow. Get to bed earlier, get up earlier, have a breakfast, bring a snack to work and lose the attitude.
Brendan Burgess
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My article in today's Sindo:
First-time buyers should ditch the lattes before seeking Budget help
First-time buyers should ditch the lattes before seeking Budget help
Username2012
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Good piece - as a FTB in the next year or two I am fearful of whatever idiocy FG or FG will produce this week to pump up prices some more!
Gordon Gekko
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I think Brendan's point is that luxuries such as the gym or club should be given up.
I don't think people should have to give up things like gym/clubs
The central banks report was full of unrealistic targets too.
If people could save that amount why not wait 10-15 years and buy 100% cash.
In general that level of savings is not a realistic goal for the masses, I would even struggle to save anywhere near that and I'm a saver...
The central banks report was full of unrealistic targets too.
If people could save that amount why not wait 10-15 years and buy 100% cash.
In general that level of savings is not a realistic goal for the masses, I would even struggle to save anywhere near that and I'm a saver...
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That article was incredibly patronising and added absolutely zero to the discussion. To distill what is a serious problem in Irish society at the moment, to the over consumption of lattes is pointless.
I think it is commonly accepted, at this stage, that there is supply issue in the market. When Brendans couple have followed his advice, scrimped and saved and have the 60k, what then? The fact is there is no light at the end of the tunnel. As that's the situation that I'm in.
I think the government need to create the conditions for ftb housing stock to be built. If your protagonists aren't living in the real world, Brendan, then don't waist the column inches by patronising those of us who are.
I think it is commonly accepted, at this stage, that there is supply issue in the market. When Brendans couple have followed his advice, scrimped and saved and have the 60k, what then? The fact is there is no light at the end of the tunnel. As that's the situation that I'm in.
I think the government need to create the conditions for ftb housing stock to be built. If your protagonists aren't living in the real world, Brendan, then don't waist the column inches by patronising those of us who are.
Brendan Burgess
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Which is why the article concludes with what I have been saying for some time:
"However, if the government wants to interfere, they could provide a VAT rebate for newly-built houses which meet the highest standards of energy conservation and general building regulations. This would make it more profitable for developers to build more houses, which should increase the supply. But there should be no preference shown towards first-time buyers.
We need to see more houses built."
I don't consider telling people that they should cut expenditure in order to be able to buy a home without excessive borrowing to be patronising. But I can appreciate that people who do not want to curb their expenditure might consider it to be.
Brendan
Brendan Burgess
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Hi SS
With current levels of low interest rates and high rents, it's cheaper to rent money (to buy a house) than to rent a house. This is usually true and will probably be true for the foreseeable future.
So buying your family home is a good aspiration to have and well worth making sacrifices to achieve it.
Brendan
I thought the article was terribly patronising also. There is a cohort of people in precarious work (but never not working) for whom property ownership seems to be forever just out of reach. This can be for any number of reasons, but often not because they are careless with their finances.
I think the #1 reason is because they are in 'precarious work'! I don't think Banks should lend to people in that situation as they may require bailing out later on
Ceist Beag
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Do you not see the correlation between these two positions? If you're not prepared to sacrifice a bit (e.g. swap gym membership with a run in the park) then you haven't really accepted what is required to achieve the level of savings needed.
I understand what the point of the CB & Brendan is. (To demonstrate that it does not take that long to save for a deposit)
BUT its completely theoretical. Going by that logic why not move into parents house for 2 years and save an additional 15k/year and then you will have the deposit even quicker...
What is the average savings for someone taking home pay of 24k, 36k and 48k? I would like to see this...
A run in the park still costs money 300+ easily a year + physio trips...
Brendan Burgess
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You know what? Many people do just that.
I have no idea why you consider it theoretical?
The Central Bank took the figures from all the available sources including the Insolvency Services Reasonable Living Expenses and worked out that, contrary to public opinion, people who are serious about saving can get the deposit together in a reasonably short time.
Brendan
Yes many people do it, I agree no problem but the majority don't.
Do you honestly think the vast majority who want to buy a house will save to that level.
No the vast majority won't save to that level. But they could and some would say should.
The cohort of people being discussed (FTB with decent wages) can pretty much afford anything, e.g. BMW, 2 holidays a year, dining out every week, house in SCD. What they need to realize is that they can't afford everything. There has to be a compromise.
300 a year on what exactly? And why is a physio needed?
That's why its theoretical and not realistic.... the stuff of fantasy... you cant base economic policy on the study...
2 pairs of runners assuming your mileage is high enough to wear the first out, tops, shorts, winter running clothes
Why is a physio needed.... running is a high impact sport... most runners will get some sort of injury in any one year.
2 pairs of runners assuming your mileage is high enough to wear the first out, tops, shorts, winter running clothes
Why is a physio needed.... running is a high impact sport... most runners will get some sort of injury in any one year.
Brendan Burgess
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That is a really good point. They can afford anything, but they can't afford everything. Don't be surprised if you see that line popping up in an article or radio debate.
Brendan
As has already been said the study is not theoretical because people can do it and have done it. I am one of those people and I know of others who have done the same. If only people would realize that not having two cars / foreign holidays etc does not drastically reduce your quality of life / happiness.
Also, I'm a frequent (and sometimes high mileage) runner. I've rotated two pairs of runners since 2013 with one injury since then (due to not warming up adequately). You don't have to buy two pairs a year because Nike / Adidas / Reebok tells you.