Clueless first time buyer

Hi guys,

Firstly, I hope I've put this in the right section and it hasnt been asked a million times before! I'm new to this as you can see

I'm just looking for some advice about buying a home and I thought this might be the place to go. Here's my situation:

I'm 25 years old and making just over €30,000 per annum. I dont particulary want to rent so I'm now looking at buying a second-hand home in South Dublin for about €420,000 - €480,000.

My idea is to take a joint mortgage with my parents of 90% of the house price. I figure I can in the region of €150,000 myself and I'm hoping that them being home-owners will swing the rest. Obviously they won’t be making the repayments themselves but instead I'm hoping to rent 2 of the rooms and try and cover the remainder myself.

Is this a viable option when it comes to repayments or am I getting myself in too deep?

I have no outstanding loans (thank God!) and have savings of about €20,000 which will go towards the deposit.

As the title suggest, I'm totally lost when it comes to these things. I'm only starting out and am looking for any constructive guidance that I can get.

Thanks for your time,

Lauren

Lauren....I maybe wrong but I think prices will soften and better deals will be had after Halloween - there has been no September pickup all bids are serious under offers. As a rule whenever you see as a sticker price..bid at least 10% below. Try to put this to the vendor direct rather than through the agent. A lot of nervousness about. I can not see the market catching you out by rising in the interim. Patience is a virtue. Yor salary is too low in the current conditions. Best of luck!

Hi Lauren, I'd recommend having a look at a mortgage calculator to get some indication of what your monthly repayments would be and to stress test for an interest rate hikes.

Also consider the additional cost of owning your home - insurance, life assurance, maintenance (particularly if you're planning on having tenants), stamp duty (if applicable)... then you would have to consider periods where you are in-between tenants..

That's my 2c's anyway... best of luck

The only advise I would have is that buying a house is a long term investment, your circumstances can change rapidly at that age. I was on the verge of buying with a relation and then I met the girl of my dreams and I abandoned that plan to buy with her instead. You'll lose your first time buyers status as well, which is worth quite a bit these days.

Aside from all of that, if you're using your parents, the mortgage protection policy might be heavily loaded because of them.

This aint lookin good ... at the moment anyway!

I had a feeling I was getting ahead of myself but thought it was worth investigating! At least I know more now than I did this morning though

Thanks for your help though guys, greatly appreciated

My own opinion is that you are still looking for a very large mortage based on your income at about 12x. Personally I wouldn't take on a mortgage for my primary residence where I was relying on rental income to meet the repayments especially after putting my parents home at risk as well!!. Its only my opinion though. I am sure some people might differ. Also bear in mind that you are only allowed to earn approx EUR 7000pa tax free from the rent a room scheme. After that you pay tax on all rental income.

It may not be enough to qualify for the amount you're looking for merely because your parents are home owners. The lender will take their ages, salaries and repayment capacity into account also which may also affect the term of the mortgage you are looking for - the shorter the term, the higher the monthly repayment.

Also as another poster has pointed out their life assurance premiums may be high given their ages, if they do not already have sufficient unassigned life cover in place.

This is also something which may need to be discussed with other siblings who may not want the family home used as additional security should you choose to go down this route.