Should i wait or buy

S

Sunnysideup

Registered User
Messages
5
Hi all,
I've recently been approved for a mortgage with an exception (over 4 x salary). I'm a solo FTB. I've seen a house that that I'm interested in that would mean I'd have to be gifted approx 10k from parents to be able to afford it. I really didn't think I'd see anything at such an early stage of looking, and my plan was to save another 5/6k over the next few months. Would i be mad to put everything (all my savings ) into progressing with this house, or would it be better to wait until I have a bit more of a cushion financially? I'm aware that my offer may not be accepted anyway but would like to prepare myself if it was. The house is in good condition in my prefered location so I'm also worried another one won't come up. Do people usually put all savings into their deposit?

Any advice appreciated..
 
Sunnysideup said:
Do people usually put all savings into their deposit?
Click to expand...

Years ago they did ... lived in house with bare floors and finished it off as money came in.

Make sure you keep money aside for the legal side of it etc. Does the house need work or will you be able to move right in?
 
PaddyBloggit said:
Years ago they did ... lived in house with bare floors and finished it off as money came in.

Make sure you keep money aside for the legal side of it etc. Does the house need work or will you be able to move right in?
Click to expand...
Thanks for the response..The house is in good condition so i could move straight in. The gift from my parents would be for stamp duty and legal fees as well as covering some of the deposit. I guess I'm trying to wrap my head around suddenly having a huge amount of debt and no savings..it's scary
 
Sunnysideup said:
I guess I'm trying to wrap my head around suddenly having a huge amount of debt and no savings..it's scary
Click to expand...

Are you paying rent at the moment?

Buying a house is a big step. Are you comfortable with what you are borrowing? 4x salary seems like a lot.

Have you enough left over for bills (Electricity, Insurance - Life, Home, Health, Property Tax etc.), living, saving a little etc.?

Getting a house in your preferred location is a big deal sealer.

If you fill in a Money Makeover template, people will get a better idea of where you stand financially:

Money Makeover Forum: https://www.askaboutmoney.com/forums/money-makeover.62/

Money Makeover Template: https://www.askaboutmoney.com/threads/basic-information-required-for-the-money-makeover-forum.61289/

Reviewing Your Finances: https://www.askaboutmoney.com/threads/top-ten-suggestions-in-reviewing-your-financial-affairs.62688/

Bottom line is that the minute you buy a house it will take all your money! (And will do so for years to come)

Some thoughts on house buying on Daft: https://www.daft.ie/blog/buying-your-first-home-in-ireland/
 
Last edited:
PaddyBloggit said:
Are you paying rent at the moment?

Buying a house is a big step. Are you comfortable with what you are borrowing? 4x salary seems like a lot.

Have you enough left over for bills (Electricity, Insurance - Life, Home, Health, Property Tax etc.), living, saving a little etc.?

Getting a house in your preferred location is a big deal sealer.
Click to expand...

Yes, I've been renting for years, so would love to own my own place. In saying that, I'm very fortunate to have low rent in the city for a number of years which has allowed me to save a good bit every month.

I'm comfortable with the monthly affordability aspect and have done the sums and stress tested myself. The house is a two bedroom also so the option to rent a room is there if i needed to. It's just that i wouldn't have a few months of living expenses saved if i was to buy now and something unexpected came up.

I'll have a look at the money makeover, thanks!
 
You must log in or register to reply here.
Back
Top