I met with the bank about getting a mortgage to buy a house. They seem to think there’s no major roadblocks getting one with me and the woman both working:
- Current amount of savings is good.
- Rate of saving is good.
- No debt.
- Possible cash injection when my dad retires next year.
We could borrow up to 3 times our salaries, about €105k each. With that mortgage and existing money, we would have €280k to buy on a 35 year mortgage. The repayments would be about €1k a month on current interest rates at 3%APR, which is less than we’d be paying on rent in Dublin if we moved out. Also payable on one salary!
The woman is still waiting to hear if she’ll be made permanent: she is pretty unhappy in the job, but would take a permo contract if it helped getting a mortgage. There is property available in DUblin, but the market is going up 10% in some places. I know it could be 5-8 years before another property crash, and I’m not sure how willing I am to rent or live at home for all that time.
Medium term, I would like to buy a house and rent a room out while living it it. If we wished to travel the world and all that jazz, we could rent the house out for a year, then start a family. While renting a place would help pay mortgage, this isn’t an investment, it’s a place to live.
I suppose there’s a lot of emotions tied up in a decision like this: maybe for my generation buying a house is the new marriage. I’m kind of the first of my peers to start looking and planning to buy, so any stories from people who’ve been there before would be good.