mortgage stuff (1 Viewer)

[cyclotron]

€215,000
30 years
3.5%

equals €965.45 per month.

Cheers nlgbbbblth. I'd really like to know how that €965.45 figure is computed from the principal and interest tho'....?

 

[MDR]

If you ask them they will give you an amortisation table which should show you everything. Caledonian life have the cheapest mort protection/life assurance (or so I have found) so get that separately.

 

[Psychotic no 2]

Renting is the new buying. That's what the Irish Times Property said today.

 

[nlgbbbblth]

Cheers nlgbbbblth. I'd really like to know how that €965.45 figure is computed from the principal and interest tho'....?

I can work out how much of that €965 is capital and interest tomorrow. Obviously that ratio changes over the course of the mortgage.

The interest is calculated on the daily balance but (on my mortgage statement anyway) seems to be debited annually. Unlike ordinary loans where interest is charged monthly or quarterly.

The reason you end up paying so much back is the lengthy term. As you are not making huge inroads on the principal until years into the debt it takes that long to go down and the longer the term the more the interest.

On the life cover issue. Decreasing cover (as the mortgage goes down, your cover goes down) or someone in their early/mid 30s on €215,000 over 30 years would be around €25 a month. But you might be better off with some form of specified/critical illness cover (particularly if you have dependents). That can push the price up to anything from €80 to €120 a month. But if you get sick your mortage is paid for you. With the decreasing cover you only get a payout when you die.

 

[jack nance hair]

This site is great for mortgage calculations:

http://www.jeacle.ie/mortgage/

 

[cyclotron]

Seems that the payments are worked out through an amortization process which is pretty much compound interest, right ?

On paper, I could afford it. I'd probably have to subsist on paper in order to do so tho'. Cheers for the info.

 

[MDR]

Renting is the new buying. That's what the Irish Times Property said today.

That's only because they all have investment properties they're trying to fill.

 

[egg_]

€215,000
30 years
3.5%

equals €965.45 per month.
or €965.45 x 12 / 52 = €222.80 per week.

That mortgage protection loading is a rip-off.
Go for life cover.

Here, I just had a thought - if interest rates are lower than house price inflation, then it makes financial sense to buy houses and keep them unoccupied in order to sell them at a later date. So that's why the 3 houses to the left of the one we live in are unoccupied. That's pretty appalling

 

[nlgbbbblth]

Here, I just had a thought - if interest rates are lower than house price inflation, then it makes financial sense to buy houses and keep them unoccupied in order to sell them at a later date. So that's why the 3 houses to the left of the one we live in are unoccupied. That's pretty appalling

Makes financial sense if the owners are on an interest only mortgage. Otherwise they would find a combination of no rental income and capital + interest repayments crippling.

The amount of people I encounter obsessed with owning more and more property is frightening.

 

[ernesto]

This is a (mostly) Dublin thing that irritates the hell out of me. Stand on your own two feet, fucker, and stop exploiting your parents

i'd rather spend more time at home saving for a deposit for a house as opposed to paying rent. rent to me is dead money.

 

[nlgbbbblth]

rent to me is dead money.

Depends.
In Ireland we have a high proportion of people who want to own their houses. In the likes of Germany, renting is a lot more popular. To some people, renting = paying for the use of a house, which they are perfectly happy with.

When I was in the US last year I rented a car for the week.

 

[tripoli]

in relation to egg_ previous comment about me exploiting my parents and the whole issue of rent, here's how i see it:

>at present I am 24 and living at home. just about to start a full time job(career wise) after five years of college. now i'd like my own place but it will take time before i am in a position to take on the responsibility of a mortgage. in the meantime, instead of renting a one bedroom apartment somewhere, i can happily live at home, throw my mother a couple of quid and put some money away for a deposit/solicitors fees,etc (long term). if i was to rent, all my money would go on a monthly payment to which i would get nothing back at the end of my stay. living at home and getting some money together seems like the most positive option to me.

my parents are not going to kick me out, i make a contribuation to the house and i'm certainly not exploiting them.

p.s. i've rented a car myself but renting on a house does not seem like a could option to me. fair enough some people have no choice, but right now i do

Depends.
In Ireland we have a high proportion of people who want to own their houses. In the likes of Germany, renting is a lot more popular. To some people, renting = paying for the use of a house, which they are perfectly happy with.

When I was in the US last year I rented a car for the week.

 

[minka]

hmm, weird - i know it's probably financially advantageous, but dear god, i cannot imagine still living with my parents in my late twenties. i moved out of home when i was 20 even though i was in college in dublin where my parents lived, and i seem to remember it improved my relationship with my family no end. not to mention, forced me to learn to cook/pay bills/budget/generally manage a house. and also meant that i could fall in the door whenever i wanted with whoever i wanted, hoorah.

still, if it works for you...

in other news, i have still not yet managed to buy a house. sob.

 

[tripoli]

late twenties? well, most of my friends if not all, are doing the same thing. maybe it depends on the relationship you have with your parents. mine are fine and i come and go as i please. don't get me wrong, i'd love to have my own independance but its hasn't been economically feasible for me to move out/buy a house. if i pay rent for a room/house, i'll never work up enough for a house deposit after paying bills,etc. different strokes for different folks i guess.

also, i fall in the door whenever i want too, thats not an issue/problem.

hmm, weird - i know it's probably financially advantageous, but dear god, i cannot imagine still living with my parents in my late twenties. i moved out of home when i was 20 even though i was in college in dublin where my parents lived, and i seem to remember it improved my relationship with my family no end. not to mention, forced me to learn to cook/pay bills/budget/generally manage a house. and also meant that i could fall in the door whenever i wanted with whoever i wanted, hoorah.

still, if it works for you...

in other news, i have still not yet managed to buy a house. sob.

 

[minka]

late twenties? well, most of my friends if not all, are doing the same thing. maybe it depends on the relationship you have with your parents. mine are fine and i come and go as i please. don't get me wrong, i'd love to have my own independance but its hasn't been economically feasible for me to move out/buy a house. if i pay rent for a room/house, i'll never work up enough for a house deposit after paying bills,etc. different strokes for different folks i guess.

also, i fall in the door whenever i want too, thats not an issue/problem.

heh, yeah, that was probably more of an issue when i was still in college. still though, i think i would have led a very different life in my twenties if i'd been living at home (wouldn't have been - shock - living in sin, for one thing). i actually get on really, really well with my parents, i just didn't/don't want to live with them. and, no disrespect, but i can't imagine expecting them to provide me with free(ish) bed and board through my early adulthood so that i don't have to pay rent.

it may well be a semi-generational thing, as i know very few people my age who didn't move out of home at the soonest available opportunity, while my youngest sister and many of her peers are still occupying the parental nest.

and in fairness, it's not impossible to save for a deposit and pay rent/bills at the same time - i did it, as did a lot of my friends. (though i am perhaps not a shining example of same due to the fact that i only started thinking about buying a house a couple of years ago.)

 

[tripoli]

i don't expect anything free and i do throw my folks a couple of quid every week. point is that one year in full time employment and living at home should set me up with a couple of quid to start on the ladder. they understand my point of view. yeah, there are many occasions that i lose the head and wish i wasn't there but going back to do a masters this year and not being able to work very much, left me in no other position but to occupy the 'nest'. ah i'll be out in no time. just wanna start this job and get up on me feet!ninjaaaa

i know my parents don't mind me saving at home for another year rather than paying rent. most of my mates are doing the same, some post here too!! just an opinion on the issue anyway, as i said...different strokes.....

heh, yeah, that was probably more of an issue when i was still in college. still though, i think i would have led a very different life in my twenties if i'd been living at home (wouldn't have been - shock - living in sin, for one thing). i actually get on really, really well with my parents, i just didn't/don't want to live with them. and, no disrespect, but i can't imagine expecting them to provide me with free(ish) bed and board through my early adulthood so that i don't have to pay rent.

it may well be a semi-generational thing, as i know very few people my age who didn't move out of home at the soonest available opportunity, while my youngest sister and many of her peers are still occupying the parental nest.

and in fairness, it's not impossible to save for a deposit and pay rent/bills at the same time - i did it, as did a lot of my friends. (though i am perhaps not a shining example of same due to the fact that i only started thinking about buying a house a couple of years ago.)

 

[nlgbbbblth]

It's a bitch. Especially with crazy Dublin bad value for your buck.

The option I went for in the end was buy a house outside Dublin, commute for a while in the hope of getting a job close to home. Thankfully it worked out but I was lucky.

 

[It Will Never Last]

What's the outlook for further % increases?

I've got a tracker with BOI @ ECB rate+1.1% which is 3.85% at the moment, is there much chance of rates increasing by another 1% over the next 18 months?

More importantly, how long ill it take for the ECB rate to reach 3.75%+, and how long can I expect it to stay at that level?

I can take a 3 year fixed rate of 4.69% (and 5 year @ 4.89%) from BOI now.

 

[deedee]

I am in the process of buying my first property - Yippee!! However, all positivity and good vibes aside I have the fear. I moved away from parents and provincial hell hole to Dublin 10 years ago and now irony of ironies I am buying a property in said hell hole as it is the only (barely) affordable place I can find. So, I will have to deal with my family and his family calling in whenever they please, drinking in the local pub I spurned for years and avoiding people I went to school with.

Am I mad to buy and commute or do I grow up, suffer for a bit and use it as a step up to where I want to be. I think I just answered my own question.

Growing up SUX

 

[minka]

i don't expect anything free and i do throw my folks a couple of quid every week. point is that one year in full time employment and living at home should set me up with a couple of quid to start on the ladder. they understand my point of view. yeah, there are many occasions that i lose the head and wish i wasn't there but going back to do a masters this year and not being able to work very much, left me in no other position but to occupy the 'nest'. ah i'll be out in no time. just wanna start this job and get up on me feet!ninjaaaa

i know my parents don't mind me saving at home for another year rather than paying rent. most of my mates are doing the same, some post here too!! just an opinion on the issue anyway, as i said...different strokes.....

ah yeah. i think the message we can all take home from this is that the property market is fucking most of us over, regardless of how we try to deal with it.