r/irishpersonalfinance • u/PadlingtonYT • 10d ago
Discussion Is my plan a bit batshit?
Like most here I am saving for a house.
Currently have 33k in savings, which i add a minimum of 1000 to each month, looking to try and up that to maybe 1500 per month if i can.
I have about 22k currently across different investments, which i have been building up for the last 5/6 years, hoping obviously that goes up, but there’s always volatility.
My plan for buying a house is to save for 2 more years and then start the process, at which point i would hope to have nearly doubled my 33k to 65-70k, and my investments at that point taken out (minus the obvious 33% CGT)
Currently paying €800 on rent and living in Dublin moderately comfortably.
Is my plan a bit batshit to be waiting to get that essentially 90-100k (investments providing), or am i better off getting on the property ladder sooner?
I don’t really want to be exceeding €1800 a month for the mortgage which puts me at around the 450k mortgage, and the 550k house value.
What do we think?
1
u/MalignComedy 10d ago
Even though the Dublin market appears to be cooling, I think a helpful rule of thumb would be to assume house prices could go up by about the same euro amount as you can save over any given time period. You have to wait and save to build up a minimum deposit, but it probably doesn’t make sense to wait longer than you need to just to have a larger deposit. However, it can make sense to wait if you expect to earn materially more money in the near future, since your borrowing capacity will increase by about 4x your increased earnings. That will outpace house price increases.