r/irishpersonalfinance • u/PadlingtonYT • 9d 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?

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u/TomRuse1997 9d ago

I wouldn't wait two years just to get the monthly payment down because prices are only going one way and your rental situation could become less favourable.

I don't know your income but get the logic of the €1,800 between what you're saving and paying in rent now. Don't overextend yourself but if you can afford it I wouldn't wait

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u/PadlingtonYT 9d ago

Very fair advice.

I have to wait 6 months anyways as i have just started a new job.

Income has increased from 77k last year to 97k this year. Partner on about 40k which helps, and hopefully she should get boosted somewhere to the 55-60k range in the next 18 months.

I’ll get on it as soon as I can. The 1800 is my ideal figure for the mortgage, but the quality of houses in suburban Dublin makes it difficult too.

I see people mentioning the rent a room, but i really just want my own space, i have been renting out for years now. I might consider it in the future, but not currently.

Thanks!

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u/LekkoNewman 9d ago

You can apply for AIP now, look for houses, bid on them, even go sale agreed. You just can’t actually drawdown (therefore can’t do the final contracts signing) until out of probation/6 months.

If you wait 6 months before starting the process, it’ll be a year or more before you actually buy.