Tuesday, July 10, 2007

Answer get 100% mortgage or your parents to guaranteeing

How do I get my foot on the property ladder?

Finally, while your parents may not be in a position to give you money, they could help by guaranteeing the mortgage. You can borrow more money and if you fail to make the repayments then the lender can go after your parents for it. This is the downside of this type of loan. Ultimately your parents' home is also at risk if you default on the mortgage. This is great advice being given is get your parents into the the shite as well.

Posted by pixel8r @ 10:04 AM (515 views)
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8 thoughts on “Answer get 100% mortgage or your parents to guaranteeing

  • “…..with the property market slowing down I might be able to get on the ladder.”

    Note the fervent Irish belief that property prices can not go down. In Ireland, people believe that the natural order for property prices is that they rise sharply above inflation and salary growth – and if they don’t rise sharply, then they must rise slowly, or, at worst, stand still. “Property prices fall? Crash? What are you talking about? How could that be possible? Don’t be so stupid! Ya gobshite!”

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  • sold 2 rent 1 says:

    With you there, royston,

    I have a few Irish relatives and I have been trying to show them what lies ahead.
    They are having none of it.

    I am changing my career. Not sure what to call myself but “mania identifier” might be a good start.
    It’s a simple strategy.
    Identify a mania well in advance though secular cycle theory.
    Get your money in early,
    When the mania goes fully mainstream; when the least likely person you know is talking about it – it’s time to get out.
    Think about how much you could have made from tech-stocks, property and commodities just over the last 15 years alone if you got the timing even half correct.

    I’m still convinced gold is the next biggie.

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  • So, the question states that s/he has a deposit. The answer, take out a 100% loan to eliminate any debt – but you can’t say you have a deposit if you have debt that wipes that out!

    The Dim Wit.

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  • bidin'matime says:

    It really has to read with an Oirish accent, doesn’t it now, begorraa…

    “…you could use your savings to eliminate these loans and credit cards debts which will free up more of your net income to repay the mortgage and therefore increase the amount of a loan that you can repay.”

    Say again…?

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  • dohousescrashinthewoods says:

    Nutty! I suppose there is a differential on the interest between a mortgage and a credit cart, but desn’t the term of the loan essentially negate the benefit? (less interest, more time, about the same amount you pay in the end)

    I once worked out that a house costs you about double with a mortgage (or some horrendous amount). I find it mind-alteringly ironic that it is the poor who use credit most – no wonder they are poor! Can’t afford the asking price? No problem, pay over the odds instead. Brilliant!

    Man, what it must be to be rich and callous. Easy pickings, providing you can either live with your conscience.. or manage to keep it quiet by getting it into debt and making sure it is always one payslip off bankruptcy..

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  • Sentientmath says:

    indentured servant springs to mind.

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  • Fordprefect says:

    Being an Irish person over 30 with the means to get a deposit together and not being a home owner I am in the minority. I have no debt. I have no interest in buying a house. I can’t see how buying an overpriced badly designed house made out of cardboard is a good idea. If oil prices shoot up as predicted the houses are going to be worthless and impossible to keep warm.

    There is no price sensitivity in any market in Ireland these days. I had a discussion with a supermarket manager for Aldi today and he said that he knew that discount retailers were cheaper in Germany and the UK but there were no objections in Ireland to higher prices. Car prices are very high here but we still fall over each other to buy Mercedes and BMWs. With someone elses money I suppose its easier. My car is 15 and I got it for nothing. The Irish have no sense with money and are living beyond their means.

    The housing market is completely crazy here. Rationality has gone out the window. I know of a developer from Germany who cannot buy in his own market in Germany because the Irish are queuing to buy houses from each other. Completely crazy. People queue for shacks and houses facing north. All to get on some mythical ladder.

    A 40 year mortgage taken out at 32 for 100% of the purchase price is stupid. By the time it is paid for you will be well into retirement.

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  • sold 2 rent 1 says:

    spot on Fordprefect,

    I’m not selling any of my gold in 2012 to bail out my brother-in-laws when they get reposessed.
    I have tried many times to persuade them about the coming disaster and they won’t even put up a counter argument.
    Many will retire in absolute poverty.

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