Approximately one in four 25 to 34 year old's are living with their parents in their family home. Most don’t want to be there … and most parents don’t want them there either!
Get financial help & get on d'telly!
Presented by Brendan Courtney, This Crowded House is coming back to RTÉ2 for a second series and they are looking for people in their 20's, 30's - or maybe even 40's - who need help getting out from under their parent's roof.
This Crowded House
Last year, Brendan - with the help of top financial and property experts - helped eight families with adult children living at home to move out, or get on the right financial path to independence.
For 'Generation Rent', the numbers often make the prospect of buying, renting or even house-sharing seem like an impossible task.
Speaking exclusively to RTE Lifestyle, Brendan Courtney said:
"The programme seems to be getting more and more timely as the crisis seems to worsen. Having gone through the process last year with 8 candidates and their families in lots of different situations, I can promise anyone who gets involved this year will get so much out of it – whether being in a much better position financially, career-wise, and when it comes to where they will live."
Brendan even benefitted himself last year from sitting in on one contributor’s financial meeting: "After one session with [financial planner, see below] Eoin listening in to a contributor get advice, I went and made a phone call and ended up getting a refund from my mobile provider of €700!
"This stuff is pure gold – literally!"
Sign me up!
Contributors to the show will be given expert advice from financial planner Eoin McGee and a team of researchers and advisors who will help explore all of the available housing options.
To apply, e-mail crowdedhouse@indiepics.ie or call 01 7088181.
Top Tips
In the meantime, Financial Planner, Eoin McGee, has some important tips for renters and buyers:
There are two areas you need to convince the bank/landlord on, they are:
- That you will pay them back their money
- That you will protect their investment.
Make yourself attractive, show them that you can handle your finances and you’re a good bet. Do this by:
- Spending less than you earn. Sounds simple but only people who have no credit card debt, personal loans or car loans can say they actually spend less than they earn.
- Avoid excessive debt - Do you use the credit card at the end of the month to "get you through" and then "forget" to clear it next month?
- Clear your loans: The landlord may not care too much about what loans you have but you can be guaranteed the bank will find out.
- Give proof you can afford the repayments/rent on a consistent basis. Work out how much your future mortgage is going to be per month and save 1.2-1.3 times that amount. For example, if the mortgage repayment is €1000 per month you will be very attractive to a bank if you can show consistent savings per month of €1300.
- Don’t bet online - no landlord or bank wants to see that habit.
That you will protect their investment:
- The bank needs security. Banks only lend a maximum of 90% to first-time buyers of the purchase price of a house. (there are some exceptions). This is because they want to ensure that if everything goes pear-shaped and you stop paying the mortgage and they are forced to sell the house that they will recoup their money. In other words, they build in a 10% buffer from the outset to protect themselves.
- Needing at least 10% also gives the bank comfort that you have ‘skin in the game’ - You are more likely to look after a property you have money in, than one you have nothing to do with.
- Landlords are no different: they want to know that if you stop paying rent, they can throw you out and you won’t have wrecked the place and they can rent it again. Convincing a prospective landlord of this is down to basics, do they think you seem like somebody who won’t wreck the place? Did you arrive to the viewing with a hangover? Did you bring "the lads" to see the place with you? Your landlord has loads of people to choose from, they will decide on you in the first few minutes.
Brendan spoke with Ray D'Arcy about the show on RTÉ Radio 1, you can listen to their conversation below - skip to 57 mins in.
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