New figures from the Banking & Payments Federation today show that the average First Time Buyer deposit is now €52,000 in Ireland. That will be a staggering figure to many but reflects the market has extremely well funded buyers right now. At a loan to value of 90% that would buy the average buyer a house worth €520,000, about €100,000 above the national average house price.
Buyers are finding their deposits from a variety of sources. Nearly 42% of FTBs used gifts as part of their deposits (ie Bank of Mum and Dad). Some €149 million was given as gifts in 2021.
If you are unfortunately not to have access to the Bank of Mum or Dad, don’t worry. The vast majority of buyers still used savings for the majority of their deposit to buy a house.
If you’re looking to save for a house deposit, our three best tips are:
- ASSESS YOUR SPENDING – see where you can save.
- SET A TARGET – pay into your savings as the first thing you do when you get paid, don’t leave it for whatever you have leftover at the end of the month.
- TRACK YOUR SAVINGS – it’s good to have a visual way of seeing your savings and a timeline for your target goal. Use our Deposit Builder in the #irishhomebuyersjournal to see how far you’ve come and keep motivated!