Affordable Housing

warrenaldo

Does anyone have a link to substantiate any of this about the clawback

The_Conductor

warrenaldo wrote: »

Does anyone have a link to substantiate any of this about the clawback

The proposal (and its only a proposal at present- it has not been implemented- despite a number of councils jumping the gun on it), is that going forward for new purchases the clawback requirement can be reworded to take cognisance of changed market conditions. Any pre-existing contracts do however continue to stand.

Its very much a case of watch this space- there wasn't supposed to be an announcement until the Autumn.

gurramok

Never heard of it been scrapped for past buyers, only for new housing like the recent apts in DDDA so they can sell the things rather than having them empty!

meditraitor

cjms wrote: »

I got offered Ringfort Balrothery, is the area nice? should i go for it? help?

Lucky you, its a fabulous area if your into peace and quiet. The people are very nice and it would be a great place to bring up a family.

Public transport -It is an hour from the city centre with traffic in the morning and the buses are every 20 minutes (peak)
Shopping - local shop is OK
Pavillions in swords is less than 15 minutes away by car
Beach is less than 10 to balbriggan, and skerries is not much more than 10 minutes away either.

Its a hell of a lot better than most of these cardboard cities in urban dublin

The_Conductor

meditraitor wrote: »

Lucky you, its a fabulous area if your into peace and quiet. The people are very nice and it would be a great place to bring up a family.

Public transport -It is an hour from the city centre with traffic in the morning and the buses are every 20 minutes (peak)
Shopping - local shop is OK
Pavillions in swords is less than 15 minutes away by car
Beach is less than 10 to balbriggan, and skerries is not much more than 10 minutes away either.

Its a hell of a lot better than most of these cardboard cities in urban dublin

I've family who live in the area- the one point I would emphasise- you need to have access to private transport- its an absolute must.

meditraitor

smccarrick wrote: »

I've family who live in the area- the one point I would emphasise- you need to have access to private transport- its an absolute must.

I agree, I think if it was a choice between having to get private transport and moving there or moving to any of the city burbs that has better transport its no contest. For me anyway:pac:
Plenty of cheap motors out there........

rikki2

smccarrick wrote: »

The proposal (and its only a proposal at present- it has not been implemented- despite a number of councils jumping the gun on it), is that going forward for new purchases the clawback requirement can be reworded to take cognisance of changed market conditions. Any pre-existing contracts do however continue to stand.

Its very much a case of watch this space- there wasn't supposed to be an announcement until the Autumn.

I dont agree, having spoken to DCC they told me if I were to sell my property at todays market rate I would not have to pay the clawback agreed to in my contract. However this was verbal information and has yet to be confirmed in writing.

Your quote seems to use "jargon" which I found difficult to understand; are you quoting from an official document or is that just your angle on it?

The_Conductor

rikki2 wrote: »

I dont agree, having spoken to DCC they told me if I were to sell my property at todays market rate I would not have to pay the clawback agreed to in my contract. However this was verbal information and has yet to be confirmed in writing.

Your quote seems to use "jargon" which I found difficult to understand; are you quoting from an official document or is that just your angle on it?

I was paraphrasing an e-mail from the Department of the Environment. Its not official- its a holding position- until they issue new instructions to the different councils. The only council who are willing to give out good info seems to be Cork Co. Co.- and even they won't say whether they have official sanction to act as they are currently doing so......

rikki2

smccarrick wrote: »

I was paraphrasing an e-mail from the Department of the Environment. Its not official- its a holding position- until they issue new instructions to the different councils. The only council who are willing to give out good info seems to be Cork Co. Co.- and even they won't say whether they have official sanction to act as they are currently doing so......

I got this email from Michael Finneran TD. It looks like the Clawback is still in place but in Favour of the Council insofar that the Clawback doesn't diminish and there's no mention of it going after 20 years either

There are no plans to alter the clawback provisions applicable to existing purchasers of affordable housing. However, new arrangements are being introduced to dispose of affordable housing. What will change is the way in which these homes are sold to purchasers. The scheme will be clearer and more straightforward for people to understand and to access. While they will purchase the property at a discount, the manner in which the State is reimbursed for that assistance over time will change under the new arrangements. The new arrangements do not alter the position for purchasers in relation to the initial purchase; it is less favourable in the longer-term, as the discount provided by the State is not diminished over time. However, it does ultimately provide a more equitable and cost effective approach to the provision of affordable housing overall in that the State’s investment would be maintained and funds would be recycled into assisting further households with affordable housing.

Tradnuts

Hi there,
I have a question.
My affordable apartment was "valued" at €300,000 in 2007 when i bought it, and my mortgage from the council was for €150,000 for it. Now that the value of these apartments stands at around €150,000 - 175,000, whats to stop me from putting it up for sale at €150,000 and buying it from myself?

The council dont get any clawback, and lose the right to it in the future.

I have my father or cousin or someone i trust to buy from me and then sell it back to me or i buy it from myself. That way i get the council out of my life, They dont get a clawback and i'm the owner of the apt that i'm living in anyways, except now the council have no right to it....?

Just thinking out loud really.:)

Any feedback or ideas would be great.
Regards

warrenaldo

As far as I know. You can purchase it yourself. You do not need to involve your father or cousin or anybody.

Its perfectly legal.

The_Conductor

warrenaldo wrote: »

As far as I know. You can purchase it yourself. You do not need to involve your father or cousin or anybody.

Its perfectly legal.

You're not allowed repay the original mortgage early- unless the property is being sold.....?

Tradnuts

smccarrick wrote: »

You're not allowed repay the original mortgage early- unless the property is being sold.....?

So, theoretically speaking, i could sell it to someone i know, and then buy it back from them , without breaking any laws?

Thanks for your help.

The_Conductor

Tradnuts wrote: »

So, theoretically speaking, i could sell it to someone i know, and then buy it back from them , without breaking any laws?

Thanks for your help.

Unless they live in it as their PPR for a set period of time- they are classified as investors, and not exempt from stamp duty (irrespective of the size of the property).

You really need to seek professional advice on this (not from unqualified folk on the internet.......)

Leah-G1

Hi everyone,

I am looking to apply for the affordable housing in Dublin City and Fingal. I have had a look through the website and am confused on a few things. It states that you need to have a provisional mortgage approval?
I plan on applying for the AFH and while Im waiting save up my deposit..is this possible? i couldnt get a provisional mortgage if I had no savings.

From experience what exactly is it you need when applying for the first time?

poshspice24

Tradnuts wrote: »

Hi there,
I have a question.
My affordable apartment was "valued" at €300,000 in 2007 when i bought it, and my mortgage from the council was for €150,000 for it. Now that the value of these apartments stands at around €150,000 - 175,000, whats to stop me from putting it up for sale at €150,000 and buying it from myself?

The council dont get any clawback, and lose the right to it in the future.

I have my father or cousin or someone i trust to buy from me and then sell it back to me or i buy it from myself. That way i get the council out of my life, They dont get a clawback and i'm the owner of the apt that i'm living in anyways, except now the council have no right to it....?

Just thinking out loud really.:)

Any feedback or ideas would be great.
Regards

When purchasing my affordable home I was informed I could buyout the council at a later date at current valuation if my financial circumstances changed.

If the property boom had remained the council would have been very happy to let one buy them out as they would have received clawback.

Since a declining market however, the clawback is minimal if not 0 due to the decrease in valuation. The council are now stating it is not possible to buy them out (buy it for yourself).

Another reason why I think they are forbidding buy-out is due to the mortgage protection taken out automatically with the loan. The mortgage protection is of a higher cost in comparison to related products on the market. As a result it is conducive to the council to have the homeowner pay the mortgage to the end of term so I reckon they will do everything possible to discourage buyouts (or buying it for yourself).

If someone was to buy it on your behalf, they are going lose their first time buyers status (if a first time buyer) or pay stamp duty if they are not a first time buyer.

The councils are currently debt ridden and it would make sense to remove the loan from their books. There are others on this site who have successfully bought the council out of the clawback. It is shameful that there are no uniform policies in relation to this issue.

I wish I had obtained the quote from them regarding "buyout" in writing. There are solicitors specialised in this field so I guess it's a trip to the solicitor in the new year.

geffkane

Tradnuts wrote: »

Hi there,
I have a question.
My affordable apartment was "valued" at €300,000 in 2007 when i bought it, and my mortgage from the council was for €150,000 for it. Now that the value of these apartments stands at around €150,000 - 175,000, whats to stop me from putting it up for sale at €150,000 and buying it from myself?

The council dont get any clawback, and lose the right to it in the future.

not so fast. The decision as to whether you are liable for clawback is dependant of what the Council thinks you could have sold it for rather than what you actually sell it for. so if you sell it for €150,000 the Council can still say that the actual market valuation at this time is €250,000 and you will be liable for full clawback. The Council decides what the current valuation of the property is. what you actually can get for it is largely irrelevant.