Affordable House

DonJose · 08-09-2008 10:27am

tomcollins97 wrote: »

Its not a fight! Friends??

laurak265 wrote: »

Yep!

Now that you two are friends, you can move in together and split the bills

laurak265 · 08-09-2008 10:29am

DonJose wrote: »

Now that you two are friends, you can move in together and split the bills

Good plan batman!!!

Sheera · 10-09-2008 10:50pm

tomcollins97 wrote: »

Previously I did go on the list - but by the time I was called my income had just risen above the threshold. By that time I had decided not to persue social housing for a number of reasons:

[*]Resentment from neighbours. A number of people do not like the idea of their next door neighbout paying a much lower mortage than they do. This is not just my opinion. RTE had a program on a few weeks ago that interviewed a number of people in social housing units in Grand Canal Dock. A number of people had been relocated from inner city areas. They generally felt resentment towards them from people who had paid full price for their home. So much so that they set up their own social housing residents association

Sorry to be pedantic but is this not a discussion about affordable housing and not social housing? People who avail of affordable housing are for the most part professional people who just do not earn enough to buy their own property in the current market. Social housing is a different matter. I can not imagine that there are major social or cultural differences between those who buy a property at market value in a particular development and those who buy it at an 'affordable' housing rate.

tomcollins97 · 11-09-2008 8:10am

Sheera wrote: »

Sorry to be pedantic but is this not a discussion about affordable housing and not social housing? People who avail of affordable housing are for the most part professional people who just do not earn enough to buy their own property in the current market. Social housing is a different matter. I can not imagine that there are major social or cultural differences between those who buy a property at market value in a particular development and those who buy it at an 'affordable' housing rate.

Apologies, I do mean affordable housing and not social housing.

Surely if someone can afford a house at 500k & someelse buys in the same location at a fraction of the cost there will be substantial income & possibly social differences??

astrofool · 11-09-2008 2:21pm

tomcollins97 wrote: »

Apologies, I do mean affordable housing and not social housing.

Surely if someone can afford a house at 500k & someelse buys in the same location at a fraction of the cost there will be substantial income & possibly social differences??

It depends, a single buying a house might have a similar income (& lifestyle) to a neighbouring couple, but obviously can only spend half as much on the property.

Also, this scheme is open to people who are earning above the national average, the discrepency is going to be nowhere near as huge as with social housing.

tomcollins97 · 11-09-2008 2:24pm

astrofool wrote: »

It depends, a single buying a house might have a similar income (& lifestyle) to a neighbouring couple, but obviously can only spend half as much on the property.

Also, this scheme is open to people who are earning above the national average, the discrepency is going to be nowhere near as huge as with social housing.

What happens with affordable housing if you buy when single but end up married a few years down the line? Is there any claw-back feature where you will end up having to pay more if there is a joint income in the house?

laurak265 · 11-09-2008 2:26pm

tomcollins97 wrote: »

What happens with affordable housing if you buy when single but end up married a few years down the line? Is there any claw-back feature where you will end up having to pay more if there is a joint income in the house?

Good question...i don't know but i have never heard of it happening so probably not!

jam_mac_jam · 11-09-2008 7:15pm

tomcollins97 wrote: »

Working just as hard as everyone else but because of being a single mother getting a cheap house - I wish we were all as lucky & our main worry was not being able to afford sky! The rest of the taxpayers are covering the cost of this 'affordable' housing

oh, I didnt realise that only single mothers could apply for these houses thats quite strange seeing as there are plenty of people without kids getting them. When did they change the rule that only single mothers could get them?

jam_mac_jam · 11-09-2008 7:18pm

tomcollins97 wrote: »

What happens with affordable housing if you buy when single but end up married a few years down the line? Is there any claw-back feature where you will end up having to pay more if there is a joint income in the house?

Nothing, it is no way based upon your status as married or single

Sheera · 11-09-2008 10:51pm

tomcollins97 wrote: »

Apologies, I do mean affordable housing and not social housing.

Surely if someone can afford a house at 500k & someelse buys in the same location at a fraction of the cost there will be substantial income & possibly social differences??

Not necessarily - some jobs/professions are just higher paid than others (obviously), eg. I work in the public sector & earn a lot less then some of my friends in the private sector, or who are at different stages in their careers. I can avail of affordable housing, some of them can not, or choose not to because they earn enough to buy privately. But we are all from the same background & same social grouping.

There is also the question of singles v couples in terms of spending power as astrofool mentioned.

tomcollins97 · 12-09-2008 8:31am

jam_mac_jam wrote: »

oh, I didnt realise that only single mothers could apply for these houses thats quite strange seeing as there are plenty of people without kids getting them. When did they change the rule that only single mothers could get them?

Where did I say only 'single mothers'? I was posting in the context of what th OP had psoted

tomcollins97 · 12-09-2008 8:33am

jam_mac_jam wrote: »

Nothing, it is no way based upon your status as married or single

What I mean if what happens if a single income household buy an affordable house, but down the line becomes a double income household which pushes the total income above that which is allowable for affordable housing?

SimpleSam06 · 12-09-2008 8:56am

Sheera wrote: »

Not necessarily - some jobs/professions are just higher paid than others (obviously), eg. I work in the public sector & earn a lot less then some of my friends in the private sector, or who are at different stages in their careers.

Do you mind if I ask you which section of the public sector that might be? Because public sector pay generally has been increasing three times faster than private sector for the last ten years, and it started out pretty much the same.

cassiedoll · 12-09-2008 9:38am

hi folks,

i have been on the waiting list for a year for an affordable home and i got a telephone call from DCC to say that i had been selected for an apartment with a purchase price of e215,000. i was told that i need to have approval in principle and e3000 deposit by wednesday the 17th of September.

i actually checked out the floor plans for my 1 bed apartment...and believe me you could barely see it on the screen....

i rang all the relevant banks and im looking at mortgage repayments of approx. e1200 a month....this does not include management company fees, gas, esb, etc etc.....this will cripple me financially and i am not in a position to ask for a payrise with the way the economy is going.

will the re-mortgage repayments etc. be worth it all for a small 1 bed..

i dont know any1 personally who is this situation and its a big gamble i think....

i spoke with one girl who got a one bed apartment in santry for e180k....

i dont know what to do and i dont have much time

tomcollins97 · 12-09-2008 10:16am

cassiedoll wrote: »

hi folks,

i have been on the waiting list for a year for an affordable home and i got a telephone call from DCC to say that i had been selected for an apartment with a purchase price of e215,000. i was told that i need to have approval in principle and e3000 deposit by wednesday the 17th of September.

i actually checked out the floor plans for my 1 bed apartment...and believe me you could barely see it on the screen....

i rang all the relevant banks and im looking at mortgage repayments of approx. e1200 a month....this does not include management company fees, gas, esb, etc etc.....this will cripple me financially and i am not in a position to ask for a payrise with the way the economy is going.

will the re-mortgage repayments etc. be worth it all for a small 1 bed..

i dont know any1 personally who is this situation and its a big gamble i think....

i spoke with one girl who got a one bed apartment in santry for e180k....

i dont know what to do and i dont have much time

My advise would be no. Check out the small print & what equity you could walk away with after 3, 5, 10 years etc. You could be in a situation where your circumstance change & you need a bigger place, you see & have to give the bulk of any profit back, and suddenly find youself back on the bottom rung of the ladder or apply to affordable housing again. That said, if a one bed suits your circumstances & you feel that you would be happy in it long term well maybe it is the right thing for you to do.

BTW, what lender have you gone to - the payments seem very hig for a mortgage of 215k

cassiedoll · 12-09-2008 10:54am

tomcollins,

i should have stated that im not getting a 100% mortgage...im putting 15k of my own money so i am only getting a mortgage of 200k and i think the repayments are scandalous

i have spoken with Haven Mortgages, the EBS, First Active, Bank of Ireland and im waiting on IIB to get back to me

they all seem to be in or around 1200...if teh repayments were only 1000 i could to it

astrofool · 12-09-2008 11:28am

What % interest rate is each offering? You will definitely benefit by going to a broker in this instance (you don't have to use them in the end), but you should get a better rate offered.

Haven and EBS are the same company, also check out AIB.

tomcollins97 · 12-09-2008 11:34am

cassiedoll wrote: »

tomcollins,

i should have stated that im not getting a 100% mortgage...im putting 15k of my own money so i am only getting a mortgage of 200k and i think the repayments are scandalous

i have spoken with Haven Mortgages, the EBS, First Active, Bank of Ireland and im waiting on IIB to get back to me

they all seem to be in or around 1200...if teh repayments were only 1000 i could to it

In the present climate I would suggest saying no & renting for a while. One beds are about 800 to rent which would mean you could save 200 a month to put towards a mortgage in a few year. If you don’t mine me asking, what age are you? You need to bear in mind that you will also be using up your 1st time buyers stamp exemption on this property. Having to find stamp for home number two will make it even harder to move to a different place in a few years should you wish to do so.

In the early years of your mortgage the majority of the payment goes towards the interest owed.As your mortgage term matures your repayment goes more and more towards the capital amount borrowed. At the end of your mortgage term the loan is fully paid off. So, if you were to pay a mortgage for a few years would you be any better off than renting? If you pay for 5 years on a 20 year mortage you will not have paid poff a quarter of the capital after 5 years, just a lot of interest & a bit of capital. So by renting for a few years you are not really ‘throwing away’ money. My advise would be to rent a bit longer & save what you can to put towards a better place.

For example, on a 200k loan the starting payment will be on average: interest + capital monthly repayment is €1,365. Interest only is €900. So each moth you are only paying off €465 of the capital owed at the start of the loan!

cassiedoll · 12-09-2008 11:46am

hi astrofool...as far as i was aware AIB dont offer affordable housing mortgages..

and apparently its in the pipeline at the mo for PTSB to join this sort of lending

cassiedoll · 12-09-2008 12:01pm

i rented for 5 and half years and moved back in with my parents 2 years ago and im now 27 years old..

as i am trying to eliminate costs i couldnt afford to get a mortgage broker and would be doing most of the work myself...i work in a solicitors office so i wont be paying legal fees.

i understand bout the first time buyer....and that was a big issue for me before i even applied to A.H.

insofar as the interest rates and capital...im not 100% clued in on it..

if i dont take this opportunity i dont know what DCC will come back with ...could be worse could be better but i dont know if it will be cheaper. And if you turn down the 3rd property they offer you ....you go back to the very bottom of the pile.

the other option i thought of was pumping even more the 15k in to this property to bring my mortgage down even further but that leaves me with absolutely nothing in the bank.

and on your calculations below it doesnt sound very good.

tomcollins97 · 12-09-2008 12:10pm

cassiedoll wrote: »

i rented for 5 and half years and moved back in with my parents 2 years ago and im now 27 years old..

as i am trying to eliminate costs i couldnt afford to get a mortgage broker and would be doing most of the work myself...i work in a solicitors office so i wont be paying legal fees.

i understand bout the first time buyer....and that was a big issue for me before i even applied to A.H.

insofar as the interest rates and capital...im not 100% clued in on it..

if i dont take this opportunity i dont know what DCC will come back with ...could be worse could be better but i dont know if it will be cheaper. And if you turn down the 3rd property they offer you ....you go back to the very bottom of the pile.

the other option i thought of was pumping even more the 15k in to this property to bring my mortgage down even further but that leaves me with absolutely nothing in the bank.

and on your calculations below it doesnt sound very good.

What I'm really tyring to say is that a one bed at 27 is not a good buy. Hold out for a least a 2 bed. If you have a one bed & times get tough you have no room to rent!

cassiedoll · 12-09-2008 12:22pm

thank you very much tomcollins.....really appreciated.

an i think your right.....

i'll probably be waiting another 2 years for DCC to offer me sumting else

The_Conductor · 12-09-2008 12:26pm

tomcollins97 wrote: »

What I'm really tyring to say is that a one bed at 27 is not a good buy. Hold out for a least a 2 bed. If you have a one bed & times get tough you have no room to rent!

I wouldn´t make any assumptions regarding renting a room out- the number of people doing this (according to the Revenue Commissioners) has plumetted. Quite simply its no longer seen as a good idea by potential letters- particularly in light of the number of rental properties available outright countrywide.

SimpleSam06 · 12-09-2008 12:43pm

cassiedoll wrote: »

thank you very much tomcollins.....really appreciated.

an i think your right.....

i'll probably be waiting another 2 years for DCC to offer me sumting else

Smartest move you could make. Run away, far and fast. That dinky little postage stamp apartment will be worth half what they say it is in a few years, maybe less. Keep saving, in a few years you probably won't even need assistance to buy a house!

SkepticOne · 12-09-2008 12:57pm

cassiedoll wrote: »

hi folks,

i have been on the waiting list for a year for an affordable home and i got a telephone call from DCC to say that i had been selected for an apartment with a purchase price of e215,000. i was told that i need to have approval in principle and e3000 deposit by wednesday the 17th of September.

i actually checked out the floor plans for my 1 bed apartment...and believe me you could barely see it on the screen....

i rang all the relevant banks and im looking at mortgage repayments of approx. e1200 a month....this does not include management company fees, gas, esb, etc etc.....this will cripple me financially and i am not in a position to ask for a payrise with the way the economy is going.

will the re-mortgage repayments etc. be worth it all for a small 1 bed..

i dont know any1 personally who is this situation and its a big gamble i think....

i spoke with one girl who got a one bed apartment in santry for e180k....

i dont know what to do and i dont have much time

Before going for this it might be worth approaching the builder directly for a private deal. My view is that the "market value" on which the discounted "affordable" price is kept deliberately high by builders since that way they maximise the amount gullible county councils pay them. There are stories of developments where the only apartments being shifted are "affordable" ones. This suggests that the subsidised price is in fact the real market price. Personally I would wait a couple of years for the government to run out of money to bail out builders. Then you will see substantial falls.

jdivision · 12-09-2008 3:49pm

tomcollins97 wrote: »

or apply to affordable housing again. That said, if a one bed suits your circumstances & you feel that you would be happy in it long term well maybe it is the right thing for you to do.

AT the moment you can't apply again for affordable housing after you've bought one. I think the OP hasn't taken mortgage interest relief into account when calculating her repayments

Sheera · 14-09-2008 7:58pm

SimpleSam06 wrote: »

Do you mind if I ask you which section of the public sector that might be? Because public sector pay generally has been increasing three times faster than private sector for the last ten years, and it started out pretty much the same.

I'm not necessarily comparing like with like - my point was that people from the same social background can have big variances in salary, depending on career choice and those who avail of affordable housing are not necessarily any different socially or culturally than those who buy privately.

Cassiedoll - repayments of €1200 seems a lot for a mortgage of €200k. What is the term of the loan? I wouldn't take the apartment just because you are worried you won't get anywhere else - only take it if you like it and can see yourself living there at least in the medium term.

laurak265 · 14-09-2008 8:32pm

cassiedoll wrote: »

tomcollins,

i should have stated that im not getting a 100% mortgage...im putting 15k of my own money so i am only getting a mortgage of 200k and i think the repayments are scandalous

i have spoken with Haven Mortgages, the EBS, First Active, Bank of Ireland and im waiting on IIB to get back to me

they all seem to be in or around 1200...if teh repayments were only 1000 i could to it

Cassiedoll,

My mortgage would be 870 for €199500 with ebs and that includes home insurance!!! Ring ebs in citywest and tell them laura kavanagh told you to ring. Ask for shane...hes my brother!

HOpe this helps!

subway · 14-09-2008 11:26pm

laurak265 wrote: »

Cassiedoll,

My mortgage would be 870 for €199500 with ebs and that includes home insurance!!! Ring ebs in citywest and tell them laura kavanagh told you to ring. Ask for shane...hes my brother!

HOpe this helps!

199,500 at ebs lowest rate of 5.6 works out to 1080 per month over 35 years.
even stretching to 50 years it only comes down to 989 per month.

what rate / term are you on?

laurak265 · 15-09-2008 8:48am

Its over 35yrs but because its affordable (which is the point) the first 5 years repayments are the cheapest aparently and then it goes up but you have had 5 yrs to get to the point where you can pay more then! Make sure you enquire about the affordable mortgage! Maybe you have i'm not sure!!

Affordable House

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