Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Affordable Housing Newbie

Options
  • 03-09-2009 2:43pm
    #1
    tinyfox
    Registered Users Posts: 94 ✭✭


    Myself and the OH have decided to apply for the affordable houing in Cork but I have a few questions I hope someone can help with.

    I finished college this year and have unfortunatly been unable to find work so i'm on the dole in the meantime but actively looking and my OH has been working nearly 12 months in his job which is only a temp contract but has recently had a 6 month extension on his contract.

    We dont have much in savings but has been paying rent on time for the last 2 years and have the bank statements to prove it. My question is will we be laughed out the housing dept for trying or will they consider us even with our current circumstances?


Comments

  • Options
    #2
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    tinyfox wrote: »
    Myself and the OH have decided to apply for the affordable houing in Cork but I have a few questions I hope someone can help with.

    I finished college this year and have unfortunatly been unable to find work so i'm on the dole in the meantime but actively looking and my OH has been working nearly 12 months in his job which is only a temp contract but has recently had a 6 month extension on his contract.

    We dont have much in savings but has been paying rent on time for the last 2 years and have the bank statements to prove it. My question is will we be laughed out the housing dept for trying or will they consider us even with our current circumstances?

    Well theres no way you will get a mortgage in your current situation. At least one of you will need to be in full time employment for 12 months.

    So the banks wont give you a mortgage, the other issue right now with affordable housing is its not really coming down with the market so most "affordable housing schemes" are actually not below what can be bought on the open market.

    Theres no harm in enquiring about the affordable housing scheme but realistically dont hold much expectation of getting anywhere


  • Options
    #3
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    oh should have mentioned you would be much better looking into your local shared ownership scheme given your circumstances


  • Options
    #4
    stevoman
    Registered Users Posts: 3,041 ✭✭✭stevoman


    true. i bought an affordable house in january for €160k valued at €200k.

    thing is i could prob buy and house fully now for 160k in town. could be worse though so i wont complain.


  • Options
    #5
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    stevoman wrote: »
    true. i bought an affordable house in january for €160k valued at €200k.

    thing is i could prob buy and house fully now for 160k in town. could be worse though so i wont complain.

    well your stuck into a 20 year contract now or ese you face financial penalties for something you could have bought at market value now and been free to do whatever you wish.

    Dont get me wrong OP Im not trying to put you off affordable housing but I think you should leave it be for 2 main reasons right now

    1. You as a couple are not in a secure financial position and quite frankly cant afford it.

    2. Affordable housing was great in a rising housing market, in a falling one it doesnt make sense as they affordable housing prices are not reacting to the market appropriatly right now


  • Options
    #6
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    stevoman wrote: »
    true. i bought an affordable house in january for €160k valued at €200k.

    thing is i could prob buy and house fully now for 160k in town. could be worse though so i wont complain.

    Where out of pure interest?


  • Advertisement
  • Options
    #7
    ChewChew
    Moderators Posts: 24,367 ✭✭✭✭ChewChew


    stepbar wrote: »
    Where out of pure interest?
    Ha, I was just about to ask the exact same question! I just got mortgage approval today on an affordable house. It's been a battle to say the least.


  • Options
    #8
    ParkRunner
    Registered Users Posts: 3,026 ✭✭✭ParkRunner


    Hi OP,
    If I were you I would stay away from the affordable housing scheme at this stage. There is no great difference between the price you could get on the open market and the 'affordable' price now. You would have a better chance getting a mortgage with an affordable property, which is the only real plus with affordable houses these days, but only having one income on a temporary contract sounds a bit too risky to me with the likelihood of interest rate increases next year.


  • Options
    #9
    tinyfox
    Registered Users Posts: 94 ✭✭tinyfox


    I have a bit of inheritance in the region of 10k+ that i would put towards it as well as the fact i'm not intending on being unemployed this time next year but if I am then the amount we (might) get now will be managable as they gave it to us when I wasn't working.

    To be honest the real reason we're going for affordable is we're thinking the bank might give us a break-through mortage faster then a first time buyers mortage, dont know if thats even true but thats what we're thinking.


  • Options
    #10
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    tinyfox wrote: »
    i'm not intending on being unemployed this time next year .

    Nobody is intending to be its generally circumstances beyond their control. The fact is you need to use some proper financial prudance before going into such a large financial commitment.

    People expecting things to happen financially is why we are in the bubble mess we are in.

    Im assuming your relatively young given you have jsut finished college 23 ish you have time on your side.

    Use that time wisely get a permanent job, save a deposit then get a mortgage that is affordable to you assuming interest rates at about 6 - 7 percent.


  • Options
    #11
    stevoman
    Registered Users Posts: 3,041 ✭✭✭stevoman


    D3PO wrote: »
    well your stuck into a 20 year contract now or ese you face financial penalties for something you could have bought at market value now and been free to do whatever you wish.
    no financial penalties. if i sell tomorow for €200k i give the 20% discount to the local council simeple as. If i sell for less then i give whatever over the €160k mark i get back to them. if i sell for less then €160 then i dont have to give them anything. so essentially i cant go into negative equity, acording to the contract.

    LOL you make it sound bad, is a mortgage not a 30 year contract.

    OP its a very good starter scheme not matter what anyone tells you. We are in an estate of 30 houses all affordable and they filled very quick and its a lovely place to live and everyone is very happy. Look whats best for you. All i can say is the local councils may give you a mortgage a little easier than a bank and also a rent to buy scheme is being introduced which means you may rent the house for approx 2 years and if you then plan on buying the 2 years rent will be taken as payment from the mortgage. look into it and good luck getting a house! :)


  • Advertisement
Advertisement