Shared Equity Scheme

gandalfio

Apologies if there is already a thread on this, couldn't find one.

I had read this was supposed to be announced last Tuesday 22nd December. Still no details on it.

Does anyone have any update on it?

Fran_AZNEU

HI, Are you interested in equity investment in property?

thomas 123

gandalfio wrote: »

Apologies if there is already a thread on this, couldn't find one.

I had read this was supposed to be announced last Tuesday 22nd December. Still no details on it.

Does anyone have any update on it?

Seems like radio silence on this scheme the last few months!

Smee_Again

It was rightly pointed out that it's a bad idea so hopefully it'll just quietly disappear.

thomas 123

Smee_Again wrote: »

It was rightly pointed out that it's a bad idea so hopefully it'll just quietly disappear.

It’s a bad idea for direct purchases 100% , however for myself self building it could be very useful.

On an unbiased note - if it only applied to people self building it would be a great idea, no developers, housing supply would increase as a result! Probably would be seen as unfair but it would actually help supply imo.

Smee_Again

thomas 123 wrote: »

It’s a bad idea for direct purchases 100% , however for myself self building it could be very useful.

On an unbiased note - if it only applied to people self building it would be a great idea, no developers, housing supply would increase as a result! Probably would be seen as unfair but it would actually help supply imo.

Disagree completely.

gandalfio

Smee_Again wrote: »

It was rightly pointed out that it's a bad idea so hopefully it'll just quietly disappear.

Unfortunately, it's the only way I can afford to buy a home with current prices.

Smee_Again

gandalfio wrote: »

Unfortunately, it's the only way I can afford to buy a home with current prices.

75% of a home.

gandalfio

Smee_Again wrote: »

75% of a home.

It's better than 100% rent

thomas 123

Smee_Again wrote: »

Disagree completely.

Ah yeah! It’s easy disagree. However I still think my example holds true especially if you can carry out much of the works yourself.

As I said it’s not a good idea for the build to sell market. It will no doubt drive sale prices up.

The surface has not even been touched on the supply vs demand element of our housing crisis in the last 10 years.

thomas 123

Smee_Again wrote: »

75% of a home.

Borrow from the government or a bank though? You own nothing until the mortgage is paid off, in this case it doesn’t matter to whom as far as I can see - am I missing something?

thegreatescape

https://www.irishtimes.com/news/politics/housing-minister-wants-to-double-affordable-and-social-homes-in-new-developments-1.4538751 the Minister mentions the scheme in this article posted this evening

thomas 123

https://www.gov.ie/en/press-release/a8178-minister-obrien-welcomes-cabinet-approval-for-the-publication-of-affordable-housing-bill-2021/

Movement.

Self build not mentioned on this, private developments are, not sure if it’s only private developers or if it will include self builders but this is great news for anyone looking to buy - especially if the caps are approved.

Browney7

thomas 123 wrote: »

https://www.gov.ie/en/press-release/a8178-minister-obrien-welcomes-cabinet-approval-for-the-publication-of-affordable-housing-bill-2021/

Movement.

Self build not mentioned on this, private developments are, not sure if it’s only private developers or if it will include self builders but this is great news for anyone looking to buy - especially if the caps are approved.

Great news for development landowners and developers. Looking into the statistics for a minute from the CSO, 7,540 new build properties were sold in 2020, of which 3,884 were purchased by FTBs. If the government gives 75 grand in shared equity out to 1000 eligible shared equity recipients (maxing out the 75M budget), it would give over 25% of the existing market of 4000 FTB units extra cash to fuel price increases or else introduce 1000 new buyers to the market with supply being desperately constrained by lockdowns and REITs buying in bulk.

The developer and landowner lobby group is strong, you nearly have to hand it to them. The HTB change from 5% to 10% in the summer has all but been forgotten about as the sprinkles on top.

Finty Lemon

Browney7 wrote: »

Great news for development landowners and developers. Looking into the statistics for a minute from the CSO, 7,540 new build properties were sold in 2020, of which 3,884 were purchased by FTBs. If the government gives 75 grand in shared equity out to 1000 eligible shared equity recipients (maxing out the 75M budget), it would give over 25% of the existing market of 4000 FTB units extra cash to fuel price increases or else introduce 1000 new buyers to the market with supply being desperately constrained by lockdowns and REITs buying in bulk.

The developer and landowner lobby group is strong, you nearly have to hand it to them. The HTB change from 5% to 10% in the summer has all but been forgotten about as the sprinkles on top.

If you don't like developers, buy a site and build your own. Simple.

Browney7

Finty Lemon wrote: »

If you don't like developers, buy a site and build your own. Simple.

Yeah simple solution....if you can get planning. That's another story in Ireland

thomas 123

Finty Lemon wrote: »

If you don't like developers, buy a site and build your own. Simple.

Remains to be seen if self builds will be included! That’s my interest but as always detail is sparse.

Michael_Res1

Im a first time buyer with 45k saved plus htb approval for an additional 30k and mortgage approval for 210k. I'm looking to buy a new house for 320k. Surely, this shared equity scheme is a winner, or is there a catch? Will I have to forgo the htb, anyone know? I'd expect the price to move to 350k quickly. Considering the caps, I can't see the benefit of this scheme for those on the commuter belts, except for a single like me, unfortunately.

gandalfio

Michael_Res1 wrote: »

Im a first time buyer with 45k saved plus htb approval for an additional 30k and mortgage approval for 210k. I'm looking to buy a new house for 320k. Surely, this shared equity scheme is a winner, or is there a catch? Will I have to forgo the htb, anyone know? I'd expect the price to move to 350k quickly. Considering the caps, I can't see the benefit of this scheme for those on the commuter belts, except for a single like me, unfortunately.

Won't sellers now just push the asking prices up towards the cap limits?

touts

gandalfio wrote: »

Won't sellers now just push the asking prices up towards the cap limits?

Absolutely. It will be interesting to watch the websites over the next week or two. Prices will start to tick upwards.

Michael_Res1

gandalfio wrote: »

Won't sellers now just push the asking prices up towards the cap limits?

Yes, thats exactly what will happen. I suppose at least I've a chance of a new build house provided the sale price stays within the caps. Most 3 to 4 bedrooms are over 350k already

thomas 123

Michael_Res1 wrote: »

Yes, thats exactly what will happen. I suppose at least I've a chance of a new build house provided the sale price stays within the caps. Most 3 to 4 bedrooms are over 350k already

Tbf it would be madness if it’s based on perceived sales value and not cost.

Shelga

When will the details on salary thresholds for this be published? I’ve no doubt I don’t qualify for anything, as usual, as a single FTB on a decent enough salary, but just want to check :-/

So exhausted and so sick of these “schemes” that are an insult to our intelligence. What would it take to have a snap election called?

Surely they could ban REITS buying up entire estates, but they just don’t want to, it’s as simple as that. This government does not care about average citizens.

Michael_Res1

Michael_Res1 wrote: »

Surely, this shared equity scheme is a winner, or is there a catch?

You're being rode.

The government will give you, and everyone else, some free money to get you in the door of your house. But now that everyone has this free money, the price of property will increase by the same amount of free money that's being given to you.

For example, If two people want to buy a hat and both of them had 1k, then the hat will sell for 1k. If both people all of a sudden are given an extra 1k, then the hat is now worth 2k.

Except it isn't free money. In a few years, Mr. Government is going to send you a letter saying "remember that money we loaned you". You'll have a choice of paying it back (juggling it with your mortgage, which, if you needed the help of the scheme in the first place, means you're likely to be up to your eyes in debt because you bought above what you could afford) OR you can kick the can down the road, and as your property increases in value, so too, does the amount you owe the government.

I'll predict that most people will likely never pay the government back, because they can't afford it alongside their mortgage.

I haven't seen all the details, but I'm confident there's a clause in there that will prevent the amount owed to them (the equity in your house) from being worth less than it was when the money was loaned. At least if that was the case, should a recession hit and your property is worthless, you could (in theory) buy them out of their share then for a pittance.

However, I reckon what will really happen, is most people will saddle their kids with some debt when they die and the government want their share of the house (so either pony up the cash, or sell the house). EDIT: Actually, if i recall, interest is charged on top of the equity. So when you're being lowered into the ground, by that point the amount you owe the government will likely mean they own your entire house, as the interest has increased their share of the house.

The government are hell-bent on increasing the price of property. The only thing I can pray for, is that this might only directly affect new builds. So maybe those of us that don't mind going to 1980s ex-council houses that are in need of renovating might actually dodge a bullet (doubtful though, as the cost of new builds rising will push up the used stock prices too, of course).


It's a really bad scheme in my opinion. Ten years ago the banks were lending like it was no ones business. Now it's the government themselves that are saddling people with debts they can't afford. :rolleyes:

thomas 123

[Deleted User] wrote: »

So they have completly taken any good out of it by not extending it to self builds . Ffs.

EddieN75

[Deleted User] wrote: »

It's a "scheme" alright.

Is it not just bypassing mortgage limit by income caps?

Don't have enough to buy that house? Government will give you a loan. Two mortgages to repay
House prices rise further as government literally funding the increase!

Smee_Again

Price cap for Louth is €275K, a few new 3 bed semi-d in my estate is currently advertised at €280K. I'll be interested to see if it has any impact on the price, hard to see how it will, houses have been shifting pretty regularly even over the last 12 months.

gandalfio

Struggling to find finer details on this.
When does the shared equity scheme open?
Does it apply to any home on the market?
If I see a home tomorrow that I want to use this scheme to help me buy, how do I go about it?
Are there household income limits?

Smee_Again

gandalfio wrote: »

Struggling to find finer details on this.
When does the shared equity scheme open?
Does it apply to any home on the market?
If I see a home tomorrow that I want to use this scheme to help me buy, how do I go about it?
Are there household income limits?

Its not law yet, only approved by Cabinet so it'll still have to go through a Dail vote etc.

But, AFAIK, its new builds only and there are no income limits because there are price caps instead.

Finty Lemon

thomas 123 wrote: »

So they have completly taken any good out of it by not extending it to self builds . Ffs.

30k from help to buy available for self builds.
Fill out a few forms and it lands in your account. Cash.

That not enough for ya?