Shared Equity Scheme

thomas 123

Finty Lemon wrote: »

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?

No it’s not, considering I will have less spending power then those buying from a developer.

Let’s not forget the higher interest I will pay to a bank vs the government.

Finty Lemon

thomas 123 wrote: »

No it’s not, considering I will have less spending power then those buying from a developer.

Let’s not forget the higher interest I will pay to a bank vs the government.

Apologies now.
Are you pursuing a self build? Is it build cost that is your issue so? Is your problem then that you will have to pay a normally structured mortage in full after getting 30k from the state to help with your deposit to secure it?
I don't understand the comparison you are making.

Zenify

Smee_Again wrote: »

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.

I am going to contact my local TD and tell them I will not vote for them if they vote for this. I think we should all do it. Unless anyone has any better ideas?

EddieN75

Zenify wrote: »

I am going to contact my local TD and tell them I will not vote for them if they vote for this. I think we should all do it. Unless anyone has any better ideas?

It's a bit of an illusion to think that people emailing TDs will change anything.

The bill will pass, house prices will rise even further.

Il never own a home

Spideoige

Will the equity in the house decrease if say the house value decreases in let's say 10 years when you go to sell the house? Any new builds anywhere near me I would consider are currently at inflated prices and sure they are shiny and new right now but I would worry about the future attractiveness of some of these schemes.

thomas 123

Finty Lemon wrote: »

Apologies now.
Are you pursuing a self build? Is it build cost that is your issue so? Is your problem then that you will have to pay a normally structured mortage in full after getting 30k from the state to help with your deposit to secure it?
I don't understand the comparison you are making.

So I am less valuable as a house builder than a developer who will make a profit yeah?

I am housing myslef, thus taking pressure of the market - look at the charts above - my borrowing power as a self builder is less than someone buying a house from a private developer - especially If materials and labor rises as a result of this.

A normally structured mortgage will likely be more expensive then if I could avail of this scheme.

gandalfio

Smee_Again wrote: »

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.

Is there a limit on the equity the govt will fund? I had heard it would be 30%. But now hearing it's 20.

Smee_Again

gandalfio wrote: »

Is there a limit on the equity the govt will fund? I had heard it would be 30%. But now hearing it's 20.

The mortgage needs to be at least 70% of the purchase price, the remaining 30% can be split between the H2B (10%) and Shared Equity (20%).

shawki

thomas 123 wrote: »

So I am less valuable as a house builder than a developer who will make a profit yeah?

I am housing myslef, thus taking pressure of the market - look at the charts above - my borrowing power as a self builder is less than someone buying a house from a private developer - especially If materials and labor rises as a result of this.

A normally structured mortgage will likely be more expensive then if I could avail of this scheme.

Could be worse, you could be a first time buyer who wants to buy a 2nd hand home with zero supports.

Ah good, just in case the massive recent jumps in prices wasn't enough now I'll have to borrow another few dozen thousand. :rolleyes:

gandalfio

Smee_Again wrote: »

The mortgage needs to be at least 70% of the purchase price, the remaining 30% can be split between the H2B (10%) and Shared Equity (20%).

It really does push the boundaries of 'affordable'. Many people haven't paid anywhere near 40k in tax to claim the HTB.

EddieN75

gandalfio wrote: »

It really does push the boundaries of 'affordable'. Many people haven't paid anywhere near 40k in tax to claim the HTB.

Makes a mockery of the central bank lending rules too. Completely bypassing them.

cruizer101

EddieN75 wrote: »

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!

This. Can the central bank not step in to say hang on lads there is a limit there for a reason.

Also how happy are the banks about it, repossession is hard enough as is in this country, now lets add the complications of someone else having an interest in the house also.

Terrible scheme, it is not going to make anything more affordable, just push prices up.
And then those just outside of the income limits will be screwed over as houses that were in reach will now be out of it.

Smee_Again

EddieN75 wrote: »

Makes a mockery of the central bank lending rules too. Completely bypassing them.

cruizer101 wrote: »

This. Can the central bank not step in to say hang on lads there is a limit there for a reason.

Also how happy are the banks about it, repossession is hard enough as is in this country, now lets add the complications of someone else having an interest in the house also.

Terrible scheme, it is not going to make anything more affordable, just push prices up.
And then those just outside of the income limits will be screwed over as houses that were in reach will now be out of it.

The CB has to sign off on it and I don’t think they have yet so it’ll be interesting to see if the regulator actually does any regulating.

Regulators, mount up.

gandalfio

The difference is though that the equity loan doesn't have to be paid off until the home is eventually sold. So you're not saddled with additional monthly debt repayments on top of the monthly mortgage.

Smee_Again

gandalfio wrote: »

The difference is though that the equity loan doesn't have to be paid off until the home is eventually sold. So you're not saddled with additional monthly debt repayments on top of the monthly mortgage.

After 5 years interest starts accruing on the equity part.

Finty Lemon

thomas 123 wrote: »

So I am less valuable as a house builder than a developer who will make a profit yeah?

I am housing myself, thus taking pressure of the market - look at the charts above - my borrowing power as a self builder is less than someone buying a house from a private developer - especially If materials and labor rises as a result of this.

A normally structured mortgage will likely be more expensive then if I could avail of this scheme.

That is the story. You are housing yourself and paying plenty of tax to house others too no doubt. You obviously will get the HTB but that's it for a self build project; it's a good start to be fair.
I am in the same position as regards building for myself, but the way I look at it is its my choice to build and therefore my responsibility to pay for it.

As regards the profit made by a developer, that is private enterprise. You me or anyone can get involved in that business if we so wish to take the risks and rewards that accrue. You cant expect to make a profit while building a house for yourself. Build another one and sell that.

eoinbn

Smee_Again wrote: »

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.

There seems to be a lower income limit - just like the tax rebate scheme. The mortgage has to be 70%+ of the value which punishes savers.
For example - someone on 100k with a deposit of 50k can get a mortgage for 350k and 100k from the scheme for a 500k apartment. However someone on 60k cannot save 200k and get a mortgage for 210k and use the scheme for the remainder as the mortgage is below the 70%. They will also be ineligible for the 30k tax refund while the higher earner can avail or both.
Two schemes that will drive up the price of housing but also exclude some buyers. Pure genius.

shawki

shawki wrote: »

Could be worse, you could be a first time buyer who wants to buy a 2nd hand home with zero supports.

To be fair, there is a small, slithering possibility that might be a good thing, as hopefully it'll turn more people to new builds and the 2nd hand market might not have prices soaring as much.

Although, that said, I live in Drogheda, and loads of 2nd hand houses are being bought by smaller investors, with them being tidied up and leased back to the council for 25 years. Same exact thing that's happening with new builds, but on a smaller scale. Still pushes individual buyers out though.

Smee_Again wrote: »

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.

Where are you seeing a new Semi-D for 280 out of curiousity?

Smee_Again

Deleted User wrote: »

Where are you seeing a new Semi-D for 280 out of curiousity?

The good part of Louth In or around Blackrock, Fairways, Dundoogan and Earlsfort all have 3 beds at or below €280.

Smee_Again

Smee_Again wrote: »

After 5 years interest starts accruing on the equity part.

This is what people are forgetting. The equity on your home is effectively a large personal loan, but the interest rate actually increases over time.

If you don't pay it back, it costs more, and more, as every day there is more interest added to it. But if you needed to avail of the scheme in the first place, you're not likely to be the kind of person that can afford to pay it back (whilst also paying back a mortgage).

Smee_Again wrote: »

it’ll be interesting to see if the regulator actually does any regulating

Interesting indeed. I can't see how anyone with an ounce of common sense would let this go through, but we all know it will. :rolleyes:

Smee_Again

Smee_Again wrote: »

The good part of Louth In or around Blackrock, Fairways, Dundoogan and Earlsfort all have 3 beds at or below €280.

Just looking at Dundoogan there (first one that came up on daft for Dundalk). Bit of a shoe-box (bedrooms are pathetic sizes) but they're 3 bed semi-d's for €235?


That almost seems suspicious.

Smee_Again

Deleted User wrote: »

Just looking at Dundoogan there (first one that came up on daft for Dundalk). Bit of a shoe-box (bedrooms are pathetic sizes) but they're 3 bed semi-d's for €235?


That almost seems suspicious.

I haven't actually looked at the houses before but yeah, the 3 beds are quite small.

Tuath Housing have taken at least 26 houses in Dundoogan, it's also a little further out from both Blackrock and Dundalk than any other development so that could be keeping the price lower.

Smee_Again

Smee_Again wrote: »

I haven't actually looked at the houses before but yeah, the 3 beds are quite small.

Tuath Housing have taken at least 26 houses in Dundoogan, it's also a little further out from both Blackrock and Dundalk than any other development so that could be keeping the price lower.

Seems to be similar craic with Linenfield in Drogheda. Rumours that a rake of the houses are going to social/McVerry/etc. and now they are having a hard time selling the rest.


Albeit, the cheapest in there is 289.

Parts of the new development along the Dublin Road out of Dundalk have a suspiciously high number of houses for sale very quickly after they've just been bought.

Smee_Again

Deleted User wrote: »

Parts of the new development along the Dublin Road out of Dundalk have a suspiciously high number of houses for sale very quickly after they've just been bought.

Really? Can't say I've noticed.

There was a spate of houses sold in Earlsfort about 2 years ago (on the left after Sextons) but I presumed this was people who had been in negative equity from pre-2008.

Smee_Again

Smee_Again wrote: »

Really? Can't say I've noticed.

There was a spate of houses sold in Earlsfort about 2 years ago (on the left after Sextons) but I presumed this was people who had been in negative equity from pre-2008.

Had a check there and they're pretty much gone from daft.

Deleted User

Deleted User wrote: »

Parts of the new development along the Dublin Road out of Dundalk have a suspiciously high number of houses for sale very quickly after they've just been bought.

I know it's a bit off topic, but i find it incredibly interesting when you see a house going up for sale in an area where the houses aren't even finished being built yet.


Phase one houses going up for sale while the builders are still working on phase 2. What could have gone wrong in such a short timespan.

timmyntc

Deleted User wrote: »

Parts of the new development along the Dublin Road out of Dundalk have a suspiciously high number of houses for sale very quickly after they've just been bought.

Understandable - I wouldnt last that long in Dundalk either!

rob316

Just seems like an elaborate way of getting around the central bank lending rules. Wouldn't it be easier if there was more exceptions given out. Examples like a friend of mine, he has the deposit, is paying 1300 a month in rent but cant meet the salary requirements. His mortgage would be about 1100