Affordable Housing, how much could I realisticly get?

jebusmusic

I'm 22 and currently renting an apartment for €1000 p/m with my girlfriend.

I'm thinking of applying for affordable housing, but I'm not sure how much I'd get, and whether it'd be enough to buy something.

I earn €22500 a year, after tax, so going by this I'd get about €112500 maximum, (5 times my income) yeah?

But, at the moment I pay about €600 a month rent, my g/f pays the balance, but she's in college for the next 3 yrs so it wont be a joint application.

So if I take 35% of my net monthly income (€588) and add the €130 or so a month Mortgage Relief I would qualify for, that totals about €8600 a year, and €215,000 over 25 years.

Going by this I could afford, and afford to repay a mortgage of at least €200k, but I'm not likely to get that, am I?

Sorry for the long post, i'm not great at explaining things simply!

the_batman

If you earn 22500 after tax, then would I be right to assume your pretax salary is about 28k? That salary would be suitable for affordable housing. The important thing now is your savings and your debts.

In my opinion you would not be suitable for the affordable housing initiative, as this is designed for people earning approximately 30k - 55k (or couples), but you would be suitable for the affordable housing scheme. Your debts and savings will be important though. It might be worth your while to give one or two of the councils a call? Nothing to lose.

jebusmusic

Sorry, should have said, 22500 before tax, but come out with about 22k after tax, so not a big defference.

Debts and savings, not much of either really. About 3k savings max, but have been paying rent for 6 months which counts as savings in their eyes doesnt it?

I'm really just looking to see if anyone else earning similiar money to me has applied and how much they got approved for.

Thanks

jdivision

jebusmusic wrote:

Sorry, should have said, 22500 before tax, but come out with about 22k after tax, so not a big defference.

It is usually five times salary so max would be 112,500. That would limit where you could live in dublin - if that's where you live - but you might get a one-bed. Cheapest two-beds I saw when I was on the list were in Lusk and if memory serves were around e125,000 so one-beds would have been a bit less. You regularly get a 95 per cent mortgage so actual deposit you need would be quite small. SSIAs count towards savings by the way. Go for affordable housing list rather than affordable homes partnership/affordable homes initiative - they're cheaper

dublin15

Does anybody know whats the average price for the properties??:)

the_batman

I just took this from the www.ahp.ie website:

If you are earning less than €28,000 a year (before tax and social insurance are taken off) or if you are a tenant of a local authority or voluntary housing association, you may qualify for help with your mortgage payments.

Mortgage Subsidy

A mortgage subsidy is help with your mortgage payments. To qualify, your household income needs to have been less than €28,000 (before tax and social insurance is taken off) in the previous tax year. Household income is the total income of the owners of the affordable home. If you qualify for a mortgage subsidy your monthly mortgage repayments will be reduced.

Mortgage allowance scheme

The mortgage allowance scheme is an allowance of €11,450 to go towards your mortgage, paid over a five-year period. If you are a tenant of the local authority, or you are buying the home you previously rented from the local authority, and you want to buy an affordable home, you may qualify for the mortgage allowance scheme.

The allowance is paid directly to the lender providing your mortgage and your repayments are reduced for the first five years of your mortgage. The allowanxe paid in any year cannot be more than the total mortgage repayments due in that year.

You may qualify for the mortgage subsidy and the mortgage allowance scheme, but you can only claim for one of them. Which of these benefits you most will depend on your income.

Victor

If you are only paying 500 euros tax, are you sure you can get 1440 euro tax relief?

SarahMc

He would, as its tax relief at source, so it comes off the mortgage payment, and makes no difference to take home pay/how much tax you pay.

the_batman

dublin15 wrote:

Does anybody know whats the average price for the properties??:)

Here is a list of houses which have been purchased recently through Part V of the Affordable Housing Scheme in Fingal. They are in the public domain, but I have removed the house numbers.

I don't know whether they are 1, 2 or 3 bedroom properties, but the good news for people is that houses (or apartments) are being sold for as little as €121,000. I am making a guess that 121k = 1 bed, 150k=2 bed and 170k= 3 bed

XX Holywell Drive, Gorse Hill, Swords, Co. Dublin €175,000
XX Holywell Way, Gorse Hill, Swords, Co. Dublin €150,000
XX Holywell Wood, Gorse Hill, Swords, Co. Dublin €121,000
XX Holywell Wood, Gorse Hill, Swords, Co. Dublin €121,000
XX Holywell Wood, Gorse Hill, Swords, Co. Dublin €121,000
XX Holywell Wood, Gorse Hill, Swords, Co. Dublin €121,000
XX Carrs Mill, Ballisk Common, Donabate, Co. Dublin €170,000
XX Carrs Mill, Ballisk Common, Donabate, Co. Dublin €170,000
XX Carrs Mill, Ballisk Common, Donabate, Co. Dublin €170,000
XX Carrs Mill, Ballisk Common, Donabate, Co. Dublin €153,000
XX Carrs Mill, Ballisk Common, Donabate, Co. Dublin €153,000
XX Carrs Mill, Ballisk Common, Donabate, Co. Dublin €153,000
XX Carrs Mill, Ballisk Common, Donabate, Co. Dublin €153,000
XX Carrs Mill, Ballisk Common, Donabate, Co. Dublin €153,000

XX Carrs Mill, Ballisk Common, Donabate, Co. Dublin €153,000
XX Carrs Mill, Ballisk Common, Donabate, Co. Dublin €153,000
XX Carrs Mill, Ballisk Common, Donabate, Co. Dublin €153,000
XX Castle Mill, Hamlet Lane, Balbriggan, Co. Dublin €150,000
XX Brackenwood Drive, Balbriggan, Co. Dublin €140,000

Posy

Where did you find this list? Is the Part V different from the scheme? :rolleyes:

the_batman

Karyn wrote:

Where did you find this list? Is the Part V different from the scheme? :rolleyes:

I got the document off a Fingal County Councillor.

Part V is one way the council aquire houses. It is the normal affordable housing scheme.

Edit: The document was distributed to all councillors prior to the council meeting last week.

johnjay

I am making a guess that 121k = 1 bed, 150k=2 bed and 170k= 3 bed


AFAIK Fingal have little/no 1 bedroom properties. They usually have a min of 2 bedrooms.