Affordable Housing Scheme/Rent To Buy

Silent Partner

Hi,
I was wondering if anyone knew whether Laois County Council are still offering the Affordable Housing Scheme. I had that the scheme had collapsed because of the fact that the prices they were offering were now on par or even higher in some cases that what you could buy the houses for on the open market.

Also, on the same theme of housing, I see that Owenass Developments are offering a scheme on their new development in Bellingham. This is the same people who built Esker Hills & Fairgreen. The scheme is that you put down a non-refundable deposit of €5,000 - €7,000 (ish) depending on house type. You then pay around €700 or €800 per month over 12 months and at the end the amount per month is added up, added to the non-refundable deposit and used as your deposit against a mortgage i.e. your 8% and you mortgage the remaining 92%.
The big catch, and it is a big one, is that while you may qualify today for a 92% mortgage there are no guarantees in 12 months time. If you don't qualify in 12 months time, you're out on your ear without the money you put in or that initial deposit. You could be out of pocket by up to €20k!!!

Thanks for reading this long post. Myself and my girlfriend are looking at this and any advice is welcome

Bodhan

Best thing to do is talk to your bank, tell them what the offer from Owenass amounts too and see if they will give you assurances that you can have the 92% in 12 months.
I live in Esker Hills and I can't recomend Owenass enough, they have looked after us very well

adser53

Hey Silent Partner.... while I can offer you no financial advice whatsoever I thought I'd pipe up to say I think there are still a few affordable homes in Esker Hills going for around the €165k mark and there are still a very small number of unoccupied houses that I think are available under the rent to buy scheme in the estate too.
http://www.property.ie/new-homes/Esker-Hills-Buttercup-Avenue-Portlaoise-Co-Laois/6356/

http://www.laois.ie/Housing/AffordableHomes/CurrentHousesforSale/EskerHills/

http://www.affordablehome.ie/My-Local-Authority/Laois-County-Council/eskerhills_lo-res.aspx

http://www.laois.ie/Housing/AffordableHomes/CurrentHousesforSale/EskerHillsApts/

I'm just saying about E.H because the houses were cheaper than Bellingham the last time I checked. I also think E.H is a better estate (no offence to Bellingham dwellers) as it's much closer to the town and there are a lot of empty/unsold properties in Bellingham. Just an observation

Like Bodhan, I live in Esker Hills and have to say owenass are fantastic and really do their best to look after you.

laura.

hi silent partner,

funnily enough i was trawling through the internet looking for affordable housing in Donegal yesterday, so here is the link for the houses in Laois.

http://www.affordablehome.ie/My-Local-Authority/Laois-County-Council/Homes-Available.aspx

Good Luck....
Hope you get one

sydthebeat

laura. wrote: »

hi silent partner,

funnily enough i was trawling through the internet looking for affordable housing in Donegal yesterday, so here is the link for the houses in Laois.

http://www.affordablehome.ie/My-Local-Authority/Laois-County-Council/Homes-Available.aspx

Good Luck....
Hope you get one

had a quick look....

still over priced..!!

Sonic_exyouth

sydthebeat wrote: »

had a quick look....

still over priced..!!

Wow..

If you can't afford these with the market at it's lowest ebb, are you sure this is something you want to do?
If Rates go up, which they will, it's just a question of when, your repayments will also rise significantly - If you cannot afford a repayment now .. it will become a lot more difficult when Rates bounce.

Perhaps renting or social housing is more up your street.

http://www.laois.ie/Housing/AffordableHomes/CurrentHousesforSale/ wrote: »

Collier's View, Portlaoise - 2 Bed Semi-Detached €151,000
Collier's View, Portlaoise - 2 Bed Bungalow €141,000
Esker Hills, Portlaoise - 2 Bed Apartment €160,000
Esker Hills Portlaoise - 3 Bed Mid Terrace House €170,000
Maryborough Village - 3 Bed Semi-Detached €170,000
Maryborough Village - 2 Bed Semi-Detached €159,000

sydthebeat

Sonic_exyouth wrote: »

Wow..

If you can't afford these with the market at it's lowest ebb, are you sure this is something you want to do?
If Rates go up, which they will, it's just a question of when, your repayments will also rise significantly - If you cannot afford a repayment now .. it will become a lot more difficult when Rates bounce.

Perhaps renting or social housing is more up your street.

its nothing to do with affordability..... its got to do with value...

say you buy in landsdowne portarlington at €165K...
there is currently larger similar bed roomed dwelling available for an advertise €170K.... i guarantee that in the current market €160 max would buy this dwelling.... i know because im in the business....

that means that it is quite possible that the minute you buy the affordable house you could be in negative equity straight away..... amazing but true...

there are so many unoccupied dwellings out there now that the purchaser is king..... the vast majoity of sale agreements are done for below advertised prices.... the advertised prices are simply a tool to soften statistics......

the current affordable rates being advertised are over valued, and teh council are inflexible when it comes to haggling...


edit:
just to reinforce my point....

3 beds available in landsdowne under affordable scheme €165,000 - €169,950
http://www.affordablehome.ie/My-Local-Authority/Laois-County-Council/Homes-Available/Landsdowne.aspx

below:
3 bed available in landsdowne by private treaty €149,950.....
http://www.myhome.ie/residential/search/brochure/house-type-l-portarlington-laois-co/CJEWM367545

i cant make a stronger point than that!!

so, to end, its about value.. .not affordability.....

Sonic_exyouth

sydthebeat wrote: »

its nothing to do with affordability..... its got to do with value...

say you buy in landsdowne portarlington at €165K...
there is currently larger similar bed roomed dwelling available for an advertise €170K.... i guarantee that in the current market €160 max would buy this dwelling.... i know because im in the business....

that means that it is quite possible that the minute you buy the affordable house you could be in negative equity straight away..... amazing but true...

there are so many unoccupied dwellings out there now that the purchaser is king..... the vast majoity of sale agreements are done for below advertised prices.... the advertised prices are simply a tool to soften statistics......

the current affordable rates being advertised are over valued, and teh council are inflexible when it comes to haggling...


edit:
just to reinforce my point....

3 beds available in landsdowne under affordable scheme €165,000 - €169,950
http://www.affordablehome.ie/My-Local-Authority/Laois-County-Council/Homes-Available/Landsdowne.aspx

below:
3 bed available in landsdowne by private treaty €149,950.....
http://www.myhome.ie/residential/search/brochure/house-type-l-portarlington-laois-co/CJEWM367545

i cant make a stronger point than that!!

so, to end, its about value.. .not affordability.....

Err.. no...

Affordable housing is about affordability, full stop.

The affordable housing scheme is solely designed to give propert to those who can afford to pay a reasonable amount to repay a mortgage.

The quantative "value" is relative, all that matters to the council is affordability.

If you cannot 'afford' an affordable house, you really should not be in the market for a house - you should rent or save.
If you question the "value" of the properties in the scheme - don't join.

The affordable housing scheme will get the average working class person a mortgage, whereas most banks will turn them away.
The idea of 'negative equity' simply should not apply to affordable homes, because they are designed as homes, nothing more nor less. Its for young families trying to put a roof of their own above their heads, thats the reason why there are so many rules and of course the clawback associated with it.

sydthebeat

Sonic_exyouth wrote: »

Err.. no...

Affordable housing is about affordability, full stop.

The affordable housing scheme is solely designed to give propert to those who can afford to pay a reasonable amount to repay a mortgage.

The quantative "value" is relative, all that matters to the council is affordability.

If you cannot 'afford' an affordable house, you really should not be in the market for a house - you should rent or save.
If you question the "value" of the properties in the scheme - don't join.

The affordable housing scheme will get the average working class person a mortgage, whereas most banks will turn them away.
The idea of 'negative equity' simply should not apply to affordable homes, because they are designed as homes, nothing more nor less. Its for young families trying to put a roof of their own above their heads, thats the reason why there are so many rules and of course the clawback associated with it.

err...no...

to think that affordability and value are not, or should not be, interconnected is incorrect. Are you actually saying that a person seeking help from a council should pay above and beyond the value of a product, just because they receive this help??? Im not sure what ideology of social equality that view would belong to??

at the end of the day a house is a product, the day you buy is the day you sell.... the idea that a house is a home for life is very short sighted and cannot take unforeseen situations into account...

there are schemes available where a person can apply to the council for a mortgage to buy on the private market.
In the light of what i have just shown above, why would / should a person buy an affordable house at an inflated price?? Why do you think there has been little take up in the scheme??

Silent Partner

sydthebeat wrote: »

err...no...

to think that affordability and value are not, or should not be, interconnected is incorrect. Are you actually saying that a person seeking help from a council should pay above and beyond the value of a product, just because they receive this help??? Im not sure what ideology of social equality that view would belong to??

at the end of the day a house is a product, the day you buy is the day you sell.... the idea that a house is a home for life is very short sighted and cannot take unforeseen situations into account...

there are schemes available where a person can apply to the council for a mortgage to buy on the private market.
In the light of what i have just shown above, why would / should a person buy an affordable house at an inflated price?? Why do you think there has been little take up in the scheme??

Thanks for all your responses. Syd, this is what I had heard about Affordable Housing. Like the previous person said, the bones of the scheme help me to buy a house and qualify for a mortgage. However the price of the houses on the scheme versus the open market have gotten a bit too close. As there are quite a few terms & conditions on affordable housing, such as the claw-back if you sell within X amount of years, it might be better to buy on the open market. However then I come up against the banks and qualifying criteria and larger deposits.

Rock ---> ME <--- Hard Place

sydthebeat

Silent Partner wrote: »

Thanks for all your responses. Syd, this is what I had heard about Affordable Housing. Like the previous person said, the bones of the scheme help me to buy a house and qualify for a mortgage. However the price of the houses on the scheme versus the open market have gotten a bit too close. As there are quite a few terms & conditions on affordable housing, such as the claw-back if you sell within X amount of years, it might be better to buy on the open market. However then I come up against the banks and qualifying criteria and larger deposits.

Rock ---> ME <--- Hard Place

Have you looked at teh shared ownership scheme which allows you to buy on teh open market??

Sonic_exyouth

Silent Partner wrote: »

Thanks for all your responses. Syd, this is what I had heard about Affordable Housing. Like the previous person said, the bones of the scheme help me to buy a house and qualify for a mortgage. However the price of the houses on the scheme versus the open market have gotten a bit too close. As there are quite a few terms & conditions on affordable housing, such as the claw-back if you sell within X amount of years, it might be better to buy on the open market. However then I come up against the banks and qualifying criteria and larger deposits.

Rock ---> ME <--- Hard Place

It depends on what you are after..
If you want a home, somewhere to live for the forseeable future, the affordable housing scheme is a winner. You will get a mortgage, you will get a fixed rate over a long term at a reduced rate than with the banks alone. You will get your own home!

If you are looking at your first house as an investment, steer clear of the affordable housing scheme. It's not designed for you.

sydthebeat

Sonic_exyouth wrote: »

It depends on what you are after..
If you want a home, somewhere to live for the forseeable future, the affordable housing scheme is a winner. You will get a mortgage, you will get a fixed rate over a long term at a reduced rate than with the banks alone. You will get your own home!

If you are looking at your first house as an investment, steer clear of the affordable housing scheme. It's not designed for you.

banks are currently giving mortgages (92%) based upon their own valuations...

given the alarming shortfall in the councils finances i cannot see them being in a position to provide many applicants with council mortgage... dont forget the council have to pay the developers upfront for the provision of these social and affordable dwellings....

so we possible have a situation where a bank will refuse to give a mortgage on an affordable house due to the fact that the property is over priced....