shared ownership

greengirl31

Hi Folks

Just looking for some opinions please ....

I want to buy a property but i'm coming up very short for a deposit ... so I think my only option is a local authority scheme like affordable or shared ownership I've read the leaflets on both of these but they're not too straight forward.

So what do you think, which of these is the best option or is there another way to go about this ..

Thanks in advance

A

D3PO

if you cant afford to save for a deposit you shouldnt be considering buying its as simple as that

Dannyboy1987

D3PO wrote: »

if you cant afford to save for a deposit you shouldnt be considering buying its as simple as that

Bit harsh ? No . hopefully someone can help you out try http://www.propertypath.ie/

AARRRGH

If you consider the fact that property in Ireland is still ridiculously overpriced, and is only headed in one direction (down), if you continue saving for a deposit (e.g. for another 12 months), you'll end up saving tens of thousands (possibly 100,000+) over the life of your mortgage as property will be cheaper in 12 months.

Don't be in a hurry to buy, those who wait get more for their buck. I've been saying this for years and am yet to be proven wrong!

The_Morrigan

I'd sit tight at the minute if you wanted to avoid a shared ownership and as AARRRGH says the prices are only going down at the minute.

However, some of the councils around Dublin have over subscribed to the affordable housing units and are selling them off at affordable housing prices but minus the clawback clause, which is the shared ownership part.

If you're really set on buying maybe look into this - good luck

Treehouse72

Dannyboy1987 wrote: »

Bit harsh ? No . hopefully someone can help you out try http://www.propertypath.ie/

No Danny, not a bit harsh, totally logical and sound advice. If you are looking for something that is "harsh", please just look at the AH link you provided. Quote:

What is Affordable Housing?
The Affordable Housing program assists lower-income households, who simply could not afford to purchase a new house on the open market.

How Do I Qualify for Affordable Housing?
Qualifying for Affordable Housing depends on the applicants' earnings. If you are a single income applicant and you earn less than €58,000, then you are eligible to apply. [For a couple], €145,000.

So there you have it. The powers that be are telling us that €58,000 is a "lower income household". No equivocation. That's where we are. That is the on-going absurdity of the property market in Ireland. €58k is close on TWICE a national average wage, and is probably c.50% above an average Dublin wage. And they are calling these people "lower income"? It is nothing short of perverse. In fact, it is a bloody insult to our collective intelligence.

And it is very important to understand WHY this is absurd. It is absurd because they need to bastardise the definition of "lower income" in order to make it fit into the schema of continuing high prices. What they are really saying is that €58,000 is the level of income at which housing becomes unaffordable - that is an entirely different thing to being "lower income".

Anyone who looks at all that and comes to the conclusion that prices will not drop significantly more is not thinking straight.

OP, wait for property prices to drop more as they inevitably will over the next 2 years. When you can afford the deposit you can afford the property. Or, if you prefer, when the AH scheme is only open to people who earn less than an average wage then we're reaching normality.

chris85

i wouldnt buy now either. I am planning to buy in 2 years time and am saving from now till then. I want to get as much of a deposit as possible as i want to get as low a mortgage as i need.

I think i read in cork alone prices dropped 6% over the last two months alone.

http://www.breakingnews.ie/ireland/house-prices-in-dublin-and-cork-down-in-march-455917.html

i wont be buying before the end of 2011 and probably early 2012 would be good but it will all be dependant on where the market is at. I am glad i should be a position to buy when it does bottom out completely.

The estate agents are trying to make us believe its the best time to buy. And as happened in the boom years people are believing them, people need to research the market themselves rather than listening to sales people (ie. the estate agents)

The_Morrigan

Chris you're right holding out and saving is the best possible option right now.
I bought in 2008 before the crash, but thankfully my cheekiness got a good deal with the builder cos I didn't want all the options for appliances, floors etc they had picked for the complex and got about 60k off the asking price!!! So going by the asking prices of the development now I'm on par so don't feel too bad. Plus I'm not planning on selling anytime soon so I'm happy out.

The only thing is that buying is a personal choice and while some maybe able to save for the next few years, others may want to buy now while the rates can be fixed below the 4% mark...
you can take advice from everyone but only you know your own personal circumstances and that ultimately is where the decision needs to stem from.

greengirl31

Thanks folks for all the replies ... to the first posted I didn't say I couldn't save for a deposit just that I didn't have one at the moment !! Anyway, getting away from that, the reason I'm so keen to buy is that I'm still living at home and I really don't want to be any more... And while I'm paying quite a bit of rent at home not as much as I would be on renting an appartment. therfore if I was renting I''d have less to save and so on ...
I'v looked into the affordable housing a bit and I do qualify but alot most if not all available in Dun Laoghaire/rathdown are appartments and I'd really prefer a house - even if it is only 2 bed ... I think I'll see if I can speak to someone in the housing depts and see if they can explain it to me in plain english - how likely is that from a council :-)
Anyway, thanks again for your replies.
A

The_Morrigan

Greengirl, where do you want to live?

greengirl31

I'm from Dublin 18 so I'm hoping to get something in that area or close to it ...

The_Morrigan

http://www.daft.ie/ahp/

Have a look there - a lot of this places are being sold without the clawback

D3PO

Dannyboy1987 wrote: »

Bit harsh ? No . hopefully someone can help you out try http://www.propertypath.ie/

Not harsh but reality checkinging the OP. The resaon were int he mire were in is everybody was too polite and too wreckless to say you know what thats actually not a good idea for you.

OP continue to save for a deposit and then once you have one buy. Besided it being the right thing to do having some equity from your savings, and the fact hosue prices are falling the fact of the matter is you and everybody else needs to get into a habit of saving and living off a certain portion off your salary.

Saying I could save but I dont indicates your not in the right mindset to live within certian financial paramaters. A lot of people kid themselves into thinking well if I had a mortgage it would be different.

Its just not that straightforward for many people.