Affordable Housing in Dublin

KathleenF

https://www.irishtimes.com/news/social-affairs/affordable-houses-give-hope-to-renters-1.3147111?mode=amp&utm_source=dlvr.it&utm_medium=twitter

Thoughts?

Graham

Initial thought:

oh look, there's the first sentence of an article that's hidden behind a paywall. :pac:

super_furry

KathleenF wrote: »

Thoughts?

What are yours?

KathleenF

Posted in a rush. My own thoughts - fantastic if it works. An awful lot of people fall in between needing social housing and those having or borrowing enough € to buy where they want. Affordable housing has lots of advantages - if this works it sets a template for the rest of country to follow. With political will and vision it can be achieved, replicated and scaled, IMO.

Graham

KathleenF wrote: »

Posted in a rush. My own thoughts - fantastic if it works. An awful lot of people fall in between needing social housing and those having or borrowing enough € to buy where they want. Affordable housing has lots of advantages - if this works it sets a template for the rest of country to follow. With political will and vision it can be achieved, replicated and scaled, IMO.

Any chance you can summarise what it is your talking about for those of us unable to read the article?

myshirt

Graham wrote: »

Any chance you can summarise what it is your talking about for those of us unable to read the article?

The op didnot read it, they just shared via Twitter.

Sarn

If it's run the same way as the last affordable housing scheme, with appropriate eligibility requirements, then it should offer a solution to some.

The_Conductor

I've exhausted my supply of free articles with the Irish Times- and I'm not in work- anyone care to supply a summary?

antoinolachtnai

It will be interesting to find out how they build a house for this price, even though he got the site for free and the levies waived.

eringobragh

The_Conductor wrote: »

I've exhausted my supply of free articles with the Irish Times- and I'm not in work- anyone care to supply a summary?

Helen Cheevers and her partner Sean Connell had been paying €1,700 a month to rent a house in Swords, north Dublin, which they and their two small children shared with two other adults.

For their new end-of-terrace, three-bedroom house in Ballymun costing €165,000, their mortgage payments will be €650 a month.

...in a nutshell they got a 3 bed A2 rated gaff in Ballymun for 165K thats about the depth of the article

The_Conductor

Thats the cooperative who were in the media a while back- totally inundated with people desperate to buy houses.

From memory-

Free sites, total waiving of all levies, and no onus on the cooperative to be profitable (I think they do everything at a 5% margin- purely because they have to cover their costs from their lenders).

Clawback on any properties sold within 10 years- which are typically 40% below open market prices........

Bit of a no-brainer for the prospective purchasers- however, the whole premise is that the council hand the sites (with a 30-40k value) over, and waive all levies (up to another 20k) and the cooperative don't make a profit (another 20k per unit).

Pretty sweet deal if you can get it!

eringobragh

Same spot they wanted to dump the modular homes on

Baile na Laochra, Ballymun

http://www.dublincity.ie/provision-22-modular-homes-baile-na-laochra-poppintree-ballymun-0


Was going to say was it expensive for Ballymun but then I remember its along ways of boom times pricing, I know someone who got a 2 bed apartment in Hampton Wood on the affordable housing in 2005 for €210K if I recall correctly so this looks like a steal if it fits your criteria.

The_Conductor wrote: »

Thats the cooperative who were in the media a while back- totally inundated with people desperate to buy houses.

From memory-

Free sites, total waiving of all levies, and no onus on the cooperative to be profitable (I think they do everything at a 5% margin- purely because they have to cover their costs from their lenders).

Clawback on any properties sold within 10 years- which are typically 40% below open market prices........

Bit of a no-brainer for the prospective purchasers- however, the whole premise is that the council hand the sites (with a 30-40k value) over, and waive all levies (up to another 20k) and the cooperative don't make a profit (another 20k per unit).

Pretty sweet deal if you can get it!

ED E

We really need to ban paywall news sources on boards.

Gumbo

I've been in these houses.
Really well built. Good design and should work as people have to. It then with a mortgage, so no social freebies as such. The estate should be mainTained to a decent standard going forward.

First 5 completed last week out of phase 1 which has circa 17 houses. The site has 65 in total IIRC.

davindub

Graham wrote: »

Initial thought:

oh look, there's the first sentence of an article that's hidden behind a paywall. :pac:

Open incognito with chrome

antoinolachtnai

Even excluding land and levy it is a great price to build for and the developer is to be congratulated. Even if you add another hundred grand for the land and the levy and a bigger profit margin it is still a decent price.

Make no mistake, everybody needs to make a profit in land development. If you don't make a profit you just aren't going to be able to expand. The question is more whether you make the profit from margin, or from scale of operations.

Is there anything special about the architecture or construction method that keeps the cost down?

KathleenF

myshirt wrote: »

The op didnot read it, they just shared via Twitter.

I did read it, but I didn't realise it was behind a paywall as I've a subscription.

MSVforever

Initially this sounds good. However I think the IT blows the rent vs mortgage payment comparison a bit out of proportion.

The €650 doesnt include insurance, tax, maintenance fees, repair/replacement bills etc.
This is all included in the rent. So I d say it would come close to €1000 per month for the house payments excluding gas, electricity etc. which everybody has to pay.
€1000 would be still extremly good value in the current market though.

myshirt

KathleenF wrote: »

I did read it, but I didn't realise it was behind a paywall as I've a subscription.

If you analyse the link, you didn't.

wordofwarning

I think the clawback from selling the house needs to be longer than 10 years. It should be 25-30 years. Being able to buy a house substantially under market rates and then being able to sell CGT free is a no brainer. The council is losing out on a lot of money for a buyer to potentially flip the house in 10 years. Im sure most them won't sell after the 10 years, but it should be locked down.

I don't know what the state is still pushing the notion that everyone needs to own their own home. It appears we have learnt nothing from the boom. Look at all the people who brought their council house with ultra cheap subprime mortgages from the state who no longer are bothered paying their mortgage. It looks like we maybe repeating the same mistake here again. Instead of giving low income people who probably should not get a mortgage an ultra cheap home. The state would be better off giving them longer term affordable rental properties.

Reading this article it does not appear they wanted to buy a home as they had a desire to do so. But because it was more affordable than private renting. I wonder if they were offered the opportunity to have much more affordable rent and a rent control, would they have accepted that anyway