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First Time Buyers

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  • 26-05-2018 2:19pm
    #1
    lemmno
    Registered Users Posts: 418 ✭✭


    Is it possible to 'save' your first time buyers for the future?

    Example: I see an apartment for 80,000 and I'd like to buy it. Deposit of 10,000 is already in the bag. 5 years later me and my husband see a 400,000 house that we'd like for us and our 3 kids. Could I not use the first time buyers for the 80k apartment now in the hope that I could use it in the future when my forever home is calling as the deposit on that would be a lot higher? Hope that makes sense!
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    #2
    Dardania
    Registered Users Posts: 3,612 ✭✭✭Dardania


    lemmno wrote: »
    Is it possible to 'save' your first time buyers for the future?

    Example: I see an apartment for 80,000 and I'd like to buy it. Deposit of 10,000 is already in the bag. 5 years later me and my husband see a 400,000 house that we'd like for us and our 3 kids. Could I not use the first time buyers for the 80k apartment now in the hope that I could use it in the future when my forever home is calling as the deposit on that would be a lot higher? Hope that makes sense!

    I think what you could do is buy it through a PRSA in theory as an investment - there are rules around it. Interesting thread about it: https://www.askaboutmoney.com/threads/it-article-pension-investment-in-property.207905/


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    #3
    Grassey
    Registered Users Posts: 2,393 ✭✭✭Grassey


    From the revenue site:

    To qualify, you must not have previously bought or built a house or apartment, either on your own or jointly with any other person. If you are buying or building the new property with other people, they must also be first-time buyers.


    So that'd be a no to 'saving it for later'

    Would you not just buy the forever house now rather than be saddled with a property you know in advance won't be suitable in the foreseeable future? Or the risk that the scheme may not be around in a number of years time?


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    #4
    lemmno
    Registered Users Posts: 418 ✭✭lemmno


    Grassey wrote: »
    From the revenue site:

    To qualify, you must not have previously bought or built a house or apartment, either on your own or jointly with any other person. If you are buying or building the new property with other people, they must also be first-time buyers.


    So that'd be a no to 'saving it for later'

    Would you not just buy the forever house now rather than be saddled with a property you know in advance won't be suitable in the foreseeable future? Or the risk that the scheme may not be around in a number of years time?


    I'm single and living in a place where I don't see myself staying forever. I wont get enough money for a forever home on my own. My circumstances could change (and I hope they will), but right now Im on my own and can only afford something small. I only thought to buy as I've worked out rent is almost double the price of monthly mortgage payments.


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    #5
    ted1
    Registered Users Posts: 23,317 ✭✭✭✭ted1


    Equity in your house through paying down the mortgage and hopefully appreciation in value should give you the deposit second time around


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    #6
    lemmno
    Registered Users Posts: 418 ✭✭lemmno


    ted1 wrote: »
    Equity in your house through paying down the mortgage and hopefully appreciation in value should give you the deposit second time around

    Didn't think of that!


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    #7
    Dardania
    Registered Users Posts: 3,612 ✭✭✭Dardania


    ted1 wrote: »
    Equity in your house through paying down the mortgage and hopefully appreciation in value should give you the deposit second time around

    True but you need to flog the house to realise it. Hassle getting accommodation in the short term


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    #8
    lemmno
    Registered Users Posts: 418 ✭✭lemmno


    Dardania wrote: »
    True but you need to flog the house to realise it. Hassle getting accommodation in the short term

    I guess that’s where my parents would come in for the interim. Just afraid of buying something and then seeing the market crash again. I know that’s a risk we all take though.


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    #9
    hanaimai
    Registered Users Posts: 207 ✭✭hanaimai


    You could 'keep' your FTB status for the purpose of the Central Bank's lending rules (LTI/LTV limits) if you bought a property in cash, as the Central Bank definition of an FTB is a person who hasn't previously taken out a mortgage (which differs from the Revenue's definition for the Help to Buy scheme as referred to by another poster above).

    Otherwise, the answer is a no. Who even knows if the Central Bank rules will be the same a few years down the line - they could relax or tighten in that timeframe, and you acknowledge yourself that buying with the intention of selling again in the future is an inevitable risk in the property market for all buyers. The best thing to do really, is to just do what is best for you right now, and not worry too much about the way the market/lending rules will go in the future since it's totally out of your control. If you value the potential savings of owning your own apartment now over renting, then go for it, but if you value a lower risk of needing to sell in the future, then hold out until you can afford a 'forever home'.


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