Saving for a new build worries

Bigmac1euro

I am currently saving for a new build in Dublin using the HTB scheme in 2019,
Has anyone who recently signed contracts or purchased a new house in dublin got any tips ? How do i know of the latest developments ?
I see most new builds require 5000 deposit, it sounds like a long ordeal. With the HTB scheme ending at the end of 2019 will i be too pushed for time ? I plan on applying for a mortgage in September next year.
Any tips or advice positive or negative would be appreciated.

Captain Flaps

I just bought a second hand house (get the keys on Thursday) so I can't be specific around HTB, but the following advice should still be relevant:

- 5000 is a booking deposit to keep the house until you're ready to purchase it, it's not the house deposit. Your deposit will be 10% of the overall cost of the house, so if it's a €300,000 house you'll need €30k up front. the 5000 will be knocked off the final purchase price by the developer. You probably know this but just laying it out in case
- Mortgage approval can take as little as a few days or as much as a month, then you've got things like life assurance to get sorted which took us almost a month between queries being returned and additional info forms supplied etc. Applying in september sounds a little optimistic
- We have no idea what you earn, if you're on a single income, how much you save/have saved - can't really say whether you'll be pushed for time based on the above.

GingerLily

Captain Flaps wrote: »

I just bought a second hand house (get the keys on Thursday) so I can't be specific around HTB, but the following advice should still be relevant:

- 5000 is a booking deposit to keep the house until you're ready to purchase it, it's not the house deposit. Your deposit will be 10% of the overall cost of the house, so if it's a €300,000 house you'll need €30k up front. the 5000 will be knocked off the final purchase price by the developer. You probably know this but just laying it out in case

Well they need the 10% 52 days after contracts sent out, almost two months from viewing, but most people sign within 21 days as generally white goods (fridge/oven/dishwasher) are included if you complete early.

Sort out your tax clearance now OP and apply for the HTB before viewing houses.

awec

Booking deposit can be anything from 5-10k. Ours was 10k. There might even be developers who ask for more than this.

wardides

GingerLily wrote: »

Well they need the 10% 52 days after contracts sent out, almost two months from viewing, but most people sign within 21 days as generally white goods (fridge/oven/dishwasher) are included if you complete early.

Sort out your tax clearance now OP and apply for the HTB before viewing houses.

Sorry to hijack a thread, but is the bit in bold a regulated law? Are they obliged to wait 2 days?

GingerLily

wardides wrote: »

Sorry to hijack a thread, but is the bit in bold a regulated law? Are they obliged to wait 2 days?

It'll be in their contract. So if you don't return the contracts in that time with the 10% deposit they can then offer the property to the next person on the list. You have no legal right to a property you haven't paid for

This was the case for when I bought a house, I think most new builds have a very similar set up.

Bigmac1euro

Captain Flaps wrote: »

I just bought a second hand house (get the keys on Thursday) so I can't be specific around HTB, but the following advice should still be relevant:

- 5000 is a booking deposit to keep the house until you're ready to purchase it, it's not the house deposit. Your deposit will be 10% of the overall cost of the house, so if it's a €300,000 house you'll need €30k up front. the 5000 will be knocked off the final purchase price by the developer. You probably know this but just laying it out in case
- Mortgage approval can take as little as a few days or as much as a month, then you've got things like life assurance to get sorted which took us almost a month between queries being returned and additional info forms supplied etc. Applying in september sounds a little optimistic
- We have no idea what you earn, if you're on a single income, how much you save/have saved - can't really say whether you'll be pushed for time based on the above.

Thanks for all the helpful info guys.
I thought the €5000 for the booking deposit came off the actual deposit (10%) so thats a bit of a set back.

Its funny though because I spoke with a mortgage advisor and she didn't tell me this.
Should I have mortgage approval before putting down the initial 5k then ?
I assume so ?

I have all my tax affairs in order and I've actually opened an application for the HTB but i wont progress it until closer to the date.
I also sorted out the OH tax affairs and we just got confirmation today shes due back a few quid which will help

We plan on having roughly 20k next September which we should reach. Possibly a gift from my family too.

Captain Flaps

steo_magra wrote: »

Thanks for all the helpful info guys.
I thought the €5000 for the booking deposit came off the actual deposit (10%) so thats a bit of a set back.

Its funny though because I spoke with a mortgage advisor and she didn't tell me this.
Should I have mortgage approval before putting down the initial 5k then ?
I assume so ?

You know what? You're right, it absolutely does. That's my mistake. We paid the booking deposit the day we went sale agreed, then later we paid the deposit which was 10% of the value minus the booking deposit. I got myself all mixed up there.

Bigmac1euro

Captain Flaps wrote: »

You know what? You're right, it absolutely does. That's my mistake. We paid the booking deposit the day we went sale agreed, then later we paid the deposit which was 10% of the value minus the booking deposit. I got myself all mixed up there.

You don’t know how thrilled I am to hear this!

I am probably pushing it with time but if I don’t get it I’ll just have to keep saving. Would be nice if all works out. Thanks for the advice.

Tipsy McSwagger

steo_magra wrote: »

You don’t know how thrilled I am to hear this!

I am probably pushing it with time but if I don’t get it I’ll just have to keep saving. Would be nice if all works out. Thanks for the advice.

I have a booking deposit for a new 200k build that won’t be ready until next year, we paid 5k. Next year with the Help 2 Buy scheme helping us we should only have to pay around 5k for the rest of the deposit.

Bigmac1euro

Tipsy McSwagger wrote: »

I have a booking deposit for a new 200k build that won’t be ready until next year, we paid 5k. Next year with the Help 2 Buy scheme helping us we should only have to pay around 5k for the rest of the deposit.

Just wondering how you found developments for next year ?

Tipsy McSwagger

steo_magra wrote: »

Just wondering how you found developments for next year ?

The developer is building in phases. Phase 1 built and people moved in, phase 2 ready soon and phase 3 ready next year.

Bigmac1euro

Tipsy McSwagger wrote: »

The developer is building in phases. Phase 1 built and people moved in, phase 2 ready soon and phase 3 ready next year.

Good stuff! Hope it all goes smoothly.

Tipsy McSwagger

steo_magra wrote: »

Good stuff! Hope it all goes smoothly.

Cheers. The Help2Buy is a massive help and will free up funds to buy furniture and get in wooden floors, tile the bathroom, carpets etc.

Bigmac1euro

Do solicitors generally look for their money up front or do they bill you after the process ?
Wondering how much I should be paying too ? From a quick google I'm seeing prices of 2k for a solicitor.

awec

steo_magra wrote: »

Do solicitors generally look for their money up front or do they bill you after the process ?
Wondering how much I should be paying too ? From a quick google I'm seeing prices of 2k for a solicitor.

Bill at the end.

Probably be a bit more than 2k when you add in the extra legal costs like land registry fees.

testicles

This post has been deleted.

awec

testicles wrote: »

This post has been deleted.

You pay your cash portion of the deposit (minus what you paid for the booking fee) when signing contracts and the developer has to wait for the HTB portion.

It can take a while. You’ve to sign the contracts, they are then sent to the developers to sign, and then they are sent back to your solicitor for you to then send to revenue so that the developer can then draw down the HTB cash.