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Help to Buy Scheme - Is it free money?

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  • 07-11-2020 9:20pm
    #1
    boredatwork82
    Registered Users Posts: 1,215 ✭✭✭


    Hi all,

    I am hoping for some opinions. I have been recently approved for a mortgage and I am looking for advice. I am a first time buyer in the midlands. I qualify for the max Help to buy scheme amount. I am a single late 30's professional with no dependents.

    In time I would like my ideal home to be a nice big house in a rural setting, I am considering buying a new semi detached house to take advantage of the help to buy scheme. I feel the opportunity to buy a new house without touching my deposit will allow me to continue saving and eventually buy exactly what I want in the future without a massive mortgage, and keep my currently rather large savings.

    Am I wrong in looking at the help to buy scheme as way to increase my wealth.

    The house would be a decent house in a good location, but not quiet my dream home, but still decent. Live there for 5 years, Government pay deposit. Rent out a room or two while i live there to pay the mortgage. and in a few years time have 50+ percent deposit for a potential dream house/project.

    Am I wrong, or been a bit greedy? The current housing stock is not great at the moment, and due to work circumstances be changing contracts in 2021 which means that I need to but soon, or else I will have to get through a probation period in my new role, and will be unable to apply for a mortgage for another year.


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    #2
    L1011
    Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 67,923 Mod ✭✭✭✭L1011


    Both the Irish and UK schemes have been extensively if not primarily used by people who actually didn't need it.

    Just remember that the price of many new houses has been padded to consume the subsidy, many went up by 10k the weekend the subsidy went up by 10k. Like the old FTB grant, this is not really helping people.


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    #3
    boredatwork82
    Registered Users Posts: 1,215 ✭✭✭boredatwork82


    Thanks for the reply L1011.

    I accept that the value of the house may be increased to take into account the value of the increase. The ones I am looking at have not increased since the increase, but I have no doubt the increase is 30k is built in somewhere.

    But seen as the government are paying the deposit, my rent room tax relief means should I choose to rent rooms, the tenants will cover the mortgage.

    I know there are risks associated, bad neighbours, property crash, value drop etc.

    But I feel these risks are outweighed by the gain.

    I just feel that its free money and an opportunity. I know I should not be looking at my first home purchase as an investment opportunity, but unfortunately the government offering 30k to people who don't need it, create a situation like this. It would take me a few years to save that amount again.


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