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Has anyone availed of the first home scheme?

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  • 12-03-2024 3:14pm
    #1
    reactadabtc
    Registered Users Posts: 34 ✭


    Hi

    I'm looking into the first home scheme. With a combination of mortgage + deposit + HTB + FHS (20%) i can buy a new build house in Dublin.

    I know the government take equity and there's a service fee, but without it I'm looking at apartments which I don't want. I need to buy something and whilst it probably won't be my forever home, I'll be here for 5-7 years or more.

    Is this a bad idea? Has anyone availed of it and can you recommend it or not?



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    #2
    FR206
    Registered Users Posts: 6 ✭FR206


    Also very interested in this scheme too. I’m a single FTB struggling with affordability to compete with dual-income applicants for second hand houses in my area. Similar time horizon in mind as OP of 5-7 years to allow for circumstance change. At early stages of a promising graduate career with reliable future earning growth to fund the buy back. Will also reap the benefit of HTB rebate if I can avail of new build.

    I am considering this scheme too to bridge the gap using the FHS but cautious of the government stake in my home and want to understand all issues in charting a path to bring own equity to 100%.


    Say for example I avail of €70k for a home valued @ €355,000. (Approx 20% stake)

    Considering the first 5 years is interest free (albeit % share for payback will track property price movements) - could this scheme be a possible hedge against the prospect of negative equity if a downturn came within 5 years at which point the government stake repayable = market value of home X 20%? E.g. if property price fell by 10% by year 5 and valued at 315k in 2029 the principal amount repayable would only be €63k rather than 70k + interest - hence there is a material finance saving costs as repayments could be invested/deposited elsewhere? Have I oversimplified and missed something glaring here?

    Likewise, I’m mindful of the more likely inverse scenario of house price rises and the pressure that would place upon me to fund a buy-back however I feel that risk is easier to stomach given if market is strong house could always be sold and 20% stake settled that way?

    Maybe my fear of negative equity is irrational given that it would be my PPR - I just had numerous relations shackled to homes during the crash that limited their ability to move on or size up as their life/family required.



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