Shared Ownership

J

jen009

Guest
Hi can someone help me. Me and my boyfriend and going to buy a house in Aug and we have been told that Shared Ownership is the way to go. Can any1 help me that has actually done this. Is it a good move.?
 
A close friend did this years ago and regretted it.When they eventually went to buy the house outright it was very expensive - more so the the increase in the property price at the time. She and her husband would not recommmend it.
Try and save like mad to get a decent deposit together. Write down for one or two weeks every cent you spend(even for the smallest things news paper etc) and review it afterwards and there will be a few things on it that you could do without for a while.
Good luck.
 
I fail to see the benefits of this scheme UNLESS you qualify for the rent subsidy

"If your household income in the last income tax year was less than 28,000 euro per year, you will qualify for a rent subsidy that varies from 1,050 to 2,550 per year as long as the subsidy does not reduce the rent below one euro per week."

Other than that, your montly outgoings (mortgage + rent) will not be any less than if you were paying the mortgage on your own.

Have you applied for the Affordable housing scheme/initiative?
 
Other than that, your montly outgoings (mortgage + rent) will not be any less than if you were paying the mortgage on your own.
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The rent on the council's equity is significantly less than the mortgage repayments would be. Otherwise, as you said, there would be no point.
 
The rent is 4.3%, thats not significantly less than paying an interest only mortgage.
 
An interest only mortage yes, but I was talking about monthly outgoings. Shared ownership is cheaper than repaying principle+interest on the full value of the property, as one would expect.
 
niceoneted said:
A close friend did this years ago and regretted it.When they eventually went to buy the house outright it was very expensive - more so the the increase in the property price at the time. She and her husband would not recommmend it.
Try and save like mad to get a decent deposit together. Write down for one or two weeks every cent you spend(even for the smallest things news paper etc) and review it afterwards and there will be a few things on it that you could do without for a while.
Good luck.
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I disagree.Regardless of how hard you cut back and scrimp and save,a deposit of 25-30,000 euro is going to be almost impossible for most people to amass in a realistic timeframe.Added to that the difficulty in securing a mortage through conventional means that would cover a property in any location and its obvious shared ownership is the way to go.For example,for a deposit of 1.300 euro you can be lent up to 270,000 based on an average income.You have the option to buy out the corporation's share of the property after two years and obviously this will cost a bit more than your existing outgoings.The point about shared ownership is that its a FOOTHOLD on the property ladder that people on normal incomes would not normally be able to afford.In addition,any profit generated by the sale of the property is yours,unlike the affordable housing scheme.I purchased four years ago under shared ownership and its the best thing i ever did,i would recommend it to anybody.
 
Shared ownership is great. We used this scheme to buy an apartment 4 years ago. During the next year we were both lucky enough to get higher paying jobs and we took out a mortgage after one year and are now buying the property on our own - no shared ownership this time. There was no catches, no difficulties. The deposit is fixed at just over 1k. It's the best move I ever made. I have my home and I didn't need to pay a huge deposit.

Best of luck.
 
Its different for everybody, some people find it crap others find it great. It all depends on your situation.
 
Shared Ownership is not the best option.
You should look at applying for affordable housing. There are some good deals going if you look around and take you time.
 
Wexford Guy,

I managed to gather 20K together in 12 months. If you really want to you will! But I guess it's different for everyone.
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Gathering €20,000 in 12 months is almost an impossibility if you earn €25,000 a year no matter how hard you try! However last year through the shared ownership scheme I was able to buy my own place on this meagre salary, so I'm all for it. And now that my salary has increased I intend buying out the council's interest- would recommend the scheme for anyone on a low salary, you can remortgage when you can afford it
 
Are they still doing shared ownership? I think they have stopped it where I am from (Cork City). Im not 100% sure though.
 
I have recently applied for the shared ownership scheme, and received a letter the other day telling me I had been submitted for approval and would get the yay or nay in 3-4weeks.

I am really getting excited now, and with a bit of luck, I might actually be in a position to buy my first home fairly soon!

For those of you who are not entirely sure what the scheme involves, go to this link:[broken link removed]

Some of the finer details have changed since the above was posted.

According to my letter, the maximum loan awarded is currently €250k, and the maximum property price can be €275k.


I would be very interested to hear from people who have successfully applied for the scheme, as, assuming I am approved, I'm keen to know what happens next.

How soon is the money available to you?
Is there a time limit on when you must purchase your home? I.E. Does the loan expire?

If you applied for the loan under a single income, did you find it difficult to meet the mortgage+rent requirements?

Did you find it difficult to acquire a 'decent' home in a 'decent' area with the money that was made available to you?

I would be interested in hearing from people who are currently waiting for approval and are in the same boat as myself.

Also, I have recently been looking at some lovely apartments in Swords... BUT... am I eligible to buy there?
As far as I know I applied through D.C.C, but Swords is zoned as Fingal.C.C

If anyone requires some more information on how to apply for the scheme, and what is required of you, I will try to help you to the best of my ability.
 
buckrodgers said:
Are they still doing shared ownership? I think they have stopped it where I am from (Cork City). Im not 100% sure though.
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No, they are still doing it in Cork City.

I don't see any advantage in it at all though.

I was approved for it, but I have a max spend of 156k.....

Now all I have to do is find a liveable-in house for 156k........:(
 
Jen009

you don't say whether you applied to a traditional bank/building society for mortgage approval

you can get 100% finance as a first time buyer and your income less any outgoings will determine what you can borrow, maybe if you establish that first, it could then assist with your decision to go forward for Shared Ownership/Affordable Housing or not

regards
DeirdreL

www.rea.ie
 
DeirdreL said:
Jen009

you don't say whether you applied to a traditional bank/building society for mortgage approval

you can get 100% finance as a first time buyer and your income less any outgoings will determine what you can borrow, maybe if you establish that first, it could then assist with your decision to go forward for Shared Ownership/Affordable Housing or not

regards
DeirdreL

www.rea.ie
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Hi Deirdre,

Is there much of a difference between what you get from a bank/building society for an Affordable Housing application, or as a regular first tme buyer?
 
Bubblebunny

thats really a hard question to answer, its depends on the rules of each county council, you have cut off points on sole or joint salaries

and then its the same for traditional lenders, they all have different criteria as well, if you want to post your details ie salary, bonus, o/t, age and whether or not you have any personal/car loans I can then give you an idea, alternatively PM me and I can tell you what a traditional lender will offer and then you can compare to the rules of the appropriate county council

regards
DeirdreL

www.rea.ie
 
I have also been told that the shared ownership scheme has been discontinued by the cork corpo - reason being that it was costing them too much and they couldnt cover the cost of houses these days.
 
madisona said:
When did you get this approval? My information is that any previously issued approvals by the City Council are now invalid and that the scheme has been discontinued.
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It was a few months ago. I have never received any correspondence in the meantime saying it was invalid.
 
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