bearishbull
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In the absence of any information to the contrary I would assume that the applied.The house, originally sold to the successful applicant for €161,000, was recently put on the open market and sold for over €350,000 without ever having been lived in. Currently there are no regulations that specify affordable housing recipients must live in the house for a certain period of time.
...
Cllr O’Leary was alerted to the sale after he became involved with two local constituents who were struggling to buy a home under the scheme. They were upset that the house in question was lying idle, despite having contacted the social housing association on two occasions about the property.
Does this mean that in the case mentioned above the clawback in the first 10 years would be 54% of any gain or what (i.e. €350K - €161K = €189K / €250K * 100 = 54%?!?).Selling your house
If you sell your house within 20 years, you will have to pay the local authority a percentage of the proceeds of the sale. This percentage is expressed as the percentage difference between the sale price and the market value of the house. This amount will be reduced by 10% each year after you have owned your home for 10 years. So, if you sell your home after 20 years, you will not have to pay anything to the local authority.
Ah - thanks. That makes more sense alright. The OASIS wording is pretty unclear though.intermission said:Say the house was valued at €250K initially and they bought it for €161K. The discount they received was (250-161)/250*100 = 35.6%
according to herald today they are gonna get to keep 2/3's of the profit! ridiculous!
nt00deep said:So if your circumstances changed and you had to move away from where you live now, and had to sell your property, if the property had doubled in value since you first agreed terms with the Local Authority, would you be happy to forfeit all of your profit to the L.A.?
You own the house and have funded (using earlier example) 2/3 of the cost. If your house had doubled in value, would you be happy to give the council a 6-fold increase in its investment as thanks for helping you out?
I'm not saying there should be open book when it comes to selling, but surely any rational review of this would suggest that having the L.A. and yourself splitting any profit according to your investment is fair, and the L.A. can then use its inflated investment to buy a similar share in another house for the next guy in the list.
annR said:One of the criteria of affordable housing is that the applicant must be in need of housing. If they didn't need to live there, they either bought it under false pretences or their situation changed which can happen.
Other than that, doesn't seem like they broke any rules. Anyone can sell their affordable house anytime they like.
Answer is I don't, but my point is that it is possible. I just wouldn't be too quick to judgement without knowing the facts, particularly when the case was highlighted by a politician.How do you know that their circumstances changed and that they didn’t just flip it
nt00deep said:So if your circumstances changed and you had to move away from where you live now, and had to sell your property, if the property had doubled in value since you first agreed terms with the Local Authority, would you be happy to forfeit all of your profit to the L.A.?
You own the house and have funded (using earlier example) 2/3 of the cost. If your house had doubled in value, would you be happy to give the council a 6-fold increase in its investment as thanks for helping you out?
I'm not saying there should be open book when it comes to selling, but surely any rational review of this would suggest that having the L.A. and yourself splitting any profit according to your investment is fair, and the L.A. can then use its inflated investment to buy a similar share in another house for the next guy in the list.
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