Affordable housing scheme part V 2008

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WillIBeRich?

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Hello, we're stuck in our affordable housing apartment for another 8 years at least due to the restrictions of our contract with DLRCOCO. Has anyone who purchased a property from this scheme ever got their contract axed or quashed altogether or at least reduced from say, 20 years to 15 years? We will make a huge loss if we sell our property & we'll have to rent to stay living in our area which doesn't make sense either of course. Thanks for reading & I hope you can help me.
 
Most property values in DLR have recovered to close to the peak of the market in 2007.

See here for how to calculate the potential clawback of the discount you received.
 
Leo said:
Most property values in DLR have recovered to close to the peak of the market in 2007.

See here for how to calculate the potential clawback of the discount you received.
Click to expand...
Hi Leo, thanks for your reply, our property is still €150,000 off the original market price of €510,000. No money at all for us to take from property (council gets it all) unless it sells for over 510000, which it wont of course. I cant find your link to click on ... clawback doesn't work for us, it'll only work if the property sells for over 510 000. I've had solicitors & councillors & TD's trying to help me out on this but to no avail ... I am stuck ... with a growing family ... thank
 
Sorry, link here.

The property value is likely close to what you paid for it after discount at this stage so. The Affordable Housing scheme wasn't ever intended to provide a future windfall, it was intended to make homes more affordable.

You mention wanting to stay living in DLR, larger properties there will of course be more expensive, and as a second time buyer, you'll need a 20% deposit.
 
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WillIBeRich? said:
No money at all for us to take from property (council gets it all)
Click to expand...
Surely you've equity? The difference between your mortgage now and the discounted price you bought it for?
The council gets the difference between what you bought it for and the sale price? Or have I missed something?
 
'we will make a huge loss'
Are you saying that your purchase price was more than your stated current value of 360k?
If not,what loss are you talking about?
Also as Red onion has stated,whatever you have paid off the mortgage principal in the last 12 years is yours too.
 
Leo said:
Most property values in DLR have recovered to close to the peak of the market in 2007.

See here for how to calculate the potential clawback of the discount you received.
Click to expand...

Unfortunately, I doubt that.

The [broken link removed]for Dublin houses is at 110, it was at 137 in summer 2007, so still 20% below peak.

There is an index for houses in DLR but it only goes back to January 2010.
 
OP stated that they owed 214k in 2019 on a purchase price of 270k . (market value was 470k)
Say mortgage balance is 210k today.There's 60 k to go towards a deposit for a bigger house.
Alternatively,wait 8 years and sell for a 150k plus profit.
 
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Leo said:
Sorry, link here.

The property value is likely close to what you paid for it after discount at this stage so. The Affordable Housing scheme wasn't ever intended to provide a future windfall, it was intended to make homes more affordable.

You mention wanting to stay living in DLR, larger properties there will of course be more expensive, and as a second time buyer, you'll need a 20% deposit.
Click to expand...
 
Thats exactly it Leo ... yes by huge loss I mean we wont be able to afford to buy in our area & we'll need a 20% deposited also ...
 
vandriver said:
'we will make a huge loss'
Are you saying that your purchase price was more than your stated current value of 360k?
If not,what loss are you talking about?
Also as Red onion has stated,whatever you have paid off the mortgage principal in the last 12 years is yours too.
Click to expand...
Thanks red onion, as Leo said in his post I wont be able to afford living in my current area (kids now in school) & I'll need a 20% deposit to buy a second home. We'd have to relocate altogether. That's the loss I'm talking about ...

Not many people have much sympathy for us with affordable homes as people say we should be grateful to have a home due to the state of the housing crisis. & I get that. Thanks Folks.
 
NoRegretsCoyote said:
There is an index for houses in DLR but it only goes back to January 2010.
Click to expand...

2017 Daft report shows a few areas within less than 20% of peak at that point. Of course, I should stress the problem with all these figures is that there can be a huge variance in the experience from development to development, particularly in settled areas with good services. The Property Price Register shows some such properties now fetching 2.5 times their 2012 prices, well in excess of the index.
 
WillIBeRich? said:
Thats exactly it Leo ... yes by huge loss I mean we wont be able to afford to buy in our area & we'll need a 20% deposited also ...
Click to expand...

But that's no a loss. Lots of people are being priced out of popular areas. You now want to buy a larger property in an area with some of the highest house prices in the country, no scheme to help first-time-buyers get their start in property ownership could ever be expected to deliver that without you adding significant extra capital.
 
NoRegretsCoyote said:
Averages have a pesky way of including all properties that sell.
Click to expand...

Exactly, and what I'm seeing now in South Dublin is new higher density developments lowering the average, so older stock is in many cases is at or even above 2007 peak prices.
 
I'm also in DLRCOCO and being on the affordable scheme or not wouldn't make any difference. The scheme was intended that you bought at a discount and you only get 80% of any profits where profits means if the place sells for higher than the original valuation which would be the owner portion plus the council portion. As the properties are technically still in negative equity (by nearly 25%!), any price you sell for above what you paid but below the original valuation, the extra goes to the council until you are in the place 20 years. No-one will have hit the 20 years yet so there will be no case studies to show up any unexpected surprises. If your valuations are coming in at or a bit above, you won't make any loss on the transation. The only thing you have is your own equity which you would use towards the deposit on a new place.
 
Has anyone reached the 20 year make yet and if so did your council remove the clawback condition from the title deeds?
 
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