Changes to affordable housing in budget

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Cheeus

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Looks like it's good news for affordable housing in the budget.
Council can increase amount offered in loans. But what does it mean that govt can take an equity share?

Increase in mortgage interest relief is good news :D
 
Govt taking equity....What does that mean? Any ideas. I am buying mine in two weeks and the council already have a share re clawback... Also I presume the incraese in vat rate doesn't apply to purchasing houses...am i right?
 
Almost completed the purchase of mine. i hope the government wont be taking an equity stake in my house. I presume its too late for that.

at least mortgage interest relief is being changed for first time buyers
 
I give you the website detailing the bailout to the builders. How can
such a well developed & constructed website be rolled out within a
short few hours of the announcement of the builders bailout in the
budget? It is obvious that Tom Parlon and his cronies in Government
had this bailout agreed well in advance of todays budget. I was at
least cheered somewhat by the section enclosed which I assumed was for
comedic effect.
Who can apply?
To qualify for a Home Choice Loan applicants must:
be a first time buyer (some exceptions may apply);
earn more than €40,000
be in permanent employment for two years; If self-employed be able to
submit two years certified accounts;
have proof of being unsuccessful in securing a sufficient mortgage
from a bank or building society to buy a home

How can they possibly look to approve people who have been refused by
a bank or a building society? The only people not approved for a
mortgage in the last 3 years were those on unemployment benefit. 7
times the salary of a person on an above average income is glorified
sub-prime. Whatever about the many poor thousands of young people
caught up in negative equity from the madness of the last five years,
surely dont enslave thousands more?
The above website was registered on September 11th 2008. More
proof if proof was needed that this bailout was agreed months in
advance of the budget.
 
Are we to take it that the Affordable Housing scheme in its present guise is about to end? i.e. will we no longer see local authorities buying properties on the open market?
 
Clown said:
I give you the website detailing the bailout to the builders. How can
such a well developed & constructed website be rolled out within a
short few hours of the announcement of the builders bailout in the
budget? It is obvious that Tom Parlon and his cronies in Government
had this bailout agreed well in advance of todays budget. I was at
least cheered somewhat by the section enclosed which I assumed was for
comedic effect.
Who can apply?
To qualify for a Home Choice Loan applicants must:
be a first time buyer (some exceptions may apply);
earn more than €40,000
be in permanent employment for two years; If self-employed be able to
submit two years certified accounts;
have proof of being unsuccessful in securing a sufficient mortgage
from a bank or building society to buy a home

How can they possibly look to approve people who have been refused by
a bank or a building society? The only people not approved for a
mortgage in the last 3 years were those on unemployment benefit. 7
times the salary of a person on an above average income is glorified
sub-prime. Whatever about the many poor thousands of young people
caught up in negative equity from the madness of the last five years,
surely dont enslave thousands more?
The above website was registered on September 11th 2008. More
proof if proof was needed that this bailout was agreed months in
advance of the budget.
Click to expand...



This scam that they are offering cannot even be used for the purchase of affordable housing?? Taxes are up yet again, so they know that were all goin to leave and live and work elsewere so as they wont get what they want from us......how do we get out??? we have to fly?? €10 tax on that now, they certainly have done their homework??
Irelands greatest government. gansters.
 
Cheeus said:
Looks like it's good news for affordable housing in the budget.
Council can increase amount offered in loans. But what does it mean that govt can take an equity share?

Increase in mortgage interest relief is good news :D
Click to expand...

How is it good news that you have to pay more for a house?
Unless you're a builder of course.
 
Hi,apologies if i'm not posting this in the right place but i have a question about shared ownership which may also be affected by the budget..i participated in the scheme about 5 years ago and bought an apt in dundrum..i would like to remortgage and consolidate 1 or 2 loans but on one hand i'm being told that even though i dont want to sell the apt i would still be liable for the clawback condition just to refinance..does anybody know anything about this?? Thanks :)
 
I don't think you can refinance if you have an affordable housing mortgage. The only way you can consolidate loans etc is if you switch your mortage to another lender who is not involved with affordable housing mortgages and they will want you to pay the clawback to the council. I have my affordable housing mortgage with bank of ireland and tried to do this before but with no luck. Total bummer as I added a huge lump sum of an inheritence I had to purchasing the property. At the time the council would only give me a mortgage for 200,000 and this money is essentially locked in now and I can't release any equity.
 
manunited said:
Hi,apologies if i'm not posting this in the right place but i have a question about shared ownership which may also be affected by the budget..i participated in the scheme about 5 years ago and bought an apt in dundrum..i would like to remortgage and consolidate 1 or 2 loans but on one hand i'm being told that even though i dont want to sell the apt i would still be liable for the clawback condition just to refinance..does anybody know anything about this?? Thanks :)
Click to expand...

If it's an affordable home that you bought with shared ownership then you would have to pay the clawback.
 
Article in today's Irish Times about changes to affordable housing.
Looks like clawback will be payable now regardless of whether you ever sell your property or not. With government now taking equity affordable housing is more similar to shared ownership - although there is no rent to paid, there will always be the council's share of equity to be bought out.

Changes take effect January 1st. I wonder how this will effect those of us who are waiting to close?

[broken link removed]
 
is this for new applicants going forward, or does it apply to everyone, even people that have signed and closed the deal??

is this not already in place though??.....its just the clawback issue that we all know about. no?
 
If I'm understanding it correctly, the main difference seems to be that clawback will always be payable, even if you never sell. I can't see how they can apply it to people who have already bought - it's a totally different agreement.
 
does this come into effect for everyone now? i haven't signed yet - i signed the contract and paid the 3k deposit but nothing else!
 
Hi Emma was talking too SDCC and what i have been told is that it will only apply too people in the new year so you should be alright:)
but get your solicitor too find out just to be safe.
 
The first thing I did was ring my solicitor about the Govt Equity Scheme as I am in the process of closing. Solicitor advised from legal standpoint County Councils CANNOT retrospectively apply this new scheme to those who have already purchased or been offered properties under the current scheme (where normal clawback applies and ends after 20 yrs of ownership.) This new scheme sounds like the worst deal ever - what they are effectively doing is making you pay the full market price (and possibly more) over the lifecycle of the mortgage.... Anyway contacted my local council about this just to get some reassurance - they had no idea what I was talking about but no doubt they will be looking into it now!!:eek:
 
i contacted dcc about it cuz i was really panicking!! she told me that its a change in the shared scheme that might come in next year and that we were fine and changes would be made to our contract
 
So if I buy an affordable home and live in it for 20 years; after 20 years I'll have to pay the government 30% of it's value at the time? Is this a lump sum? If it's worth €300,000 by then I don't see how I'd have €100,000 cash in 20 years time... I'm confused. :(
 
yes it is all confusing.
so basically you'd be better to sell the property after 19 years.

does it mean that after 20 years and you still are living the property and pay back the clawback, do you now owe 100% of the property?
 
No matter when you sell it would be payable. It does seem to be a bit of a joke.

So an applicant might only be able to afford a mortgage of 200k now. They take out a 30 year mortgage and at the end of that period they're then expected to maybe take out another mortgage to pay back the council if they don't want to sell?

The assumption would seem to be that people will have better jobs or will come into money. What if neither happens and they still can't afford it?
 
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