# Selling Affordable Housing

#### Bridin

##### Registered User
Good Morning all.

I'm hoping you can help. I'm trying to calculate how much I would need to pay the council if I sell my affordable home.
Bought in 2008 for €214,000
Valued €290,000
Discount 26%

Now worth approx. €210,000

I'm not in a rush to sell but just want to understand the calculations.
Thank you

#### Brendan Burgess

##### Founder
It's all explained here:

https://www.housingagency.ie/Housing-Information/Home-Ownership/Living-in-an-Affordable-Home

Scenario 1 – if they sell the home for less than the affordable price
If the market value of the home decreases below the original affordable price of the home, and the home is sold at this lower price, then no clawback is payable to the local authority.

So if you paid €214k and sell it for €210k, you will not make a profit, so you will not pay any clawback.

Brendan

#### Bridin

##### Registered User
Thanks Brendan

If the value was to increase to 230k and I sold it for that for example - would I then pay the council the % discount amount of the sale price - original value(So 290-230 = 70k x26%=18.2k)

#### renter45

##### Registered User
Hi Bridin
You pay 26% on the sale price to the council.
e.g sell for €230,000 x 26%= €59,800 however you only pay the council €230,000 - €214,000 = €16,000
You then use the €214,000 for fees, clear mortgage etc...
e.g sell for €300,000 x 26% = €78,000, you pay council €78,000 and you use €222,000 for fees, clear mortgage etc....
After year 10 the councils clawback is reduced by 10% each year, after year 20 the clawback ends.

#### Bridin

##### Registered User
Thanks Renter45 - Just another question - why do you only pay the council €16,000(and not the 59,800) if you sell for €230k but you pay the full 26% (78k)on 300,000.
Apologies if I am asking a stupid question.

#### Bridin

##### Registered User
Thank you Brendan