What's the best option for me? AH/LA/SO

Hi all.
Myself and my (now ex) bought a house just over two years ago. We split and are in the process of selling. The price we sell for will just cover the outstanding mortgage (hopefully) but no profit will be made on the house.

I am currently renting and paying €700 per month rent. I earn €2100 including FIS and also pay creche for my daughter. My ex is not her father so maintenance is not an issue as her father has never been involved.

I am finding it a struggle and want to apply for local authority housing but am aware that the waiting lists are very long. Would shared ownership or affordable housing be an option?
I would prefer to be paying less but wouldn't begrudge the €700 per month if it were going towards my own home as opposed to paying rent.

Any advice?

Hello there

I'm presuming that you want a place in Galway and that you'd need at least a two bed for you and your daugther? You will only qualify for affordable housing if you were actually married and are splitting up. Otherwise you won't be considered a first time buyer.

I'm only familiar with AH/SO in Dublin so it may be different in Galway. There doesn't seem to be much Galway activity on here. So in Dublin:

2 bed properties tend to be in the region of €230k to €300k on affordable housing. My own affordable mortgage of €257k costs about €1350 a month. I know there are currently houses advertised in Connemara for €190k on www.affordablehome.ie . A mortgage on these would cost around €1110 a month. You'd also need a 3-5% deposit. Don't know how long the list is in Galway.

It is possible that the bank or local authority will not consider FIS as part of your income for a mortgage calculation - but it may be worth shopping around if one refuses it.

Shared Ownership is an unpopular option as the monthly payments are just as high as a full mortgage and people have mentioned here that they find it difficult to ultimately buy the council out. But then others swear by it!?

Maybe it would be an idea to put your name on the local authority list while you are considering your options. Best of luck with it all.

Thanks. Ok it would appear (as we weren't married) that I don't qualify for affordable housing and even if I did it isn't affordable for me.

Local Authority it is so.

My post above is a bit misleading - there have actually been 2 beds advertised in Dublin from €160k. I was thinking about my own council only. Also, it might be worth keeping in mind that you can also apply to councils where you're not currently living. You'd get more for your money outside Galway/Dublin.

ailbhe said:

Thanks. Ok it would appear (as we weren't married) that I don't qualify for affordable housing and even if I did it isn't affordable for me.
Local Authority it is so.

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Sorry Ailbhe that it appears to not be an option.
The only thing I'd say is that councils seem to have difficulty shifting some of their properties now. Perhaps phone calls to different councils might unearth a council who are more flexible on the divorced/separated rule. If you were willing to relocate it might be an option?

Also, I just checked the affordablehome wesbite and there is extra payment help available for those earning less than 28k pa.

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ailbhe said:

Thanks. Ok it would appear (as we weren't married) that I don't qualify for affordable housing and even if I did it isn't affordable for me.

Local Authority it is so.

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You should contact your local council yourself to make sure 100% that you are not eligible every council has different rules.

As far as I recall you are not from Galway persay but some 40 mins away - so Clare or Mayo. Not quite sure what direction so not sure what council you would fit under.

Again not knowing what county you are from it is hard for anyone to give advice.

I would be looking in Mayo.
2 bed apartments in the area would be approx 160k. 3 bed town houses from 180k.

I have been thinking more about shared ownership. I called Mayo Coco but they didn't call back. I have also emailed them but no response.

I'm sure I can do nothing until the house I co own is sold but even after that, what sort of monthly payments am I looking at?

I was having a browse and came up with the following figures but I'm not sure if they are accurate.

€180k 50% mortgage 50% county council
Mortgage approx 470 pm "rent" approx 323 pm = 793

I assume I would also have to pay stamp duty as I am no longer a first time buyer though I do still have 5+ years first time buyer tax relief.

So stamp duty approx 4k, legal fees approx 2k...what sort of deposit would I have to pay?

I think I would prefer to go down this road than wait for a local authority house especially as I have about 30k worth of furniture in storage that I need to sell but will get next to nothing for. Can't afford storage for the next 4+ years either Hard to know what to do for the best.