Hi I’ve posted here a few times already and thought I could fill you in on the Affordable Housing since I’m on the waiting list in the four council areas of Dublin.
Fingal and South Dublin have the same system, whereby you have to pass an interview to get on the waiting list.
In the interview you have to pass income test:. Married couples must have income of (2.5 * main income + second income) < E100,000.
Have to prove regular savings of E650 a month. Have to show good credit history, etc.
If you pass the test you get on the waiting list and should be offered a property within 10-12 months. 2 bed apartments are for E165,000 and 3 bed houses for E185,000.
I think the clawback for Fingal and South Dublin is 50% of the profit on selling your house in the first 10 years decreasing gradually to 0% clawback after 20 years. If you sell your house for E400,000 in year 7 you have to pay back(400,000 - 185,000) / 2 = E62,000.
Dublin City and Rathdown have a ‘lottery’ once or twice a year. I received my brochure for Dublin City last week and sent off the reply this morning.
I picked a 2 bed in Cathedral Court, New Street(no parking space) and a few 2 and 3 bed apartments in the developments around Ashtown.
If I ‘win’ in the lottery I then have to pass the interview, which is having a net disposable income of E500 - E650 a week(married couple) and other loan criteria.
Cathedral Court was E260,000, but cost E450,000 on Daft, and the ones in Ashtown E240,000 - E270,000, but are around E400,000 on Daft.
The clawback is much tougher for these lottery schemes. Say you save 30% on the lottery apartment, getting a E350,000 apartment for E245,000. You would then have to pay back 30% of sale price. If you sell for E400,000 then you have to pay back (30%)E120,000, meaning you’d be back to square one and no first time buyer status!! That’s why I only picked areas where I could live for the next 5 - 10 years at least.
All the affordable houses are same shape and design as the ‘normal’ houses but come with no appliances, skirting boards, door bells, flooring, etc.
In the Dublin City Council draw, if the E350,000 apartment you got fell to E300,000 when you were selling in year 7 or 8, you would still have to pay back E90,000 to the council, even though you had to fit out the apartment yourself!! This is why I still haven’t decided to take a Dublin City property even if I win one in the lottery draw in February. Hopefully it will be clearer then if the market is going to continue its slide.