High annual maintenance fees, a \u201cdiscount\u201d that is repayable after 40 years \u2013 and may cost more by then \u2013 a complicated pricing process and market prices that may not always align with local trends.<\/p>\n
Yes, affordable<\/a> housing<\/a> schemes may look attractive at first glance, open as they are to those earning above-average incomes, and offering a sale price of as much as 40 per cent off market. However, as the Government<\/a> ramps up the supply of such homes, putative buyers<\/a> should be aware of all that the scheme entails before making a purchase. <\/p>\n While there are good points to the developments that continue to come on stream, the affordability aspect may be overstated.<\/p>\n The good <\/p>\n Under its new action plan on housing announced last week<\/a>, the Government said it will deliver as many as 15,000 affordable homes a year, as it ramps up the role of the Land Development Agency (LDA<\/a>). This figure includes those supported by the Government\u2019s shared-equity scheme.<\/p>\n It should mean a welcome boost in supply for those looking for a home to buy. With house prices \u2013 never mind rents \u2013 continuing to reach new heights, the Government is increasingly stepping in to offer people other options to market rates. <\/p>\n The Starter Home Purchase Scheme will see increased affordable housing delivered by local authorities and the LDA.<\/p>\n The scheme is not just for first-time buyers or those who qualify under Home Start. While this will give you eligibility, if you already own your home, you might still qualify if this home is no longer suited to your family. Putative affordable-home buyers can also seek a Help to Buy grant to help get their deposit together. <\/p>\n Dublin City Council is set to offer more than 1,400 such homes as part of its housing programme. This includes 172 at Cherry Orchard (2028); 168 in Parkwest (2029); 100 in Poolbeg (TBC); and 101 at Sillogue in Ballymun (2027). <\/p>\n In Fingal, phase two of Balmoston in Donabate has just launched its application process, while in D\u00fan Laoghaire-Rathdown, Shanghanagh Castle in Shankill, was launched earlier this year.<\/p>\n [\u00a0New housing plan aims to deliver 12,000 social homes and 15,000 affordable units per yearOpens in new window<\/a>\u00a0]<\/p>\n In Cork, phase two of the Glenbride scheme in Kilnap is due to launch before year-end, and in Kilkenny, applications are now open at Churchview in Kilmacow, where a three-bedroom end terrace has a minimum price of \u20ac248,475.<\/p>\n Where once it might have been difficult to keep abreast of all these developments, there is now a central portal to track new offerings: affordablehomes.ie<\/a><\/p>\n Like the First Home scheme, the Starter Home Purchase Scheme is aimed at, as D\u00fan Laoghaire-Rathdown council tells interested applicants, those \u201cseeking to purchase a newly built home but need to bridge the gap between their mortgage and deposit to cover the full price of the home\u201d.<\/p>\n And, like the other scheme, it involves an equity stake being taken, this time by your local council, of between 5 and 40 per cent. <\/p>\n This stake is considered to be a discount on the market price, while the affordable purchase price is calculated based on the purchasing power of eligible applicants. The price will vary for each purchaser as it is based on their income, savings and purchasing power. <\/p>\n As noted by Dublin City Council: \u201cIf Dublin City Council takes a 20 per cent equity share, the purchaser will benefit from a 20 per cent discount on the open-market price.\u201d<\/p>\n This affordable dwelling contribution, or equity share, is a fixed percentage in your new home. <\/p>\n At first glance then, the affordable homebuyer is benefiting from a discount on market price.<\/p>\n Consider the upcoming scheme at Montpelier, Dublin 7, which will open for applications later this month. <\/p>\n Built in partnership with Bartra and Tuath Housing, the scheme is being delivered in phases and will include new parks, community spaces, shops, a creche, a pharmacy and a GP practice.<\/p>\n On the old O\u2019Devaney Gardens site, 99 homes (26 one-bed; 62 two-bed; and 11 three-bed) will open for applications from November 25th, as part of the 1,046 home scheme, with the residents due to move in next July. <\/p>\n Rather than a fixed price, the new homes are being offered at a range of prices. One-bedroom units will cost between \u20ac248,000 and \u20ac332,000; two-beds between \u20ac320,000 and \u20ac414,000; and three-bedroom houses between \u20ac378,000 and \u20ac473,000.<\/p>\n [\u00a0Family \u2018angry and frightened\u2019 after being locked out of affordable housing for second timeOpens in new window<\/a>\u00a0]<\/p>\n According to Dublin City Council, these prices represent an average 25 per cent discount to open-market value.<\/p>\n And the income limits are more generous than many might expect. <\/p>\n If you want a one-bed apartment at Montpelier, your gross income (single or joint) should be between \u20ac56,000 and\u20ac75,000. For a two-bed, your income can be as high as \u20ac93,000, and for a three-bed house, it could be between \u20ac85,000 and\u20ac106,000.<\/p>\n According to Dublin City Council, if your income is below \u20ac56,000, you might still qualify if you have additional savings. <\/p>\n At Balmoston in Donabate, north Co Dublin, you can earn as much as \u20ac103,669 and still qualify to apply to buy a three-bedroom mid-terrace house.<\/p>\n When working out your income, you may be able to include regular overtime in your assessment, but a bonus is restricted to a maximum of 10 per cent of basic income, and commission to 30 per cent. Welfare payments such as child benefit and carer\u2019s benefit aren\u2019t included.<\/p>\n But this won\u2019t tell you how much you\u2019ll actually pay \u2013 this comes down to your so-called \u201cpurchasing power\u201d. This is a figure based on your mortgage capacity, deposit and relevant savings and it must not exceed 95 per cent of the open-market value of the property.<\/p>\n