Valuations & clawback: Affordable Initiative Only

S

swordshead

Guest
If anyone is concerned about their recent property valuations or feel the clawback % is too high that they will have to pay back could you please pm me! This is concerning the Affordable Housing Initiative only! Recent developments are worrying and it seems alot of people are being offered property at a too high a market value, resulting in the %clawback also being too high!
 
Hey Guys,

I get a bit confused between Initiative and scheme so apologies if I've got this wrong - we're in the process of buying in Ongar...Phibblestown...

I was very worried about this...when we first started cost price was 345k, mv was 465k

After MUCH wrangling with the council/ahp by us, and seemingly one or two others who bought off the plans, prices came down to 440k, price 320k, but sure, that raised our clawback....its still totally unrealistic but we can't afford a similar house privately, even with the drops at the moment, and by the time we have to sell, we'd hope to be in a better financial position, one where we could bridge the gap (hopefully!) - short term gain...but not ness long term benefits!

Apparently cause of all the questioning, every units cost or market value has been reduced...so we're a bit better off than before!

Am I on about the right side of affordable housing!?!?

Berry
 
Hi, yeah your on the right side we're having a similar problem in erris square, good to hear that the price was dropped how was your clawback raised if the market value dropped as well?
 
Phibbleberry said:
Hey Guys,

I was very worried about this...when we first started cost price was 345k, mv was 465k

After MUCH wrangling with the council/ahp by us, and seemingly one or two others who bought off the plans, prices came down to 440k,
Berry
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Hi Phibbleberry

I can't believe they left the price so high AND raised the clawback!?
I had given up posting on this because nothing seems to happen. I haven't received any reply to a formal letter I sent over a month ago about Erris Square.

To be locked into a property that is overvalued by nearly 100k is pretty bad. If you want to live there forever I guess it's good to have a roof over your head. Good luck with it and hope you make the right decision for you.
 
ClubMan said:
Why? Can it not be discussed here or something?
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Hello Clubman

I think some of us have gone on about it so much here that the councils know us and won't deal with us a easily when we call. I don't want to bash the process publicly before I even get a response - though I'm tempted since it's been over a month since I wrote to the AHP about this.

Also, if you post publicly you are open to the usual eejets who don't understand the process saying that you should take what you're given etc... yawn, yawn.

If anyone is in the process and concerned I do think they should join the debate. There are people trying to sort this out - the more people on board the better.

Personally I think that if the AHP/Council can't address these concerns that it should go up to the Minister for the Environment.
 
Yeah, its a bit of a weird one!

Basically, we were told the new market value was 440k regardless (our valuer reckons 410k tops and that was 3mths ago before the subsequent slump!) and we could pay 345 for it at c.21% clawback OR we could buy it at 320 thus increasing our clawback to c.27%....we decided to pay less and incur more of a clawback hoping that we could afford to bridge the gap down the line more successfully than buy privately now.

Having said all that we're STILL waiting to actually sign, and we're expected to be in by Oct!

Its very confusing!! But I do love the house (I'm such a girl!) and can't wait til everythings finalised!
 
so if you had gone ahead and bought for 345k then they would have reduced the clawback? I presume your clawback was originally higher than 21%??
 
No, our clawback was always around that 21% (I think - god, its been such a long process and theres been so many figures I keep getting confused!!!)! Maybe it was that at the time they offered us the 320k they'd already dropped the market value so the clawback was reduced at that stage!? God I sound like a babbling idiot now!!!! I'm all confused! Sorry!

Its been frustrating but the guys in AHP have been nice and helpful but its just such a slow process. I'm sure they're getting a hard time - I just want to get everything signed sealed and delivered so I can get packing!!
 
@ I'm sure they are addressing any shortfalls in the market. If so, as they have done in P/wood u will be taken care of! loads of people have signed and closed from what I've heard in D15/tallaght and city centre and not a peep here about vlaues ect....... seems to be the d15 area, maybe its been hit in the slowdown............so there might only be a number of decrepincies, I'm sure they have had vlauations carried out? its such a "non exact science!" ........... i very happy with my AHI property in Ongar! market values came out similar to the banks which they had no concern with............. have you check the exact market values in the development?
 
drapper said:
@ I'm sure they are addressing any shortfalls in the market. If so, as they have done in P/wood u will be taken care of! loads of people have signed and closed from what I've heard in D15/tallaght and city centre and not a peep here about vlaues ect....... seems to be the d15 area, maybe its been hit in the slowdown............so there might only be a number of decrepincies, I'm sure they have had vlauations carried out? its such a "non exact science!" ........... i very happy with my AHI property in Ongar! market values came out similar to the banks which they had no concern with............. have you check the exact market values in the development?
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Thanks Drapper.
It seems you got lucky in Ongar. Exact market value would be the remaining properties in the release - next door, bigger, cheaper, new.
 
As far as I understand the clawback % should be in the contract you will sign for the house. This is decided on the Market value of the house the day you sign. The % is only importantant in a rising market. In a falling market its irrelavant, the best possible outcome would be a market crash where your property looses 21% of its value then you can buy out the council for 0 Euro. I believe the money you put into the house to increase the market value can not be included in the clawback. e.g

I buy for 200K MV is 300K but I this includes a 50K conservatory I build afterwards. The 33% clawback applies to 250K

Maybe someone who has sold an affordable house can confirm this interpretation.
 
SunnyH said:
As far as I understand the clawback % should be in the contract you will sign for the house. This is decided on the Market value of the house the day you sign. .
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Sunny,

The market value for the properties in question have been fixed by the AHP in May/June. Therefore our contracts are being issued with the clawback set at the market value in May, however valuations carried out by us/bank has valued the properties considerably lower. That is what we are seeking clarification on.

Eims
 
eimsRV said:
Sunny,

The market value for the properties in question have been fixed by the AHP in May/June. Therefore our contracts are being issued with the clawback set at the market value in May
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Wouldn't this be pretty much the same for any private purchaser - they would be buying at the price set at the time they paid the deposit, not the current market price.
 
Well...persistance eventually pays off!!! I heard today after weeks of discussions/phonecalls/mails that the market price of my property will be reduced to reflect the current market value, also meaning that the %clawback will also be reduced! Happy days! Anyone concerned about this in the future just note that it hasnt been an easy process to get this done but its been well worth it. It can be done if you're a stubborn fecker like me haha :D :D
 
swordshead said:
Well...persistance eventually pays off!!! I heard today after weeks of discussions/phonecalls/mails that the market price of my property will be reduced to reflect the current market value, also meaning that the %clawback will also be reduced! Happy days! Anyone concerned about this in the future just note that it hasnt been an easy process to get this done but its been well worth it. It can be done if you're a stubborn fecker like me haha :D :D
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Well done Swordshead, that's great news!
 
SunnyH said:
As far as I understand the clawback % should be in the contract you will sign for the house. This is decided on the Market value of the house the day you sign. The % is only importantant in a rising market. In a falling market its irrelavant, the best possible outcome would be a market crash where your property looses 21% of its value then you can buy out the council for 0 Euro. I believe the money you put into the house to increase the market value can not be included in the clawback. e.g

I buy for 200K MV is 300K but I this includes a 50K conservatory I build afterwards. The 33% clawback applies to 250K

Maybe someone who has sold an affordable house can confirm this interpretation.
Click to expand...

This is not true, the council clawback the percentage of the sale price when you sell it regardless of how much it goes up or down. Thats why only certain banks do the mortgages as they stand to lose money too if it all goes wrong.
 
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