Do you think this house is over priced for Affordable Housing

C

carrieann

Registered User
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Hi

I was just wondering weather or not people think this house we where offered was over priced. The house is

3 bed semi,
North facing garden
1450sq size
Nice area

Its going for 305 and our clawback is only going to be 15% if we decide to sell in a couple of years
 
Carrieann, you have to consider if a 15% discount makes it worth a purchase with the terms and conditions that come with affordable housing. To me it seems a small discount, in a falling market would you hold out 6 months and see if you can buy on open market for same price without the ties?
 
We where thinking about holding out, but my friend is a mortgage broker, and she said, as hard as it is to get a mortgage now, its going to get a lot harder, and interest rates are going to go through the roof, like they did back in the 70's when they where near the 16%,

The clawback is small, but the house is lovely, my neighbour to be bought his for 420 last year,
 
I know its tough to turn good homes down, we recently did the same though, first time buyers are probably the only people who can benefit from this downturn by sitting tight for the moment while things play out.

why not rent a similar house in the meantime, may make the decision to turn affordable housing down an easier one if you can have the same home and then compare your rent to the interest you would have been paying on the mortgage, saving the difference and anything else for a deposit when the time is right. The discount we were offered was over 30%, so really your decision is even more obvious.
 
I think it's a very subjective decision. No one can really tell you for sure.
If you rent for a year or two more the rent you've paid might cancel out the value of holding off for a further house price drop. If it was an apartment I'd be inclined to say don't go for it. I think it's different if it's a family home that you envisage living in for some time. One thing that strikes me though is that there seems to be quite a few second hand houses advertised in Leixlip around the €340k mark - in reality you might get them for less if you made an offer? Would this be a better option for you?

If it's the only way you can buy in an area you like for the next couple of years I'd take it. If you have any other options I wouldn't. Like Monos, I'm receiving more than 30% discount on my apt - but that's in one of the most expensive areas to buy privately and it's an apt. I don't think comparing Dun Laoghaire Rathdown to Kildare county council should inform your decision. You are looking at a family home so the likelihood of you wanting to live there in 10 years time is greater. Also if your clawback is lower it makes it much easier to buy out the council if this is what you wish to do in the future - that way you'd be free of all the conditions.
 
We where thinking about second hand house alright, but then you go into all the trouble of does it need to be rewired because its old,there could be more problems buying a second hand home, then buying a new one.

We'd be getting 55euro of the market price. Which is better then nothing.

We could hold of but then we might not get a mortgage the banks are gone that bad now, my friend was looking for a top up on her car loan and they said no
 
carrieann said:
We could hold of but then we might not get a mortgage the banks are gone that bad now, my friend was looking for a top up on her car loan and they said no
Click to expand...

This could be very true. I applied for a mortgage for my apt 6 months ago and was offered €265k no problem. Last week after receiving my official offer letter the same bank would offer me €205k. Thankfully with the help of family I've been able to this amount pushed back up to what I need.

I would have been offered even less if I was buying on the open market. Affordable housing offers the bank a little more security so they will sometimes offer you more than they would normally.

It's a very difficult decision. I turned down 5 places for reasons of clawback. But what is fitting for one apt/house/location/person, might not be the best thing for another. I have found the right place for me now.

I get the feeling that some people still want to make some sort of profit on their affordable house, as this had been easy to do for years. Those people certainly shouldn't purchase under AH now. If you are buying your family home and are happy to break even go for it. Lets face it, you could lose on the open market market?

As for you dilemma re second hand purchase - it probably would be worth it to hire someone to check out wiring etc on anything you'd be interested in. Some of the houses advertised don't look that old and there shouldn't be issues with them. It sounds like you have options. Take your time and good luck :)
 
Its going to get alot harder for people trying to get mortgages,

I think your probably right, think we'll stick to it alright, we going to be staying there for a good couple of years away,

Oh and your dead right there is people out there just looking to make a profit,
 
If I was buying in leixlip myself I'd look at second hand over affordable. Though I suspect it might turn out that the affordable one might be in a better area. I'm glad the only option for me in the area I want is affordable housing - it's such a tough decision. Read what everyone has to say and then go with your gut.
 
I have to say the estate its in, is really nice, its beech park in lexilip, very nice development.
 
Beech park is nice estate i have a house across the way in Gleneaston.I would give it serious consideration as this time next year you may not get the mortgage you want.You could get a second hand house but this one is a blank canvas so you dont need to change the kitchen or wall colours.Are they giving you floors and tiles in the house?
 
Hi Snowball,

Yep we get fitted kitchen, tiles in all the bathrooms around the sinks,shower,bath. We also have the fire place, the garden is seeded and has been coblelocked.

It is a very nice estate, the new ring road is one of the reasons I like it so much you dont have to go through the village, and its only down the road from my family
 
Hi

Family living near is good, so all you have to do is furnish the house which you can do in your own time.Just get the basics.I must say i love living in leixlip and you would be so near the motorway and you do have the train station nearby.Best of luck if you do decide to go with it.
 
I've just put a deposit on a 3 bed in Beech Park, it's a 3 bed end of terrace with a south facing back garden, 1230sq feet :)
 
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