Affordable housing: income limits for joint borrowers

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Fly

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The terms "affordable" and "social" housing are being used interchangably here and that's not correct. People are entitled to affordable housing if they earn under €93,000 as a couple so we're by no means discussing a social underclass. Social housing covers a variety of schemes aimed a having people in permanent housing who would otherwise be renting.

I can picture people marching with "anti affordable housing" banners which would make Ian Paisleys "anti-civil rights" banner from the 60s and 70s look quite well thought out!!

Not sure where our "liberal" thinkers from the forum feel that people who earn under €93,000 per year as a couple should live. God help us when they reach their 30s and start turning right wing ; )
 
Re: Donabate

Where does that figure of €93,000 come from??? Looks a littltle on the high side to me....
 
Re: Donabate

Not entirley as I read it....

"Multiply the gross income (before tax) of the higher earner in the last income tax year by 2.5 and add the gross income of the other earner in the last income tax year. If the answer is 100,000 or less (effective January 2006), (previously the limit was 92,000 euro), you are eligible."

Therefore "People are entitiled to affoadable housing if they earn under €93,000 as a couple is incorrect"

If I earn €50,0000 and my partner earns €30,000 as a couple we earn €80,000. But to satisfy the rule the figure would be 2.5 times €50,000 plus €30,000 putting us way over the top.

I believe the correct way of measuring this would be to say to qualify for affordable housing a joint gross income of a couple would be no more than €55,000 per ammum.

Does this look correct???
 
Re: Donabate

Your interpretation looks correct to me alright, I always thought the allowance for a couple looked 'generous' myself.

I might split this into a separate thread.
 
Re: Donabate

That is a strange one alright. I always thought it was a straight €40k for a single person and €92k for a couple. Here's what the site says:

***
  • Single income household
If your gross income (before tax) in the last income tax year was 40,000 euro or less (effective January 2006), (previously the limit was 36,500 euro), you are eligible.
  • Two income households
Multiply the gross income (before tax) of the higher earner in the last income tax year by 2.5 and add the gross income of the other earner in the last income tax year. If the answer is 100,000 or less (effective January 2006), (previously the limit was 92,000 euro), you are eligible.
***

So if you earn up to €40,000 as a single person you could qualify but if you earn €40,000 as a married person and your spouse earns €5k then you would be over the limit?! Seems odd considering that as a couple you would be worse off (financially speaking) than the single person on €40k.
 
xeresod

In general a couple might have kids as well, so you can't really compare it that way... It wouldn't be fair I suppose. It's just an opinion.
 
Re: Donabate

Fly said:
So if you earn up to €40,000 as a single person you could qualify but if you earn €40,000 as a married person and your spouse earns €5k then you would be over the limit?! Seems odd considering that as a couple you would be worse off (financially speaking) than the single person on €40k.
Click to expand...

In general a married couple on 45k (or 40k, to directly compare) is better off financially than a single person on 40k as they get higher tax credits and rate bands. See the example below using 2006 figures (just using basic personal credits as others such as PAYE/rent/etc are specific to an individuals circumstances and this is just a general case).

A single person on 40k is taxed at 20% up to 32k and 42% on the remainder, giving €9,760 tax due less single persons tax credit of €1,630, which is net tax as €8,040. Leaving take home pay of €31,960.

A married couple on the 40k and 5k is only taxed at 20% on the full 45k giving €9,000 tax due less married persons tax credit of €3,260 which is net tax as €5,740. Leaving take home pay of €39,240.
Using a figure of 40k for the married couple for a direct comparision the net tax is €4,740 and take home pay is €35,260.
 
Re: Affordable Housing: Income limits for joint borrowers

Yes I see what you mean. So in summary, €40k p.a. gross for a single income applicant and €55k p.a. gross for double income applicants(depending on the breakdown) are the limits.
 
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