Affordable Housing Initiative Greater Dublin Area-Dublin, Kildare, Meath and Wicklow


Hi Camomile,
We also put a deposit on a flat in Arena court (in block c), but unfortunately we haven't gotten a valuation report yet, nor have we been told when it's likely to happen.

The price you mentioned seems very low for the total price of the apartment..Is it possible that the figure you were given does not include the clawback?
 

Are you saying that the affordable price you are paying is the same as the valuation that the bank has given you? If so that's very bad. It doesn't effect clawback, but it does mean that you are bound to an affordable apt without any benefits? Basically you'd never make any profit - even a small one to reflect inflation.
 
Have you asked the council about this? That seems very worrying alright, whats the point at all in buying through affordable housing if you are paying the full market price, but not fully owning 100% of the property (not for 20 years anyway)!
 
I doubt that is the market value of the apartments up there. They look very upmarket from the outside anyway
 
thanks for all your replies. i did see the original pricelist (both AHI price and open market price) of the arena court apartments. As far as I can remember the one that i picked costs 374,950 euro. i will definitely talk to SDCC tomorrow and I will have all errors in the valuation report corrected.
 
 
I got a valuation of 375k for the 74sm 2 bed.
your €269551 valuation appears wrong?
 
Hi POF
Where did you buy the apt?
Do you go into the council to collect your valuation?
 
When my son bought his apt under Affordable Housing Initiative, the valuer put the same price as he was borrowing from EBS on the valuation, because that is all the Building Society require in a usual purchase transaction. We were very disappointed- but he was only going through the motions and this valuation does not reflect the true value at all. In fact the building society asked him to change it because they were giving a mortgage for ownership of part of an apt, and so now the part he was buying was worth less than he was borrowing. The broker said that they usually the valuer is just confirming to the lender that the property is worth at least the purchase price. I just thought that this might allay your worries
 

That's really bad practice on that part of EBS - another reason not to use them. They are misleading their own customers, seems they are only interested in getting your mortgage business.

With Bank of Ireland you pay €140 for an independent valuation that then enables you to make an informed decision. My own valuation was inline with what the estate agents are now selling the same new apts for but grossly under what the affordable homes partnership have the valuation at.
 

My property at Erris Sq is valued at €375k by the Council.
It is valued at €320k by the bank.
Affordable price = €270k

If I chose to sell it in the current market it would fetch just the €320k.
That equals immediate negative equity, it doesn't require a huge crash. It's as things stand right now. The council will protect against negative equity but the contracts don't actually mention this, just the legislation.
What kind of trouble might we run into if we try to sell? What is a reasonable time to have the property on the market before the council agree that it has to be sold below their market value and you get back what you put in? These are questions the AHP can't answer?

Also, if my property is really valued at 55k less than what the council what the council value it at
a.) clawback should be reduced from the outset
or
b.) the affordable price should be reduced

I wouldn't intend selling immediately obviously but I'm not sure that even 3 years would be enough time for the property to reach the value that the AHP have given it? I'm not interested in profit but at the moment the reality is that they are overvaluing the property I've been offered and also there is no explicit terms and conditions laid down for resale.
 

If I sold for 320k I'd technically be liable to pay 29% clawback so that would leave me with €227.2k - a loss on what I originally put in. Legislation would protect me (though they can't say exactly how!). I would never actually make any loss - even 5k because we're protected.
If house prices crash you are in a good position on affordable housing.

If prices stay the same or rise just a little you are at a total disadvantage if your property was overvalued to begin with. I suspect that your particular apt mightn't be overvalued - I checked with Savills last week and new ground floor apts were selling at €325k. But other apts are. I know the usual people will say 'you're getting something for nothing...' but anyone with any financial sense knows that you don't sign an agreement valuing your place at much more than it is - particularly as it will determine clawback.
 
Yeh you're so right sorry about that...thought i had the whole thing straight in my head..fri evenin and knackered But dont worry about it, loads of us are in the same boat, just hope the market stays good!!
 
My God

When is priorsgate going to be ready ?? Nothing is moving on the building site !!!

The builder's holidays are going to slow things even more ..

We are all told different times from the council and P .Elliots of when it is moving in time !

Anybody have any good news ?

Thanks form the Fatpiggy
 

Its soo frustrating isnt it. Last week I was told by Elliots that they are still on course for a snagging date at the end of August. SDCC really are dragging their heels getting their valuation report done. Apparently Arena Court had their ValuReport done so hopefully PriorsGate is next on their list!!!
 
Still haven't heard a thing. We were hoping to have paid the rest of the deposit by now. Seems like it's the council delaying things with their valuations.
 
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