I appreciate the responses folks. I had been expecting that it was wrong but I didnt know anyone who had gone through the process etc. so thats why I came here. I always hear the positives about it but never hear anyone saying anything bad about it which always sets alarm bells off in my head!
Just one other question? What happens if you are out of the country for an extended period? If you dont actually have a principal primary residence in Ireland? I know there are rules taken into account if you are out of the country for work reasons that are taken into account for gains tax calculations if you are selling. Is there anything similar with the Affordable scheme?
Thanks again
I'm not sure about this, the house has to be your PPR. If this situation changes then what are you going to do with your house? leave it empty and still pay your mortgage? Basically you can't rent the house out, otherwise you have to pay the clawback. You should ask the council directly they should be able to clarify it for you.
I spoke with the council this morning about this. Basically if you are out of the country for say a year it increases the clawback period by a year (from 20 to 21 years). The guy I was talking to said that you could rent the whole property out once you had no other PPR in the country and the only drawback was the increased clawback period. As long as you are not "living somewhere down the road" as he put it is ok.
I really don't understand what you are saying?! Any credit check by any institution is recorded but how can it be equivalent to defaulting on payments up to €150K????The way it was put to me that raised my worry was that say you buy an affordable property for 250k that has a market value of 400k. Because of the Credit check that the council do with you, you end up with a "debt" on your credit history of the 150k to the council. Equivalent to defaulting on payments of up to 150k. The person who was telling me this had said that he had guys working for him who bought affordable homes who were then even refused Credit Cards due to this. It seems very strange but its something I'd like to be clear on before going any further!
Thanks for the responses!!
I really don't understand what you are saying?! Any credit check by any institution is recorded but how can it be equivalent to defaulting on payments up to €150K????
If you get a mortgage with a private lender, i.e. a bank, instead of the council is this recorded differently????? very confused here.
Also, if say for example someone was to go away for a year and rent out the property for a year then stamp duty has to be paid because it is viewed as an investment property....... is the % stamp duty to pay calculated on what the buyer bought the house for or the actual house price????
last question. After 10 years the clawback starts being reduced by a certain % each year until it is at zero % at year 20. If an extra year is added on to this because of the year away does the clawback start being reduced still at year 10 or year 11...????
ah I see! that is very interesting indeed. So in theory this should be on an ICB credit report?????
I really don't think this is the case....sure no one would be able to get any future loans even if their financial cirucmstances changed and they earn a lot more money, paid off all their loans and all they are paying is their mortgage repayments!!
very confusing. Why is all of this not published on the affordable housing website???
mac198 - what county council are you talking about here? thanks
And your thoughts on the stamp duty clawback? That, to me, is the more pressing issue. ICB credit check is simply a matter of talking to the right person and won't really affect you. Forking 25K will.
Can anyone explain this stamp duty thing on clawback...ive never heard of this before!!
Hi Folks
Been reading here a while now but not sure if these questions have been posted up before. I've applied for the Affordable Housing in the Dun Laoghaire and like some of the applicants on here was interviewed last week. Was just talking to someone about it this evening and they were telling me some things that sounded worrying. Just wanted to see if anyone else had heard the same?
1. Say I purchase an affordable home and live there for a number of years. Down the line I decide to purchase another property for investment purposes to rent out. I have been told that because I have bought an affordable home it stops me from ever buying another property again - is this correct?
2. Does the fact that I may be buying an affordable home have an impact on my Credit Rating? Will I have a worse off Credit Rating in the future because I have an affordable home?
I heard some things along these lines this evening which would be worrying to be honest if true.
Is there anyone out there who went through the Affordable process that would have anything negative to say about it? I understand the clawback and that I can never change mortgage provider or release the equity in my home but is there anything else? I understand all the pro's but theres not that much out there about the cons. Any feedback would be greatly appreciated.
Thanks a million
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