Key Post Summary of schemes available for First Time Buyers

[Brendan Burgess]

There are so many schemes and they have different names, that I have found it hard to keep up with them.

Is the following generally correct? I don't need to work out the exact detail of each one.

All schemes apply to new homes only. There is no assistance for people buying second hand homes.
All schemes require the buyer to be a First Time Buyer or a Fresh Start Buyer

Help to Buy
You will get a refund of Income Tax up to 10% of the purchase price up to a ceiling of €30k
Maximum cost of home: €500k
No income limits

Local Authority Affordable Purchase

This is aimed at people whose income is too high to qualify for social housing and too low to get enough of a mortgage to buy a house. Total household income limit : not sure how it's set, but about €70k to €80k

Private Developers must assign 10% of their new builds to the Local Authority.
The Local Authority will sell you 70% of the property at 70% of the market price.
The Local Authority will retain 30% of the property.
You can buy out the Local Authority's share but are not obliged to.

This only applies to specific homes allocated to the scheme




First Home Scheme aka Shared Equity
If you buy a home not included in the Affordable Homes Scheme, the state, via your mortgage lender, will buy 30% of the house and you buy 70%. (If you use the Help to Buy, the State will buy a maximum of 20%)

This applies to any newly built home below a certain price i.e. it does not have to be an affordable home.

You can buy out the state's share at any time, but you are not obliged to. You buy it back at the market value at the time, whether it has increased or decreased.

There is no charge for the first 5 years.

A service charge will be applied to the equity share from the start of year six onwards at the following rates per annum:

• 1.75% for year six - year 15
• 2.15% for year 16 - year 29
• 2.85% for year 30+

The service charge is on the original price x equity share, and not the value at the time of the service charge.

 

[Purple]

All schemes require the buyer to be a First Time Buyer or a Fresh Start Buyer

To expand on that; for the purpose of these schemes in many circumstances divorced people and those who have been through bankruptcy are considered first time buyers.

 

[Brendan Burgess]

Current examples of Affordable Purchase delivery under this scheme are:

- South Dublin County Council is making 16 three-bed homes available at Kilcarbery Grange at prices from €245,600.

- Cork City Council will soon deliver homes in Boherboy at initial prices from €218,000 for a 2-bedroom and €243,000 for a 3-bedroom dwelling.

- Fingal County Council will shortly deliver 2-bed apartments at an indicated price of €166,000, with 3-bed dwellings being made for between €206,000 and €258,000, some 20% below market norms.

 

[Brendan Burgess]

Is there a worked example of the Affordable Housing Scheme anywhere?

Brendan

 

[help999]

All schemes require the buyer to be a First Time Buyer

The HTB doesnt make allowances for seperated people who had previously bought a home together. As in they wont qualify.
The FirstHome Scheme does make an allowance for separated people who had previously bought a home together. As in they will qualify.