New Home Buyers Locked Out: Ireland Housing Crisis
Here’s a breakdown of the key information from the provided text regarding Irish home buying schemes and mortgage advice,organized for clarity:
1. Potential budget changes & Inflation:
* There’s a possibility of changes to price thresholds in next month’s budget.
* Increasing these thresholds could possibly fuel further inflation.
2.First Home Scheme:
* What it is indeed: A government scheme where the government takes an equity stake (up to 30% or 20% with Help to Buy) in your property to help bridge the gap between affordability and desired price.
* price Ceilings:
* €500,000 in dublin and Cork.
* €350,000 in counties like carlow, Longford, and Tipperary.
* These ceilings where increased by €25,000 in 16 counties in July 2024.
* Usage: Over 3,300 buyers have used the scheme across 25 counties, with almost 7,000 approved.
* Average Support: Buyers receive an average of €66,324 (17% of an average purchase price of €385,857).
* Important Considerations:
* Equity stake must be repaid if you move.
* If not repaid, a fee will be charged from year six onwards.
3. Help to Buy Scheme:
* Can be used in conjunction with the First home scheme.
* Offers a tax rebate of up to €30,000.
4. Local Authority Home Loan:
* For: Buyers who have been turned down for a mortgage by conventional lenders.
* Features: Government-backed, fixed interest rate between 4% and 4.05% over 25-30 years.
* Downside: Requires specific (and potentially costly) local authority mortgage protection insurance.
5. Mortgage Rate Advice:
* Rates are Falling: Average new mortgage rate was 3.6% in June (down from over 4% a year earlier).
* Green Rates: Frequently enough the cheapest rates, available for homes with a BER rating of A1 to B3. Rates start from 3%.
* Example: AIB offers 3.2% fixed for 3 years on a €480,000 home, resulting in monthly repayments of €1,868.26. A 3.95% rate would mean €2,050/month (almost €2,200 extra per year).
* Avant’s Flex Mortgage: Offers rates as low as 2.89%, regardless of BER rating.
* Key takeaway: Shop around for the best mortgage rate.
Link to related article:
* Irish house price inflation at 7.8% in June as median cost hits €370,000