Tim and Sinead’s dream of owning a house suffers setback

TIM DONOVAN and his fiancée Sinead Murphy’s dream of owning a new house was dealt another severe blow yesterday by Mr McCreevy.

Last month the first-time buyer’s grant of €3,800 was scrapped, and now they have to cope with a 1% VAT hike that will increase the cost of their home by another €1,500.

With house prices rising sharply already, Tim and Sinead had hoped to buy or build a four-bedroomed dormer house in Cork within two years.

“Between the hike in VAT and the grant going, it means we’re down about €5,000, and house prices will rise even more in the coming year.

“There are costs coming at us from every angle and we’re getting almost nothing back,” Tim said.

Already Tim and Sinead are struggling to save enough money to buy a house, and their savings are being diminished because of escalating rent costs.

“The grant would come straight into your hand while any mortgage relief is much slower. We will feel the VAT rise and the loss of the buyer’s grant immediately though,” he said.

The minimum amount the couple expect to pay for a house is €140,000, which means they need at least €14,000 saved for a deposit.

Sinead, 25, a youth worker and 28-year-old Tim, who is a trainee accountant, are paying about €700 rent a month, and trying to save for their deposit as well.

However, the couple are luckier than most first-time buyers as they are taking part in a unique scheme funded by the housing agency Threshold.

The scheme allows them to live in a house owned by the agency, and at the end of two years, almost 50% of the rent will be paid back.

Tim pointed out that a three-bedroomed semi-detached home in Cork would have cost €70,000 about four years ago, but it’s impossible to buy a house in that price bracket anymore.