Trying to get on the property ladder? Some of these new Rathcormac homes will qualify for the new Shared Equity Scheme
Kingston Homes Rathcormac
FIRST time buyers struggling to put together enough funds to get a toehold in the housing market may be interested in this weekend’s releases of new homes in Rathcormac, some of which fall within the government’s new Shared Equity Scheme (SES).
Of 23 units under construction by Cork-based Kingston New Homes, as part of a phased development known as Kings Fort, 10 come under the SES as they are priced at €350,000, which is the cap set for homes to qualify in the county. All 10 units are three-bed semis in a development that will also contain four-bed semis and four-bed detached homes across seven house types. While the four-beds will fall outside the SES, potential house buyers can still avail of the government’s Help to Buy scheme for these units, where funds of up to €30,000 (or 10%, whichever figure is the greatest) are obtainable.
Under the SES, the State and participating banks pay up to 30% of the cost of your new home in return for a 30% stake. For buyers also availing of the HTB scheme, this drops to a 20% contribution under the SES and a reduced 20% stake. The rules of the scheme also require a buyer to borrow the maximum amount available to them, which under Central Bank rules is 3.5 times your gross annual income. So for instance a couple with a combined annual gross income of €70,000 would borrow/take out a mortgage of €245,000, which would still leave a shortfall of €105,000 in the case of these Rathcormac homes. However with 20% available under the SES, this would provide them with an additional €70,000 (20% of €350,000) while upto €30,000 is available under the HTB, so €100,000 in total, leaving a much more manageable shortfall of €5,000.
Shane Finn of DNG Creedon, who is selling the Kings Fort homes, said the new shared equity scheme is a gamechanger for those who had been priced out of the housing market.
“The day after the scheme got up-and-running (July 7) I had people viewing who said it had essentially unlocked the door for them.
“These people have been paying a monthly rent of €1,400-€1,600 for a three-bed semi with no hope of saving for a home, and now they can get 100% finance without having to save for a deposit. It’s a serious lifeline for people who go about their lives without any state benefits and who now can actually afford to buy a home,” Mr Finn said.
Moreover, monthly repayments, based on a loan of around €250,000, with a mortgage interest rate of 1.9% (green rate available from Bank of Ireland for new “A” rated (BER) homes) amounted to just over €1,250 a month, which Mr Finn said is significantly lower than what many pay in rent.
The new scheme comes with a quid pro quo - the State acquires an equity share in your home which relates directly to the monies you access eg if the scheme provides you with 20% of the property price, the State own 20% of your property.
You can pay back the State’s share, partially or fully, at any time. However, nobody forces you to do this unless the property is being sold; or if it is no longer your principal residence or in the event of the death of the property owner.
The scheme is free for the first five years, after which you pay a service charge based on the amount of the equity share, starting at 1.75% from year six and climbing to 2.85% by year 30 onwards.
Buyers interested in the Kings Fort development in Rathcormac now have more options available to them. The homes that come under the scheme are 3-bed semis. All are A-rated with fully fitted kitchens, underfloor heating, landscaped gardens and cobble paved driveways to the front.
As well as the 23 Kings Fort units (phase one and two), Kingston New Homes are also planning further releases at two additional developments, The Elms in Mogeely and Cois na Curra in Lisgoold. A phase three release in Mogeely will see 26 more units on the market, some of which Mr Finn expects to fall under the new shared equity scheme.
This release is due to take place in September. A third phase of the Lisgoold development is expected to launch in the first quarter of 2023.
The Rathcormac homes, released yesterday, and with guide prices of €350,000 to €450,000 are at the heart of the village, which Mr Finn describes as extremely family friendly, due to a pathway that links through the development to the centre of the village. The homes range in size from 1,098 sq ft for a three bed semi-d to 1,599 sq ft for a four bed detached home.
To register your interest, call DNG Creedon on Tel: 021 489 7300 or email info@dngcreedon.ie
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