Affordable Housing
The scheme makes it possible for people to purchase housing in private development schemes at closer to the cost value and at less than the market value. This saving could be quite considerable, because developers in most cases are being compensated for the existing use value of their land and no the market or 'development' value.
The scheme is a mechanism that stems from Part V of the Planning and Development Act, 2000 & 2002 which enables local authorities to reserve 20% of private housing developments for social and affordable housing purposes. Part V of the Act applies to all private developments that occur on residential or mixed residential zoned land. A certain percentage of these developments (specific to each case) will be reserved for affordable housing clients.
The affordable housing scheme is aimed in particular at first-time buyers. Intending applicants must submit a mortgage approval in principle letter from a lending institution with their application. To qualify for affordable housing the mortgage repayments on the market value of the house must exceed 35% of a single-salary applicant's annual income after tax and PRSI deductions. In the case of joint salary applicants half the annual income of the second applicant after tax and PRSI will be taken into account.
If you wish to avail of this option or require further information please log on to www.southtippcoco.ie
