Demand Outweighs Supply: Significant Interest in 500 New Affordable Houses

The Irish Times reports that the County Council of south Dublin has a plan to build 500 new affordable homes. This is the first time a plan has been put in place to build affordable housing in south Dublin for well over a decade. The houses are planned to cost roughly €300,000. Therefore, for first time buyers, in order to purchase, the home buyers would have to place a down payment of €30,000. However, the home buyers could also benefit from the Help to Buy Scheme. Since the home buyers are purchasing affordable housing that is less than 500,000 euro, the first time buyers could receive a tax rebate of 5% of the 300k if the home buyers take out a mortgage of at least 70% of the home’s price. This €15,000 rebate could be very beneficial to most first time home buyers. In addition, the Irish Times predicted that the affordable homes will be 40% less than market price, a significant savings.  

As reported by the Irish times, the homes will be available in three locations. The first time …

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Paying off your mortgage early (we got it wrong)

Yesterdays Irish Times carried a story in which our firm was mentioned regarding how to reduce your mortgage balance faster by paying every two weeks.

The idea of paying twice per month would give you 24 repayments whereas paying ‘every two weeks’ would result in 26 payments. It’s the same type of simple calculation error that makes people say there are 4 weeks in a month rather than 4.33 months (52/12)

If you are merely using a time period where payments add up to the same amount then the actual end results are somewhat the same, I used the formula below

M = P [ i(1 + i)n ] / [ (1 + i)n – 1]

M = Mortgage Repayment P = Principal borrowed i= interest rate (for monthly payments this works out at i/12) n= payment periods (eg: 10yrs = 120 monthly payments) And took an example of a €250,000 mortgage over 25 years with a 5% rate after which you get this

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