The average rent in Ireland is a record-breaking 12.6% more expensive than it was last year, and tenants are paying unprecedented levels of rent. In addition, there are only 716 rental properties available across the country. The shortage of rental accommodation, coupled with increased rents paints an ominous picture of the rental market. Naturally, this raises the ‘renting versus buying’ debate, and we’re here to help you make the right choice for you.

In our blog Rent: Pay more for less, we outlined why renting a home is not a sound financial decision in the long run and given the recent rental increases, this still rings true.

 

Rent is one of the biggest household expenses for tenants and many tenants are caught in a cycle of high rents preventing them from raising a deposit to buy a home. This can be incredibly frustrating and leads many tenants to believe that they will never escape the rental trap. However, tenants are not left without options. The Government offers assistance such as the Help to Buy Scheme and the new First Home Scheme which can help you break out of the cycle. Further, tightening your belt and taking the time to get mortgage-ready can also help you get onto the property ladder.

 

The HTB Scheme helps first-time buyers buy or self-build a home by giving a refund of the income tax and Deposit Interest Retention Tax (DIRT) you have paid over the previous four tax years. With the HTB Scheme, you can claim relief on the lesser of:

 

·         €30,000

·         10% of the purchase price of a new build house

·         10% of the approved valuation of a self-build property

·         The amount of income tax and DIRT you paid for the previous 4 years.

 

The application process for the HTB Scheme is straightforward and can be accessed through your online Revenue account. We’ve assisted many of our customers successfully apply for the HTB Scheme and help them become homeowners.

 

The Government recently introduced another scheme aimed at supporting homebuyers so that they can buy new-build homes. The FHS is a shared equity scheme, where the Government and participating lenders pay up to 30% of the cost of your new-build home in return for a stake in the home.

 

The scheme is available to first-time buyers and other eligible homebuyers, i.e. divorced individuals or previously insolvent individuals. It is also available to homebuyers who have availed of the HTB Scheme.

 

Since the FHS is still new to the market and it may be daunting to approach the application on your own, so you are welcome to get in touch with our mortgage specialists who will walk you through the process.

 

There are many misconceptions about stringent lending rules making it nearly impossible for first-time buyers to break into the housing market. This, coupled with feeling like you will never be able to buy a home because your rent prevents you from saving enough money for a deposit, can be very demotivating. But with proper planning (and availing of the assistance provided by the Government, if needed), buying a home is not out of reach. That’s why at Which Mortgage we support you with getting mortgage-ready because mortgage-readiness is the first step to you becoming a homeowner.

The scarcity of available rental properties will continue to push up rentals and this can only be addressed by long-term efforts to significantly increase the supply of accommodation. When this issue will be effectively addressed remains unknown, so it’s best to get out of the rental market sooner rather than later so that you can have more control over the cost of having a roof over your head.

 

When you contact us for a chat about your mortgage needs, we can help you craft a plan that helps you get mortgage-ready so that you can advance from tenant to homeowner.