Your property questions answered
Should I spend my inheritance on southside property?
Q I am looking to get on the property ladder soon, my desired location is south Dublin. I am looking at properties which are near the new Luas line extension (Sandyford to Cherrywood line).
I have inherited a sum of money, and I am undecided as to whether to buy a one-bedroom apartment or a two-bed. With the one-bedroom unit I could put half the sum into it and put the rest into some other investment or I could purchase a two-bedroom and put all my money in this?
A You don't give any idea of your budget or of the windfall but, in general, if you can stretch to a two-bedroom apartment, then do it. It's simply a much better investment - easier to sell on, you won't grow out of it so soon, if you hit difficult times you can always rent out a room tax-free, and of course it will be much more pleasant to live in.
Buying near the Luas is smart but is there a particular reason (work, family) that you want to live in Sandyford or Cherrywood?
With prices dropping you might be able to buy closer to the city centre but still along the Luas line.
There's plenty of availability and you are in a very strong position to negotiate hard on price for both new and second-hand apartments. Take your time.
As I'm sure you're sick of hearing, it's a buyer's market.
Don't rule out a small house either, as again prices are dropping and one might now be in your price range. As a first-time apartment owner it's worth looking at the guides for apartment owners to understand the ins and outs of management companies, etc. See www.consumerconnect.ie.
Can I avoid the clawback on sale of affordable unit?
Q I purchased a one-bed apartment under the Affordable Housing Scheme about two years ago. Life has changed a lot since then as I am now a father. The one-bed is now proving to be small. Are there any further options regarding affordable housing or must I take the hit of the 30 per cent clawback to try and purchase a bigger home at the full market price?
A If a person sells an affordable home within the 20-year "clawback" period the discount between the affordable sale price and market value of the property must be repaid. There is no current affordable housing scheme that allows a person move from one affordable property to another. A recent publication by the Affordable Homes Partnership (Increasing Affordable Housing Supply) has recommended that some consideration should be given to introduce flexibility in the affordable housing schemes so that purchasers can move from one affordable property to another when family circumstances change. This document is being reviewed by Department of the Environment, Heritage and Local Government at present, but any changes to the current affordable housing schemes would require a change in legislation.
Your questions
Send your queries to Property questions, The Irish Times, The Irish Times Building, 24-28 Tara Street, Dublin 2 or email propertyquestions@irish-times.ie. This column is a readers' service and is not intended to replace professional advice. No individual correspondence will be entered into.
