Buying your first home is a very exciting time. However, we realise that understanding the huge amount of information out there can be overwhelming. Finding the right property, navigating your way through the buying process and knowing what questions to ask is difficult for even the most experienced of home buyers. It’s important to have someone who can guide you through the process, that’s where we at Axis Construction come in.
We have years of experience working with first time buyers purchasing a new build. You will have peace of mind knowing that you have experts on your side. In this First Time Buyers Ultimate Guide, written with new residential developments in mind, we will bring you from mortgage preparation to moving in.
When applying for a mortgage, most banks use The Central Bank’s definition of a first time buyer (FTB). The Central Bank of Ireland states:
‘A first-time buyer is defined as a borrower to whom no housing loan has ever before been advanced. Where the borrower under a housing loan is more than one person and one or more of those persons has previously been advanced a housing loan, none of those persons is a first-time buyer.’
To surmise, a first time buyer is someone who has never previously taken out a mortgage for a property. When applying for a joint mortgage, both parties must be first time buyers in order to be eligible for the first time buyer mortgage. There is one exception to this rule in Ireland; Permanent TSB describes a first time buyer as "someone who has never owned a property before, including cash property purchases."
This depends on the status you are applying for a mortgage under. If you are applying as a single person, as opposed to in a couple the rules are slightly different.
From January 1st, 2023 first-time buyers can now borrow four times their gross income instead of 3.5 times.
For example, under this new rule, a single person and first-time buyer earning €40,000, can now borrow €160,000. A couple earning €65,000 between them can now borrow €260,000.
First time buyers must have 10% of the value of the property you would like to purchase saved. For example, if you are hoping to purchase a property for €280,000 you will require a €28,000 deposit. It’s important to note that you might require more for legal fees and stamp duty.
There are two main grants available for first time buyers in Ireland. These are the
Help To Buy Scheme which is designed to help first time buyers purchase a newly-built house or apartment, and the Local Authority Home Loan which can be used to purchase a new or second-hand property or for self-build.
Here’s everything that you must know about the help to buy scheme.
You must be a first time buyer in order to qualify for this scheme. “The scheme only applies to properties that are bought or built as the first-time buyer’s home. It is not available for investment properties. Cash buyers do not qualify. If you have inherited or been gifted a property it will not affect your eligibility.” - Citizens Information
You must have a mortgage to qualify for the scheme. The mortgage must be '70% of the purchase price of the property if you are buying' a newly built home.
The property you are buying must be a new build, valued up to €500,000 or less.
If you are a PAYE taxpayer, you will need to be registered with Revenue’s online myAccount service. If you are a self-assessed taxpayer, you must be registered for the Revenue Online Service ROS.
Whichever you are, you will need to be fully tax-compliant for the 4 years immediately before you can claim the Help To Buy Scheme.
In July 2020, the maximum relief available was temporarily increased. This increase has since been extended and now applies until 31 December 2024.
According to Citizens Information, you can claim relief on the lesser of:
A Local Authority Home Loan is a Government backed mortgage for first time buyers or other eligible applicants through local authorities. The scheme is for the purchase of new or second-hand residential properties and for self-builds.
The Local Authority Home Loan is available nationwide from all local authorities from 4th January 2022. The loan is a normal Capital and Interest-bearing mortgage which is repaid by direct debit on a monthly basis.
You can borrow up to 90% of the market value of the property.
Maximum market values of the property that can be purchased or self-built are:
For us at Axis Living, every house is a home – and a home that we would like to live in ourselves. That’s it’s important to us that all of our potential first time buyers are fully informed on the procedure that goes into purchasing your first home. Below is a step-by-step guide from mortgage applications to moving in.
Most people will need to take out a mortgage in order to purchase their first home. But, before you begin the search for your dream home, it’s important to get everything you’ll need for your mortgage application ready to go.
You should:
When starting to search for your first home, you will probably have a lot of criteria for the property itself, number of bedrooms, living space etc. We also recommend keeping the following in mind, as it might help you to narrow your search.
Once you’ve found an area or location that matches your criteria, you can start to look for your dream home within these parameters.
Like most first time buyers, you have probably found yourself drawn to new residential housing development. A lot of developments will release houses to the market on a phased basis. Due to this, you will usually view a show house or buy the property ‘off-the-plans’, this means you won’t see the house you are going to buy before it’s built.
Whatever type of property you are looking for, apartment or family home, Axis Living have a range of new residential developments that will suit your needs across counties Dublin, Donegal, and Wexford.
There are a few things you should consider when buying ‘off-the-plans’. These include:
Floor plans – keep in mind that the measurements of individual rooms may not be provided, instead it is usually the entire approximate size of the home in square feet/metres.
The development – as many of the developments will be mid-build, or may not yet be completed, it’s important to make sure you are aware of your immediate surroundings. You should consider asking your agent how many homes will be in your development, how long the build will last or the proposed completion dates, and what amenities will be built to serve the community.
Orientation – When viewing a show house, ask about the direction the rear of your home will face. The most popular orientations are south and west-facing gardens, as they get the sun for longer in the garden.
Parking – Each development and the homes within them will have different parking arrangements. If car parking is something that you are worried about, make sure to ask about what your driveway will look like, and ensure it suits your needs.
Management fees – management fees which cover maintenance, refuse collection, insurance of common areas and in some cases, additional amenities like leisure services are often charged in developments, it’s important to enquire about these before signing anything.
Social housing – Keep in mind that up to 10% of all new residential developments will be allocated to social housing. Each development will be different and you should confirm the most current details with the agent.
You’ve been approved for a mortgage, you’ve found your dream home in a new property development and been approved for the help to buy scheme. Next, it’s time to hire a property solicitor to communicate on your behalf with the builder’s solicitor and be your point of contact for any queries you may have. Make sure to choose a property solicitor with knowledge and experience, and who understands your needs.
Now that the above has been completed, it’s time to reserve your home. Once you know what home you would like to reserve, you will need to pay a booking deposit. Booking deposits are usually between €5,000 and €20,000 and can usually be paid by bank transfer, bank deposit or cheque.
When the reservation is accepted it’s not yet legally binding and will be subject to a ‘contract/contract denied’ until signed by the purchaser and the seller. Upon payment of deposit, the property will become ‘sale agreed.’ You must inform your solicitor that a contract will be issued, you have 21 days to sign the contract from the date of issue.
This is where things get serious, and often the stage that leaves first time buyers in a state of confusion. After reserving your home, the builder's solicitor will contact your solicitor with the contract. This is where you can query legal issues pertaining to the contract. Your solicitor will answer any queries you may have, and if needs be, will follow up the builder’s solicitors to iron out any issues.
Once you are happy to proceed, and the contracts are ready to sign, you will need to make an appointment with your solicitor. Note, that you will need to have a life assurance policy in place before signing.
You’ll then need to pay your contract deposit. Depending on the development, the deposit amount will vary. You will pay the remainder on the close of sale. You have now ‘exchanged.’
The finish line is now in sight. You’ve signed the contracts, and have been given an estimated completion date. However, interruptions happen, and things can be delayed. It’s important to keep in contact with your solicitor and ask any questions you may have in regards to your new-build home through them. If there is a delay in the project, you will have to speak to your bank regarding extending your mortgage approval.
At Axis Living, we pride ourselves on the standard to which our residential developments are finished. At the end stages of completion, your property will go through 3 final stages.
These are:
BCAR Certification involves various tests being conducted to ensure the building is up to code and regulations. Your builder will arrange and pay for this. The purpose of BCAR Certification is to inform your local authority that the building has electricity and water connected, that the building is habitable and that all other facilities and accessibility points have been installed.
Building Energy Rating (BER) is an indication of the energy performance of your home, and is now required by law. The builder will also pay for this, and will hire an independent body to carry out the test.
Composing a ‘Snag List’ is the final stage of your ‘pre-moving-in’ journey. The purpose of a snag list is for you to identify any defects in your home. The housebuilder can then fix these before you move in. If you decide to hire a surveyor to check over the work, you will need to source and pay them yourself.
At Axis Living we strive to make the whole process of buying your new build home as easy as possible, now that you’re ready to move in, here are our final tips.
Congratulations! You have successfully purchased your stunning Axis Living new-build property.
Axis Construction is a construction and development company based in Ireland that undertakes turnkey projects throughout the country in the Residential, Commercial, Industrial and Hospitality markets.
Established by highly experienced directors having managed large construction projects across Ireland, UK, Europe, and the Middle East, we have built a strong reputation for delivering quality projects on time and at competitive prices.
We employ disciplined project evaluation processes to determine the best method of construction and work closely with established design teams to ensure full visibility through the development cycle delivering projects within budget and on programme.
Axis Living Limited,
Willow House, Millennium Park, Osberstown, Naas, Co. Kildare, W91 C6KT
Email: info@axis.construction
