NAMA’s residential mortgage 80:20 deferred payment scheme has started in the Mid-West.
Lisnagry-based Mourne View Properties’ estate in Churchfields, Clonlara has been chosen. In the boom semi-detached houses in Churchfields approached €300,000. Now they are for sale for €150,000. With the deferred payment scheme, that is an ‘up-front’ price of €120,000.
Tom Crosse, of GVM, described it as the bargain of a lifetime.
“From a buyers perspective they are getting the peace of mind in the unlikely event of prices dropping a further 20 per cent. They are cushioned completely against that scenario happening.
“Apart from the fact the houses are excellent value they have that comfort of knowing that they are protected against any further drop in property values. They are very good houses in a very good location built by a very good builder,” said Mr Crosse.
A NAMA spokes-person said the initiative is aimed to facilitate first time buyers and other owner occupiers who wish to purchase a home and encourage activity in the housing market.
The product will protect buyers from decreases of up to 20 per cent in the value of their property over the next five years.
Three banks – AIB, through EBS; Bank of Ireland and Permanent TSB – are participating.
Eighty per cent of the agreed sale price of the property will be paid over upfront. The remaining 20 per cent will only be due in five years time. How much, if any, of that 20 per cent then due will be calculated on the basis of an independent assessment of the property then.
If buyers get the mortgage interest relief which ends on December 31 it will be a further saving.
There are 13 semi-detached and one detached property in Churchfields.
Martin McGivern, MD of Mourne View Properties, said their estate was chosen because 57 of the houses have already been sold and the development is finished.
“We were picked because the development was so far advanced. There is no hoarding up, it is all landscaped, roads, sewerage completed and the estate is finished to a very high standard.
“They won’t have a problem with an unfinished estate on their hands, or a continuation of the development at a later stage, all they have to do is sell the remaining houses. We’re at the final stages of getting the development being taken in charge by Clare County Council,” said Mr McGivern, whose company is marking 30 years of business this year.
Mr Crosse, selling agent, is expecting a big reaction.
“We don’t imagine these will last too long,” said Mr Crosse, who noted that to rent a house in Clonlara costs €700 to €750 a month. It is estimated that a mortgage on one of the semi-detached properties would be between €350 to €450.
The showhouse is open from 2-4pm this Sunday, October 28.
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