Co-ownership Housing
Co-ownership Housing is a wise option for those who are considering buying their first home
, but cannot manage the financing. Available as a government scheme to make low cost housing affordable, first time home buyers also have the choice of location. The scheme is implemented by the Northern Ireland Co-Ownership Housing Association or NICHA and there are certain eligibility criteria to meet.
How it works :
Almost anyone can invest in their first home through Co-ownership housing, especially those with adequate income and pension investments. There is no restriction on the type of home chosen as long as the purchase price is within the limit specified. This varies depending on the size of the property and the location and once a property is identified, it is valued by the Co-Ownership Housing Association and if it qualifies, approved.
While the home buyer invests in a percentage of the property, the remainder is rented from Co-Ownership Housing. The rent and subsequent increases are decided by the Department for Social Development based on the size of the share. For example, if the home buyer buys 60 per cent of the property, the rent is calculated on 40 per cent of the property, which is the rental share.
The home buyer has the option of purchasing a larger share in the property later at the prevailing market rates by a process called stair casing. This can be done as a single investment or in 5 % incremental steps, based on an equity valuation at a nominal fee to assess the cost of the share.
With stair casing, the rent is adjusted along with the monthly payments based on the current share. When the owner acquires full ownership, the rent payment ceases.
How much can be invested?
According to the scheme, a home buyer can invest in property not exceeding a value of 175,000. The investment can be from 50 per cent of the property value and go up to 90 per cent, although the Association sets it at the highest sustainable percentage, depending on the specific buyer.
Making the payments:
The home buyer can select the lender and the mortgage arrangement best suited for his needs. The lender may require a down payment even though the Co-Ownership Housing may not. After the purchase, the homeowner must bear all the ownership costs such as insurance, rent, service, maintenance and repair.
Application criteria :
There can be a specific number of applications approved during a particular time frame by the Association and home buyers must comply with the certain rules.
"As a first time home buyer, must not have been the owner of a property, individually or jointly
"As a second time home buyer, must have no mortgage, property for sale or interest in a property. There must be no settlement arrangements.
As far as the properties are concerned, the Co-Ownership Housing Association values them to ensure they do not exceed the purchase price of 175,000 and also require a ten year build warranty if it is a brand new property.
The applicant must produce documentary proof to indicate that he meets the eligibility criteria.
Since purchasing one"s first home is a major decision and perhaps one of the biggest investments in the home buyer"s life time, it requires thorough research to find out how to get the best value.
by: Kerrie Turtle
Tips To Make Money In The Improving Housing Sector Resolving Housing Disrepair Disputes Outside The Courts Mississauga Place For Perfect Housing Assets A Rapid Hike In The Housing Sector Off Campus Housing Options In Kansas City Looking At The Future Of The Housing Market Gayatri Heights Group Housing Project, Meerut About Public Warehousing Furnished Housing In Cambridge- A Better Option For Your Stay In Cambridge Think A Decent Look Of Your Housing With Lodging Insulated Roof Panels! Off-campus Housing: Paying For Rent Off-campus Housing: How To Convince Your Parents Ferrous Heights Group Housing In Faridabad