This question is being asked more and more by people offered properties under the Affordable Homes scheme.
An AH purchase is not as straightforward as an open market purchase.

• You do not choose the property - you are offered one.
• You cannot haggle on price.
• You get very little time to think about the decision, you must decide there and then.
• You cannot rent out your home if your circumstances change.
• You cannot move up the ladder, as any equity the property may gain is not yours.

These are the conditions for getting a home at below market value.

There is no doubt that at present, a home offered under the AH scheme is somewhat cheaper than the same home on the open market. However, the differential is shrinking rapidly. The nominal "Market Price" is kept high to make both the AHP look good by getting a large discount, and to make the AH purchaser feel like they are getting a good deal in the face of all the conditions attached.

The aim of the AHP is to provide affordable housing. There is a demand for this because prices on the open market inflated to such a degree that they have simply become out of reach for everybody except the very rich.

A person earning €58,000 is classified by the Revenue Commissioners as a "high earner" and a large amount of their income is taxed at the higher rate. On one hand they are classified as well off, and on the other they qualify for state help for an affordable home.

A person earning €58,000 should NOT need government help to buy a home.

The taxes of a person earning €58,000 are going towards the funding of these affordable homes and into the pockets of property developers instead of being spent doing something productive. The market is correcting itself. The 100% mortgage rug has truly been pulled, meaning most first time buyers cannot afford to purchase a home.

The AH scheme should be scaled back at this time, because the market is naturally coming down to meet the reality of what people can afford.

Think long and hard about whether you want to buy now under the terms imposed by the AH scheme, or whether it is better to wait and watch the price on the open market come down to the point that you can afford to purchase an equivalent or better house on the open market.