Flashcards in Incremental Purchase Scheme (IPS) Deck (17)
What does IPS stand for?
Incremental Purchase Scheme
What is the aim of IPS?
It aims to provide an affordable route to homeownership for households in receipt of social housing support for a minimum of one year and earning at least 15,000 euro annually
The IPS provides an affordable route to homeownership for who?
for households in receipt of social housing support for a minimum of one year and earning at least 15,000 euro annually
How long does a household have to be in receipt of social housing support in order to avail of IPS?
A minimum of one year
How much should a household earn in order to avail of IPS?
At least 15,000
What does IPS provide?
An affordable route to homeownership
What housing does IPS apply to?
New-build social housing or approved houses only
How much does an IPS applicant receive in relation to the total price of the house?
They receive a discount of 40-60% on the total price
How is the discount percentage determined?
It depends on annual income
How much does the eligible applicant have to pay if they receive a 60% discount?
They only have to purchase the remaining 40% balance
How must the eligible applicant purchase the balance?
They must take out a mortgage with a lending agency
Who does the applicant pay the balance to?
The local authorities
What must the applicant pay to the local authorities over the next 20-30 years?
An incremental purchase charge on the discounted amount
For how long does the applicant have to pay an incremental purchase charge on the discounted amount to the local authorities?
For how long do the payments to the local authority stay the same amount?
The price stays the same for the first five years but then they drop annually until the charge is fully paid
Does the applicant have to repay the full balance to the local authority?
Yes and the incremental purchase charge over the next 20-30 years