Buying a Home with Homely

Are you dreaming of owning your own home but feeling overwhelmed by the challenges of the Irish housing market? Buying your first home comes with many hurdles, such as soaring property prices, the need to save up a deposit while paying the crazy rent and battling a painful mortgage approval process. However, despite the bleak situation in the Irish housing market, your path to homeownership may not be as daunting as it seems.
Homely could be the key to turning your dream into a reality. In this blog post, we'll explore how Homely works, its benefits, the considerations and criteria for eligibility, and how you can take the next step towards homeownership.
How Does Homely Work?
Homely offers a unique pathway to aspiring homeowners by allowing them to rent a property with the option to purchase it at a later date. Essentially, you rent the property for a fixed period, and if all goes well, you can buy the home at the end of the period for a discount derived from both your total monthly payments and the increase in value over time. At the end of the tenancy – which will range from three to five years – you have the legal right to buy the property from Homely at either a predetermined or variable price (depending on your needs, and what we agree together at the outset).
The Benefits of Homely
One of the primary benefits of our programme is that it provides people with an opportunity to move into their new home right now and work towards homeownership while renting. This can be especially advantageous for individuals who may not have the necessary funds for a traditional deposit or who are working towards a mortgage application.
Additionally, Homely offers greater flexibility and control over the property compared to traditional tenancy agreements. Our tenants have the opportunity to personalise the home as they wish!
What Are The Risks and Considerations?
While Homely offers many advantages, it’s important to be aware of the potential risks and considerations. Renters must carefully review the terms of their agreement, including the tenancy terms, option fees, purchase price, and any additional rights or obligations.
There is also the risk that property values may fluctuate during the lease term, potentially impacting the ultimate purchase price of the home and their ability to successfully apply for a traditional mortgage. Renters will need to seek financial and legal advice before entering into a Homely agreement. In fact, we won’t progress any application with you if you haven’t appointed a lawyer to advise you.
What Makes You a Great Candidate for Homely?
There are a few boxes you have to tick to make sure Homely is the right way to buy your first home.
Financial stability
- Ensuring your finances are in good shape, with manageable debts and a steady income to cover rent and (hopefully) future mortgage payments. Building a positive credit history or working on a plan to boost your creditworthiness is important, but we won’t hold it against you if you have a few blips on the system.
Personal circumstances
- Thinking about where you are in life, how big your family is, and what kind of home you see yourself in. You should be setting clear goals for when you want to buy a home and where you want it to be, including any specific preferences for location and type of property.
What are the Key Factors to Consider in the Irish Housing Market for First-Time Homebuyers?
You have to consider several factors to make an informed decision in the Irish housing market:
- High property prices: Property prices in Ireland, especially in urban centres, may feel out of reach for many first-time home buyers.
- Stingy banks: Strict lending criteria and limited access to mortgage financing can pose challenges for individuals seeking traditional home loans.
- High rents and difficulty saving: High rental costs make it difficult for renters to save for a down payment, creating a barrier to buying a home.
Taking the Next Step
If you’re considering Homely, here’s how you can take the next step.
- Get to know your situation: Take a look at where you stand financially, what are your long-term goals, and if you're feeling ready to buy a home.
- Research homes and financing options: Check out different houses and see what kind of financing matches what you can afford and what you like.
- Think ahead: Picture where you'd like to see yourself in the next three to five years and if having your place fits into that picture.
- Set your pace: Figure out if you're ready to jump into things right away or if you'd rather ease into buying your first home at your speed.
Why Choose Homely to Start Your Journey Towards Buying a Home?
Homely offers a promising pathway to homeownership for individuals facing barriers in the traditional housing market. With lower barriers to entry and greater flexibility, we empower renters to take control of their housing future.
We encourage prospective first-time home buyers to explore Homely opportunities with us. Take the first step towards owning your dream home by filling in our questionnaire and discovering the possibilities that await you.
Unlock your path to homeownership with Homely today!