Good News for Buyers of Property in Ireland

Summary: The latest news positively affecting first time buyers of property in Ireland including tax breaks and interest relief

As the economy in Ireland has been going from strength to strength over the past decade, so the local housing market has been rising in line with Ireland’s citizens’ increased affluence - additional factors pushing up Irish property prices have included the natural increase in demand for property in Ireland from professional immigrants as well as investors.

What all of this has resulted in is an incredibly highly priced real estate market where demand remains strong but where local affordability has been stretched.  Well, hot off the press is some good news for buyers of property in Ireland – the intelligent and forward thinking government are to slash property related taxes for first time buyers and increase mortgage interest relief as well to breathe life back into a property market that was beginning to struggle.  This is also excellent news for investors as it means the market can remain buoyant.

The news issued today by the Minister for Finance Brian Cowen had been anticipated but now that he has officially announced the taxation changes and interest relief increases, buyers, investors and those in the property industry can react with confidence to the news. 

According to Minister Cowen’s published legislation changes, dating back to the 31st of March 2007 all stamp duty payments previously due to be paid by first time buyers will not now have to be paid provided that the first time buyers’ purchases fulfill certain criteria.

Previously first time buyers were required to pay stamp duty of 3% of the value of their property where it was valued between EUR 317,500 and 381,000, 6% on properties between the values of EUR 381,000 and EUR 635,000 and 9% thereafter.

According to the new changes which are expected to be ratified by the government in the next two weeks, as long as a first time buyer’s Irish property purchase is to be used as their principal residence and does not exceed 125 square meters in internal size, they will not be required to pay any stamp duty at all!  Anyone eligible who has bought a property since the 31st of March and paid stamp duty will now be given a full refund.

On top of this very good news for buyers of property in Ireland come reports that mortgage interest relief is likely to be increased in the 2008 Irish Budget from EUR 8,000 to EUR 10,000 for single purchasers and from EUR 16,000 to EUR 20,000 for couples and that this will be available for seven years.

So, if you’re tempted by real estate in the Emerald Isle now could be the chance to make your first purchase.

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