|
First
Time Buyers
Government Grant
A first-time buyer's grant of €3,809 is available
when buying a new house or apartment. A cheque is issued to
you by the Department of Environment after you move into your
new home and can take up to 12 weeks, to receive.
·
The house or apartment must be new and have had no previous
tenants.
·
It must be your main residence i.e. you own and live in the
property.
·
It must be the first home you have bought and if you are buying
with someone else, it must be the first home they have bought
too.
·
It must conform to the Department of the Environment and Local
Government technical standards. The floor area should be at
least 35 square metres (377 square feet) and no more than
125 square metres (1,346 square feet)
Some
Lending Institutions will cover the first time buyers grant
for you without you having to wait up to 12 weeks, and reclaim
it back themselves from the Dept.
Tax Relief
The following are the 2004 tax relief limits
in respect of first time home buyers.
|
Home
Loans – Standard Tax Rate 20%
|
|
First-Time
Buyer
|
€
|
|
|
Single
Max
|
4,000
|
|
|
Married
Max
|
8,000
|
|
|
Widow(er)
Max
|
8,000
|
|
Asingle first time buyer can for example get tax relief on
annual interest paid up to €4,000, giving actual savings
at 20% tax rate of €800. A married first time buyer would
obtain actual savings of €1,600 p.a.
Stamp Duty
The following are the relevant Stamp Duty
rates applicable from 2nd December 2004 for first time buyers
of both new houses and second-hand housers.
|
Residential
Property
Consideration
|
First
Time
Buyer
|
|
Up
to €127,000
|
Exempt
|
|
€127,001
– €190,500
|
Exempt
|
|
€190,501
– €254,000
|
Exempt
|
|
€254,001
– €317,500
|
Exempt
|
|
€317,501
– €381,000
|
3%
|
|
€381,001
– €635,000
|
6%
|
|
Over
€635,000
|
9%
|
The
floor space of an exempt property must not exceed 125 square
metres (1,346 square feet). All new properties that meet this
requirement, are exempt of stamp duty.
|