Stamp Duty

mathie

What do people think of the stamp duty / property tax double whammy?

From a Herlad article (sorry yes I know) "the first phase of a property tax could be introduced as early as next year. The flat rate tax on homes could be increased on an annual basis until 2014 while the stamp duty system will be phased out gradually."

Do people think it's fair the homeowners who paid stamp duty would then pay property tax?

Should stamp duty be phased out?

Patser

I reckon they need to say clearly what is going to happen regards stamp duty as soon as possible. All this talk of will it go, will it be phased out etc is strangling the already near dead housing market. Not gloating here but my Wife and I bought a 'sensible' 1st time house 7 years ago and are tempted now to move on to a nicer home, especially since some of the extortionate prices have plummeted, but we've no interest in handing over €X thousands in stamp duty when there's a chance that a little patience will mean we wont have to.

Happened when we bought the house we have now, paid €11,000 stamp duty then a year and half later a change in 1st time buyer rules meant we wouldn't have had to have paid a thing.

Also when it comes to looking at houses an idea of what the property tax will entail would be nice. Again I'd hate to buy a 5 bed house only to find out the charge will be applied per bedroom, or buy in a fancy area to find out it's suddenly in a punative land value tax region.

Orion

tbh a site valuation tax makes me sick. I paid about £14000 when I bought my house - yes pounds. We're still in it ten years later. I've paid my site valuation tax already.

I accept that some taxes have to rise. I welcome fair and equitable metered water rates. I don't have a problem with carbon taxes. But a flat, unequitable tax purely based on you owning a home is something I cannot support.

Aard

According to the Irish Times (http://www.irishtimes.com/newspaper/breaking/2010/1207/breaking7.html) stamp duty will be abolished for those "downsizing" their property.

Leiva

Is Stamp duty down to 1 % ???

What's this about 1% up to value of 1million .

Edit; Yea I'm right ... http://budget.breakingnews.ie/news/govt-announces-reform-of-stamp-duty-484753.html

Aard

It's 1% on consideration up to €1,000,000 and 2% on the balance. This is incredibly low, by both Irish and international standards.

smog

Absolute rubbish .. hard enough for first time buyers to get on the market.
Prices were just getting close to "normal"

Now house prices potentially start going up again by 6% (7% down to 1%) extra in the pockets, driving prices upwards

And also first time buyers, they are subject to the 1% which is several grand.

This is just a way of taxing the new to the market, while letting the buyers of mansions pay less :mad:

gurramok

smog wrote: »

Now house prices potentially start going up again by 6% (7% down to 1%) extra in the pockets, driving prices upwards

Where did you spring this gem from?

Aard

He thinks people will up prices by the difference between the old stamp duty and the new one.



Even if that were to happen, they would only increase prices by 3%: the new rate has no threshold, while the old one had a €125,000 exemption.


maths > reactionism

Patser

Well subject to what I said above, after this was mentioned on the radio on budget day, my Wife walked in and said:

'Is that serious, 1% stamp duty. Maybe time to start looking.'

So it seems to be having a quick effect here anyway. It does make sense though. If they bring in the planned property tax next year, you cannot expect people to pay a large wadge of stamp duty up front too. And to continue with a high rate right up to when you do bring in a property tax and then drop it, would have lead to massive resentment and demands for a complicated compensation for recent buyers.

So in summary I reckon it's a decent idea, might get the housing market moving a bit and 1% on a good few deals is better than 7% on a dead market.

Leiva

Patser wrote: »

So it seems to be having a quick effect here anyway.

Here aswell .

Already been onto mortgage provider today seen my options .

Only other real turnoff for people IMO is those on trackers loosing then by moving .