Property based changes in Budget

bazwaldo

Seeing as MIR is finishing, and there's likely some property tax. Has anyone got any predictions or gossip on what exactly the tax will be and will there be any incentives added to replace losing the MIR, such as getting rid of stamp duty?

not even wrong

Vested interests already floating balloons in today's Indo:

Property tax 'holiday' to boost house market

Some experts fear the number of mortgages issued "will fall off a cliff" after the latest figures show the first rise in home-loan lending in six years.

But surely I thought all the 'experts' agreed that we'd reached the bottom?

gurramok

The rumoured 3 yr holiday for FTB from the property tax is the most ridiculous attempt at luring FTB's in. You'd save a paltry €1,500 on a 200k purchase. Just wait a few months and you'd have saved that much already!

Also the CIF wanted this "wonderful" tax break applied only to new houses. Ah yes the CIF, ye built wonderful top quality properties of the last 10 years :rolleyes:

Victor

This article is kite-flying / re-hashing of press releases from vested interests.

bazwaldo wrote: »

Seeing as MIR is finishing, and there's likely some property tax. Has anyone got any predictions or gossip on what exactly the tax will be and will there be any incentives added to replace losing the MIR, such as getting rid of stamp duty?

Stamp duty is only 1%, if anything it could go up to it's historical average.

A property tax of 0.25-0.5% is likely, with the rates being adjusted over time.

murphaph

Victor wrote: »

This article is kite-flying / re-hashing of press releases from vested interests.


Stamp duty is only 1%, if anything it could go up to it's historical average.

A property tax of 0.25-0.5% is likely, with the rates being adjusted over time.

Just to briefly compare..

"Stamp duty" (on real estate transactions) in Germany is 3.5% (except Berlin, where it's 4.5%).

Property tax (which doesn't pay directly for local services, for those we have extra charges, but we get a break down of all costs, sewer system, fresh water, bins etc.) is currently costing me €350 a year here in Berlin but my flat only cost €44,000, (might be worth €55,000 now) so app. 0.5%.

Both of these figures are significantly more than exist or are being proposed in Ireland (assuming the 0.25% wins out, as I think it will), and German take home pay is lower, given the higher income taxes here. Energy costs more here and so on. I can't think of any costs associated with home ownership in Germany that are significantly cheaper than in Ireland actually (I own property in both countries, so can make some comparisons).

What strikes me most however is that the rates in Germany are so stable. They have remained as they are for years now, with no government "fiddling" with them to manipulate the property market here. Why the hell can't Irish governments just leave these damn taxes alone and stop trying to win elections with them. It is really irritating. Fix the real problems with government spending instead and then come back to taxation.

StillWaters

Victor wrote: »

This article is kite-flying / re-hashing of press releases from vested interests.


Stamp duty is only 1%, if anything it could go up to it's historical average.

A property tax of 0.25-0.5% is likely, with the rates being adjusted over time.

Didn't Noonan say it wasn't going to be as high as .5%, although that's the figure the Troika want. I think they will go for the ESRI model, 2.5% with exemptions for those with income <15k.