Question on buying new house

shamrock55

I was just looking at the property price register site can i just ask what ppr price means its much lower then the sale price of a few of the same houses im looking at in a small estate the ppr price differs alot in the few houses that have been sold they are then sold for more then the ppr price thanks guys

ted1

For new houses VAT is charged and asfaik its excluded from the poor price, so add on 21% or whatever the current rate is

shamrock55

So ppr is just the price before vat is added

ted1

Yes but I realise I was incorrect on the rate its13.5%

Henry Ford III

It's the actual sale price. It includes VAT (where applicable).

ted1

Henry Ford III wrote: »

It's the actual sale price. It includes VAT (where applicable).

No it doesn't

From the ppr website:
If the property is a new property, the price shown is exclusive of VAT at 13.5%.

shamrock55

Cheers for that ted

Henry Ford III

Right Ted.

Imagine selling a house you bought new in a couple of years. €200k. Propsective buyer has checked the NPPR and sees you paid c.€173k.

Try explaining to him that you paid VAT on top - he won't give a damn as there's no VAT on his potential purchase.

shamrock55

Why are some properties vat exclusive and others not is it just new houses you pay vat on and not 2nd hand ones

L1011

shamrock55 wrote: »

Why are some properties vat exclusive and others not is it just new houses you pay vat on and not 2nd hand ones

Just new.

ted1

Henry Ford III wrote: »

Right Ted.

Imagine selling a house you bought new in a couple of years. €200k. Propsective buyer has checked the NPPR and sees you paid c.€173k.

Try explaining to him that you paid VAT on top - he won't give a damn as there's no VAT on his potential purchase.

what I paid is irrelvant, its the current market price that the buyer will pay.

your point is also mute, as the simple fact is VAT is charagable on new houses and not reflected in the PPR.

as an aside at 2% inflation 173k is worth 200k in 7.5 years.

Henry Ford III

I think you are some distance from understanding or appreciating my point ted.

Let's leave it at that.

ted1

sounds like the penny just dropped