Irish Property Market chat II - *read mod note post #1 before posting*

Does anyone know when the Residential Zoned Land tax is coming in?

I heard Jack Chambers say in the budget that farmers could apply to have residential land rezoned so as to avoid the cost but nothing about the actual implementation of the tax. I assumed based on the fact he didn't say that it's postponed that it will be coming in soon enough.

If so that seems like a great move in the right direction, as does the increase in the vacant property tax from 5 times to 7 times local property tax.

Had a quick look at prime time last night and they had a case study of a person on disability

She recently got a 2 bed A rated home from a housing association, I was off the impression that these A rated homes would save the state on fuel allowance but it appears not

Full fuel allowance, electricity credits plus A living alone allowance. Is there any way that a 2 bed unit could accommodate 2 persons thereby having 1 adapted living home benefit 2 people.

what is the point your making? Even if it was an old house and she was on fuel allowance she would get a retrofit paid for to upgrade BER. Isn’t this where all the extra carbon tax revenue is being recycled to.

As for getting a 2 bed unit without understanding circumstances it’s hard to judge as it may be required for medical equipment etc….. On the other hand if it’s not your forgetting about renting out the room tax free as another possible benefit. But as I said without understanding the exact circumstances it’s very difficult to judge or form an informed opinion as this person may be struggling due to costs related to the disability that are not covered etc.

A rated home = C or D plus fuel allowance. Why give a fuel allowance on a home designed to operate on minimal fuel

Most working people could never afford what's on offer under social

The working poor pay the majority of carbon tax through poor quality rented accomodation which more often than not they must share to afford plus more likely than not, longer commutes to work in older cars

Don't want to focus too much on the disability side as the payments we are talking about are also available to the long term unemployed. A living alone allowance is disincentive to the recipient to accept someone to share the property which can be beneficial to both parties.

In a disability context you could have 1 occupant able to do a task the other occupant may not be able to and vice versa. They may have carers and having more in the 1 location may deliver economies of scale in administering the care they need

Does look like this, not exactly like we need to balance the books though!

There will be more haircuts to come 100%.

The idea that a 15k increase in stamp duty on a 2million euro house will restrict supply of housing in a significant way is fairly obviously nonsense.

The number of 2million euro homes being sold by people downsizing is minuscule as things stand, and the number of said sellings likely to be cancelled because of a 15k increase in stamp study reducing their profit by a tiny amount is even smaller.

At that price point (and wealth point) the point of downsizing is for accessibility concerns (stairs), or maintenance (large gardens, large low BER house), or geography (wanting to move closer to grandkids or specific amenities like walking distance to a village). Receiving say 785k into your pocket instead of 800k is not going to influence many decisions.

edit: and the widely recognised two biggest issues with the Irish tax system are 1) it not being broad enough and 2) it taxing income instead of wealth. This, even though its tiny, at least helps move both of those needles in a positive direction.

Its a wealth tax (that can't be avoided) offset by increased inheritance tax thresholds plus increased pension pot tax breaks for the super wealthy

A non issue

Land and property contribute the least tax and are the biggest beneficiary of tax spending. Any move closer to property paying it's fair share is a positive step forward

Agreed.

You do not buy a 1mil house at >70% LTV. Its mostly equity that fuels purchases in the top end of the market. So looking at loan to income ratios is kind of irrelevant for house prices up at that end of things.