2017-21 help to buy scheme - megathread. All help to buy discussion here please

Collyb101 · 11-10-2016 8:31pm

asteroids over berlin wrote: »

Yeah get in very quick (possible now though?)or hold off 4 years or so, possibly prices will level out, i suspect this is the idea from the government!

Either way, you need the scheme or you've just been short changed. I worked for Central Bank Of Ireland around the time the new rules came into play. That's a load of ****e and so is this. Only good thing about it is that people who have not paid tax are screwed. Should have got out of their beds.

Stheno · 11-10-2016 9:24pm

Collyb101 wrote: »

Either way, you need the scheme or you've just been short changed. I worked for Central Bank Of Ireland around the time the new rules came into play. That's a load of ****e and so is this. Only good thing about it is that people who have not paid tax are screwed. Should have got out of their beds.

The scheme sounds good, but it's going to have limited application.

If you buy a house for 200k, you'll get a rebate of 10k against your previous four years income tax towards your deposit, which means you'll have to have paid 10k in PAYE to get it.

So for a single person on normal PAYE they would have to be earning a minimum of 37.5k to pay 5 k tax per year to get the 20% but on that salary they won't qualify for the 180k mortgage.

For a couple, they would have to have joint earnings as a married couple of probably close to 90k to have paid that level of tax to take advantage.

The people who will benefit from this the most will be those who are earning quite high salaries

It's going to do nothing for the worker earning the average wage of 36k

ted1 · 11-10-2016 9:29pm

awec wrote: »

Sounds fair enough really. They can hardly dish out 20k tax rebates to people who pay hardly any tax.

There's a shed load of taxes on new builds, this gives them the money for the rebate and why it is only on new builds.

ted1 · 11-10-2016 9:32pm

Stheno wrote: »

The scheme sounds good, but it's going to have limited application.

If you buy a house for 200k, you'll get a rebate of 10k against your previous four years income tax towards your deposit, which means you'll have to have paid 10k in PAYE to get it.

So for a single person on normal PAYE they would have to be earning a minimum of 37.5k to pay 5 k tax per year to get the 20% but on that salary they won't qualify for the 180k mortgage.

For a couple, they would have to have joint earnings as a married couple of probably close to 90k to have paid that level of tax to take advantage.

The people who will benefit from this the most will be those who are earning quite high salaries

It's going to do nothing for the worker earning the average wage of 36k

36k*3.5 =126, no one 36k will get a new build. You can't build a house for that

Stheno · 11-10-2016 9:34pm

ted1 wrote: »

36k*3.5 =126, no one 36k will get a new build. You can't build a house for that

Think you misread me, that's what I said

probably put it badly

awec · 11-10-2016 9:37pm

I don't think it's designed to make new builds suddenly affordable for single applicants.

It seems to be geared toward helping those who could afford the mortgages but are struggling to get the deposit together due to the current rental prices, to effectively try and unblock the system. As well as the obvious financial benefits for builders to get them to actually build houses.

awec · 11-10-2016 9:42pm

Potentially dumb question: is this limited to one payout per mortgage application?

Can I claim back 20k from my income tax and my missus claim back 20k from hers and put that all together on one application?

thatslife · 11-10-2016 9:43pm

For self builds, the LTV needs to be 80% and you need to have made 1st drawdown after July 19 to be eligible - i get.
The query I have is, this 80% LTV, is this decided by the mortgage given to you by the Lender originally or by the final drawdown valuation? LTV could be different at end of build.

Stheno · 11-10-2016 9:45pm

awec wrote: »

Potentially dumb question: is this limited to one payout per mortgage application?

Can I claim back 20k from my income tax and my missus claim back 20k from hers and put that all together on one application?

As a recipient of the predessor of this (first time buyers grant) it was limited to 3k for each application, so you got just the 3k or in this case 20k rebate split between you

awec · 11-10-2016 9:49pm

Stheno wrote: »

As a recipient of the predessor of this (first time buyers grant) it was limited to 3k for each application, so you got just the 3k or in this case 20k rebate split between you

Make sense!

Stheno · 11-10-2016 9:50pm

awec wrote: »

Make sense!

Does, it was actually quite fair when I bought with my then OH back in 99 as it was just the one house we were buying.

And in the case of this rebate it makes it more achieveable! Especially if one partner earns more than the other, given how our taxation system is so progressive.

louise1985 · 11-10-2016 9:55pm

thatslife wrote: »

For self builds, the LTV needs to be 80% and you need to have made 1st drawdown after July 19 to be eligible - i get.
The query I have is, this 80% LTV, is this decided by the mortgage given to you by the Lender originally or by the final drawdown valuation? LTV could be different at end of build.

Bit of a technical question but does anyone know what they mean by first drawdown after 19 July 2016. Our first drawdown hit the bank on 26th July 2016 however this application was sent to bank from solicitor on 12th July 2016!!
Wondering if I have money to spend or not ðŸ™ðŸ™ðŸ™ðŸ˜႒ðŸ˜႒ðŸ˜႒

Stheno · 11-10-2016 9:57pm

louise1985 wrote: »

Bit of a technical question but does anyone know what they mean by first drawdown after 19 July 2016. Our first drawdown hit the bank on 26th July 2016 however this application was sent to bank from solicitor on 12th July 2016!!
Wondering if I have money to spend or not ðŸ™ðŸ™ðŸ™ðŸ˜႒ðŸ˜႒ðŸ˜႒

The Finance Bill next Thursday will clarify it more.

Konata · 11-10-2016 9:58pm

Stheno wrote: »

For a couple, they would have to have joint earnings as a married couple of probably close to 90k to have paid that level of tax to take advantage.

Is it specified somewhere that you have to be married to be eligible?

Stheno · 11-10-2016 10:00pm

Konata wrote: »

Is it specified somewhere that you have to be married to be eligible?

No, but Revenue treat taxation of married couples differently from couples who are not married, and it changes the limits.

Couples who are not married pay more tax if one partner earns more than another and hits the 40% threshold much lower than if married.

The difference can be up to 300 per month in the amount of tax paid.

68 lost souls · 11-10-2016 10:05pm

Stheno wrote: »

No, but Revenue treat taxation of married couples differently from couples who are not married, and it changes the limits.

Couples who are not married pay more tax if one partner earns more than another and hits the 40% threshold much lower than if married.

The difference can be up to 300 per month in the amount of tax paid.

This stands to knock the point on the head earlier of earners of 36k not benefiting and that you need to be earning in excess of 90k as a couple.

An unmarried couple or indeed a newly married couple who have earned tax superstition for 4 years only have to have earned less than 30,000 each to hit 20k paye over 4 years.

Glen_Quagmire · 11-10-2016 10:05pm

Stheno wrote:

The difference can be up to 300 per month in the amount of tax paid.

Wow, didn't realise it was that much. Who wants to get married? Giggidy

Konata · 11-10-2016 10:07pm

Stheno wrote: »

No, but Revenue treat taxation of married couples differently from couples who are not married, and it changes the limits.

Couples who are not married pay more tax if one partner earns more than another and hits the 40% threshold much lower than if married.

The difference can be up to 300 per month in the amount of tax paid.

Thanks, obvious now that you've explained it! So a married couple will get less of a rebate than an unmarried couple earning the same income? I guess it all evens out since they would've been paying less tax in the first place (and thus had more net income).

Eric Cartman · 11-10-2016 10:10pm

In the same vein of people spending 50k on a car to save 200 a year in tax , I predict that people are now going to go as far as they can to the 400k amount to reap the most from this offer.

Stheno · 11-10-2016 10:10pm

68 lost souls wrote: »

This stands to knock the point on the head earlier of earners of 36k not benefiting and that you need to be earning in excess of 90k as a couple.

An unmarried couple or indeed a newly married couple who have earned tax superstition for 4 years only have to have earned less than 30,000 each to hit 20k paye over 4 years.

An individual who is married to someone else earning 36k who is also earning the same, will end up paying 4.5k in PAYE every year, which means that they will have paid 18k in the previous four years, so thats the limit they can claim back

http://download.pwc.com/ie/budget-2016/result.html?status=3&grosssalary=36000&spousesalary=0&salary2=0&age=&salary3=0&prsicategory=1&pensions=&investments=&otherincome=&companycarvalue=&mileage=0&healthbik=&healthadult=0&healthchild=0&clubsbik=&otherbik=&prefloanmortgage=N&mortgagerelief=N&firsttimebuyer=N&loaninterestpaid=&loaninterestrate=&propertyband=0&localauth=0&Submit=Calculate+My+Tax

That's a couple who are married and earning 72k

You need to hit 90k for a married couple to qualify for 20k over four years.

durtybit · 11-10-2016 10:20pm

So are we saying this scheme is basically targeting a minority who
a. Pay a lot in taxes
b. Only Build (not buy)
c. Fund 20% of the build
d. Mostly live in high income areas where property prices are already at a premium

Would I be wrong to say this is more like a Help-a-few-people-to-build scheme rather than help-to-buy scheme?

Stheno · 11-10-2016 10:23pm

68 lost souls wrote: »

Yes but what about a non married couple earning 72000 as a couple

They will pay more taxes, so a total of about 7k tax per year, so they can take advantage of the scheme.

My point is that this seems to be aimed at higher earners in most circumstances

RoyalMarine · 11-10-2016 10:32pm

Myself and partner (not married) are just about to finalise our purchase of a house.
Contracts being signed this week.
House is 245,000. We are paying the standard amount of deposit. so 10% of first 220,000 and 20% of the rest.

I've been living and working in Ireland for 10+ years. salary ranged between 25-35k for the past 4 years.
She's been living and working in Ireland for the past 2 years. salary was 27k for first year, and 32k for the second year.

Does anyone know where we stand with the rebate?

From reading, we meet all requirements, I'm just not sure about PAYE for the past 4 years.

Could we apply for a rebate under me paying PAYE for 4 years, and her paying for the past 2 years?

Or will this rule us out completely?

Any help would be great!

68 lost souls · 11-10-2016 10:32pm

Stheno wrote: »

They will pay more taxes, so a total of about 7k tax per year, so they can take advantage of the scheme.

My point is that this seems to be aimed at higher earners in most circumstances

But first time buyers that have been really struggling to save a deposit the past few years haven't been able to afford to get married because they have been struggling to save the deposit for a new house.

10-20k on a wedding is far to much for people that have spent 5-10 years saving a deposit up while paying rent and student loans etc. Therefore there are a lot of unmarried couples in the first time buyers market at the moment especially around Dublin.

This will help more people than you think

68 lost souls · 11-10-2016 10:34pm

RoyalMarine wrote: »

Myself and partner (not married) are just about to finalise our purchase of a house.
Contracts being signed this week.
House is 245,000. We are paying the standard amount of deposit. so 10% of first 220,000 and 20% of the rest.

I've been living and working in Ireland for 10+ years. salary ranged between 25-35k for the past 4 years.
She's been living and working in Ireland for the past 2 years. salary was 27k for first year, and 32k for the second year.

Does anyone know where we stand with the rebate?

From reading, we meet all requirements, I'm just not sure about PAYE for the past 4 years.

Could we apply for a rebate under me paying PAYE for 4 years, and her paying for the past 2 years?

Or will this rule us out completely?

Any help would be great!

I would imagine that it is eligible on your combined PAYE earning over the past 4 years. PAYE online should give you a good idea of what PAYE you and your partner have paid over the past 4 years.

Thebing · 11-10-2016 10:36pm

Does anyone know whether the scheme will be inclusive or exclusive of VAT when calculating LTV for eligibility? I.e. Will the price on the register be used?

68 lost souls · 11-10-2016 10:39pm

Thebing wrote: »

Does anyone know whether the scheme will be inclusive or exclusive of VAT when calculating LTV for eligibility? I.e. Will the price on the register be used?

I'm guessing the value that the banks valuation dictates? That is in essence the value of the property?

Stheno · 11-10-2016 10:41pm

68 lost souls wrote: »

I'm guessing the value that the banks valuation dictates? That is in essence the value of the property?

It's the purchase price which is inclusive of vat

Thebing · 11-10-2016 10:44pm

Stheno wrote: »

It's the purchase price which is inclusive of vat

The property price register quotes exclusive of VAT. ðŸ™

68 lost souls · 11-10-2016 10:57pm

Thebing wrote: »

The property price register quotes exclusive of VAT. ðŸ™

Yes I believe he is saying that it is not the property price register but the agreed purchase price as found in the contract which is inclusive of VAT

2017-21 help to buy scheme - megathread. All help to buy discussion here please

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