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Losing "first-time buyer" status

  • 29-03-2015 9:40pm
    #1
    araic88
    Registered Users Posts: 313 ✭✭


    I'm a little unsure of the implications of losing the first time buyers' status with the new rules.
    If, for example, I pay €20k as 10% deposit for a €200k house, and in 5 years want to buy a €300k house, I'd no longer be a first time buyer so would need 20% deposit. Let's say I'd paid €10k per year as mortgage repayments to the bank, could this €50k (after 5 years) be viewed as equity/a deposit?


Comments

  • #2
    Villa05
    Registered Users, Registered Users 2 Posts: 4,723 ✭✭✭Villa05


    Not really, the first 5 years is mainly interest payments with very little coming off the actual capital loan. You are effectively paying rent for the money you borrowed in those first few years.


  • #3
    Ipro
    Registered Users Posts: 131 ✭✭Ipro


    Sorry for hijacking the thread but could anyone advise me on the following.

    If I buy my first property as a NPPR investment property would I be still entitled to first time buyers status when buying my next property if that property were to be purchased as my first and princable residence ?

    The first property was bought as an investment with cash and is rented out (I never lived in this property)

    I know usually people but their own house first before buying an investment property but I was just in a situation where it worked out better for me to buy an investment property at first.

    So am I entitled to first time buyers relief when it comes to buying my own place ? Would I be exempt from the VAT on a new build ? Would I be entitled to a FTB mortgage etc ? Thanks.


  • #4
    Fol20
    Registered Users, Registered Users 2 Posts: 3,625 ✭✭✭Fol20


    Ipro wrote: »
    Sorry for hijacking the thread but could anyone advise me on the following.

    If I buy my first property as a NPPR investment property would I be still entitled to first time buyers status when buying my next property if that property were to be purchased as my first and princable residence ?

    The first property was bought as an investment with cash and is rented out (I never lived in this property)

    I know usually people but their own house first before buying an investment property but I was just in a situation where it worked out better for me to buy an investment property at first.

    So am I entitled to first time buyers relief when it comes to buying my own place ? Would I be exempt from the VAT on a new build ? Would I be entitled to a FTB mortgage etc ? Thanks.

    I'm afraid not. You will not be a ftb after you purchase the investment property


  • #5
    Ipro
    Registered Users Posts: 131 ✭✭Ipro


    Fol20 wrote: »
    I'm afraid not. You will not be a ftb after you purchase the investment property

    I suspected just as much but said I'd ask just in case, would have been a nice little surprise.
    Thanks for your reply 😊


  • #6
    Victor
    Registered Users, Registered Users 2 Posts: 78,490 ✭✭✭✭Victor


    Ipro wrote: »
    So am I entitled to first time buyers relief when it comes to buying my own place ? Would I be exempt from the VAT on a new build ? Would I be entitled to a FTB mortgage etc ? Thanks.
    I think the only thing you would be entitled to is the different rules for a FTB mortgage, the reliefs are gone.


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  • #7
    Michael D Not Higgins
    Registered Users, Registered Users 2 Posts: 7,223 ✭✭✭Michael D Not Higgins


    araic88 wrote: »
    I'm a little unsure of the implications of losing the first time buyers' status with the new rules.
    If, for example, I pay €20k as 10% deposit for a €200k house, and in 5 years want to buy a €300k house, I'd no longer be a first time buyer so would need 20% deposit. Let's say I'd paid €10k per year as mortgage repayments to the bank, could this €50k (after 5 years) be viewed as equity/a deposit?

    At roughly those numbers, you'd have the initial 20k and about another 15-20k in repayment as equity (depending on interest/term of mortgage). You're looking at year ten before you've got the 20% deposit for a 300k house (not including any other savings and assuming no rise in house price).


  • #8
    araic88
    Registered Users Posts: 313 ✭✭araic88


    Thanks for the replies. One more question!
    If I were to buy a house myself now as a first time buyer & in 5 years time wanted to sell and get a joint mortgage with a partner who was still a first time buyer, would we be counted as one application & as 'second time' buyers?


  • #9
    Sala
    Registered Users, Registered Users 2 Posts: 1,494 ✭✭✭Sala


    araic88 wrote: »
    Thanks for the replies. One more question!
    If I were to buy a house myself now as a first time buyer & in 5 years time wanted to sell and get a joint mortgage with a partner who was still a first time buyer, would we be counted as one application & as 'second time' buyers?

    Yes.


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