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11-10-2016, 20:02 | #17 |
Registered User
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Hi, I know we get 5% tax rebate on purchase price upto 400k but how does this actually works?
For example if the house price is 300k we need deposit of 38K ( 10 % of 220k and 20% of 80K). So do we have to pay 38k deposit first and claim 5% later or only pay 23k deposit ( 38k-15K)? If we pay only23k how does builder get that remaining money? Does he have to claim form govt later? Please some one clarify? |
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11-10-2016, 20:04 | #18 | |
Category Moderator
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If they've saved the 300k then chances are they are well over this limit, but if the 300k has come to them through other means that may not be the case. |
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11-10-2016, 20:06 | #19 |
Registered User
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I guessed they could do it but just wasn't sure it would actually save money in the long run. Would they just end up paying the bank as much in extra mortgage interest as they would get in the rebate?
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11-10-2016, 20:07 | #20 | |
Category Moderator
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The scheme opens in January so if you buy before then you'll be claiming the money back retrospectively. If you buy after that you will get the money to use as part of your deposit with the bank. |
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11-10-2016, 20:08 | #21 |
Join Date: Feb 2014
Posts: 1,110
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Fyi....some economist on newstalk said that to qualify for the maximum i.e. 20k your salary (combined??) must of been over 60k for the last 4 years. Just something to get clarification on if your looking at this scheme. It oinda gets more farcical by the minute!
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11-10-2016, 20:09 | #22 | |
Category Moderator
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11-10-2016, 20:12 | #24 | |
Join Date: Feb 2014
Posts: 1,110
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I find the scheme lop sided, suits people buying outside Dublin, well hard to find a new build for less than 400k in Dublin in a decent area. Then again, apartments are affordable i guess and yes i now know it's aimed at the developers etc |
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11-10-2016, 20:14 | #25 |
Join Date: Feb 2014
Posts: 1,110
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11-10-2016, 20:14 | #26 | |
Registered User
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For self builds its not 80% of cost but 80% of value of house which is a lit different. I'm looking at building next year with coatings coming in at 260k and mortgage of 220k. Estimated value of house when completed is 340k giving me a loan to value ratio of 64% so currently nowhere near the 80% ratio. Talking to mortgage broker this evening and he says the 80% of value if true is crazy as none of his self build applications in the past few years have come anywhere near the 80% mark. Should hopefully get more clarity on this from minister Coveney over the coming days. |
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11-10-2016, 20:18 | #27 |
Registered User
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I'm trying to work out where the benefit actually lyes. Say the price of a house I want to buy rises by 10k due to increased demand now. I would have to take that into consideration and get a larger mortgage (especially as there is the 80 LTV rate). Now let's say I'm provided 10k back in rebate. The extra 8k (80% of 10k ) I had to borrow is probably going to cost me much more in interest long term than the 10k rebate benefitted me.
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11-10-2016, 20:21 | #28 |
Join Date: Sep 2007
Posts: 24,414
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Absolute bull that it's limited to 80% mortgages. Why should those with higher deposits not be able to benefit.
Wonder are thy actually going to means test it or could you get an 80% variable mortgage, avail of the scheme and then throw a big lump of money in to pay off a chunk of the mortgage. It should also apply to all houses not just new builds but that's not even worth discussing. |
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11-10-2016, 20:28 | #30 |
Join Date: Feb 2014
Posts: 1,110
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