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

garbo196 · 12-10-2016 4:33pm

I am absolutely gutted with the outcome of yesterday. Myself and my girlfriend bought a house off the plans back in April. We signed the contracts in May on our side, and the builder's solicitors signed on their side on July 15th. We do not qualify for the tax rebate since the contracts were signed before 19th July. We missed out on this by 4 days.
What annoys me the most is the fact that we have only signed contracts, we have not bought a house, it is not ours, we have not drawn down any money, anything could happen between now and then.
It should vbe backdated to July 19th for those who have actually drawn down and bought a house and who the keys.

4 days short of getting 15k to furnish our first home.

Does anyone have any suggestions on an appeal for this? Should I contact any local TDs or anything? We both have been working full time for the last 4 years and have paid well enough tax. Its sickening. And I am sure we are not the only ones in this position,

12-10-2016 5:00pm

garbo196 wrote: »

I am absolutely gutted with the outcome of yesterday. Myself and my girlfriend bought a house off the plans back in April. We signed the contracts in May on our side, and the builder's solicitors signed on their side on July 15th. We do not qualify for the tax rebate since the contracts were signed before 19th July. We missed out on this by 4 days.
What annoys me the most is the fact that we have only signed contracts, we have not bought a house, it is not ours, we have not drawn down any money, anything could happen between now and then.
It should vbe backdated to July 19th for those who have actually drawn down and bought a house and who the keys.

4 days short of getting 15k to furnish our first home.

Does anyone have any suggestions on an appeal for this? Should I contact any local TDs or anything? We both have been working full time for the last 4 years and have paid well enough tax. Its sickening. And I am sure we are not the only ones in this position,

Its sickening but they have to draw the line somewhere and it will always mean people are disappointed. Back date it to the start of June and people who singed in May will complain. Back date it to the start of the year and people who bought in December will complain etc.

Shedite27 · 12-10-2016 5:04pm

garbo196 wrote: »

I am absolutely gutted with the outcome of yesterday. Myself and my girlfriend bought a house off the plans back in April. We signed the contracts in May on our side, and the builder's solicitors signed on their side on July 15th. We do not qualify for the tax rebate since the contracts were signed before 19th July. We missed out on this by 4 days.
What annoys me the most is the fact that we have only signed contracts, we have not bought a house, it is not ours, we have not drawn down any money, anything could happen between now and then.
It should vbe backdated to July 19th for those who have actually drawn down and bought a house and who the keys.

4 days short of getting 15k to furnish our first home.

Does anyone have any suggestions on an appeal for this? Should I contact any local TDs or anything? We both have been working full time for the last 4 years and have paid well enough tax. Its sickening. And I am sure we are not the only ones in this position,

You didn't have €15k yesterday, you don't have €15k today.

Lost nothing.

quadrifoglio verde · 12-10-2016 5:13pm

ted1 wrote: »

That's how the system has always worked , the 2nd and 3rd phases always go up

Except when there's to much supply.

Then you get it less than phase 1.

This is partly designed to help people circumvent central bank rules is it not?
What's to stop the central bank from altering the rules to take into account this new move from government?

AtomicHorror · 12-10-2016 5:16pm

Shedite27 wrote: »

You didn't have €15k yesterday, you don't have €15k today.

Lost nothing.

I think most of us who were on the line understand this fact, and even recognise that feeling disappointed is not rational. It does not make that feeling magically disappear, nor does it mean people shouldn't express it.

The announcement back in July was vague enough to give reasonable hope to plenty of people who would not ultimately benefit. When you've recently bought a house, money looms large in your life, perhaps even more so than it did in the challenging time before you bought. Lot of worry. You probably know this. When a chance at relief does not pan out, disappointment is entirely understandable. Give us a break.

CT2 · 12-10-2016 5:22pm

I've asked my bank this today, but any advice in the interim would be great.

Can you draw down a mortgage of 15% deposit plus the 5% from your Tax to make 80% this side of January 2017 as I plan to close next month.
or
Can you draw down a mortgage with 20% and then claim the tax back next year or would this put you over the 20% limit.
Could I borrow the 5% shortfall to achieve this for the new year.

The bank will give you a better interest if you have a LTV of 80%. But will you get this if its 15% in November and the 5% in the new year.

awec · 12-10-2016 5:38pm

CT2 wrote: »

I've asked my bank this today, but any advice in the interim would be great.

Can you draw down a mortgage of 15% deposit plus the 5% from your Tax to make 80% this side of January 2017 as I plan to close next month.
or
Can you draw down a mortgage with 20% and then claim the tax back next year or would this put you over the 20% limit.
Could I borrow the 5% shortfall to achieve this for the new year.

The bank will give you a better interest if you have a LTV of 80%. But will you get this if its 15% in November and the 5% in the new year.

My understanding would be you get a mortgage with 20% now and then claim back the money next year.

Konata · 12-10-2016 6:49pm

Does the money HAVE to go towards a deposit? We are limited by the 3.5 income multiplier and have saved hard to put together the money to make up the rest of the balance - right now we are looking at an 85% LTV. If we add on the money from the tax rebate we are going to be at 79% LTV - so then we wouldn't be entitled to the rebate?? So could we just keep the rebate for furnishing etc.?

Reading back over that, I'm also wondering is the limit 80% LTV BEFORE you take into account the tax rebate or AFTER? That would be the key question for us I think (as all would be fine if it is before the rebate is counted).

Shedite27 · 12-10-2016 7:34pm

AtomicHorror wrote: »

I think most of us who were on the line understand this fact, and even recognise that feeling disappointed is not rational. It does not make that feeling magically disappear, nor does it mean people shouldn't express it.

The announcement back in July was vague enough to give reasonable hope to plenty of people who would not ultimately benefit. When you've recently bought a house, money looms large in your life, perhaps even more so than it did in the challenging time before you bought. Lot of worry. You probably know this. When a chance at relief does not pan out, disappointment is entirely understandable. Give us a break.

I wasn't attacking, I was trying to be a voice of reason. I'm a buyer of a new build in May that would have been eligible had I closed today.

I hope nobody bought expecting some money back.

Congrats to those that will get the money, who cares if you didn't get it. Yes I'd like €20k back in a rebate, but it wasn't money I was expecting. It's like being disappointed that you didn't win the lotto tonight.

AtomicHorror · 12-10-2016 8:02pm

Shedite27 wrote: »

I wasn't attacking, I was trying to be a voice of reason. I'm a buyer of a new build in May that would have been eligible had I closed today.

Fair enough, and if that's your meaning then no problem. Most people's initial reaction will not be so rational, so they might read your response and others here as dismissive.

Shedite27 wrote: »

Congrats to those that will get the money, who cares if you didn't get it. Yes I'd like €20k back in a rebate, but it wasn't money I was expecting. It's like being disappointed that you didn't win the lotto tonight.

I don't think these two things are alike at all, for many reasons. But your point was already clear enough. We have "lost" something we never had. That fact will help people in hindsight, but their initial reaction will tend to be disappointment.

ted1 · 12-10-2016 8:06pm

garbo196 wrote: »

I am absolutely gutted with the outcome of yesterday. Myself and my girlfriend bought a house off the plans back in April. We signed the contracts in May on our side, and the builder's solicitors signed on their side on July 15th. We do not qualify for the tax rebate since the contracts were signed before 19th July. We missed out on this by 4 days.
What annoys me the most is the fact that we have only signed contracts, we have not bought a house, it is not ours, we have not drawn down any money, anything could happen between now and then.
It should vbe backdated to July 19th for those who have actually drawn down and bought a house and who the keys.

4 days short of getting 15k to furnish our first home.

Does anyone have any suggestions on an appeal for this? Should I contact any local TDs or anything? We both have been working full time for the last 4 years and have paid well enough tax. Its sickening. And I am sure we are not the only ones in this position,

If you have only signed the contract , are you sure that they have being filed? Call your builder ASAP..

For what it's worth I know people that had to pay 46k stamp duty 3 days before it was abolished

dzwx · 12-10-2016 9:03pm

Konata wrote: »

Does the money HAVE to go towards a deposit? We are limited by the 3.5 income multiplier and have saved hard to put together the money to make up the rest of the balance - right now we are looking at an 85% LTV. If we add on the money from the tax rebate we are going to be at 79% LTV - so then we wouldn't be entitled to the rebate?? So could we just keep the rebate for furnishing etc.?

Reading back over that, I'm also wondering is the limit 80% LTV BEFORE you take into account the tax rebate or AFTER? That would be the key question for us I think (as all would be fine if it is before the rebate is counted).

We are in similar situation, we have a nice strong deposit but we are limited badly by LTI rule (commision based jobs).
Does it mean that scheme won't be any good at all?

mick_ire · 12-10-2016 9:19pm

The 80% LTV is a load of BS. Penalising responsible savers. The banks are the ones benefiting as they charge customers a higher interest rate for higher LTV. This is encouraging people to save the bare deposit. I guess that is no shock given that the government have a vested interest in the banks :-O

cronos · 12-10-2016 9:26pm

mick_ire wrote: »

The 80% LTV is a load of BS. Penalising responsible savers. The banks are the ones benefiting as they charge customers a higher interest rate for higher LTV. This is encouraging people to save the bare deposit. I guess that is no shock given that the government have a vested interest in the banks :-O

Indeed but what's to stop you going with the 80 percent LTV? Then just overpaying the rest immediately?

mick_ire · 12-10-2016 9:43pm

cronos wrote: »

Indeed but what's to stop you going with the 80 percent LTV? Then just overpaying the rest immediately?

I would assume the higher interest rate would have to be paid on the rest of the mortgage, even though you would be less that the 80% if you overpay immediately? I'd say any benefit would be negligible.

brian2614 · 12-10-2016 9:53pm

brian2614 wrote: »

This is my situation...

I bought my 1st house this year,new build @ €150K(obviously I don't live in Dublin) paid my deposit of €15K and signed after the 19 of July I think(waiting on solicitor to get back to me)

Is it from the moment you sign and get the keys in your hand or when the morgagte is drawn down

Am I entitled to this???

Thanks in advance

Got a fone call from my solicitor this evening to say I am entitled to the rebate... Just.I signed on the 19th!!!

I thought I signed earlier but was hoping I didn't.For once I am getting something off this <snip > government.

December2012 · 12-10-2016 11:15pm

garbo196 wrote: »

I am absolutely gutted with the outcome of yesterday. Myself and my girlfriend bought a house off the plans back in April. We signed the contracts in May on our side, and the builder's solicitors signed on their side on July 15th. We do not qualify for the tax rebate since the contracts were signed before 19th July. We missed out on this by 4 days.
What annoys me the most is the fact that we have only signed contracts, we have not bought a house, it is not ours, we have not drawn down any money, anything could happen between now and then.
It should vbe backdated to July 19th for those who have actually drawn down and bought a house and who the keys.

4 days short of getting 15k to furnish our first home.

Does anyone have any suggestions on an appeal for this? Should I contact any local TDs or anything? We both have been working full time for the last 4 years and have paid well enough tax. Its sickening. And I am sure we are not the only ones in this position,

Why not ask the builders if the date on the contract can be amended? It's no loss to them so it may be suitable.

Michael D Not Higgins · 12-10-2016 11:18pm

Konata wrote: »

Does the money HAVE to go towards a deposit? We are limited by the 3.5 income multiplier and have saved hard to put together the money to make up the rest of the balance - right now we are looking at an 85% LTV. If we add on the money from the tax rebate we are going to be at 79% LTV - so then we wouldn't be entitled to the rebate?? So could we just keep the rebate for furnishing etc.?

Reading back over that, I'm also wondering is the limit 80% LTV BEFORE you take into account the tax rebate or AFTER? That would be the key question for us I think (as all would be fine if it is before the rebate is counted).

Yes the money has to go on the deposit and it has to be less than 20% deposit including the rebate. If you're buying this year before the scheme is launched you can buy up to 20% with your own money and get the 5% back when it launches.

If you buy next year, you can have a max deposit of 15% with the max rebate of 5%.

Shelga · 13-10-2016 12:01am

Shedite27 wrote: »

There's enough people who stayed in Ireland, went through job cuts, wage freezes, rent hikes and tax increases that need to be helped out first. This does that.

We'll get around to your welcome home invite any day now.

No need to be such a smug martyr, all I'm saying is there are people like me and my friends who really want to come home and feel no incentive to do so, thought you would have wanted more of us to pay tax.

Yes the tax subsidy suggestion for returning emigrants was daft, wouldn't have affected most people anyway who are medium earners.

Shelga · 13-10-2016 12:11am

And I'm not saying I want special treatment, just not to be at a significant disadvantage compared to other first time buyers.

Glen_Quagmire · 13-10-2016 10:21am

For me and I'm sure a lot of others like me who are looking to get onto the property ladder in Dublin as a single mortgage applicant, this scheme isn't much use as the price of new builds in Dublin are out of the price range of a single applicant unless you're earning over 100k a year.

Michael D Not Higgins · 13-10-2016 10:41am

Glen_Quagmire wrote: »

For me and I'm sure a lot of others like me who are looking to get onto the property ladder in Dublin as a single mortgage applicant, this scheme isn't much use as the price of new builds in Dublin are out of the price range of a single applicant unless you're earning over 100k a year.

Sorry Glen, but the government aren't targeting you. The cheapest new home on daft for Dublin is 195k which, with a 20% deposit, would need a single salary of 44.5k to qualify (and that's in Finglas just north of Ballymun).

The median household income in Ireland is 50k (figures a few years old, has probably gone up by now), in Dublin you could easily expect the average FTB couple looking to buy a house is closer to 70k+. With a 20% deposit they can afford a house just over 300k. This is the demographic the government are targeting.

Even with that, of the 186 new home listings for Dublin on Daft, only about 30 of them are in this imaginary couple's budget and some of those are already listed as sold out.

There are two things the government are targeting, the supply and the onerous deposit requirements. People are complaining since they say they can qualify for a mortgage on LTI but not on LTV, so the scheme gives them a leg up to satisfy the central bank rules. The supply is also an issue so the government are limiting it to new builds in an effort to stimulate construction.

In my opinion it's an okay short term fix but it doesn't solve the underlying issue of builders not building due to costs of construction. Likely this is a more difficult and medium term thing to address and they needed a short term process to help out. The real acid test will be what they do to address the supply in the medium to long term.

Glen_Quagmire · 13-10-2016 11:59am

I understand what you're saying. I just think the whole thing is very frustrating, I understand mortgages were never easy to obtain going back through the years but for a person like myself and many others in my situation it's actually becoming impossible unless you are lucky enough to have a heap or savings built up (which is very difficult with high rents and cost of living) or help from family.

How the generations coming behind me are gonna be able to get mortgages for houses in Dublin in 5 or 10 years time is beyond me.

pilly · 13-10-2016 12:37pm

KathleenF wrote: »

Has anyone more detail on the pro rata rates for lower priced homes?

It's 5% of the house price.

pilly · 13-10-2016 12:46pm

What a lot of people are missing out on this is the fact that it's a tax rebate so you have to have paid 20k tax to get that amount back. Now a lot of people on average wages will not have paid 20k tax over the last 4 years. And before anyone jumps down my throat I'm not including USC because the government doesn't classify that as PAYE which is essentially is.

Michael D Not Higgins · 13-10-2016 12:49pm

pilly wrote: »

What a lot of people are missing out on this is the fact that it's a tax rebate so you have to have paid 20k tax to get that amount back. Now a lot of people on average wages will not have paid 20k tax over the last 4 years. And before anyone jumps down my throat I'm not including USC because the government doesn't classify that as PAYE which is essentially is.

You would need to have a salary of over 90k to qualify for the mortgage to get the 20k rebate. If you've been fully employed for the last 4 years around your current wage, you will most likely qualify for the max rebate on the max house price you will qualify for.

awec · 13-10-2016 12:57pm

Michael D Not Higgins wrote: »

You would need to have a salary of over 90k to qualify for the mortgage to get the 20k rebate. If you've been fully employed for the last 4 years around your current wage, you will most likely qualify for the max rebate on the max house price you will qualify for.

Also, I would guess that most mortgage applications are joint applications.

I reckon in the majority of cases they will qualify for the max 5% between the two people, probably with quite a bit to spare.

exaisle · 13-10-2016 1:02pm

This scheme is such a load of crap you'd need to be blind to not see the steam rising from it.

All it will do is put the cost of new builds up.

There are two ways of reducing property prices....increase supply or decrease demand. End of. The government (and presumably the geniuses in the department of finance) who thought this stupid scheme up should not meddle with supply and demand in a fairly open economy like ours. The market will find its own level and there are no short-term solutions. I'll just say that again...there are no short-term solutions. Solving the housing crisis is something that will have to be done over a generation by the provision of good quality local authority housing with long term tenants being given the option to buy after a certain period eg. 10 years. Sorry folks. In the meantime, many families will end up renting which is pretty much the norm in many areas of Europe.

The government should concentrate on providing good quality local authority housing like they used to before the boom/bust/boom.... That in turn will increase supply and allow prices to stabilise.

pilly · 13-10-2016 1:04pm

awec wrote: »

Also, I would guess that most mortgage applications are joint applications.

I reckon in the majority of cases they will qualify for the max 5% between the two people, probably with quite a bit to spare.

I was referring to a single person, sometimes they buy property too.

Michael D Not Higgins · 13-10-2016 1:10pm

pilly wrote: »

I was referring to a single person, sometimes they buy property too.

But you can only qualify for a rebate on what you can afford to get a mortgage for. A single person who qualifies for a mortgage for a 400k house has most likely paid more than 20k tax in the last year alone.

StupidLikeAFox · 13-10-2016 1:13pm

exaisle wrote: »

The market will find its own level and there are no short-term solutions. I'll just say that again...there are no short-term solutions. Solving the housing crisis is something that will have to be done over a generation by the provision of good quality local authority housing with long term tenants being given the option to buy after a certain period eg. 10 years. Sorry folks. In the meantime, many families will end up renting which is pretty much the norm in many areas of Europe.

What we have heard time and time again is that people are:
1 - Working hard and paying tax
2 - Paying huge rents, so have repayment capacity
3 - Can't afford to save a deposit

This gives those people an opportunity to reclaim the tax they have paid and use it as a deposit to get a mortgage they can afford.

I think the problem is looking at this from the perspective of people who have bought since July, or are ready to buy in the near future. This is aimed at people who are way off being ready to buy - it will help speed up their process by eliminating the problem of being unable to save a deposit.

MrMorooka · 13-10-2016 1:49pm

Glen_Quagmire wrote: »

For me and I'm sure a lot of others like me who are looking to get onto the property ladder in Dublin as a single mortgage applicant, this scheme isn't much use as the price of new builds in Dublin are out of the price range of a single applicant unless you're earning over 100k a year.

pilly wrote: »

I was referring to a single person, sometimes they buy property too.

I've pretty much accepted that as a single applicant the only way I am going to own the kind of property I would ideally want in Dublin is to keep saving until I have a 6 figure 'deposit', so that's my plan. Brave renting for the next 5~ years or as long as I can, while saving everything else. Not that that's bad, through renting I can live where I want. The only other way would be to have a joint application with someone who makes at least as much as I do(48k), but you have to be realistic- given my social life and personal circumstances, there is currently no reason to believe that I will ever be able to make a joint application.

This measure does nothing really for me, but I'm not the target market. My problem is not the deposit at all, I already have a large deposit saved up and I put €1000 into my saving account almost every month, it's LTI(edit : not LTV, whoops) that would stop me from buying where I want to without a partner.

Cian53 · 13-10-2016 2:08pm

Anyone know if one off builds by private builders are included in this and not jus developers housing...also wat qualifies as new build.iv jus bought a house tat was built in 2010 but we are the first occupiers.will I be eligible for rebate

Glen_Quagmire · 13-10-2016 3:36pm

The LTI rule is a pain for some people who can certainly manage a bigger mortgage but it's there to protect the majority of people from getting themselves in over their head.

What do the banks look at when giving out exceptions to the LTI rule of 3.5 times salary?

68 lost souls · 13-10-2016 4:10pm

Glen_Quagmire wrote: »

The LTI rule is a pain for some people who can certainly manage a bigger mortgage but it's there to protect the majority of people from getting themselves in over their head.

What do the banks look at when giving out exceptions to the LTI rule of 3.5 times salary?

Im pretty sure length of service and the field of employment are considered amongst other things such as number of children, other outgoings, how much you save a month.

A job like a primary teacher with job security for life and a fixed pay scale that will have known increments. is more likely to get an exception than a salesman who can lose their job based on performance.

ThisRegard · 13-10-2016 4:31pm

Fianna Fail have now come out and said they're opposed to the scheme, so it'll be interesting to see what happens when the debate starts on the finance bill.

The Budget scheme for first-time buyers is now in doubt after Fianna Fáil says it is opposed to the plans.

And the party says it will table amendments to the scheme when it comes before the Dáil later this year.

Housing spokesman Barry Cowen says the high cap for the scheme makes it nothing more than a "mansion grant".

And he has cast questions about how the scheme will work - or whether it will come to fruition at all - by saying Fianna Fáil will use its Dáil power to overhaul it:

http://www.todayfm.com/FF-will-table-changes-to-firsttime-buyers-scheme

68 lost souls · 13-10-2016 4:36pm

ThisRegard wrote: »

Fianna Fail have now come out and said they're opposed to the scheme, so it'll be interesting to see what happens when the debate starts on the finance bill.

When is the debate and vote on the finance bill?

Last I heard there was speculation that FF may try and get the scheme capped at 400,000

ThisRegard · 13-10-2016 4:37pm

Yeah, seems likely they'll push for a cap, and like has been asked here, there's questions as to how it can be implemented.

I thought the debate might have been next week but that article indicates 'later this year'.

68 lost souls · 13-10-2016 4:46pm

thebeerbaron wrote: »

They should rename it help push up prices scheme:
http://www.thejournal.ie/budget-housing-3024449-Oct2016/
not 1 thing in the budget to increase supply. Total joke, these politicians haven't a clue

Ugghhh terrible reporting. As mentioned in other threads. House prices increase between phases all the time!!!! Its nothing to do with the budget.

dzwx · 13-10-2016 7:45pm

Michael D Not Higgins wrote: »

Yes the money has to go on the deposit and it has to be less than 20% deposit including the rebate. If you're buying this year before the scheme is launched you can buy up to 20% with your own money and get the 5% back when it launches.

If you buy next year, you can have a max deposit of 15% with the max rebate of 5%.

So lets say I managed to get deposit bigger then needed to buy a house that I'm looking for, do I have to use ALL my savings as a deposit?or can I use just enough to hit 80% LTV and use rest for something different and still take advantage of new scheme?

68 lost souls · 13-10-2016 7:48pm

dzwx wrote: »

So lets say I managed to get deposit bigger then needed to buy a house that I'm looking for, do I have to use ALL my savings as a deposit?or can I use just enough to hit 80% LTV and use rest for something different and still take advantage of new scheme?

Provided the bank allows you borrow that much and also then you will pay a higher interest rate and won't be able to take advantage of the banks cash back offers for less than 80% ltv

Cian53 · 13-10-2016 8:02pm

We closed the sale of our house on July 30th..Does anyone know if we wil b eligible for the rebate or will the fact that we paid the booking deposit in June mean we have missed out

q85dw7osi4lebg · 13-10-2016 8:35pm

Cian53 wrote: »

We closed the sale of our house on July 30th..Does anyone know if we wil b eligible for the rebate or will the fact that we paid the booking deposit in June mean we have missed out

Only if you put pen to paper and signed the contract after 19th July will you get the rebate (I think).

Grassey · 13-10-2016 8:48pm

68 lost souls wrote:

Provided the bank allows you borrow that much and also then you will pay a higher interest rate and won't be able to take advantage of the banks cash back offers for less than 80% ltv

Actually the bank rate is <=80% for lower rate. The government rebate is for 'at least 80%' loan. We had signed loan for bang on 80% before rebate details were announced. So reckon we'll be OK on both counts being at 80%. Failing that I'll borrow another 1k to bump up the %, avail of the 20k back and swith mortgage after the rebate limit to get back onto lower rate. Accounting for increased rate and switch fees should still come out with net benefit.

If we'd a larger deposit I'd just take 80% now, get benefit of it all and then lump the cash in after drawdown.

syndrome777 · 13-10-2016 9:02pm

68 lost souls wrote: »

Im pretty sure length of service and the field of employment are considered amongst other things such as number of children, other outgoings, how much you save a month.

A job like a primary teacher with job security for life and a fixed pay scale that will have known increments. is more likely to get an exception than a salesman who can lose their job based on performance.

the most important thing is net disposable income after stressed mortgage rep (most of the time stressed interest is 6%)
normal NDI is 2050 for a couple + 250 for each dependable child.
Higher NDI is prob applied for exception to bi given.

Also what percentage of salary goes toward of your mortgage.
There are bands, but let say someone earning 50K is up to 44%,
but 2 ppl earning 50K, that percentage is only taken from higher earner, say someone on €39K, and is lower say 40%

so if your salary is 3000 you can't pay more then 1400 for a mort, and that 1400 being stressed on 6% if that makes sense

OfflerCrocGod · 13-10-2016 9:04pm

Bob24 wrote: »

No crazy insight and many posters here understand this already, but at least McWilliams calls it for what it is (almost ironic to see the Irish Independent is now the paper publishing this kind of stuff): http://www.davidmcwilliams.ie/2016/10/13/all-the-good-work-to-halt-second-property-crash-undone-in-a-day

I must be misunderstanding his analysis:

...
This will simply allow people to borrow more.

So, for example, take a house costing €400,000. Before the Budget, the buyer had to save a deposit of €58,000. Now, because there will be a 5pc tax rebate on the price of the house, which is 5pc of €400,000, or €20,000, the buyer has to save only €38,000.
...

Ermm...their mortgage is exactly the same in both instances the remainder is being made up by the tax rebate. What am I missing? I presume he meant to say that people would be able to deploy this money they are saving to increase their purchase price? But if they already had that money then they'd have bought before the announcement, it doesn't add up. Once you have enough to bid then you make your move, you don't wait around twiddling your thumbs hoping the government gives you a dig out. Not with rents the way they are, 5-6 months of rent would suck up a large chunk of the rebate.

Cuddlesworth · 13-10-2016 9:35pm

OfflerCrocGod wrote: »

I must be misunderstanding his analysis:
Ermm...their mortgage is exactly the same in both instances the remainder is being made up by the tax rebate. What am I missing? I presume he meant to say that people would be able to deploy this money they are saving to increase their purchase price? But if they already had that money then they'd have bought before the announcement, it doesn't add up. Once you have enough to bid then you make your move, you don't wait around twiddling your thumbs hoping the government gives you a dig out. Not with rents the way they are, 5-6 months of rent would suck up a large chunk of the rebate.

Larger amount of people bidding for the 400k house now. So prices go up, since their is no supply and FTB's have 20k in their pockets now.

hawkeye_bmr · 13-10-2016 9:37pm

We signed on 19th, so just scraping thru, house is down on ppr as new build, but the 4yrs previous PAYE is gonna be the next hurdle I can see..

Having returned home from Oz may 2015 after 3yrs away, we both have only 1 full year of PAYE, around 3k, so I'm assuming that that's all we'd get even tho 5% would be 7k~

Wondering what happens in this situation?

Alter_Ego · 13-10-2016 10:17pm

Cuddlesworth wrote: »

Larger amount of people bidding for the 400k house now. So prices go up, since their is no supply and FTB's have 20k in their pockets now.

You need almost 60k deposit and income of circa 100k to buy 400k house under old rules.

You need 40k deposit, 20k grant and income of circa 100k to buy 400k house under new rules.

The goal of the scheme is to help with the deposit requirement. Plus, there is too little new houses being built for the scheme to have any significant impact on the overall market.

The scheme also doesn't change the simple fact that majority of the population earns less that 100k per annum and will never be able to afford a 400k house to start with.

68 lost souls · 13-10-2016 10:32pm

Cuddlesworth wrote: »

Larger amount of people bidding for the 400k house now. So prices go up, since their is no supply and FTB's have 20k in their pockets now.

It's only on new builds and generally you don't bid on new builds it's first come first serve

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

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