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

gandalfio wrote: »

I see. But not all first time buyers that are ELIGIBLE for HTB qualify for mortgages big enough to buy new builds with. Even with the extra capital from the HTB.

Right much in the same way as a first/second/third time buyer I don’t earn enough to buy a €5m island/mansion combination off the coast of Cork/Kerry.

In the majority of cases the scheme benefits higher earners, people who can already get a high enough mortgage to purchase a newly built home and don't need the HTB. Many of those on lower incomes can't afford the inflated house prices and although they have their HTB application approved, never get to avail of the scheme.

gandalfio wrote: »

If new builds weren't inflated by the HTB, people on lower incomes might be able to afford them in more cases.

Perhaps, people on lower incomes should be looking at second hand houses?

If anything, new developments will keep second hand prices more stable. In locations where there's a lot of new development, second hand houses might strugle to sell with inflated prices.

gandalfio wrote: »

A lot of second hand houses need thousands put into them in renovations/upgrading. Not to mention up to 20k to insulate them properly. A HTB rebate would really help people with this.

and that doesn't increase housing stock, which is the sole purpose of the help to buy scheme? I'm surprise how you're not getting this?

Creamy Goodness wrote: »

and that doesn't increase housing stock, which is the sole purpose of the help to buy scheme? I'm surprise how you're not getting this?

The sole purpose of the scheme is not as you say above. Have a read about the scheme and what it's intended for.

Hi everyone,
Sorry if this has already been asked, but I just saw this morning that "Purchasers will now be able to reclaim up to 10% (to a maximum of €30,000) of the price of a new home costing up to €500,000. This is increased from the previous 5% / €20,000 limits for Help to Buy"

Previously, this meant that if I was buying a house for 300k, I needed a 5% deposit and the help to buy scheme did the other 5%. What does this mean now? I've tried reading into it but I find it a bit confusing
Thanks

Billythekid19 wrote: »

The vast majority of first time buyers would have to save for years to save up enough for a deposit while renting. Now they can get 30 grand and essentially dont need savings so makes the dream of owning a new home a reality.

30 grand paid in taxes over the previous 4 years. You still need to have saved a significant proportion of the deposit yourself. The 10% can't be solely from HTB or gifts.

I contacted my local td for clarity on whether people can claim the extra 10k if they already claimed 20k a few months ago.


The response was 'The extension on the htb scheme was effective from 24th July' so a contract on a new build must be claimed after this date to be eligible to claim an extra 10k

Conrad83 wrote: »

Am interested to view the debate today - will this be broadcast live and does anyone know rough time?

Would also be interested to see this. I thought it was on Thursday but maybe it is today.

Seanad tomorrow I think, Dail today

Graham wrote: »

That's a really valid point gandalfio.

How will the banks approach the reduced deposit requirements?

Are we going to see coupled forced to save €30k over a year to prove capacity to pay, even though their contribution to the deposit might only be €3k.

Would a bank necessarily need to see 30k in savings to satisfy repayment capacity if there is track record of rent payments + some savings?

Got a response from revenue on the changing HTB. Looks like to avail of the change you'll have to cancel your application and create a new one. They won't update automatically.

"Amendments to the Help to Buy scheme were announced as part of the Governments July Jobs Stimulus Plan last week. The changes to the scheme along with a number of other fiscal measures have been set out in the Financial Provisions (Covid-19) (No.2) Bill 2020, which was published on 24 July 2020.

In summary, the proposed legislation provides that where applicants sign a contract for the purchase of a new house or apartment, or make the first draw down of the mortgage in the case of a self-build property, during the period from 23 July 2020 to 31 December 2020, they will be eligible for increased relief under the Help to Buy scheme to the lesser of:
· €30,000 (up from €20,000), or
· 10 per cent (up from 5%) of the purchase price of the new home or of the completion value of the property in the case of self-builds, or
· the amount of Income Tax and DIRT paid over the four years prior to making the application.

The temporary enhancements to the Help to Buy scheme outlined above are subject to the Bill being passed through the various stages in the Oireachtas before it can be enacted.

Where applicants have made a Help to Buy application with Revenue but believe they satisfy the requirements of the enhanced Help to Buy relief, when the Revenue system is updated to cater for the new enhanced relief, the applicants may cancel their original Help to Buy application and reapply to avail of the increased relief.

Revenue will publish updated guidance on www.revenue.ie in relation to these measures as soon as possible following enactment of the Finance Bill. "

thekingof60 wrote: »

Has there been any confirmation that the bill did get passed by the Oireachtas today?

Looks like it passed the Dáil, and will be debated on the Seanad, today. "This Bill, which is certified to be a money Bill in accordance with Article 22.2.1° of the Constitution, will be sent to the Seanad."

Paremon2 wrote: »

Thanks. Does anyone know if Bills can be amended in the Dail AND the Seanad or is it just one or the other (i.e. Dail only or Seanad only)?

I got my answer. Amendments can be made in the Dail or Seanad. Ref https://www.oireachtas.ie/en/bills/bill/2020/19/ (hover over the different stages to view details).