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

cronos · 14-11-2016 3:19am

Cayden Red Sender wrote: »

Banks count between 30 and 50% of the previous years commission / bonus towards your income when multiplying.

It is possibly an exception could be made given the salary level.

Anyone aware how the exemption process works? Do the bank decide who to exempt themselves? Or do they have to get permission from the Central Bank?

bleary · 14-11-2016 7:44am

Banks are free to decide themselves who gets the exemption.
The central bank audits them on a macro level to ensure that too many aren't being given out rather than case by case

bleary · 14-11-2016 7:44am

Apply and see , their exemptions restart in January so even if you were refused today you could reapply in January and hopefully get it.
Evidence appears to show however, that banks aren't using their exemptions fully anyway

sibersha · 17-11-2016 8:49pm

I was paying a lower incorrect amount of tax for a while (my employer blames revenue & revenue blames my employer), I agreed with the revenue to pay back the amount owed (relatively small 4 figure sum) over 4 years.

This was about 2 years ago, one of the conditions on revenue.ie is to be fully tax compliant in respect of the four years immediately prior to the claim.

Will I have to clear this outstanding balance with revenue in order to be eligible for the scheme?

Also, my partner was out of work for a period of time over the past 4 years and may fall just short of the PAYE payments that amount to 5% of the purchase value. Can my partner only claim up to a maximum of her PAYE payments made over the last 4 years?

The_Conductor · 17-11-2016 9:16pm

sibersha wrote: »

I was paying a lower incorrect amount of tax for a while (my employer blames revenue & revenue blames my employer), I agreed with the revenue to pay back the amount owed (relatively small 4 figure sum) over 4 years.

This was about 2 years ago, one of the conditions on revenue.ie is to be fully tax compliant in respect of the four years immediately prior to the claim.

Will I have to clear this outstanding balance with revenue in order to be eligible for the scheme?

Also, my partner was out of work for a period of time over the past 4 years and may fall just short of the PAYE payments that amount to 5% of the purchase value. Can my partner only claim up to a maximum of her PAYE payments made over the last 4 years?

You will have to contact Revenue to clarify this- however, technically, even if you repay the sum in full, you will not have been tax compliant for the 4 years prior to the claim- you will only commence being compliant in full, when you have fully repaid the o/s amount (regardless of how much or little that may be).

pilly · 18-11-2016 10:37am

sibersha wrote: »

I was paying a lower incorrect amount of tax for a while (my employer blames revenue & revenue blames my employer), I agreed with the revenue to pay back the amount owed (relatively small 4 figure sum) over 4 years.

This was about 2 years ago, one of the conditions on revenue.ie is to be fully tax compliant in respect of the four years immediately prior to the claim.

Will I have to clear this outstanding balance with revenue in order to be eligible for the scheme?

Also, my partner was out of work for a period of time over the past 4 years and may fall just short of the PAYE payments that amount to 5% of the purchase value. Can my partner only claim up to a maximum of her PAYE payments made over the last 4 years?

Revenue can be very helpful in this regard, if you get the right person they will do everything they can to accommodate you. I was previously working for a self-employed gentleman who was behind in taxes but had entered into an arrangement and they issued a tax clearance cert for me.

Technically you were tax compliant, if you were a PAYE worker the errors couldn't be down to you.

Ring them, honestly, they can be very helpful.

TheUnderfaker · 23-11-2016 11:45am

Apologies if similar questions have been asked before, but I can't seem to find the answer.

Contract has just been issued to my solicitor, so in order to get our kitchen appliances included I need to have them signed and returned within 28 days. I'm wondering if I sign the contract in December, will I qualify for the tax rebate for what I've paid in 2016? I returned to Ireland in late 2015 so only have the tax paid this by way of a rebate.

I was kind of hoping the contract might be delayed to the new year so I could say I signed it in 2017. Not entirely sure what the story is.

cronos · 23-11-2016 1:36pm

TheUnderfaker wrote: »

Apologies if similar questions have been asked before, but I can't seem to find the answer.

Contract has just been issued to my solicitor, so in order to get our kitchen appliances included I need to have them signed and returned within 28 days. I'm wondering if I sign the contract in December, will I qualify for the tax rebate for what I've paid in 2016? I returned to Ireland in late 2015 so only have the tax paid this by way of a rebate.

I was kind of hoping the contract might be delayed to the new year so I could say I signed it in 2017. Not entirely sure what the story is.

If it helps I signed after the 28 days and just made sure that the contract stated that I would still get the kitchen utilities. I would just ring Revenue with that question though, you will need to fill out your form 12's anyway so better to get the ball rolling now.

68 lost souls · 23-11-2016 3:14pm

Rumors that the scheme will be scrapped?

http://www.98fm.com/Central-Bank-Scraps-20-Per-Cent-Rule-For-First-Time-Buyers

Surely this now would effect people that bought on the basis of the scheme, and are at the limit of the 3.5 x income would need to borrow the difference in what the scheme was getting them but cant because they are maxed out?

pilly · 23-11-2016 3:33pm

68 lost souls wrote: »

Rumors that the scheme will be scrapped?

http://www.98fm.com/Central-Bank-Scraps-20-Per-Cent-Rule-For-First-Time-Buyers

Surely this now would effect people that bought on the basis of the scheme, and are at the limit of the 3.5 x income would need to borrow the difference in what the scheme was getting them but cant because they are maxed out?

There's no way that the scheme will be scrapped. They have announced it now so they will have to run it for at least 1 year.

23-11-2016 3:33pm

68 lost souls wrote: »

Rumors that the scheme will be scrapped?

http://www.98fm.com/Central-Bank-Scraps-20-Per-Cent-Rule-For-First-Time-Buyers

Surely this now would effect people that bought on the basis of the scheme, and are at the limit of the 3.5 x income would need to borrow the difference in what the scheme was getting them but cant because they are maxed out?

They'd be mad to scrap this as it would take the incentive away from FTB's to purchase new stock, thus decreasing new supply.

mahoganygas · 23-11-2016 3:35pm

68 lost souls wrote:

Rumors that the scheme will be scrapped?

I haven't seen anything on the help to buy scheme being scrapped, unless I'm missing something?

I just see news on the central bank lending rules changing.

I assume the government budget decision on new builds still stands?

pilly · 23-11-2016 3:43pm

mahoganygas wrote: »

I haven't seen anything on the help to buy scheme being scrapped, unless I'm missing something?

I just see news on the central bank lending rules changing.

I assume the government budget decision on new builds still stands?

It does say at the end of the article that it throws doubt on the scheme but I agree it doesn't mean they're going to scrap it.

The governments idea was more about stimulating new builds.

Pedro32561 · 23-11-2016 4:02pm

mahoganygas wrote: »

I haven't seen anything on the help to buy scheme being scrapped, unless I'm missing something?

I just see news on the central bank lending rules changing.

I assume the government budget decision on new builds still stands?

It looks like it's just media speculation. Hard to see how it could be scrapped.

The_Conductor · 23-11-2016 7:43pm

The scheme was a two pronged scheme- on the one hand designed to ameliorate the 20% deposit requirement for first time buyers versus the 10% requirement for other purchasers- on the other hand to stimulate the construction of residential dwellings.

The Minister got to play Santa Claus with first-time-buyers- appearing to single them out for preferable treatment- in a manner that he could point at come the next election- however, the central tenent of his approach was always to stimulate the construction of new property........

As the excuse for giving FTBs preferable treatment- has now been nullified- the honest approach would now be to abandon the scheme and simply incentivise the industry directly..........

Will it happen this way? I doubt it- he is a politician after all..........

mahoganygas · 23-11-2016 8:26pm

The_Conductor wrote:

As the excuse for giving FTBs preferable treatment- has now been nullified- the honest approach would now be to abandon the scheme and simply incentivise the industry directly..........

Paul Murphy and Clare Daly would have kittens if the government tried to give developers a leg up.

Totally agree that this scheme is all about optics. As a potential FTB I'm under no illusion that this scheme is designed to benefit me.

Aph2016 · 23-11-2016 9:32pm

The scheme being scrapped would be the worst possible outcome. The 10% deposit doesn't make much difference for the majority of people and new builds have already gone up in price on the back of the Help to Buy scheme.

GDK_11 · 23-11-2016 9:42pm

Going through the the process of buying a new build at the moment. The incentive was a big thing in us going for a new build, so if it's possibly being scrapped we may have to hold tight for a bit.
Financially we would still just about be ok but the rebate was going to be a little nest egg so to speak.

CramCycle · 23-11-2016 10:00pm

No mention or hint of it being scrapped, only in a few click bait articles with no mention of it passed the opinion of a noose trying to sell a story.

Pedro32561 · 23-11-2016 10:09pm

CramCycle wrote: »

No mention or hint of it being scrapped, only in a few click bait articles with no mention of it passed the opinion of a noose trying to sell a story.

Totally agree. Pure click bait.

Michael Noonan was just interviewed on the news saying how the new Central Bank rules and the grant will work really well together for first time buyers. It won't be scrapped.

Ray Donovan · 23-11-2016 10:56pm

Could anybody give me some advice please?

We are currently building our house.

Mortgage of €250,000 and valuation used by bank upon completion is €360,000 (which is a bit crazy in my opinion).

This means my LTV is 69.44%. I meet all the other criteria except minimum 70% LTV. Are there any options available to me?

Stheno · 23-11-2016 11:09pm

Ray Donovan wrote: »

Could anybody give me some advice please?

We are currently building our house.

Mortgage of €250,000 and valuation used by bank upon completion is €360,000 (which is a bit crazy in my opinion).

This means my LTV is 69.44%. I meet all the other criteria except minimum 70% LTV. Are there any options available to me?

Increase your mortgage?

Ray Donovan · 23-11-2016 11:13pm

Stheno wrote: »

Increase your mortgage?

Minimum top up I think is €20,000!!! So I don't think that's a runner!!

CramCycle · 23-11-2016 11:23pm

Is it too late to get it revalued and paperwork redone. Talk to your mortgage adviser or the property valuation crowd and see can it be valued at 350,000?

If you already have the mortgage that maybe difficult.

Earleybird · 23-11-2016 11:25pm

Ray Donovan wrote: »

Minimum top up I think is €20,000!!! So I don't think that's a runner!!

You don't need much revision downward, I would get a list of approved valuers with your mortgage provider and get on the phone, you should find one that values it favourably.

cronos · 24-11-2016 1:48am

I don't see anywhere saying it would be scrapped at this stage. My guess thought is that they will have a review of how it's impacting prices over the course of the year and if it's having a negative impact remove it in the next budget or adapt it somehow.

ohlordy · 28-11-2016 2:13pm

Sunday Business Post had it being scrapped on their front page yesterday. I would think that's a step up from it only being mentioned on clickbait sites as stated above

ohlordy · 28-11-2016 2:18pm

Examiner http://www.irishexaminer.com/ireland/first-time-buyers-grant-could-be-axed-432620.html
says it could be scrapped if it is demonstrated it has caused prices to rise.
It's not at all clear when this decision may be taken, it could be after it has been in operation for a year or two, it could be before it starts.

Michael D Not Higgins · 28-11-2016 3:25pm

Collyb101 wrote: »

I really with Central Bank and the Government would sit down and have a chat. <snip>*

They are in contact, they just have different remits and expectations of outcomes from their respective policies. The Central Bank has been firm about these policies being implemented in the first instance, the first real regulatory prudential limiting of the mortgage industry in years (decades even?) against the will of the government but not in ignorance of the government.

flashforward · 28-11-2016 10:45pm

Anyone know if unfinished properties apply for the grant?

Missed opportunity if not.

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

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