Many believe that changes introduced by this week’s budget are good news for the property market and will assist in stabilizing the market and establish true price values.
Stamp duty has dramatically reduced to a flat rate of 1% on property values up to €1 million and 2% on any amounts over €1 million. It is thought that the new rate will be very attractive for those wanting to trade up or relocate and would also entice people in rented accommodation to purchase a home in the coming months.
However the changes to stamp duty in the budget now mean that for the first time in years, First-Time Buyers will return to paying stamp duty. Rachael Doyle, director of PIBA Mortgage Services said the changes are not good news for First-First Buyers; “For First Time Buyers it will be an extra cost inhibiting those wishing to get on the property ladder, particularly at a time when acquiring lending is extremely difficult… Taken the abolition of mortgage tax relief it is yet a further impediment for First-Time Buyers. In a sense it is one step forward and two steps backward”.
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- Stamp Duty: One step forward or two steps back?