The government will be hoping that measures introduced in this week’s Budget will help to kickstart the property market in the New Year.
A large number of potential buyers around the country are waiting on the right time to make a purchase. However, a recent survey by MyHome.ie found that most first time buyers want to buy their own property in the next three years.
That process might now be brought forward to 2012 with Finance Minister Michael Noonan hoping that his Budget deal of up to €5,000 a year in mortgage interest relief will attract people back to buying property.
Buyers have just 12 months to cash in on the incentivised scheme. Up until now, couples buying a home next year would have qualified for €900 in mortgage tax relief but that has now jumped to €5,000.
If they buy in 2012 they can expect that the increased level of relief will last until 2018, meaning they could end up saving as much as €35,000 by buying now rather than wait until 2013 or beyond when they will be entitled to nothing even if prices do drop slightly more.
Mortgage interest relief will also be used to help over 214,000 families who bought at the height of the boom and are struggling with repayments.
The rate of mortgage interest relief has been increased to 30% for first time buyers who took out their first mortgage between 2004 and 2008.