April Budget – What has changed for Buyers?

April Budget – What has changed for Buyers?

April Budget – What has changed for Buyers? For all buyers out there:

  • Mortgage Interest Relief will be discontinued for any mortgage over 7 years from 1 May.
  • A new stamp Duty “Trade-in” scheme will be introduced. This is quite helpful as it means that NO, zilch, nada, stamp duty is payable by ‘a person who accepts a traded-in property in … exchange or part exchange for a new house / apartment’. Only catch – Stamp Duty will apply when the person sells the ‘swapped’ / traded-in house later on.

For more information on the Budget check out the Budget Section of the Dept of Finance Website.

There are 3 comments for this article
  1. JJ at 9:52 am

    Government needs to let the market bottom out as quickly as possible. Thank God they didn’t do more to prop it up. With so much uncertainty over what future taxes will be applied, and with so many people being insecure in their jobs, it is hard to see who will be happy to lay down money for a house right now.

  2. m4rmalade at 4:41 pm

    I would like to know if Mortgage Interest relief is discontinued after 7 years no matter how many mortgages you have had, or if it is available for the first 7 years of any new mortgage. It’s unclear to me.

    The government document says “This means that any taxpayer who has received mortgage interest relief for more than 7 tax periods will no longer be eligible for such relief from 1 May 2009.”

    And then “The relief will continue to be available on the interest paid for the first seven years of any new qualifying loans taken out after 1 May 2009. However, in cases where an individual has already had mortgage interest relief for a seven-year period, they will only qualify for the reduced rate of relief as was the case heretofore.”

    http://budget.gov.ie/2009SupApril09/downloads/Annex%20C%20-%20Mortgage%20Interest%20Relief.pdf

    Ernest & Young say “From 1 May 2009, mortgage interest relief for principal private residences will only be available for the first seven years of the mortgage. Potentially this may encourage individuals to trade up as it would appear that the drawdown of a new mortgage would attract interest relief for a further seven years.”

    http://www.ey.com/Global/assets.nsf/Ireland/Mini-Budget_2009_-_Detailed_alert/$file/Mini-Budget%202009%20-%20Detailed%20alert.pdf

    I’m confused :-/

  3. Kieran at 11:07 am

    As a first time home buyer looknig for something in central Dublin, would I be better off looking to buy a new apartment or a second hand apartment?

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