MyHome.ie welcomes extension of Mortgage Interest Relief Scheme to 2017 but expresses disappointment at the “missed opportunity” to substantially reduce stamp duty rates.
MyHome.ie, Ireland’s leading property website welcomed the announcement by the Minister for Finance that mortgage interest relief will continue to be applicable for seven years for all qualifying loans taken out before 1st July 2010, and that transitional arrangements will be put in place for qualifying loans taken out between 1st July 2011 and the end of 2013. In addition, those people whose entitlement to Mortgage Interest Relief is due to expire in 2010 or after will now continue to receive relief up to the end of 2017.
In addition MyHome.ie expressed disappointment that the Minister for Finance did not revise downwards the current rates of stamp duty for residential and non-residential property transactions in order to provide some small stimulus to trading in the property market at the current time.
Commenting on the Budget today, Paul Murgatroyd, economic consultant to MyHome.ie said “The extension of Mortgage Interest Relief for qualifying loans taken out from July 2011 until the end of 2013 is most welcome, as is the extension of Relief until 2017 for those loans previously taken out for which relief was due to expire from 2010 onwards. At the current time this relief provides significant assistance in the form of lower mortgage repayments to hard pressed home owners, and this relief will be of an even greater benefit and help cushion the blow of higher interest rates and the impact they have on mortgage repayments in the medium term when rates begin to rise again towards the end of 2010.
He further added “It is disappointing that the Minister chose not to try and stimulate the property market through either a tax credit scheme for new first time buyers of new homes which studies have shown could be self financing at the very least, or by a reduction in stamp duty rates at a time when a stimulus could absolutely be justified and stamp duty has effectively abolished itself. Whilst the Minister committed himself to a new property tax at some point in the future, he missed the opportunity to take the first steps towards its introduction by abolishing stamp duty on residential property transactions and paving the way for a new wider based residential property tax.
Further Information from Paul Murgatroyd Economic Consultant to MyHome.ie firstname.lastname@example.org or 0876998884