Couples earning up to €90,000 may avail of new affordable housing scheme after Budget 20 September 2018House-hunting couples who earn up to €90,000 a year may be able to avail of a new affordable housing scheme after the Budget.Fianna Fáil is demanding the introduction of an affordable housing scheme which will see homeowners enter into a shared-ownership arrangement with local authorities.The scheme, which is central to Budget negotiations, will see local authorities buy houses from developers before offering them at significantly subsidised rates to first-time buyers. Local authorities will retain a stake in the properties until the home is sold or bought out by the property owner.The scheme will be targeted at people earning between €30,000 and €90,000.It is envisaged that Dublin local authorities would subsidise houses by as much as 50pc under the scheme which aims to provide houses priced between €160,000 and €200,000. Fianna Fáil is insisting on the scheme being introduced next year to ensure there is no delay in the roll-out of affordable housing.The party is also proposing a more comprehensive long-term affordable housing scheme that would involve local authorities building new homes. This would see €200m earmarked to build 4,000 affordable houses.The two schemes form the backbone of Fianna Fáil's demands ahead of the final budget of the confidence and supply arrangement.Fianna Fáil housing spokesman Darragh O'Brien, along with the party's budget negotiator Barry Cowen, yesterday met Finance Minister Paschal Donohoe and Housing Minister Eoghan Murphy to discuss the proposal.A Fianna Fáil source said it was "making slow progress" on affordable housing but insisted the two new schemes are at the centre of its budget demands.Fine Gael and Fianna Fáil will meet over the coming weeks to determine how much funding is available for social housing.Irish Independent
Properties in Tramore under €170,000 07 September 2018We have a selection of really good homes under €170,000 now available in Tramore.
Check out this quick video.
Revealed: Increased house supply fails to halt price spiral as ordinary families squeezed out 19 June 2018BUILDING more houses has failed to drive down prices in areas of high demand, startling new figures reveal.The average price paid for a new home has risen by almost 60pc in some parts of the country, despite hundreds of units being built in these areas last year.The new revelations run contrary to the Government insisting that increasing output would stabilise prices and give working families the opportunity to buy their own homes.A detailed analysis of Central Statistics Office (CSO) data by the Irish Independent reveals a host of trends.They show: The average price of a new home in January 2018 was €324,999, up 10.2pc compared with the same month of 2017; Investors paid an average of almost €217,000, compared with €314,999 by a first-time buyer a difference of more than €98,000; Despite supply increasing, prices rose in 54 out of 80 Eircode areas where information was available; In areas where 200 units or more were built in 2017, prices rose in 13 and fell in five.The sharpest increase was in Cork Southside, where prices were up 57pc. The steepest fall was in Swords, where prices fell by 20pc.These figures are based on the average price paid for a new dwelling in January 2017 compared with January this year.They are a snapshot in time and include both purchases of houses and apartments, although they do not go into further detail about how many properties were sold during those months.The figures suggest that prices show no signs yet of stabilising.Architect and UCD lecturer Orla Hegarty, who has repeatedly queried official data on house completions, said a rise in housing output would not drop prices."The price of new houses drifts up and down with general property prices. If a house in Dundrum sells for €500,000, and you build a new one, you'll sell it for €500,000."The more they build, the more people buy. It's a way of storing wealth."Builders are chasing the premium product, like student housing or infill developments in south Dublin."They don't need to get into the mass-market stuff."If there were more players,Architect Orla Hegarty warns house prices will not drop they would do other things." The data also shows that pension funds and cash-investors are paying an average of 100,000 less for a new home than first-time buyers.This trend may be limiting the ability of ordinary families to compete in areas of high demand including parts of Dublin, Galway and Cork.The reasons why investors enjoy lower prices is due to the precarious financial position of some builders, sources suggest.Finance is expensive, and investors often buy multiple units at a time, which provides financial certainty.It also meant the builder did not have to incur the cost of developing a show house, or fund marketing and legal fees on the sale of properties.The latest revelations come after new data from the CSO this week lifted the lid on exactly what is happening in the housing market.The official statistics body revealed that the number of homes built between 2011 and 2017 had been over-stated by more than 60pc.Government figures, based on the number of units connected to the ESB network, had suggested that 85,154 new homes were completed.But the CSO said this included farm buildings, mobile homes, vacant properties and units in ghost estates. The correct figure was 53,578.Last year, a total of 14,446 units were completed. This compares with official figures of 19,271.This total also includes one-off single units, most of which will never be offered for sale.Irish Independent 17 June 2018
Tax Obligations for Non Residents! 08 March 2018
New council mortgage scheme to offer lower rates than most banks 23 January 2018
FIRST-time buyers will be able to get a loan worth up to €288,000 with an interest rate of 2.25pc for 30 years under the Government’s latest plan to tackle affordability in the housing market.The new Affordable Mortgage Scheme offers lower rates than most banks – and significantly, the interest will be fixed for the duration of the loan.Housing Minister Eoghan Murphy will today announce details of the scheme along with new proposals for building more mid-price homes and ensuring long-term affordable rents.The Rebuilding Ireland Home Loan, which is likely to save homebuyers up to €10,000 over the lifetime of a mortgage, will be run by local authorities from February 1. It will be subject to the same lending rules as ordinary banks, which currently offer first-time buyers interest rates in excess of 3pc.The Government loan can be used both for new and second-hand properties, or to build your own home.But to qualify, an individual’s annual gross income cannot exceed €50,000, or in the case of a joint application €75,000.There will also be a limit on the price of a home that can be bought from the scheme. In the Greater Dublin Area, Cork and Galway, the maximum market value is €320,000. In the rest of the country, it is €250,000.House hunters looking to avail of the deal must also have had two insufficient offers or refusals for a mortgage from two lending institutions.Mr Murphy said the scheme would offer buyers “absolute certainty of their repayments over the lifetime of the loan”.“What this means essentially is that a person or couple can purchase a home, while ensuring that they can still keep their monthly repayments to one-third of their net disposable income – with no risk of their mortgage rate rising and so no threat to their ability to afford repayments, giving them certainty and security,” he said.The minister will also use a housing summit in Dublin today to announce an affordable purchase scheme that will see affordable homes built initially on State land.The State will retain an equity in all discounted homes sold. For example, a house that costs €250,000 may be made available to purchase at €200,000.The equity share can be paid off, interest free, by the purchaser at a later date. Or if the owner wants to sell early, the State can take that portion back at the time of sale.Details of the full qualifying criteria have yet to be finalised ahead of a launch next month, but it’s understood the same income limits as under the Rebuilding Ireland Home Loan will apply.Mr Murphy said that there were four “major ready-to-go sites in Dublin being advanced through procurement with construction likely to start before year-end”.The third element of the minister’s announcement today will be an affordable rental scheme.This will be done using a model that sees rent charged based on the cost of building the property, together with ongoing management and maintenance charges, but with a minimal profit margin included.A pilot project on this initiative is under way in Dún Laoghaire-Rathdown County Council, in conjunction with the Housing Agency and an approved housing body, using publicly owned land.The minister is in discussions with the European Investment Bank about cost rental and other affordable models that could work in Ireland.
- Affordable Mortgage Scheme will begin on February 1
- The loan can be used both for new and second-hand properties, or to build your own home
- Income limits and maximum house price limits part of scheme
Tax Tips Prior To Year End 18 December 2017
'Trapped generation' hit by new changes to mortgage lending rules 29 November 2017
Central Bank tweaks mortgage limits for those trading upSecond-time buyers have been hit by new changes to mortgage lending restrictions. Central Bank Governor Philip Lane left the rules much as they are, but he did make a slight adjustment to how the exemptions to the lending limits work.This will largely hit the 'trapped generation' who are trying to trade up.Most buyers will still be restricted to borrowing no more than three-and-a-half times their income.First-time buyers will still be required to have a deposit of 10pc of the property's value, with a 20pc deposit needed by second-time, and subsequent, buyers.But there are exemptions to the rules. Up to now, banks were able to allow 20pc of all borrowers an exemption from the income limits. This exemption did not distinguish between new and second-time buyers.The exemptions allow the likes of a newly qualified doctor to avoid the income limit, as their income is expected to rise.Now the regulator has said banks would be allowed to exempt only 10pc of second-time buyers from the income-limit rules.However, banks will be able to exempt up to 20pc of first-time buyers from the rules, if they qualify for an exemption.Lobby group Brokers Ireland said the changes made did not go far enough.It said the existing rules remained too restrictive, especially for second-time and subsequent buyers, with good repayment capacity. It also claimed the limits are driving up rents.But Prof Lane said this reflected the reality of lending at the moment, where new buyers often had the potential to earn more as their careers progress.This meant they got an exemption more often than a second-time buyer."The larger allowance for above-ceiling lending to first-time buyers compared to second and subsequent buyers reflects the different characteristics of these two groups," said Prof Lane. "In particular, first-time buyers are typically younger, with current income levels lower, relative to expected future income levels."It is not expected that the change to the exemption limits will lead to higher, or lower, overall bank lending.But director of financial services at Brokers Ireland Rachel McGovern said there was no rationale for differentiating between first-time and subsequent buyers.She said the 10pc deposit rule should apply to all buyers, not just first-time buyers."And the 3.5 times gross income is too restrictive and should be eased to 4.5 times income for all buyers," she said."Many who bought at close to or at the top of the market have been unable to move. As their negative equity diminishes and their housing needs change, the rules compel them to find 20pc deposit before they can move. That is a mountain too high to climb for many."Brokers Ireland, which represents 1,300 broker firms, said the rules were good in principle, but were introduced far too early in the cycle, and had the effect of locking many out of the market."They have the effect of driving up rental prices, as we had predicted when they were introduced, to the extent that it has become cheaper to buy than rent in many parts of the country. The winners are cash buyers and investors, unfortunately," said Ms McGovern.Irish Independent
Budget 2018 Property Related Measures 11 October 2017€750m for housing finance
Up to €750 million of the Ireland Strategic Investment Fund, ISIF, to be made available for commercial investment in housing finance. The funds will be made available to a new vehicle to be known as Home Building Finance Ireland, or HBFI. The additional funds have the potential to fund the construction of an additional 6,000 homes.
Change of rate of Stamp Duty on Non-Residential Property from 2% to 6% from midnight on 10 October. A refund scheme to operate in relation to commercial land purchased for the development of housing.
Vacant site levy
A doubling of the current 3% levy rate that applies in the first year to 7% in the second and subsequent years. What this means in practical terms is that any owner of a vacant site on the register who does not develop their land in 2018 will pay the 3% levy in 2019 and then become liable to the increased rate of 7% from 1 January 2019. If they continue to hoard their land in 2019, they will pay 7% in 2020, resulting in an effective vacant site levy of 10% per cent over the previous two years.
Rented Residential Property To encourage owners of vacant residential property to bring that property into the rental market, a new deduction is being introduced for pre-letting expenses of a revenue nature incurred on a property that has been vacant for a period of 12 months or more. A cap on allowable expenses of €5,000 per property will apply, and the relief will be subject to clawback if the property is withdrawn from the rental market within 4 years. The relief will be available for qualifying expenses incurred up to the end of 2021.
Capital Gains Tax
A reduction of seven year period over which owners must retain qualifying assets to enjoy full relief from Capital Gains Tax to four years. An amendment will be made to Section 604 of the Taxes Consolidation Act 1997.
Mortgage Interest Relief
Tapered extension of mortgage interest relief for remaining recipients – owner occupiers who took out qualifying mortgages between 2004 and 2012. 75% of the existing 2017 relief will be continued into 2018, 50% into 2019 and 25% into 2020. The relief will cease entirely from 2021.
Need-to-know tips for the first-time buyer applying for a mortgage 11 September 2017Are you trying to save in the hope of securing a mortgage - but confused about what lies ahead?In the year to date, mortgage approvals for first-time buyers are up 43pc year-on-year, but this doesn't mean it's an easy process.Independent.ie spoke to the experts about what first-time buyers should be looking for:What is the main thing to note when you’re shopping for a mortgage?Managing Director at Bluewater Financial Planning Steven Barrett said the first thing a first-time buyer should look at is the interest rate that lenders are offering."It is so hard to get a mortgage these days, there are no myths really, it is actually a very difficult process," Steven told Independent.ie."The interest rate is the big thing to look out for, how much you’re going to repay."First-time buyers tend to look for the longer term which is better so you can borrow more money to get started. If you’re looking for the longest term, you’re looking to keep down repayments."This is new for people to hear, they’re not taught these things about finance or mortgages in school or college."Independent financial advisor with 52Financial Ross Connolly said he would advise speaking to a mortgage broker."Obviously I'm biased but the benefits of having a broker are; we do the shopping around for the client, we build a file which would be neutral and throughout the process we think of which bank we think would be most suitable for the client," he said.What are the red flags banks look for when you’re applying for a mortgage?"Overdrafts that are not organised or arranged with any bank are also a big no-no," Ross Connolly said."We stay away from overdrafts. You don't want to paint a picture of someone who is living from pay cheque to pay cheque. You don't want to be seen to be gambling or any excessive spending. We would cut that down. The accounts need to be clean."He said that they advise customers to do an Irish Credit Bureau check on themselves online at www.icb.ie to make sure they haven't missed any old credit card bills or supermarket clubcards they didn't realise they had signed up for."The aim is to catch any missed payments at all," Ross added, "just so you have any questions answered before the bank has to ask them."Steven Barrett of Bluewater Financial Planning said the first thing a bank will do is look at someone's credit rating.“I’d always advise people to get a copy of their own records so they know what they have, it is the first thing a bank will do," he said."My advice to first-time buyers is to make sure the minimum credit card payments are paid off each month because that will affect your credit card rating and make it more difficult to get a loan.“Missed payments on your direct debts are a big no-no as well. Banks do go through statements line by line. These days, people do spend a lot with their debit card, so your whole lifestyle is showing up on bank statements. If you miss payments, the bank will say, ‘well this person isn’t paying their bills and it is a red flag’.“You can get declined for repeated missed payments,” Steven added.What if I have savings or debt in other accounts, like a Credit Union account?There is no problem having savings in a different account, you can bank and save whatever and wherever you want, mortgage specialist with Mortgage Negotiators Shane Connole advised."You can bank and save wherever you want, and you can walk in to get a mortgage wherever you want. Just because you bank with Bank of Ireland doesn't mean you can't shop for a mortgage with KBC," he said."The debt on the other hand, you can have your loans wherever you want but this may have a negative impact on your loan approval."The debt will absolutely contribute to your credit rating, but it can also have an effect on how much you're borrowing."Is it true online gambling accounts are a 'no-no' when applying for a mortgage?The short answer is yes. Steven Barrett of Bluewater Financial Planning describes online betting accounts as a “big no-no”.“It’s a big no-no if you’re using Paddy Power and other gambling websites on a regular basis.“When people gamble regularly, they tend to leave the money in the online account if they win and this only goes one way. If they can see that you’re a regular gambler, they will refuse a loan.”If I’m renting, will the bank take it into consideration for a credit rating?Banks will take your monthly spend on rent into account for your repayment capacity, Ross Connolly advised."When it comes to the savings aspect, the repayment capacity would be the correct label to put on it."A couple paying €1,000 a month in rent need to know that this €1,000 will go towards their repayment capacity for a €1,200 a month mortgage, it will be considered savings for want of a better word."If you can get a car loan cleared coming up to the application, this can also be considered as repayment capacity."Can I get a financial gift from a relative?Mortgage specialist with Mortgage Negotiators Shane Connole said the simple answer is "yes"."There are no rules around it," he said, "but there are areas to watch out for. No bank likes approving mortgages where your own contribution is a 100pc gift. They would expect for a 10pc deposit, that 5pc of the money is your own savings and the other 5pc could be your gift. An example, you're buying a house for €200,000 and need a €20,000 deposit. You will need to show that €10,000 of that is from your own funds."The second aspect of receiving a gift is to watch out for tax, Shane Connole advised."It's better to receive the gift from a relative in a direct bloodline, based on the tax position. If you're getting a gift from an aunt or cousin, the bank will want to know how you will pay the tax and revenue on it."Finally, the bank will want to see the gift money in your own account at a certain stage of the process."Are there any myths or misconceptions you've come across?"I wouldn't come across a lot of misunderstandings," 52Financial's Ross Connolly said, "but some people don't understand the reason behind the saving."The main reason to save is so you can prove you have the repayment capacity when it comes to your mortgage."If your mortgage repayment is €1,000 a month, they may look for €1,200 in repayment capacity in case there is an increase in interest rates."People nowadays do seem to be more educated about applying for amortgage."It is rare that I come across an online betting shop in a bank statement. There is a high level of advice out there," he added.If I'm buying a doer-upper, can I get any special treatment?There are a few things to note if you're investing in a doer-upper, mortgage specialist Shane Connole said."The key areas are; do you need planning permission, you need invoices for the work you're doing to the property, and you need to ensure the loan you're applying for does not exceed 90pc of the total end value of the property."If you buy a house for €200,000 and do €50,000 worth of work, this does not mean the end value of the house if €250,000."The rule is it's 60pc of the value of works. So if I buy for €200,000 and I do €50,000 worth of work, the end value of the house would be €230,000."A lot of people fall flat on that. Banks cannot lend more than 90pc of the value per completion."You will also need invoices and typically you need a registered builder's invoice."Shane added that there is not a 'scheme' asuch in place for those buying doer-uppers, but you can receive the money in stages."You get the first part of the loan paid down when buying the house, and then your value of works is split into two payments. You receive one payment when half the work is done on showing an invoice, and you receive the second payment when the works are completed."So, you’ve saved for your deposit – are there any hidden costs?As well as your deposit, financial experts advise that you have the money aside to pay for the extra costs which include stamp duty, solicitors’ fees and surveying fees.“First-time buyers will have to have a 10pc deposit saved, but you will also need to show that you can pay for the associated costs,” Steven Barrett said.“You could be paying up to €2,000 for a solicitor, and when it comes to conveyancing, it does need to be done properly by a qualified solicitor. Cheapest is not always best.“You are talking another few hundred euro for a surveyor, and you have to be able to show the bank that you have that in addition to your deposit.”Any expert tips for the first-time buyer?Bluewater’s Steven Barrett believes a separate savings account is key to securing a mortgage.“Having regular savings each month is a big plus, having an account where regular money goes in and you don’t touch it,” Steven said.“If you’re putting in a thousand euro on a regular basis but then taking money out of it, they’ll just say, ‘well, this person isn’t really saving’, even if it’s just every quarter, they’ll discount it or they’ll average it out.”He continued; “Regular saving is the key. If mortgage rates go up by 2pc you need to show you can afford the higher repayments. If you’re paying rent, you need to show that you’re also regular saving in an account you don’t touch.“You need to have control over your finances and try not to have any debt.”
Sunday Independent 10th September 2017
Property Prices reached a peak ten years ago, where are we now? 30 June 2017It is now ten years since the peak of the housing bubble in 2007. The Central Statistics Office (CSO) started producing a Residential Property Price Index in January 2005 with a base figure of 100 and by 2007 the Index had averaged 130.3. In fact, the actual peak of the bubble was April 2007 when the Index reached 131.0 a 31% increase in house prices since January 2005. By December 2007 the Index had fallen to 129.2. Although very few realised it (or accepted it) at the time, the crash had started, there wasn’t going to be a soft landing.By the end of 2008 prices had fallen by 7% in the year but the effect of the banking crisis accelerated the collapse in houses prices in 2009 with a fall of 19.2% in the year. The crash continued for another three years with falls in 2010 (13.5%), 2011 (16.2%) and 2012 (13.8%). The bottom of the market was reached in March 2013 when the CSO Index reached 59.7, a 55% fall from the peak. To give you some local examples, we sold a 3 bed semi with a garage for €300,000 in May 2007 and we sold the same house type in the same estate in September 2012 for €139,500, a 54% decrease. A standard 3 bed semi-detached fell from €285,000 to €135,000. The higher end of the market was even more severely hit. In one example we sold a house in the summer of 2007 and sold the same house type a few doors away in February 2012 for €420,000 less.
Thankfully the market turned the corner in 2013 and there have been 3 consecutive years of strong price growth since with the CSO index now at 89.8, a 47% increase since August 2012. A typical 3 bed semi in Tramore is now selling at €195,000, a 45% increase, in line with the CSO figures but still 31% down on peak prices.