Looking to buy a home? Here are 5 things to avoid

Thanks to the internet, the buying of property is now an easy process in Ireland. There is plenty of information that is available for you whenever you wish to undertake a research on the process of buying a home. Despite this being the case, many people in Ireland fall into common traps. This posts aims to highlight five major things to avoid so that you can purchase your next property in a stress-free manner.

Ignoring the math

Without a doubt, the most important step to take when considering to buy a home is working out exactly the amount of money you will have to spend to purchase it. While this can be very obvious, a majority of people do not often work out the amount of money they would need to spend, and this leave many of them facing serious financial shocks later down the line. One of the most common mistakes is concentrating only on both the deposit and the purchase price without knowing that there are other fees like survey fees, solicitor’s fee, and Stamp Duty. The …

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5 Ways to save for a Deposit

Saving up to buy a home can seem like a big challenge. Your home is likely the biggest purchase you will ever make, and unlike saving for retirement, this payment is a large sum of money that you will need to access soon. This may seem challenging, but with a solid savings plan, anyone can save enough to put a down payment on their dream home. In this article, we’ll cover 5 easy ways to start saving for your down payment today.

 

Budget your money wisely

The first and most important step in any savings plan is budgeting. To build your budget, examine your bank statements and credit card payments to see where your money is going. Make sure to keep track of how much you spend on necessary payments, such as rent, utilities, and student loan payments if you have them. Next, consider how much you spend on eating out, entertainment, and other nonessentials. While you are saving, it is a good idea to set limits on each of these categories and stick to it, setting aside the …

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Could Ireland be a leader in fintech development?

The financial technology (fintech) industry has seen rapid growth worldwide, in time with the rapid progress of technology itself. Examples of new products that have come with this trend are loan management software, crypto-currencies, and more. These products can be targeted for use by businesses as well as the average consumer, and together they led fintech to become a $200 billion industry worldwide in 2019; it is expected to be worth around $305 billion by 2025. The leader countries in fintech development as of 2020 include the U.S., the UK, and Singapore, with developing countries like China also expected to become major players in the near future.

However, Ireland may also have the potential to become a global fintech hub in the near future. Ireland’s pro-business governance makes it an appealing place for businesses looking to enter the industry. One aspect of this appeal is its low corporate tax rate of 12.5%. Additionally, its research & development tax credit of 25% makes it very friendly to tech companies and encourages continued innovation. Its double taxation agreements with many other EU …

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Bank loans in Bulgaria

Bank loans in Bulgaria

My name is Hristo Dimitrov. I’m a student from Varna Bulgaria.

How to pick bank loans in Bulgaria

In Bulgaria you can borrow relatively easily for an apartment and pay it off within 30 years. The maximum loan amount for the banks are up to EUR 200,000.  Also, Bulgaria has low interest rates compared to other countries. The best conditions for buying a home are on Postbank

And DSK Bank.

For specific rules and percentages, you can look at them.

APR at individual interest rate selected for the purposes of the example * – 3.66%

An example of a fixed interest rate for the last 3 years and a variable interest rate (benchmark interest rate + margin) for the remaining term of the loan when included in the DSK Coz Plus Sales Prohibition Program.

 

The long-term interest rate for the implementation of the DSK Coz Plus program can be set in the range of 3.00% to 4.49%.

 

 

Amount of credit

BGN 100,000

 

Monthly payment

448,49 BGN

 

Term of the loan

30 …

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Demand Outweighs Supply: Significant Interest in 500 New Affordable Houses

The Irish Times reports that the County Council of south Dublin has a plan to build 500 new affordable homes. This is the first time a plan has been put in place to build affordable housing in south Dublin for well over a decade. The houses are planned to cost roughly €300,000. Therefore, for first time buyers, in order to purchase, the home buyers would have to place a down payment of €30,000. However, the home buyers could also benefit from the Help to Buy Scheme. Since the home buyers are purchasing affordable housing that is less than 500,000 euro, the first time buyers could receive a tax rebate of 5% of the 300k if the home buyers take out a mortgage of at least 70% of the home’s price. This €15,000 rebate could be very beneficial to most first time home buyers. In addition, the Irish Times predicted that the affordable homes will be 40% less than market price, a significant savings.  

As reported by the Irish times, the homes will be available in three locations. The first time …

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Help To Buy For First Time Buyers

The name provides a definition for itself. First time home buyers are people in the market buying a home for the first time. Compared to other home buyers, such as trader-up borrowers and mortgage switchers, first time buyers have different benefits and restrictions when borrowing than other borrowers. The Central Bank of Ireland requires a 10% down payment for first time buyers. Now, for first time buyers, a 45,000 euro down payment for a 450,000 euro home may be somewhat daunting. However, the Central Bank has offered assistance for their first time buyers to keep them in the market. The Central Bank offers a help to buy program. This benefit allows for first time buyers of new houses and apartments to take a 5% tax rebate off of properties less than 500,000 euros. In a recent case at Irish Mortgage Brokers, a married couple came looking for a mortgage on their first home. The couple did not have a home in mind at the time, but based on their income, the couple had roughly below 500k to spend. Both individuals …

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Both Political Parties are Pointing Fingers

The Increase of difficulty in attaining mortgages coupled with rising home prices has caused Ireland to have the lowest rate of home ownership in 50 years. The main group affected is young people looking to buy their first home who do not have enough money saved up to meet the 10% deposit required to attain a mortgage. Additionally, Fianna Fáil Leader Micheál Martin stated, “a litany of failures,” when discussing how the increase of homeless children falls on the current government’s policies. Mr. Martin discussed how Ireland used to be one of the highest home ownership rates in the EU to now one of the lowest at 68%.

The government may be too complacent with policy or foreign multinational corporations are bringing in a lot of short-term employees who are looking for renting, but something needs to be done to increase home ownership following this statistic. Owning a home provides long-term equity to people in a form other than cash that can be a safety net in times of trouble. Additionally, having to pay rent during retirement years can cause …

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Effects of ending the help-to-buy scheme

The help-to-buy scheme was designed to help first time buyers buy a home. First time buyers are encouraged to buy property through the help-to-buy scheme by refunds of income tax and deposit interest retention tax paid over the last four years. The help-to-buy scheme allows purchasers to claim a rebate  tax already paid of income up to €20,000 depending on the value of the property.

There is a move to end the help-to-buy scheme. This would be detrimental to the housing market. Figures have shown that more than 80% of all first time buyers are relying on the scheme to buy a home.

However, the scheme is scheduled to end at the end of 2019. The government has given no indication of an extension of the help-to-buy scheme.

According to theBanking and Payments Federation, 84% of new property purchases were made by first time buyers with the support of the help to buy scheme. Furthermore, chief economist, Dr Ali Ugur, claimed that the help-to-buy scheme was important for market stability. It was a key component in helping housing supply increase and …

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The Help to Buy Scheme

The Help to Buy (HTB) scheme is an incentive for first time property buyers. The scheme helps individuals with deposits needed to buy or build a house or apartment. The incentive is that the scheme will give individuals an income tax and deposit interest retention tax (DIRT) refund. This refund extends up to four years of income tax and DIRT tax paid in Ireland in arrears. The incentive has a limitation to a maximum of 5 percent of the purchase value of a home up to a value of €500,000.

To qualify for the scheme, individuals must be first time buyers. The property bought or going to built must be newly built with the construction subject to the value added tax (VAT) in Ireland. The requirements of the Help to Buy scheme also involves taking out a mortgage on the property with a qualifying lender. The loan to value ratio must be at least 70%. This loan to value ratio denotes the percent of the loan that covers the purchase value of the property.

The scheme is estimated to contribute about …

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Dublin’s Housing Prices are Growing Faster than Income

A new report released by credit analysts from Moody’s states that Dublin house prices have grown approximately nine times the rate that employees’ wages have grown in the last six years. This is adding to the housing market difficulties causing many native Dubliners to either move or live on the streets. Many factors can be credited to the rising house prices including; the rise of multinational cooperation’s settling in Dublin coupled with the rapidly growing population. The Moody’s report concluded that Dublin’s population has grown by 21% since 2000 which, makes it the fasted growing city of all European capitals.

It ultimately comes down to the shortages of properties available in Dublin that are driving up the demand for housing, while the supplies stay consistent. Moody’s Investor service released a ranking for the European cities that its inhabitants can least afford to buy a home. Dublin was among the group of cities distinguished for being a hard and expensive city to find housing among many European countries. Additionally, the price to pay ratio for Dublin that determines how much money …

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