Mark Cagney had Karl Deeter from Irish Mortgage Brokers on to talk about the launch of the ‘help to buy’ scheme, how it would work and whether or not it would prove to be effective.
Yesterday Revenue announced the details of the new ‘help to buy’ scheme. It is designed to make buying a home more realistic for first time buyers and to increase the supply of new homes. Whether it’s a good or bad idea is beside the point, what most people want to know is how it works so here’s the breakdown.
It’s a scheme to allow first time buyers buying a new home to get a rebate of up to 5% of the purchase price or contract price (whichever is the lower) from income tax and DIRT tax paid in the past four tax years to a maximum of €20,000. The property must cost less than €500,000 or 600k for retrospective applications, the size of the loan versus the value of the property must also be 70% or more.
So, for every €100,000 of value you must be borrowing at least €70,000 the idea being that very cash rich buyers don’t need this help. It started on the 19th of July 2016 and goes until the 31 Dec 2019.
Now that it’s …
We were asked to take part in a panel discussion on TV3’s “Tonight with Vincent Browne” to discuss housing. The main point that we raised was that prices are going to rise with or without any ‘help to buy’ scheme due to factors outside of the Governments control (such as zero interest rate policy by Central Banks).
We took part in a post budget analysis on Newstalk with Jonathan Healy to discuss housing in particular and the budget in general. It was a tame budget compared to the previous six years and on the new ‘help to buy’ scheme we are not categorically for or against it, although we are against some of the hot-take criticisms because further analysis is required.