Explore your options before it’s too late
Talk to us about your options and we will guide you through the process and outline the possible tax rebate that could be due to you which would go a long way to bumping up your deposit.With the Help-to-Buy incentive scheduled to finish at the end of 2019, it’s probably a good time to explore the current advantages and opportunities it could present for you.
When considering a significant financial purchase, it’s natural to ask yourself questions – am I making the right decision? The first question is whether you should buy or rent a property?
RENTING V BUYING
There are two schools of thought when it comes to considering the option of either renting or buying a property with pros and cons on both sides. By choosing to rent you are not committing to a property and can easily move to another location at the end of your tenancy agreement with no financial ties to consider. But when the time comes to put down roots and buy your first home, there’s comfort in the fact that your monthly repayments are going against your mortgage and will be instrumental in reducing your loan over time.
If you find that you have now reached the stage where you want to make a first purchase then the time is right for you to explore if you will be eligible for a tax refund which can go a long way to helping you take that first step on the property ladder. Currently we are witnessing that buying is a more attractive option and as the incentive is time sensitive it makes sense to thoroughly understand the potential of a rebate.
WHAT IS THE HELP-TO-BUY INCENTIVE?
As part of their strategy to help first-time buyers purchase their first property the Government introduced a Help-to-Buy incentive which is essentially a tax refund initiative that could be worth up to €20,000 to home-buyers in Ireland. As with any scheme of this nature you will have to meet certain criteria to see if you qualify for the scheme.
HELP-TO-BUY EXPLAINED
The Help-to-Buy incentive is designed to help you, as a first-time buyer, with raising the deposit needed to purchase a new house or apartment to live in as your home for a minimum of five years. The incentive offers a tax rebate of 5% of the property price up to a maximum of €20,000 on properties valued at €500,000 or less.
Under the incentive and in association with Revenue.ie, you may receive a refund or rebate of Income Tax and Deposit Interest Retention Tax (DIRT) paid over the previous four tax years. Our Help-to-Buy guide will help you to see if you qualify for the incentive, see how much you are potentially entitled to and assess whether your possible new home fits the criteria.
To qualify you must not have previously bought or built a house or apartment, either on your own or jointly with any other person. If you are buying or building the new property with other people, they must also be first-time buyers.
Who qualifies?
• First-time buyers
• Owner-occupier
• You are borrowing at least 70% of the value of the property
Does the home you want to buy qualify?
• Newly built houses and apartments valued no higher than €500,000
• Self-builds
• Your builder or developer needs to be registered with the incentive
The property must never have been used, or have been suitable to use, as a residential home. If the property was non-residential, but has been converted for residential use, it may qualify for HTB. If you buy or build the property as an investment, it does not qualify for HTB.
If you decide to move, leave or sell within five years from the date the house is habitable, some or all of the rebate will have to be repaid.
Deposit and savings - How we can help
As independent mortgage brokers, we have our finger on the pulse in every aspect of the mortgage process and all market developments. With your needs in mind, we have developed a series of helpful guides, giving you the details you need on many key topics to help you get mortgage ready.
Alternatively, we are always here to talk - you can simply complete our online mortgage query form and a member of our team will be in touch very soon to discuss your specific needs. To buy a home, you will need to have a deposit and the rules implemented by the Central Bank means lenders can lend you up to 90% of the value of the property that you want to buy if you are a first-time buyer.
SHERRY FITZGERALD FINANCIAL SERVICES
How we can help
At Sherry FitzGerald Financial Services, we’re with you every step of the way, from Getting Mortgage Ready to the Mortgage Process. Review our guides on sherryfitz.ie and if you have any queries, please do not hesitate to get in touch. If you are still unsure about any aspect of the mortgage process, simply call us on 0818 20 9000 or email us at financialservices@sherryfitz.ie.
SHERRY FITZGERALD NEW HOMES
Our Sherry FitzGerald New Homes team are also on hand to discuss the various new home developments available to you, so talk to us today and make sure you don’t miss out on securing your first home with the potential boost of a tax rebate. Email: newhomes@sherryfitz.ie or Tel: 0818 20 9000
