Daft.ie Insights
Oct 24, 20161 min
The department of housing, planning, community and local government define the plan as having the “dual benefit of helping first-time buyers to buy their first home, while also encouraging extra supply of new homes by increasing ‘realisable demand’.”
24% of house purchases were by first-time buyers with only 25 of those being new builds.
Movers’ and investors’ transactions have grown by 285% and 344% respectively since 2010, while first-time buyers’ transactions grew by only 15% in the same period.
For every 11 properties bought by first-time buyers only 1 was a new build.
The scheme only applies to new homes (this does include self-builds) purchased by first-time buyers.
Income tax rebate of 5% of the maximum purchase price of a €400,000 new build, up to a maximum tax rebate of €20,000.
Properties up to €600,000 can qualify but the max grant is capped at €20,000.
First-time buyers will receive prior to purchase an up-front, once-off payment of the income tax rebate.
The tax rebate is based on the first-time buyers’ previous 4 years’ tax returns.
Source: rebuildingireland.ie
For more information on the “First-time buyers” scheme visit the Department of Housing, Planning, Community and Local Government.