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Section23/27 property for first time buyer..

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  • 30-10-2004 7:40pm
    #1
    Eurorunner
    Closed Accounts Posts: 2,393 ✭✭✭


    Has anyone here bought a section 23/27 property as a first time buyer?

    Is there any real advantage for a FTB in purchasing such a property?
    Whats the difference between section 23 & section 27.
    I understand that there are restrictions - one of them being that you have to hold on to the property for at least ten years. Are there any other hoops to jump in order to qualify?


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    #2
    antoinolachtnai
    Registered Users Posts: 9,787 ✭✭✭antoinolachtnai


    You are talking about living in the house? There is no benefit in Section 23/27 for an owner-occupier as far as I know, but I could be wrong.

    Section 27 is the section of the 1989 (?) Finance Act which instituted the current tax incentive. It was modelled after Section 23 of an earlier Finance Act. Both the same thing bascially.

    You don't have to hold the house for ten years.

    Really, the estate agent should be able to fill you in on this stuff.


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    #3
    Maximilian
    Legal Moderators, Society & Culture Moderators Posts: 5,400 Mod ✭✭✭✭Maximilian


    S.23/27 is only of use to you if you're an investor, you can save tax on the rental income. If you're a FTB, bear in mind that this relief may be factored into the price, so you may be paying a premium for a tax relief that is of no benefit to you.


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    #4
    Victor
    Registered Users Posts: 78,371 ✭✭✭✭Victor


    Aren't there some schemes for owner occupiers to write of 100% against all income?


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    #5
    narommy
    Registered Users Posts: 469 ✭✭narommy


    Victor wrote:
    Aren't there some schemes for owner occupiers to write of 100% against all income?
    I'm not sure what percentage but it is against against all incomes for owner occupiers. So there definitely is a tax advantage for ftb or any owner occupier. You do have to keep it for 10 years or you will have to repay the taxes saved. But you are then selling the right to claim these allowances to the neww owner.

    I'm not sure which S's apply to owner occupiers tho. The estate agent will let you know. You will also get FTB interest relief too

    On the downside.
    You are paying an inflated price for the property.
    You are buying off the plans and will be waiting for a while (usually)
    If the development is sold mainly to investors then the population will be transient and may not exert power on the management


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    #6
    Eurorunner
    Closed Accounts Posts: 2,393 ✭✭✭Eurorunner


    Thanks for the info folks...and yes, it does seem that prices are inflated in these areas.


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