Effect of budget 2010 on the Property Market

steven.blanc

I for one am delighted with the reform of stamp duty in this years budget.
The new rates of stamp duty are:
1% on all transactions up to €1,00,000 and 2% above, all this can do is help create confidence in the current economic crisis.

What do others think?

jdivision

Why would anyone have confidence in the property market?

mrgaa1

Was the property tax mentioned? Personally he should have scrapped stamp duty for all property under 500k

Anyhow its up to the banks now - as Tom Cruise so eloquently put "Show me the money"

triple-M

so do ftb's have to pay stamp duty now?

steven.blanc

People need to live somewhere, why pay others mortgages for them, in most cases it is now cheaper to buy than rent.

Take a property at €400k stamp duty did equate to €19,250 for owner occupiers it now amounts to €4000 a saving of €15,250. Any saving for home owners can only be a good thing!

Mr. Loverman

steven.blanc wrote: »

People need to live somewhere, why pay others mortgages for them, in most cases it is now cheaper to buy than rent.

Interest is at a historic low. This is temporary. When buying you have to think long-term...!

Let me guess. Rent is dead money?

Does this apply to both residential and non residential?

mathie

triple-M wrote: »

so do ftb's have to pay stamp duty now?

FTBs are no different to second, third etc buyers now.

mrgaa1

triple-M wrote: »

so do ftb's have to pay stamp duty now?

I wouldn't think so - that would be a real disaster.

However if someone was buying a house a 300k (not a FTB) they would pay 3k stamp duty. Under the old regime it was 7% over 125k it would have meant a payment of €12,250 - so quite a significant saving.

danbohan

Mr. Loverman wrote: »

Interest is at a historic low. This is temporary. When buying you have to think long-term...!

Let me guess. Rent is dead money?

dont be like that you will kill the next bubble , ok altogether now , ''rent is dead money'' ''rent is dead money ''

steven.blanc

I am a relation and work on both sides of the property industry (Sales AND Property Management). In my opinion it is now a very good time to buy, house prices are low and getting lower, interest rates are low and stamp duty is now very reasonable. I for one am now a lot keener in buying than I was this morning!
I do not for one feel that people should go out and buy half a dozen apartments at the next new Development launch, but what I do feel is that it is now getting more attractive to buy ones family home.

I could be wrong but I think the budget reforms re stamp duty is a blanket reform. E.G. All buyers and on all purchases(Commercial/Residential)

mikom

steven.blanc wrote: »

I am a relation

Cousin, uncle, shillfather?

colc1

steven.blanc wrote: »

I for one am delighted with the reform of stamp duty in this years budget.
The new rates of stamp duty are:
1% on all transactions up to €1,00,000 and 2% above, all this can do is help create confidence in the current economic crisis.

What do others think?

As long as the prices come down to a realistic level asap thats the main thing so they need to bring in a proper property tax and not some token one like the e100 a year joke one...only delaying the inevitable....When prices get real they'll start selling houses the problem in the property market in the past was over-confidence.

colc1

steven.blanc wrote: »

People need to live somewhere, why pay others mortgages for them, in most cases it is now cheaper to buy than rent.

Take a property at €400k stamp duty did equate to €19,250 for owner occupiers it now amounts to €4000 a saving of €15,250. Any saving for home owners can only be a good thing!

Are you an estate agent by any chance?

RentDayBlues

I am a relation and work on both sides of the property industry (Sales AND Property Management). In my opinion it is now a very good time to buy, house prices are low and getting lower, interest rates are low and stamp duty is now very reasonable. I for one am now a lot keener in buying than I was this morning!
I do not for one feel that people should go out and buy half a dozen apartments at the next new Development launch, but what I do feel is that now is getting more attractive to buy ones family home.

I could be wrong but I think the budget reforms re stamp duty is a blanket reform. E.G. All buyers and on all purchases(Commercial/Residential)

So someone in the property industry now thinks its a good time to buy, well let me get my cheque book. . . . .

mrgaa1

Transfers of residential property
[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]Reduction in rate for transfers of residential property to 1% on properties valued up to €1 million, with 2% applying to amounts over €1 million, in respect of instruments executed on or after 8 December 2010;
Abolition of various reliefs and exemptions, in respect of instruments executed on or after 8 December 2010, as follows:

1. First time buyer relief
2. Exemption for new houses under 125 sq m in size
3. Relief on new houses over 125 sq m in size
4. Consanguinity relief for residential property transfers
5. Exemption for residential property transfers valued under €127,000
6. Site to child relief

[/FONT][/FONT]
http://www.budget.gov.ie/budgets/2011/Documents/Summary%20of%20Measures%20Combined.pdf

So there it is - everyone pays. so if you are a FTB get down to your solicitor tonight and sign something.

Mr. Loverman

steven.blanc wrote: »

In my opinion it is now a very good time to buy, house prices are low and getting lower

The bit is bold is the reason no one should buy now.

House prices in Ireland are still a rip-off.

We have a long way to go before we hit the bottom.

colc1

steven.blanc wrote: »

I am a relation and work on both sides of the property industry (Sales AND Property Management). In my opinion it is now a very good time to buy, house prices are low and getting lower, interest rates are low and stamp duty is now very reasonable. I for one am now a lot keener in buying than I was this morning!
I do not for one feel that people should go out and buy half a dozen apartments at the next new Development launch, but what I do feel is that it is now getting more attractive to buy ones family home.

I could be wrong but I think the budget reforms re stamp duty is a blanket reform. E.G. All buyers and on all purchases(Commercial/Residential)

Haha I was kidding above about you being an estate agent...at least you're honest I'll give you that. Interest rates being low is obviously a reason not to buy sure they're only going up everyone knows that. Also take a trip even across the water or to France and anyone would realise prices are not low I reckon they'll fall at least another 50%...and thats in Dublin down the country in places lacking infrastructure who knows how much...

Blazer

If you think house prices are low now wait for another year and watch them drop bigtime once mortage defaults start kicking in..
that's if there's anyone left in the country to buy a house.

steven.blanc

Lol, everyone is open to criticism. I am looking for peoples views of todays budget I am not hear to preach on the property market, I am too young to do such a thing!

I am the son and am a property manager. All in all a reduction can only help consumer confidence

mathie

Mr. Loverman wrote: »

The bit is bold is the reason no one should buy now.

House prices in Ireland are still a rip-off.

We have a long way to go before we hit the bottom.

Sc@recrow wrote: »

If you think house prices are low now wait for another year and watch them drop bigtime once mortage defaults start kicking in..
that's if there's anyone left in the country to buy a house.

Can either of you tell me this weekends Lotto numbers too?

BrianBlessed

Donnie Cassidy wrote: »

I am a relation and work on both sides of the property industry (Sales AND Property Management). In my opinion it is now a very good time to buy, house prices are low and getting lower, interest rates are low and stamp duty is now very reasonable. I for one am now a lot keener in buying than I was this morning!
I do not for one feel that people should go out and buy half a dozen apartments at the next new Development launch, but what I do feel is that it is now getting more attractive to buy ones family home.

I could be wrong but I think the budget reforms re stamp duty is a blanket reform. E.G. All buyers and on all purchases(Commercial/Residential)

Hmmmmm

mathie

mrgaa1 wrote: »

Transfers of residential property
[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]Reduction in rate for transfers of residential property to 1% on properties valued up to €1 million, with 2% applying to amounts over €1 million, in respect of instruments executed on or after 8 December 2010; Abolition of various reliefs and exemptions, in respect of instruments executed on or after 8 December 2010, as follows:

1. First time buyer relief
2. Exemption for new houses under 125 sq m in size
3. Relief on new houses over 125 sq m in size
4. Consanguinity relief for residential property transfers
5. Exemption for residential property transfers valued under €127,000
6. Site to child relief

[/FONT][/FONT]
http://www.budget.gov.ie/budgets/2011/Documents/Summary%20of%20Measures%20Combined.pdf

So there it is - everyone pays. so if you are a FTB get down to your solicitor tonight and sign something.

"in respect of instruments executed on or after 8 December 2010; "
What exactly does this mean?
When is a sale 'executed'?

steven.blanc

colc1 wrote: »

Haha I was kidding above about you being an estate agent...at least you're honest I'll give you that...

Dont worry at all, I am proud of what I do. Believe it or not the recession has weaned out the majority of rogue agents in the property industry,perhaps the best thing to come out of the recession. Now if certain bankers and solicitors would follow........................

Those new to the industry are all degree qualified and I for one strive to achieve RICS status. I love nothing more than to prove peoples opinions of property professionals wrong by always offering an honest, professional and courtious service. The property industry is my career, my life and I love what I do whether it be management, marketing or sales!

My point is that the Government has made a significant gesture towards the Property Market and should be commended for trying to fix the problems they have helped create no matter how late.!!

JoeyJJ

The FTB exemption removal has not stimulated me to buy and prob delay me, probably save more with reduction in prices however with more upfront cost it will mean a probably longer time before I buy. I know falling Market etc wasn't expecting to buy just yet but it def reduces the chances of me buying next year unless there is a faster continous downward spiral.


It will be an extra 2-3k for me to save.

gurramok

It won't stimulate the property market. You need FTB's to hold the whole market up in good times nevermind bad times. They just got levied an extra tax of 2 grand on a 200k house.

jobless

is this change in stamp duty for first time buyers only?..

johndaman66

gurramok wrote: »

It won't stimulate the property market. You need FTB's to hold the whole market up in good times nevermind bad times. They just got levied an extra tax of 2 grand on a 200k house.

Agreed, until first time buyers start entering the market in any significant numbers again I should think activity will remain pretty stagnant. Bringing FTB's into the the stamp duty net certainly won't create a mass frenzy of FTB's.

steven.blanc wrote: »

In my opinion it is now a very good time to buy, house prices are low and getting lower, interest rates are low and stamp duty is now very reasonable.

I am at odds with these comments, in particular pointing out that intersts rates being low means its a good time to buy? I would suggest that the opposite is the case. Low interest rates are more likely to be keeping prices propped up at the moment. The wont stay low forever either.

I think you are failing to look at the wider picture and implications of the budget or at least you fail to acknowledge said implications in your posts. A considerable amount of money is being taken out of the economy (too much I reckon which will have the affect of contracting the economy further) and this is going to have an obvious impact on house prices too. Also a lot of people realise that this is only the first of a number of austerity budgets... Don't want to be going too far off the topic of conversation but things will get a hell of a lot worse before they get better I'm afraid

Mr. Loverman

mathie wrote: »

Can either of you tell me this weekends Lotto numbers too?

You really think the economy is going to "turn a corner" shortly and house prices will start rising again...?

Can't believe there are people who still don't get it. It is beyond obvious at this stage.

Zamboni

JoeyJJ wrote: »

The FTB exemption removal has not stimulated me to buy and prob delay me, probably save more with reduction in prices however with more upfront cost it will mean a probably longer time before I buy. I know falling Market etc wasn't expecting to buy just yet but it def reduces the chances of me buying next year unless there is a faster continous downward spiral.

It will be an extra 2-3k for me to save.

+1
At least it may deter us further from catching a falling knife.

Either way it should immediately reduce demand on the market as any FTBers that were planning on buying soon will be delayed in purchasing as they now have further thousands to raise.

mathie

Mr. Loverman wrote: »

You really think the economy is going to "turn a corner" shortly and house prices will start rising again...?

Can't believe there are people who still don't get it. It is beyond obvious at this stage.

Did I say the economy is going to "turn a corner" and house prices would start rising again?
No I didn't so let me clarify it for you.

I was making the point that no-one can predict the future.

Do you remember late 2005 / early 2006?
A majority of people were in a buying frenzy.
A majority of people were advising people to buy.
A majority of people thought property prices would always go up.

Now we have a majority of people saying the exact opposite.

I'm not saying we're anywhere near the bottom.
I'm just saying the herd behaviour and an inability to predict the future are factors.

Take a look at this ...
http://www.bigfatpurse.com/wp-content/uploads/cycle-of-market-emotions.jpg

If 2005 / 2006 was 'Euphoria' then where are we now?