Question about buying land?

Traonach

In the process of buying 25 acres of land (hopefully). I'm buying direct off the present landowner. Do you have to get a solicitor to sort out the legal stuff. If so, I think I have to pay them (1-2% of the asking price). Anybody have any experience.

TUBBY

How ya. BEst of luck with your purchase. You will need a solicitor. They do a search of the folio to make sure there no problems(approx 60 euro), to do the deed of transfer(250 euro), to open a new folio (60) and then his fee after that typically round 1.5% of value + VAT.

Dont forget stamp duty also which is 4% on value between 40-70K so it will be a little different for you maybe.

Traonach

TUBBY wrote: »

How ya. BEst of luck with your purchase. You will need a solicitor. They do a search of the folio to make sure there no problems(approx 60 euro), to do the deed of transfer(250 euro), to open a new folio (60) and then his fee after that typically round 1.5% of value + VAT.

Dont forget stamp duty also which is 4% on value between 40-70K so it will be a little different for you maybe.

Thanks for info.....
The asking price is 125,000 euro.
Just checked on revenue site. 8% stamp duty.

Grecco

Don t even dream of giving them 1.5% + VAT ; solicitors are a dime a dozen and there all crying out for work since the celtic tiger Ff ed off
Get a quote from a few different ones.
I bought 75 acres last year. Gave the solicitor €2000 all in.

TUBBY

Traonach wrote: »

Thanks for info.....
The asking price is 125,000 euro. Is there only stamp duty on land priced 40-70k??

No, that is just the only example i know, it has different amounts for different price ranges. Look up revenue.ie and you should find out.

The 1.5% is only a guide. Tell ya what, getting 25 acres at 125K is good value. Fair play to ya. Any frontage. Is it decent land.

irishh_bob

Traonach wrote: »

In the process of buying 25 acres of land (hopefully). I'm buying direct off the present landowner. Do you have to get a solicitor to sort out the legal stuff. If so, I think I have to pay them (1-2% of the asking price). Anybody have any experience.

1 - 2 % , that solicitor is having a laugh , dont give him a penny more than a half of one percent , solicitors have been hit seriously hard by the property collapse , conveyancy is simple and straight forward

irishh_bob

Traonach wrote: »

Thanks for info.....
The asking price is 125,000 euro.
Just checked on revenue site. 8% stamp duty.

stamp duty on farm land is 6 %

Traonach

TUBBY wrote: »

No, that is just the only example i know, it has different amounts for different price ranges. Look up revenue.ie and you should find out.

The 1.5% is only a guide. Tell ya what, getting 25 acres at 125K is good value. Fair play to ya. Any frontage. Is it decent land.

Land West Mayo, 21 acres good (good for West Mayo:o) grassland and the rest wet grassland.

Tipp Man

Don't forget possible stamp duty reliefs if available to you

Farm consolidation - if you are selling land to buy this land you only pay stamp on the difference. I think this is ending tomorrow but not certain

Young farmers relief - if you are a qualified farmer under 35 then no stamp

Grecco

Tipp Man wrote: »

Young farmers relief - if you are a qualified farmer under 35 then no stamp

Isn't that gone?

Tipp Man

Grecco wrote: »

Isn't that gone?

Don't think so - it should be there until 31 December 2012

irishh_bob

Tipp Man wrote: »

Don't forget possible stamp duty reliefs if available to you

Farm consolidation - if you are selling land to buy this land you only pay stamp on the difference. I think this is ending tomorrow but not certain

Young farmers relief - if you are a qualified farmer under 35 then no stamp

slightly off topic i know but tip man , do you see any sign of roll over relief being reinstated ? , i think its a huge obstacle to expansion in this country and the 2020 food harvest goal will not happen unless things change , presently , if you sell four 25 acre bits of land in order to try and buy a hundred acre block , you find yourself only able to buy 75 acres when capital gains tax takes effect

Tipp Man

irishh_bob wrote: »

slightly off topic i know but tip man , do you see any sign of roll over relief being reinstated ? , i think its a huge obstacle to expansion in this country and the 2020 food harvest goal will not happen unless things change , presently , if you sell four 25 acre bits of land in order to try and buy a hundred acre block , you find yourself only able to buy 75 acres when capital gains tax takes effect

Your dead right Bob, it is a huge barrier to expansion. It's easy for government departments to publish harvest 2020 type reports - but they then have to back this up with actions that will help farmers achieve it. The roll over relief would be a massive step to helping achieve farm consolidation and expansion which are necessary if those targets are to be achieved. Regardless of 2020 we still need huge consolidtion of farms in this country due to their small fragmented nature

We used to buy and sell quite a bit of land in the past but now we have to be careful where we invest as when you buy now it is simply to expensive to sell again - you would loose a small fotune

to answer your question Bob - I don't think it will be reinstated. As you know yourself the country is broke and they will bleed every stone dry for any tax they can. It doesn't make business sense but then the country isn't run like any business so i just can't see it being reinstated

I have no idea why the IFA don't have this high up on their agenda

irishh_bob

Tipp Man wrote: »

Your dead right Bob, it is a huge barrier to expansion. It's easy for government departments to publish harvest 2020 type reports - but they then have to back this up with actions that will help farmers achieve it. The roll over relief would be a massive step to helping achieve farm consolidation and expansion which are necessary if those targets are to be achieved. Regardless of 2020 we still need huge consolidtion of farms in this country due to their small fragmented nature

We used to buy and sell quite a bit of land in the past but now we have to be careful where we invest as when you buy now it is simply to expensive to sell again - you would loose a small fotune

to answer your question Bob - I don't think it will be reinstated. As you know yourself the country is broke and they will bleed every stone dry for any tax they can. It doesn't make business sense but then the country isn't run like any business so i just can't see it being reinstated

I have no idea why the IFA don't have this high up on their agenda

i imagine it would not be politically popular to reinstate it either , beit with the general public or with the labour party :mad:

Min

Is stamp duty progressive or simply the rate is applied to all the land.

What I mean is on the IFAC website it says stamp duty rates on the transfer of agricultural land is as follows.

Up to 10,000 Exempt
10,001 to 20,000 1%
20,001 to 30,000 2%
30,001 to 40,000 3%
40,001 to 70,000 4%
70,001 to 80,000 5%
Excess over 80,000 6%

Do you get the first €10,000 exempt, then 1% on the next €10,000, 2% on the next 10k and so on upto 80k where the level stabilises at 6%?
http://www.ifac.ie/ifac_taxation12.htm

adne

Min wrote: »

Is stamp duty progressive or simply the rate is applied to all the land.

What I mean is on the IFAC website it says stamp duty rates on the transfer of agricultural land is as follows.

Up to 10,000 Exempt
10,001 to 20,000 1%
20,001 to 30,000 2%
30,001 to 40,000 3%
40,001 to 70,000 4%
70,001 to 80,000 5%
Excess over 80,000 6%

Do you get the first €10,000 exempt, then 1% on the next €10,000, 2% on the next 10k and so on upto 80k where the level stabilises at 6%?
http://www.ifac.ie/ifac_taxation12.htm

Good Q. After buying some land for first time so the whole process is new to me.

At what stage does the owner cease control of the land i.e. when deposit made or once final payment made ??

milkprofit

when last of money paid as stated in contract
make sure you get vacent possesion

TUBBY

adne wrote: »

Good Q. After buying some land for first time so the whole process is new to me.

At what stage does the owner cease control of the land i.e. when deposit made or once final payment made ??

The stamp duty is not progressive. if you buy land for 50K, you pay 4% on all of it.
the land isnt in your name until all contracts signed and money paid in full. You then get the deeds issued in your name by your solicitor. All in all the process takes about 6 weeks from bid being accepted.

irishh_bob

the way things are going in the news , anyone who bought land in euro today could be paying for it in some other currency in six weeks

adne

irishh_bob wrote: »

the way things are going in the news , anyone who bought land in euro today could be paying for it in some other currency in six weeks

Could be a good time to clear the savings a/c of the worthless Euro