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First time buyers - what is that?

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  • 15-05-2015 2:48am
    #1
    CiniO
    Registered Users Posts: 16,063 ✭✭✭✭


    See this advertised, especially on morgage offers, calculators, etc..

    Is this some kind of scheme pointed towards people taking mortgages, or can it apply to people buying property without mortgage as well?

    Is it scheme operated by banks independently, or is it somehow centrally controlled, government funded, etc?

    What are general rules for it, and who can be eligible?

    Any information appreciated...


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    #2
    Miamiheat
    Registered Users Posts: 291 ✭✭Miamiheat


    Banks will allow a first time property buyer to borrow more versus the value of a property. ie: 90% of a property up to 220000€, a non-first-time buyer will be able to borrow only 80% of that same property value.
    I believe this status only affects mortgages, other more knowledgeable people in this forum may correct me if I am wrong. I don't know if there are tax implications for example.


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    #3
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Miamiheat is 100% correct.
    In addition- the reduced deposit rule only applies to a person's principle private residence. Aka- a first time buyer, who has not owned property in Ireland or elsewhere previously, can avail of a reduced deposit requirement- providing the property they are purchasing is to be their main residence for the forseeable future.

    The only other benefit you are entitled to as a first time buyer- is the ability to reclaim DIRT tax paid on your deposit while you were building up your deposit (subject to maximum limits). This is a very small sum though- given that savings rates are so poor at the moment- but its better than a kick in the teeth.

    There are no tax benefits, or implications, of availing of the scheme- however, once you exhaust your first time buyer status- it is gone forever- it does not regenerate, when you sell the property.

    Thats it, plain and simple, nothing more, nothing less.


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    #4
    Ipro
    Registered Users Posts: 131 ✭✭Ipro


    Say I purchased an investment property for cash which was purchased outright and purely as an investment /nppr would I be entitled to a first time buyers mortgage when it came time to purchase my first primary residence /first mortgage ?


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    #5
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Ipro wrote: »
    Say I purchased an investment property for cash which was purchased outright and purely as an investment /nppr would I be entitled to a first time buyers mortgage when it came time to purchase my first primary residence /first mortgage ?

    No. Its whether you have owned property previously- not whether you lived in it or not. So- no.


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    #6
    Ipro
    Registered Users Posts: 131 ✭✭Ipro


    The_Conductor wrote: »
    No. Its whether you have owned property previously- not whether you lived in it or not. So- no.

    :-(


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    #7
    the groutch
    Closed Accounts Posts: 16,096 ✭✭✭✭the groutch


    Also worth emphasising that if you're applying jointly as a couple, if either of you have owned property before then you're not classified as first time buyers.


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