Cost of Houses a joke.. but COME ON!

S

soc

Guest
Decided to do a bit of house-hunting over the weekend... check out a new development.

OK, I can come to terms with the fact that price of houses are crazy, but when I went home to check out stamp duty for this new house I was SHOCKED with how much stamp duty I would be liable for! :eek

The house was €675,000 and stamp duty would be 9%! That's like €60,000 ON TOP of the house... that's like a deposit for a whole new house!! I'm sorry but how the hell can the government be allowed to throw such a levy on-top of purchasing a house!! >:

I know that this is a rant that has probably been spoken about time and time again (esp. in this forum) - but I just had to vent my disgust and frustration somewhere! Is there ever going to be a reform of how stamp duty is calculated???

soc
 
> but when I went home to check out stamp duty for this new house I was SHOCKED with how much stamp duty I would be liable for!

Stamp duty on new houses under 125sqm is 0% for first and non first time buyers. Maybe you simply need to budget for something more affordable and within your means?
 
Houses are worth whatever people are prepared to pay. Yadda yadda yadda.
 
.

€60k may very wll be within their means. I don't this this is the point.

The point is, they might as well be flushing the €60k down the toilet. Why should they have to be forced to give away this amount of money?
 
.

> The point is, they might as well be flushing the €60k down the toilet. Why should they have to be forced to give away this amount of money?

Why do we pay tax at all so? :\
 
.

Why do we pay tax at all so?

Because we're forced to. (Well most of us are.)
 
>

It is silly trying to reasoning the prices of houses on this site as you will shouted down from all quarters in Ireland and especially those who have bough all ready and wants to make a killing in the market.

Regarding the 60k stamp duty do you know you can but a reasonable house for that amount in the UK and even less than that amount. Have a look at some of the many tv programmes that on at present.
 
> >

> It is silly trying to reasoning the prices of houses on this site as you will shouted down from all quarters in Ireland and especially those who have bough all ready and wants to make a killing in the market.

Any evidence to back up that accusation?
 
?

Here's evidence;


When "Tom" aka "Unreg" said

"Does no one find this constant speculation about a supposed Bubble boring ? It's been dragging on on this site for years.

When I first came across this site in 2000, there were doom mongers all over this site, and they've been proved wrong.

Buy if you can afford to. If you can't don't. Trying to time the market is a mugs game."
 
Re: ?

Harry,

One person's opinion is hardly proof of being shouted down from all quarters. Or should everyone just agree with that opinion?


I too have a vested interest in house prices for the first time. And I find the bubble bursting talk quite boring.
I do think house prices are too high. I don't think the house I bought is necessarily worth what I paid for it (or that any house is necessarily worth what it's going for)...but it's the reality of house prices in Ireland today. For a recent discussion on bubbles bursting read post.
In particular note the last post from LondonIrish which outlines, in my opinion, the reality of a sharp drop in prices and what it would mean for us.
 
Re: ?

> When "Tom" aka "Unreg" said

By "aka Unreg" do you mean "aka blank"? If so then you are sadly mistaken.
 
Re: ?

Why do we pay tax at all so?
Click to expand...

Well with that logic, why stop with 60K, why not just make everyone pay 200,000 on top of the cost of their house to the government. It's only tax after all.

Give me a break. It's perfectly reasonable to point out that the currect Stamp Duty Regime is bad.

If I buy a house today and lay out 40,000 in stamp duty, that's flushed down the toilet if I need to move for work in a year or two. So much for making our workforce flexible and competitive.

And don't give me the cut your cloth lecture. If you buy a family home in Dublin today you will be paying a lot of stamp duty, end of story. And that money is gone.

In other countries you pay an annual tax, which means if you move after a year or two or ten you simply start paying property tax at your new location, you haven't flushed a year or two's salary down the toilet.

If in return for Stamp Duty the government put a little back in terms of local services, playgrounds, creche's public transport etc. Then there might be an argument, but the current system is pure and simple exploitation of peoples need to find somewhere to live.

And then they wonder why there's a 6billion pension gap in this country. The stupidity is so astounding it beggars belief.

-Rd
 
stamp duty on houses, uses of taxes

The stamp duty is weird all right! It brings up the issue of what this is being spent on, which include receptions for George Bush, subsidies for multinationals who will pull out as soon as the honeymoon period ends, and the Euro 343 million (WHAT!!!!) spent on "asylum issues" (todays Irish Times)......and of course all those tribunals.
 
stamp duty on a new house

SOC,

Were you buying the house to live in it or as an investment?

If you were buying it to live in, the stamp duty on a new €675k house over 125 sq. mtr. would be more like €4,500.00. If you are a first time buyer and owner occupier, there would in fact be no stamp duty.

It is only investors who pay a (relatively) penal rate of stamp duty on new houses. Mind you, on a second hand house, you would indeed be stiffed for a large stamp duty bill, whether investor or owner-occupier.
 
For me the problem with stamp duty is that it has the effect of reducing supply to the market and so increases the cost of houses. Ms Purple and I considered moving recently but the 60-90k stamp duty put us off. So now we, like so many others, are putting an extension on the back of the house.
 
I was looking to buy it to live in... but according to the Revenue site:

*Residential Property - Rates of Stamp Duty
Aggregate Consideration | First Time Buyer Rate |Full Rate
Less than €127,000 |Exempt |Exempt
€127,001 - €190,500 |Exempt |3%
€190,501 - €254,000 |3% |4%
€254,001 - €317,500 |3.75% |5%
€317,501 - €381,000 |4.5% |6%
€381,001 - €635,000 |7.5% |7.5%
Over €635,000 |9% |9%
Click to expand...

AKAIK, the house exceeds the 125 sq. mtr exemption from stamp duty... so based on the above table, regardless of whether I am a first time buyer or not, the rate is 9%.

If you were buying it to live in, the stamp duty on a new €675k house over 125 sq. mtr. would be more like €4,500.00. If you are a first time buyer and owner occupier, there would in fact be no stamp duty.
Click to expand...

MOB where did you get €4,500.00 from? How did you arrive at that figure given the only thing I could find on the Revenue site was the above stamp duty table...

soc
 
Soc,

Would you believe that my solicitor made the same mistake when calculating the stamp duty on the new house I bought and as a result paid 34,000 euro to the Revenue in error !!.

Stamp duty on new build houses for owner occupiers is based on the following:

" First-time buyers and owner-occupiers who purchase new houses or apartments greater than the specified floor area limit can avail of a reduction in the amount of stamp duty payable. Stamp duty is assessed on the greater of (a) the site price or (b) 25% of the total of the site cost and building costs (exclusive of VAT) at the appropriate reduced rate of stamp duty for a first time purchaser or non-first time purchaser." www.myhome.ie

So for your 675,000 euro house take 21% off for VAT, then divide by 4 which gives you approx 133,000. You then pay stamp duty on this figure according to the rates on the revenue site - so if you are a first time buyer you are exempt, if not you pay around 3990

Hope this makes sense !!

efm
 
Thanks efm for clarifying that.

So by the sounds of it, I'm entitled to some sort of 'discount' in stamp duty for the new house.... BUT I still think that it is scandalous that if I was buying a second-hand house, I would get the full whack of stamp duty... :mad

soc
 
Presumably the intention of this is therefore to encourage new builds.

After all building houses is the main thing keeping the Irish economy alive.

So do your bit for your country, get out there, and build, build, build...!!
 
Re: Re: Cost of Houses a joke.. but COME ON!

Except what it's encouraging is Apartments, thousands of them, tens of thousands of them.

And virtually no new houses by comparison.

So in a few years when the baby boomers (who are quite happy to live in Appartments for the time being) want to move on to a family home, they won't be able to get one.

Anyone see an appartment price slump and house price spike coming down the tracks?

-Rd
 
You must log in or register to reply here.
Back
Top