First Time Buyer

N

Nemo

Guest
Hi there. I'm a first time buyer and single. I've put a bid on a second hand apartment and am meeting with a mortgage broker tonight. I'm as green as green can be with regard to all the detail and it scares the living daylights out of me. This may be a stupid and naive question but is there any First Time Buyer grant or equivalent incentive available to me?

Thanks,

Nemo.
 
Hi Nemo

No there is no first time grant available, That was scrapped, Only thing you will get is Mortgage Interest Relief
 
I would advise you not to buy an aparment out in the pale at this time , especially a one bed in Kinnegad type one.

Research your options and come back into the market in 3 months when you understand whats happening properly, the price will be the same not higher.
 
It is a three bed in Kgad. I think, and I've gotten advice, that it is a good buy. I just need to do something now about investing and be the dreaded "grown-up"!
 
As a first time buyer, you will pay a [broken link removed] (if applicable). You also qualify for [broken link removed](TRS) on the interest element of your mortgage repayments. There is plenty of info on both already here on AAM.
 
Hi Nemo

Interest Relief is given by the revenue to first time buyers. It is given at source now, so the banks deduct it for you off your morgage, you need to fill in a form when you have mortgage got and have purchased a property, TRS1 form is available on revenue.ie , It also explains how it is calculated ,www.revenue.ie
 
Nemo said:
It is a three bed in Kgad. I think, and I've gotten advice, that it is a good buy. I just need to do something now about investing and be the dreaded "grown-up"!
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Who advised you? As long as it was objective independent advice then its probably ok advice.
 
You should sit down and trawl through this web-site. It covers everything from interest rates to leaky taps. There are very relevant and factual posts. As a first time buyer (I have just put down a deposit) I find it invaluable for information and sound advice from people who have been in our shoes and who can help you to avoid the pitfalls. Being green really is no excuse. You need to be fully informed before making a decision this big. You need to be aware that the Mortgage broker will have a vested interest so take what s/he says on board and go away and do your own research. Taking the word of someone else who says the apartment is a good buy is not really enough to base a move as big as this on. You will need to weigh up the options yourself and take responsibility for your own decisions.
 
a mortgage broker will sell THEIR mortgage and THEIR insurance , not what may be best for you at all.

if you buy a 3 bed whats the rental market like in Kinnegad , I would think its not great ???
 
If you are buying the property as an investment rather than to live in (and let rooms) you will not qualify for tax relief and you will pay investor Stamp Duty rates.

Sarah

www.rea.ie
 
Nemo said:
It is a three bed in Kgad. I think, and I've gotten advice, that it is a good buy. I just need to do something now about investing and be the dreaded "grown-up"!
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Do you mean that the property is an investment, or that once you have bought the property you need to think about investing elsewhere?
 
I am buying a three bed apartment as an owner occupier, with an option of renting one of the rooms if I need to. Rental market in Kgad is quite good.

I have gotten advice from my Father who has worked in the building trade and has made several property investments in recent years. Also I have a relative in the Estate Agency that the property is being handled by. I obviously trust both and, while I admit to being green, I have kept an eye on the market for some time and feel it is the right move right now. I am more green about the actual technicalities and detail in getting a mortgage together rather than deciding to buy the actual property.

I presume the broker will advise me of the Interest Relief/Tax Relief at Source/Reduced Rate of Stamp Duty?!? This type of thing is my actual dilema, how much will the Broker tell me or is there other aspects of getting a mortgage that I should be aware of that need completing myself?
 
Why not spend some time here on AAM reading up on the relevant material (all free) and then make a decision as to whether or not you need further advice and information?
 
"Research your options and come back into the market in 3 months when you understand whats happening properly, the price will be the same not higher."

How do you know the price will be the same and not higher?
 
MortgageBrkr said:
"Research your options and come back into the market in 3 months when you understand whats happening properly, the price will be the same not higher."

How do you know the price will be the same and not higher?
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Even it is a bit higher he will probably offset that totally with

1. Better and cheaper life insurance
2. Possibly a better deal on the mortgage

It may even be lower (or lower disguised as better allowances) but I did not say that , you did I think :p
 
Hi Nemo, If you are an owner occupier you can rent room(s) up to €7,620 without having to pay tax. If your property costs less than €317,501 as a first time buyer you will not have to pay stamp duty on the house (but you will still have to pay it on the mortgage - couple of hundred euro) Mortgage relief is deducted at source so you will qualify for that automatically. Ring up your solicitor and ask what s/he will charge you for doing the legal end of things and ask friends/relatives about their solicitors and if they are happy with the service and charges. Insurance and mortgage brokers are mines of information. Don't be afraid to call in and have them explain everything to you - without obligation. Invaluable info on this site.
 
[broken link removed] have a solicitor in the mullingar area along with set cost 999.Spoke to them for a bit and seemed v nice
 
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