LPT: Daft.ie launches a Local Property Tax calculator

[ClubMan]

I know in the area where our apartment was sold one apartment was sold for a ridiculously low price (< 50K) and this may be bringing the average down.

The Property Price Register should record that and mention if it was a "below market value" transaction.

 

[harriet]

Have just used the Property Price Registers calculations and seems DAFT weren't far off the mark at all so will go with this when registering and paying

 

[Ceist Beag]

The Property Price Register should record that and mention if it was a "below market value" transaction.

Thanks Clubman. I can't quite figure out the Daft valuation in that case as their value is significantly lower than the average price apartments were sold for in the area in the past 2 years (once you remove the one I mentioned). Anyway, it doesn't really matter as we know based on the sales we have seen that it's closer to the revenue valuation than the Daft one and the bands are so wide that it doesn't matter if we valued it at €101K or €149K, we'd be paying the same tax based on the middle of the range anyway.

 

[Dermot]

I thought that the reference to "below market value" was the price declared for the house on the website before the vat was added on. For example a new house that a purchaser paid 227k would be shown on website as selling for 200k. The stamp duty of 27k is added to the price. It only applies to new builds. that is my understanding of it. I will be happy if corrected.
How can anyone be confident in saying that a property was sold under market value. I often hear people say such a house went for "nothing" even where the house was on the market for 2 months or more. Surely when a house is advertised for a reasonable period of time and after that time the seller / agent feels there is no point in waiting for any more bids the price achieved is the market value at that time.

 

[DerKaiser]

At present I have 5 different figures and I await the sixth which is Revenue's letter with their valuation.

So far I have:

Money guide (purchase price combined with CSO price move) gives the low end of 350-400k band - the weakness is that the price drop takes no account of price changes in my specific area

Actual prices achieved for 3 similar houses in the last 6 months gives high end of 350-400k band

Revenue's website gives 400-450k band: It combines a range of estates where recent sales prices have varied by over 300k

Letter from revenue gives 450-500k band: Not sure what they take account of over and above the website

Daft calculator gives 550-600k: It clearly is less specific on the area than revenue

 

[Mrs Vimes]

I thought that the reference to "below market value" was the price declared for the house on the website before the vat was added on.
How can anyone be confident in saying that a property was sold under market value. I often hear people say such a house went for "nothing" even where the house was on the market for 2 months or more. Surely when a house is advertised for a reasonable period of time and after that time the seller / agent feels there is no point in waiting for any more bids the price achieved is the market value at that time.

"Below market value" refers to sales where the stamp duty return indicates that the price paid was not market value.

One example would be where one owner was buying out the other - in that case they would be only paying for a percentage of the house and this is the amount recorded.

Another example would be if a person was buying at below market value from a connected person - eg house worth €100,000, owner sells it to his son for €50,000. Stamp duty would be paid on €100,000 but €50,000 is recorded as sale price (the rest would be subject to CAT).

 

[Dermot]

I have just checked the propertypriceregister website and copied their explanation as follows.

Prices Given Not Full Market Price

In a small number of transactions included in the Register the price shown does not represent the full market price of the property concerned for a variety of reasons. For example, the price declared may reflect the retention of an interest in the property by the previous owner, or the fact that a part or fraction only of the property is being purchased; alternatively, the property may have been purchased at a reduced price under the Affordable Homes Scheme. In addition, in a very small number of cases, properties may be declared as purchased in exchange for other property, stocks and shares, etc. All such properties are marked **.

 

[Sumatra]

Derkaiser, I have two valuations, revenue map figure, sale in approx area - I am going to divide the selling price by the square metre of the properties sold and apply it to my own. I will allow for fall in values since selling date. I have Dafts daft figure. I have PSRA figures and I await revenues figure in the post. I will get the average of all figures and that is what I will value my home at. I phoned revenue this morning and they said that was fine. I have made copies and will retain all calculations in case they are needed in the future. That is the best I can do. I will ignore the selling price of properties in my area because until actually sold I consider such figures fiction.

 

[Bronte]

Just to clear up something, houses selling for half nothing, for very low prices, for peanuts - these are not below market value.

If they are sold to an unconnected person in a normal sale than that is market value. Other people having the opinion that it is below market value are incorrect. Market value can change from month to another, indeed they can change in a day.

As a concrete example two identical houses in an estate can be sold at auction for wildly different prices. Similarly a developer might sell two houses in a day for vastly different prices - as happened to people queuing up during the boom.

 

[DerKaiser]

As a concrete example two identical houses in an estate can be sold at auction for wildly different prices. Similarly a developer might sell two houses in a day for vastly different prices - as happened to people queuing up during the boom.

Completely agree. Market value is only objective for a specific house at a specific date. Two near identical houses in our estate went for €350k and €405k, both in November. The person who bought at €350k must be delighted as they have saved €55k up front and will pay €180 less p.a. in tax.