No Dirt on people saving up for the deposit to buy a home

Status
Not open for further replies.

Brendan Burgess

Founder
Messages
54,774
[FONT=&quot]Fi[/FONT][FONT=&quot]r[/FONT][FONT=&quot]st time buyers DIRT relief[/FONT][FONT=&quot][/FONT]
[FONT=&quot]A relief from DIRT on savings used by first time house buyers towards the deposit on a home.[/FONT]
 
This is a total gimmick. How much for the average home buyer will this amount to. (reminder to self to do a calculation on say, 40K over 4 years)
 
I agree Bronte, he also suggested Banks would set up special accounts for this (with fees larger than the DIRT refund I'd guess).
 
pc7 said:
I agree Bronte, he also suggested Banks would set up special accounts for this (with fees larger than the DIRT refund I'd guess).
Click to expand...


Yeah they said alot about banks in the past but the banks didnt listen and still dont listen to this day.

Every time the ECB cut the interest rates,the banks increased their variable rates and placed even more hardship on people with their variable rate mortgages.

At the end of the day this budget is give with one hand,but then take with the other hand.

Its FG and Labour desperately trying to buy back peoples votes by lulling them into a false pretence.
 
For €1,000/month saved for four years at 2.5%, the DIRT refund would equate to about €21/month.
 
we are in the process of purchasing a house this month, do we get this backdated or is it only for savings from here on? how does it work?
 
paddi22 said:
we are in the process of purchasing a house this month, do we get this backdated or is it only for savings from here on? how does it work?
Click to expand...


Link.

http://www.*****************.com/dirt-refunds-for-first-time-buyers-budget-2015.html


"In Budget 2015 a relief from DIRT for first time buyers was announced.
This applies to savings used by first time house buyers towards the deposit on a house. This is to apply to houses bought between 14th Oct 2014 and 31st December 2017".
 
pc7 said:
he also suggested Banks would set up special accounts for this
Click to expand...

This applies from today, so it clearly applies to those with normal deposit accounts.

I wonder does 'special accounts' mean normal deposit accounts that will be marketed as 'save to borrow' products.
 
Ok, let's say you have 40K for 4 years earning 2% per annum.

So annually you get 800 Euro in interest and you pay 41% DIRT is 328 Euro.

So over 4 years you get an extra 1312.

That's if you are earning 2% and if you have 40K on deposit constantly. Which is not going to be the case, you'd only have as much as 40K in the year before purchase, and only for a couple of months.

I'm guessing for the borrower who starts out having to save say 10K per year, or about 1K per month it will be a lot less.

Take year one, 10K @ 2% = 200. Dirt is 82 Euro of that. I'm guessing for most people it won't even amount to 500 Euro.

However, if you are a wealthy first time buyer, say having a deposit of 100K over 4 years, it gets a lot more interesting.

How are they going to administer this
 
It will be a mess especially with the 4 year rolling look back.
The starting point will be the actual price paid for the house and whatever will be included in that.
Then you take 20% of it and the DIRT on that amount back 4 years, if available, will be refunded.
Joint accounts/single accounts ???
 
My situation

Hi all,

Ok, so quick question on this. I own an apartment. My wife is not on this apartment mortgage. we have been saving for the past 3-4 years. Some accounts in my name, some joint savings accounts. we are buying a house right now(joint mortgage), and wondering how this would work for us with getting any DIRT back ?

1) i am not first time buyer. wife is
2) not all savings accounts have been in her name, even though she has contributed towards them
3) will revenue look for savings statements of accounts as proof with BOTH our names on the savings accounts ?

DIRT would be significant on overall savings, and pretty much using all on mortgage deposit in region of 20% of property.

Thank you for any guidance here.
 
As far as I am aware you will not be eligible as both individuals must be first time buyers on a joint mortgage. I know that this is the way the first time buyer's grant was handled in the past so it is worth checking out.
 
Has anyone looked into actually claiming this refund?

I have recently purchased a house but have no clue how to go about this from a practical perspective. I have not found any guidance at all.

Thanks
 
Status
Not open for further replies.
Menu
Log in
Register