I'm not trying to be smart here but I've seen a few of your posts regarding FTB and stamp duty and you're living in cloud cuckoo land if you think people have time to shop around in the current housing climate.ClubMan said:If you don't like the idea of paying this tax then why not shop around until you find a tax exempt (e.g. new property under 125sqm or second hand property under €317,500) property that suits your needs?
This example shows that the market sets the price of the house. The proportion of the price that the government takes in tax has no real impact on that price.Ballyman said:Two months ago in one town in Kildare, I was bidding for a 3 bed semi, 5 years old at €325K, 300 yards down the road a new development of smaller terraced houses were released at €357K. And they sold out in a matter of hours. Where is the logic in that?
I absolutely and completely agree with Ballyman. How the government can justify FTB's paying stamp duty atall is a scandal.
Ballyman said:..FTB's are being raped left, right and centre by developers ..
Which shows again that the market sets the price and the tax rate on the transaction is irrelevant. The price is being set by demand, not by cost of production. If cost of production was a factor then complaining about stamp duty adding cost for the FTB out there would be legitimate.ubiquitous said:In fairness the govt reduced stamp duty for FTBs in the 2005 Budget. Prices for properties aimed at this target market shot up by an equivalent amount within a few weeks, thus rendering pointless the entire initiative.
Markjbloggs said:Question for the Economists out there -
Does it make sense for a government to impose a tax (in this case, Stamp duty) that must be financed through borrowing (ie mortgage)? thereby further increasing the burden of the cost of the stamp duty? The cost to the economy in general is huge, as this money is not available to stimulate spending, now AND in the future.
Markjbloggs said:.. Does it make sense for a government to impose a tax (in this case, Stamp duty) that must be financed through borrowing (ie mortgage)? ..
Howitzer said:By that logic why pay any taxes?
Allow everyone to take home 100% of their income and let them then decide how much they want to spend on hospitals/roads/schools. The less taxes people pay the less they want to pay, and the more out of the touch they get with the whole concept of social democracy.
Stamp duty is not currently loaned out, to FTB's anyway, as part of the mortgage. In other countries it is with what are effectively 110% mortgages.
Markjbloggs said:I was driving at the need to take out the loan to pay taxes, resulting in the loss of the tax and the interest on the loan from the economy.
Indirectly it is, if the amount paid as stamp duty were paid against the property (and not on the whirlpool jacuzzi), then the mortgage would be lower, hence, stamp duty is paid by borrowing from the banks.Stamp duty is not currently loaned out, to FTB's anyway, as part of the mortgage
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