What does this budget mean for property buyers?

Budget 2012:  Government acts to stimulate the property market

• Mortgage Interest Relief (TRS) scheme extended slightly and rate  increased  to 25% for first-time buyers who buy in 2012, other residential buyers will receive 15% mortgage interest relief

• Increased mortgage interest relief of 30%,  for homeowners who bought between 2004 – 2008

• Its a mixed bag for investors, with tax incentive properties (s. 23 and s. 50) preserved for investors with an annual income of less than €100,000 – investors receiving an income greater than €100,000 willl be subject to a surcharge of 5%.

• There will also be an increase in Capital Gains Tax from 25% to 30%

• No residential Stamp Duty increases (this year…)

• For commercial investors – Stamp duty decreases to a flat rate of 2%

• An exemption from CGT for commercial property purchased throughout 2012 and 2013 provided same is held for a period of at least 7 years

• On the down side, a household charge of €100 has been introduced and will apply from January 2012, with some exemptions.

If any prospective buyers need help deciphering how their position has changed and what impact this budget will have on their purchasing decision, contact Buyers Broker via email or telephone 01 4428 035.