Stamp
duty changes boost property market
This year’s budget announcement by Minister for Finance, Brian
Cowen, regarding changes in stamp duty rates, has certainly given a
boost to the sales of residential property, according to John Fitzgerald
of Property Partners Brady Fitzgerald.
The new system moves away from the multiple percentage categories that
dictated rates previously and which also tended to skew asking prices.
The structure of the new stamp duty rates means that for houses under
€1 million, the first €125,000 of a property’s value
will be exempt from stamp duty and thereafter a rate of only 7% will
apply.
For houses that are selling for more than €1 million, the first
€125,000 will still remain exempt, 7% stamp duty will apply to
the next €875,000 and the remaining amount over €1 million
will be taxed at 9%.
Speaking to Community Voice, John Fitzgerald of Property
Partners Brady Fitzgerald said, “These changes have provided a
much greater level of certainty in the market for all residential property
buyers and sellers. Following the marked slow down in the residential
property market last year as buyers cautiously waited for some form
of relief, these stamp duty changes have already reactivated sales and
increased the number of transactions in the market.
“In practical terms, the changes have meant that residential first
time buyers, secondhand buyers, and sellers are all winners. First time
buyers have been given an additional relief to coax them into the marketplace
in the form of mortgage relief, which ranges from an extra €2,000
for a single person to €4,000 for a married couple. While for secondhand
buyers, the stamp duty amount on a property at €400,000 will drop
from 7.5% to 4.8%, which in real terms is a saving of €10,750 –
substantial savings for buyers.”
John also points out that sellers too will gain from the changes as
“all of this movement in the market will be very positive and
the selling process will turn around much more quickly in the coming
months”.
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