Thinking of buying a house? We look at Government incentives scheme and we also highlight a podcast and video to help you understand some of the issues associated with buying a house.
The New Government Incentive Scheme (2017):
A New “Help to Buy” scheme has been introduced by the government. It is designed to help first-time buyers to raise money for a deposit when purchasing a home.
The scheme also applies to self-built homes and some renovations.
If you are a first-time buyer who either buys or builds a residential property you may be entitled to an income or DIRT tax refund over the previous four years.
There are certain rules which apply to the scheme such as the requirement of a mortgage of at least 70% of the purchase price and you must occupy the property for at least 5 years.
With the introduction of the government scheme, more people are eager to get on the property ladder but there are always things prospective buyers should be looking out for.
What factors should you take into account when buying a home?
When making a decision as important as what house you should buy it is important to plan it.
Before you begin your search for your dream house it is wise to make a list of what you are looking for in a property in order of importance. No property is going to be perfect but it is important that it fits your needs and requirements as much as possible.
Some of the most practical factors which should be taken into account when purchasing a property are:
Location! Location! Location!
It might seem like a cliché but the location of a property is a major factor prospective buyers should take into account when bidding on a property. What quality of services are offered in the area? Do they suit your needs? How far is the nearest shop? Have you researched the local schools? What are the transport facilities offered? Will you ever need to avail of them? Different people will have different requirements so it is important that you decide if the location will satisfy your needs.
Looking to the future:
It is important to investigate any developments which may be planned for the locality. Have you checked with the local planning office? You certainly don’t want a busy road outside your front door if your dream house is a small cottage in a quiet country setting!
Podcast: Buying & Selling Property (2019)
The day you buy is the day you sell!
When buying a property, even if you don’t intend to sell it, one should always think of its future market value. If we have learned anything over the last few years it’s that nobody knows what is waiting around the corner. A prudent buyer will buy a property that is likely to retain or increase its market value.
The cost and financing of the property:
It might seem obvious but, can you afford the property you are looking to purchase? The “price tag” on the property itself may not be the exact amount of money you will need to move into your new home.
All prospective buyers should take other charges into account such as estate agents fees, solicitors fees, stamp duty, registration fees, survey fees, or any money which may have to spend on renovating or furnishing a property.
It is important to know how much money you can afford to spend on a property and having mortgage approval from the bank or lending institution is crucial at this stage.
What costs should buyers be aware of when buying a property?
When buying a property there are a lot of other hidden costs involved apart from the purchase price of the house.
- Stamp Duty: Stamp Duty is payable on all transactions involving the purchase of a property and will depend on the value of the house. Stamp Duty is usually 1% of the purchase price up to the value of 1 million euro.
- Search Fees: Solicitors must carry out certain searches on a property to ensure there are no skeletons in the closet which may come to haunt you in the future. Search fees will vary on the extent of enquiries to be made.
- Solicitors Fees: These will vary from office to office.
- Surveyors Fees: It is essential for a surveyor to assess the condition of the property. E.G. If there is a substantial crack in a structural wall this is something you need to know buying the property as it could stand to cost you significantly in the future.
- Registration Fees: This is the cost associated with Registering a title with either the Land Registry or the Registry of Deeds.
- Insurance: It is vital for insurance to be put in place when the purchase is completed. It is the seller’s responsibility to have the property insured up to the date of the closing and then once the deal is completed it is up to the purchaser to insure the property. Lending institutions will also insist that mortgage protection is taken out. Mortgage protection insurance will pay off the remainder of the mortgage in the event that the mortgagee dies.
Video: Our Property Services
Lynch Solicitors for Information Purposes Only
BER Ratings?
There is now a requirement of a BER Certificate for all properties being sold or let. A BER Certificate is a certificate informing how energy efficient a property is. The property will get a rating from A to G depending on its efficiency. BER ratings are something that will only become more important with the passing of time and the weight that is given to environmental conservation and inevitable carbon taxes.
Where do I stand if the seller gives a bogus BER cert and only find out after the fact? A friend of mine (really not me) has come across this.
If the seller knew it to be fraudulent, then your friend may have a case against the seller. He/she would have to prove the loss that arises.
A very informative blog.
Fiona, Thank you for taking the trouble to give us feedback.