The process for buying a home, especially your first home is a complex process that requires legal advice throughout to manage the process. This includes reviewing title and contracts, advising on planning issues that may arise, advising on legal aspects of your mortgage as well as discharging stamp duty and registering your legal ownership once the sale is closed.
Apart from this, there are a lot of additional costs and finance required that may go unnoticed by first time buyers. This includes stamp duty, legal fees, survey costs and life and home insurance which is required to be in place before a mortgage is given. This is why it is important to be aware of the financial assistance that may be available to you.
Help to Buy Scheme
The Help to Buy Scheme is aimed at helping first time buyers get on the property ladder through purchasing a new build or building their own residential property. The scheme has been extended to 31st December 2029 as announced in the 2024 budget.
The scheme provides a tax rebate of up to 10% (capped €30,000) usually to assist with the deposit.
In order to qualify you must:
- Be a first time buyer purchasing a new build or building
- The property must be your main place of residence for 5 years after purchase
- You must have accumulated sufficient income tax and DIRT over the previous 4 years
To apply for the scheme, register with Revenue online and submit your application in order for your eligibility to be determined.
Affordable Purchase Schemes
Another option available to assist first time buyers is the First Home Schemes.
Under this scheme, the government, through the relevant county council, will contribute up to 30% of the property’s market value in exchange for an equity share in the property. Giving you the chance to purchase at a lower price than market value.
Again, there are certain criteria before you are eligible:
- You must be a First Time Buyer
- You must be able to obtain a mortgage from an approved lender participating in the shared equity arrangement.
- Newly built property in a private development
In return for the reduced price, the Council will obtain an equity share in the property equal to the contribution they have made. If the Council has made a 20% contribution to the price, in return they will receive a 20% share in the property. This will have to be repaid when the property is sold, or you can make redemption payments or “buy out” the equity at any stage but there is no obligation to do so.
A first time buyer can obtain both the Help to Buy and Affordable Purchase Scheme for the same purchaser where they meet each of the eligibility criteria.
If you area first time buyer and looking for assistance with any of the above, our property team will be in a position to advise you on all aspects and guide you throughout the process. Please contact us here – at 01 873 5012 or info@mcgrathmullan.ie and we would be glad to assist you.