Plan to attract new investors
THE Government is hoping stamp duty cuts for investors will help banish the spectre of 'ghost estates'. Measures unveiled by Finance Minister Brian Lenihan yesterday will hit big existing property investors very hard.
But it is also looking to enlist new residential investors to buy unsold new houses and apartments in unfinished estates across the country.
Mr Lenihan has cut stamp duty from 9pc to 1pc for all investors who buy flats or houses. He said the move was aimed at stimulating the market so it could encourage new investors to take some properties off NAMA's hands, and thus help address the problem of ghost estates.
Up to now an investor who bought a €200,000 apartment paid 9pc ,or €18,000, in stamp duty. The reduction would mean that the stamp duty cost of investing will be cut to 1pc or €2,000 -- a saving of €16,000.
Those who invest in residential properties worth over €1m will pay 2pc stamp duty but this would still be a saving of €70,000.
Such investors are also benefiting from price cuts of up to 60pc or more from peak prices.