Friday 9 December 2016

Second-time buyers getting crucified by the State again

After paying huge stamp duty and the highest interest rates in Europe, now they are being hit by first-time buyers

Brendan Burgess

Published 27/11/2016 | 02:30

To buy a semi-d in Dublin for €400,000 you'll need 20pc, or €80,000. Up until just a few days ago, a first-time buyer was required to have a deposit of €58,000. With last week's relaxation of the Central Bank rules, the first-time buyer will need only 10pc, or €40,000.
To buy a semi-d in Dublin for €400,000 you'll need 20pc, or €80,000. Up until just a few days ago, a first-time buyer was required to have a deposit of €58,000. With last week's relaxation of the Central Bank rules, the first-time buyer will need only 10pc, or €40,000.

Okay, so you bought a starter home 10 years ago. Although you were working in the city centre, you couldn't afford to buy a house anywhere near where you worked or near where you were brought up. You considered buying a three-bed semi-d in Edenderry or a one-bed apartment in Dublin 15. In the end, you opted for the apartment, planning to trade up after a few years.

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The price you paid probably included €40,000 VAT and another €10,000 in stamp duty. Now, 10 years later, your house is worth a lot less than you paid for it. Since then, you have taken pay cuts and you have faced increases in income tax and USC. As a responsible citizen, you paid your water charges and you have also paid your property tax.

As you were not lucky enough to get a tracker mortgage, you are one of the 300,000 Irish borrowers who are paying the highest mortgage rates in Europe.

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