The effect of stamp duty changes on purchases already in motion
Cathal: My wife and I are currently buying a property for €320,000. The loan is approved, the contracts are signed "in escrow" and the deposit paid to vendor. We were looking at a long drawdown (mid-February). We are first time buyers. How will budget changes in stamp duty affect us?
If the contract was signed pre 8 December 2010 and is legally binding, the old rules will apply if the purchase is executed pre 1 July 2011, in which case first time buyers relief can apply.
Otherwise, the new rules will apply in which case stamp duty at 1pc of the purchase price will be payable, i.e. €3,200 stamp duty cost.