Daft Property - Irish Property News

HOME buyers get mortgage approval from either Bank of Ireland, Permanent TSB or EBS. The buyers then find a property they want that is part of the NAMA scheme. They will need a deposit of at least 10pc of the value of the property. If they are buying a €200,000 house, this means the buyer will need a deposit of €20,000. So the house hunter borrows €180,000 from the bank and repays the mortgage based on this amount for five years. The scheme works by NAMA deferring 20pc of the value of the property, which works out at €40,000 in this case. But for the first five years the homeowner makes payments on the full €180,000 they have borrowed. If, after five years, when the property is revalued under the scheme, the property value has fallen, then the homeowner will end up not having to pay the full amount of the mortgage. This is because NAMA has deferred up to 20pc of the property purchase price. If the property falls in value by 20pc, then the €40,000 will be written off by NAMA. If it fal...

Property tax plan to help fill '€3.5bn hole'... IMF urges help on mortgages and new tax on bank salaries: THE Government is considering a flat-rate property tax as the International Monetary Fund (IMF) warns an extra €3.5bn may be needed to meet budget targets. In a detailed analysis of the Irish economy, the IMF predicted the Government may not enjoy the hoped-for "bounce" from the recession. The Department of Finance believes that forecast is too gloomy. The difference between the two views amounts to 2pc of the country's output (GDP) and that comes to almost €3.5bn over the next five years. However, government officials agreed that a property tax would be a good way to make the public finances more stable. That is revealed in a new report from the Washington-based fund. Despite claims that a property tax is "off the agenda" in the next two Budgets, the Government told the IMF a flat-rate tax on property was under consideration "in the transition...