Daft Property - Irish Property News

Revealed: huge inequity in rural/city property tax... Small apartments in capital will be charged more than rural 'mansions' THE gross inequity of Finance Minister Michael Noonan's property tax is today laid bare as it has emerged Dubliners on the lowest rung of the property ladder will pay higher property tax than the owners of large four-bedroom homes across rural Ireland. One-bed apartment owners in the golden triangle of south county Dublin will be forced to pay on average €315 in property tax, higher or equal than that paid by the owners of large detached houses in 19 other counties outside the capital, a Sunday Independent national property survey published today reveals. The figures have reignited angry calls this weekend from within Fine Gael to have the terms and scope of the property tax amended in the Finance Bill to address the "injustice inflicted on the people of Dublin". Dublin South TD Olivia Mitchell said: "What is happening is th...

How this crippling new homes levy will hit Dubliners 3 times as hard... DUBLINERS face having to pay almost three times as much property tax as householders outside the capital. The controversial tax is due to be rolled out across the board this summer at a 0.18pc rate of the value of the property. But the discrepancies between how much householders in the capital will have to pay compared to people living in towns and cities elsewhere suggests the tax may be one of the most divisive ever. Today the Herald highlights the disparity between the charge on homes in Dublin and two medium-sized towns, close to Cork and Galway cities. We have selected three types of houses - a four-bed detached, a three-bed semi-detached and a three-bed terraced - for comparison purposes. The big difference between the houses in each type is their location and price. Unfair Homeowners are due to receive an estimate on their bill from the Revenue in March. They must submit their valuation by Ma...

Next big hot potato is property tax of up to €1,000... There's little hope of a property tax being fair and equitable on the already squeezed middle classes, says Daniel McConnell. Can you afford to pay €1,000 a year in a property tax? Well, according to the man charged with designing such a tax, that is what we will, on average, all pay once it is introduced. Don Thornhill, a career civil servant who describes himself now as a consultant "who advises on strategy and policy to a number of leading Irish organisations" has recently presented his report to Minister Phil Hogan recommending how such a property tax should work. Politically toxic and highly unpopular, the lack of enthusiasm of either Fine Gael or Labour to discuss the matter is a clear sign of the trepidation that surrounds the idea of lumping the extra burden on the shoulders of the Irish taxpayer, but in particular the "squeezed middle classes". Phil Hogan's department is saying nothing othe...

House prices still falling - Dublin tops the list... House prices in Dublin are nearly 47pc off their peak in early 2007 compared with 39pc in the rest of the country, according to the Central Statistics Office. In the year to June, residential property prices at a national level fell by 12.9pc. This compares with an drop of 12.2% in May and a decrease of 12.4pc recorded in the twelve months to June 2010. In Dublin, residential property prices decreased by 2.4pc in June and were 12.6pc down compared with a year ago. House prices in the capital fell by 2.4pc last month and were 11.9pc lower on an annual basis. But economists believe that while the jobs market remains weak, within five years house prices should improve but very slowly. “The bottom line is that the property market remains very ‘soft’ at the moment,” said Alan McQuaid, chief economist at Bloxham Stockbrokers. “ But looking further ahead, we think house prices should increase on a five-year view as the labou...

More pain for PAYE workers as tax hike looks likely... THE GOVERNMENT is on the brink of breaking its election solemn promise not to raise income tax. The tax rise threat emerged as the European Central Bank (ECB) hinted that it is preparing to introduce a 0.25pc hike in interest rates next month -- which will add almost €400 yearly to the average €250,000 mortgage. The blow to struggling homeowners will be further compounded by a new property tax and water charge set to be introduced in the new year. Finance Minister Michael Noonan told the Dail yesterday: "I am not going to rule out any tax initiative, or any tax increase or any tax reduction." He added that the "fraught" condition of our public finances meant he was not in a position to predict take hikes, including income tax. The minister was also forced to concede that EU states such as France and Germany are looking to take an interest in the national assets of bailed-out states such as Ireland. ...

LOW-paid workers will be dragged into the taxation net and middle-income earners also face a wide range of tax hikes in the most draconian Budget in the State's history. Taoiseach Brian Cowen yesterday quelled pressure from within Fianna Fail to call an election and will push ahead with plans to cut €6bn in the 2011 Budget on December 7. After being forced to call a by-election in Donegal South-West, the embattled Coalition is now facing the prospect of its majority being reduced to just two for the crucial Budget votes. But Mr Cowen is adamant the Government will stay the course and see through the €6bn austerity package for next year, consisting of spending cuts of €4.5bn and €1.5bn in increased taxes. The Coalition also expects 45,000 workers to emigrate from the country in 2011, leading to just a small rise in unemployment as those who can't get jobs will opt to leave the country instead. For those in the workforce, the prospect of a wide range of tax hikes is on the cards,...

Be prepared for a double whammy of property and water levies... PROPERTY tax isn't going away -- and it might be introduced at the same time as water charges. Homeowners who thought they would be spared the controversial taxes for the foreseeable future have been told that they are still firmly on the Government's Budget agenda. As the Cabinet prepared to meet for its final session before the summer break, Justice Minister Dermot Ahern reignited the debate over domestic taxes. It had been believed that property tax would be shelved, despite the Government's need to make a €3bn adjustment in December's budget. But yesterday, Mr Ahern said: "That may include a property tax and charging for water - which are in every other European country." Dragged He also warned that low paid workers could be dragged back into the tax net. "There's a relatively small percentage of people who are paying tax. But 50pc of people are not paying a bob of tax. That is not su...

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...

The Merrion Street mandarins have failed us – it’s time for a shake-out... THE mid-point of the year sees the publication of the half-year exchequer returns and CSO data on the economy. This will form the backdrop to the formation of December’s budget. Next week the Department of Finance will circulate its strategic memo to shape 2011 expenditure plans. The Government has been softening up the public for tax hikes. A flat household charge of €175 for water and an average residential property tax of €1,000 per household are being promulgated. All the while, the Bord Snip Nua report continues to gather dust. Finance Minister Brian Lenihan has announced an external independent group is to review the performance of the Department of Finance over the past decade. Speculation has centred on its advice to ministers, forecasting ability and competence dealing with the banking crisis. The lack of specialist personnel has been acknowledged. Its annual budget forecasts of GDP and tax revenues hav...