Prior to the Budget the future of the ‘Help to Buy Incentive’ (HTBI) was uncertain. Many had blamed the incentive for increasing the rate of inflation on house prices. However, Paschal Donohoe and his colleagues in government decided to extend the HTBI for 2018.
So. How does it work?
The HTBI is a tax refund initiative worth of 5% of the value of the property capped at €20,000.
For example, you and your partner are interested in purchasing a 4 bedroom semi detached home for €200,000. Under Central Bank rules, you require a 10% deposit (€20,000) to purchase the house.
Thanks to the Help to Buy Incentive you can now claim 5% of the value (€10,000). This means that you and your partner now only need to save the remaining €10,000 yourselves to make up the full €20,000 deposit required.
Do you qualify?
To qualify for the ‘Help to Buy Incentive’ you need to be a first time buyer. If you are purchasing the property with another party both of you need to be first time buyers. Other conditions are that you must live in the property for at least 5 years and that you must borrow at least 70% of the value of the property.
Does the property qualify?
The ‘Help to Buy Incentive’ applies to newly built houses and apartments with a maximum value of €500,000. It also applies to self builds. The developer/builder of your prospective home must me registered with the incentive as well.
To apply for the scheme or for more information please visit the Revenue website.
You’re in safe hands