There were some important changes brought in by the Finance Act relating to private homes –which includes some good news for new home buyers looking to get on the property ladder.
Buying a newly built house
A boost has been given to those looking to purchase newly built homes. First-time buyers of newly constructed homes will be entitled to an income tax rebate, paid over the previous years, of up to €20,000 (calculated based on the value of the new home, up to €400,000). The upper limit on the value of the house was originally set at €600,000 but was reduced to €500,000 after criticism from some quarters. As a transitional measure, a value of up to €600,000 will be allowed if the contract is entered into between 19 July 2016 and 31 December 2016. A building which was not previously used or suitable for use as a dwelling, and which has now been converted for use as a dwelling, can now also qualify for the scheme.
Rent a Room Scheme
On a more positive note, the amount of the rent a room scheme has been increased from €12,000 to €14,000 per annum. This reflects the continuing increase in rent especially in the Dublin area.