|
Letterkenny Co. Donegal Tel 074 91 28831 Mobile 087 751 7755 Email: jamesgallagher@propertyhunt.ie |
||
| www.propertyhunt.ie | |||
| Home | Property | Services | News | Advice | Contact Us | About Us |
Top Selling Tips
You need to present your home so that it will appeal to the broadest possible buying audience. The trick is to make sure they can imagine themselves living there as soon as they walk in. Clear the clutter. Mess, all too easily becomes familiar junk which we are used to having around. It makes rooms look smaller and sends unhelpful messages to your buyer. Tidy away family photos and books.
Make sure all entrances are uncluttered, warm and welcoming. Mark the path to your front door with potted plants on either side. Make sure doors open properly and aren’t hampered by a row of coats or muddy boots. Make sure that internal furniture does not stop any internal doors from opening or shutting properly.
Elbow grease can add more value to your home than almost anything else. Clean, clean and clean some more. The kitchen and bathroom are the two most important rooms, but don’t stop there. Dust every surface, ornament and lampshade you possess.
Potential buyers will not be able to visualise themselves living in your home if your walls are very bright, patterned or just plain ugly. Paint them in light neutral colours. You can introduce splashes of colour with rugs, cushions, table runners and flowers. You can make a world of difference to a dark entrance hall with a strategically placed mirror. Carefully positioned it will add space and maximise available light. Ensure that it is hung at eye level.
Ensure that every room has a clear function and purpose. Play up the existence of a dining room by clearing away all clutter, children’s toys and games etc. A spare bedroom could be a bedroom, study or dressing room, but not all three at once. Organise some systems so that the principle function of the room they’re in remains clearly defined.
Be ruthless when it comes to dealing with your pets. It is easy to get used to their smell- so ask a friend to be brutally honest with you. Does your house smell? Before each viewing eliminate unpleasant smells and banish pets to a willing friend’s. Get rid of pet hair too-brush and vacuum until you are sure it is gone.
Do all the little jobs around the house you’ve always meant to finish. If you don’t know what you are doing get someone who does. Broken window catches, a front door bell that doesn’t work or half finished shelves convey an air of neglect and may signal to a buyer that there may be other, more significant aspects to the house that have been left undone.
Guide to buying your new home
1. Choosing your ideal new home:
When you decide on the home you wish to purchase and have agreed on a figure with both vendor and auctioneer, the first step toward securing the property, you are required to pay a booking deposit. This comprises a bank draft or cheque made payable to James Gallagher Auctioneers who hold this as stakeholders on behalf of the clients subject to contracts being signed by both parties. You will be issued with a receipt in return. The booking deposit is paid (subject to contract) and is fully refundable (unless otherwise stated) up to the point that the contracts are signed.(by both you and the vendor of the property).
2. Choosing a solicitor:
When purchasing a property it is important to decide on a solicitor to act on your behalf during the course of the conveyance. This must be decided on prior to paying the booking deposit. If you have not yet retained the services of a solicitor,
James Gallagher Auctioneers will be delighted to provide you with a list of recommended solicitors to choose from. These solicitors are totally independent and will have the client’s best interests to hand.
3. Applying for your mortgage
James Gallagher Auctioneers highly recommend that you obtain approval in principle before you start looking for your home as this will give you a clear indication of how much you can afford to spend.
We will gladly help you with this process as we can put you in touch with experienced Brokers who can provide the financial advice and help needed to acquire your Mortgage.
1. Complete a mortgage application form.
2. Enclose a salary certificate (completed by your employer)
3. Enclose a recent P60 or completed accounts if self employed.
4. Enclose 3 recent payslips along with:
5. (a) A 6 months current account statement
(b) A statement of existing borrowings
(c) A statement of personal savings
(d) Photo identificiation (Driving licence / passport)
6. Other information which may be required for your particular case.
After receiving approval in principle you will be required to employ a valuer to inspect the chosen property. The general price region is €130 - €200.
Stamp Duty Rates
In budget 2008, The Minister for Finance announced that stamp duty will now not apply on the first €125,000 of the cost of a residential property. A rate of 7 per cent will apply between €125,000 and €1,000,000 and 9 per cent will be applied to the excess above €1,000,000. Estate Agents throughout the country have described the new rates as "good news for the residential market" and feel it "will provide some stimulus to the market as buyers will require less savings to purchase a home than in the past".
This new regime takes immediate effect.
The current exemption for first-time buyers will remain unchanged. However, the rule requiring those benefiting from this exemption to live in the house for at least five years will be changed to two years. Other changes include an increase in mortgage interest relief by €2,000 for single individuals and €4,000 for married couples.
New Stamp Duty System: (Budget 2008)
These new stamp duty rates are now effective.
| Property Value | Rate |
| Up to €125,000 | Exempt |
| Next €875,000 | 7% |
| Balance | 9% |
The previous rates that are no longer effective are as follows:
| Property Value | Rate |
| Up to €127,000 | Nil |
| €127,001 - 190,500 | 3% |
| €190,501 - 254,000 | 4% |
| €254,001 - 317,500 | 5% |
| €317,501 - 381,000 | 6% |
| €381,000 - 635,000 | 7.5% |
| Over €635,000 | 9% |
What saving will I make on the new system?
Below is a sample of what this means to the purchaser.
| Property Value € | Old Stamp Duty € | New Stamp Duty € |
| 200,000 | 8,000 | 5,250 |
| 250,000 | 10,000 | 8,750 |
| 300,000 | 15,000 | 12,250 |
| 400,000 | 30,000 | 19,250 |
| 450,000 | 33,750 | 22,750 |
| 500,000 | 37,500 | 26,250 |
| 700,000 | 63,000 | 40,250 |
| 1,000,000 | 90,000 | 61,250 |
| 1,500,000 | 135,000 | 106,250 |
There has been no change to stamp duty as it applies to new homes and first-time buyers.
How do I calculate how much stamp duty I will have to pay?
Example 1:
If the price of the property is €350,000, you will pay 7% stamp duty on €225,000 which equals €15,750. Under the old system the amount payable in stamp duty for a property at this price was €21,000. This constitutes a saving of €5,250
Example 2:
If the price of the property is €1.1 million, you will pay 7% on €875,000 and 9% on the balance of €100,000. This adds up to a stamp duty rate of €70,250 and a saving of €28,750 on the previous stamp duty rates.
New Homes
If you are a first time buyer no stamp duty is payable. For everyone else the stamp duty on new homes depends primarily on the area of the property. If the property is under 125 square metres and you're an owner occupier (i.e. you plan on living there, but it is not your first home purchased) NO DUTY is payable.
| Who: | Duty (Area under 125 m2): | Duty (Area over 125 m2) |
| First-time buyers: | EXEMPT - 0% | EXEMPT - 0% |
| Owner-occupiers: | EXEMPT - 0% | (see below) |
| Investors: | (see below) | (see below) |
Otherwise, if the property is over 125 square metres or you're an investor, the stamp duty is calculated from the table below using whichever of the following two values is greatest:
The cost of the site OR
25% of (the cost of the site + the building costs less VAT @ 13.5%)
| Value: | Non-investors: | Investors: |
| €1 - €127,000 | 0% | 0% |
| €127,001 - €190,500 | 0% | 3% |
| €190,501 - €254,000 | 0% | 4% |
| €254,001 - €317,500 | 0% | 5% |
| €317,501 - €381,000 | 0% | 6% |
| €381,001 - €635,000 | 0% | 7.5% |
| €635,001+ | 0% | 9% |
Land & Sites
Stamp duty for the purchase of land & sites is based solely on the price and there are no reductions for first-time-buyers or owner-occupiers. It is calculated as follows:
| Price of property | Stamp Duty Rate |
| €0 - €10,000 | 0% |
| €10,001 - €20,000 | 1% |
| €20,001 - €30,000 | 2% |
| €30,001 - €40,000 | 3% |
| €40,001 - €70,000 | 4% |
| €70,001 - €80,000 | 5% |
| €80,001 - €100,000 | 6% |
| €100,001 - €120,000 | 7% |
| €120,001 - €150,000 | 8% |
| €150,001+ | 9% |
5. Further Details
When closing the sale, your solicitor will calculate the exact stamp duty due and you will be required to pay this amount to the Revenue Commissioners. Your solicitor will usually arrange this payment.
You may also be liable for a small stamp duty on your mortgage deeds. This duty applies to mortgages in excess of €254,000. The duty payable is €1 for every €1,000 of your mortgage. This duty is negligible and should not affect you greatly.
There are further exemptions from stamp duty for the sale or transfer of property between parent and child and other close relatives. See www.oasis.gov.ie for more information.
Published by James Gallagher Auctioneers
