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Budget boost likely for Inishowen
property sector
08.12.11
THE property sector in
Inishowen should get a boost from the measures
outlined in Budget 2012, according to local estate
agent, Leo McCauley.
"The measures were unexpected but welcome," said the
Moville-based auctioneer.
He welcomed the reduction in stamp duty from 6% to
2% on commercial property transactions. Meanwhile,
any commercial property deals concluded until the
end of 2013 will be exempt from capital gains tax if
held for at least seven years by the purchaser.
"There has been little or no commercial activity
here for the last few years so I'm glad to see the
reduction in stamp duty and capital gains exemption.
It should provide some stimulus to the commercial
property sector. |
"The reduction in stamp
duty will be particularly welcome for farm sales
which are important in rural places like Inishowen.
For example, if someone bought a farm last week for
about €50,000, the stamp duty on it would have been
about €3,000. The tax will now be more like €1,000
or so, with the stamp duty drop, so that is a
boost."
Mr McCauley has been seeing some activity in the
first time buyer market due to the huge drop in
house prices and better than previous lending by the
banks. |
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Leo McCauley |
"People are getting
mortgages not least because the house prices are so
low compared to what they were three or four years
ago.
"First time buyers will now get interest relief of
25% from 2012 and other buyers will get 15%. The
mortgage interest relief coupled with competitive
house prices can only be good for the market."
The Irish property market now accounts for just 5%
of economic activity compared to 20% during the
boom.
Leo McCauley said the budget measures will help the
hard-pressed sector but said there was "no fear" the
market would ever return to previous unsustainable
levels.
"We will never see the construction sector
accounting for 20% of economic activity in Ireland
ever again. I don't think we will even see it
accounting for 10% any time soon." |
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