Irish house prices are skyrocketing according to a new report released by MyHome.ie this week. It shows the average cost of a three-bed in the capital reaching a whopping €365,000.
Many families are already struggling to keep up with the rising cost of living nationwide, and with the jump in the price of buying, some will be left without hope of securing their family home.
While there are many means-tested social welfare schemes that support those earning under a certain threshold, there are others earning over this amount who are still struggling to make up their deposit for a mortgage.
READ MORE: Ireland house prices: The salary you need to buy a house in every county right now
One lesser-known payment scheme available to most first-time buyers is The Help to Buy scheme which supports people with the deposit to purchase a self-build, a new house or an apartment in Ireland.
In order to be granted this payment, you must be planning to buy or self-build the property to live in as your home.
As well as this it must:
- be newly built with the construction subject to Value Added Tax (VAT) in Ireland.
- never have been used, or have been suitable for use, as a residential home.
You must also:
- ensure the value of the property is €500,000 or less to qualify for HTB
- take out your mortgage on the property with a qualifying lender
According to the Revenue, there is one exception, which is: "If the property was non-residential, but has been converted for residential use, it may qualify for HTB. However, if you purchase or self-build the property as an investment, it does not qualify."
The maximum payment is €30,000 per qualifying property, and this cap applies regardless of how many people enter into a contract to purchase the property.
The amount that you can claim is the lesser of:
- €30,000, or
- 10% of the purchase value of a new home or of the approved valuation of the property, in the case of self-builds, or
- the amount of Income Tax (IT) and Deposit Interest Retention Tax (DIRT) you have paid for the four years prior to your application
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