Real Estate Alliance, today issued a warning to the Government on the potential negative impact of a property tax. Members of the property group have warned against any property tax instead advocating a property market stimulus, which could increase Government tax takings from property activity. Taking steps to boost confidence in the property market, rather than undermine it with further tax burdens, will help to get the market moving again benefiting all.

Any form of property tax has the potential to impact negatively on an already delicate market. Especially as the government have already introduced a €200 property tax in the last budget, just 6 months ago. Continuing to beat this horse may result in crippling a market that is on the precipice of recovery the group stated.
Suggestions for a market stimulus package included abolishing or halving stamp duty on all residential property for a set period of one year. Many members were citing what happened when capital gains tax was reduced from 40% to 20% and believe that a similar impact could be seen in stamp duty if the right stimulus package could be found. A reduction in stamp duty combined with the Government’s

First Time Buyers are ready to buy

The majority of this group are between 25 and 30 years old. 48% are renting while 31% live with their parents. 66% of those renting are paying between €600 and €700 per month. A large majority (68%) of these potential buyers want to buy in the next year and most are motivated by “seeing the right house”. 54% are buying alone and 41% are buying with a spouse or partner. Interestingly, most of them have no preference between a newly built or a second hand house. The most popular budget is between €200,000 and €249,000. Most of these buyers (54%%) are holding off buying because they believe prices will fall in the months ahead and 22% are have problems obtaining finance. A considerable number of this group (59%) haven’t applied for a mortgage yet. Most First Time Buyers feel that the Home Choice loans will have little effect on the market. 79% of First Time Buyers think there is value in buying a house at the moment. 37% believe that property prices will bottom out by mid 2009. Most First Time Buyers (35%) believe that house prices will decrease by 5% in 2009. The majority of First Time Buyers believe that building energy ratings will have no effect on house prices and most don’t agree with carbon taxing homes.