Why is Irish real estate so popular?
1. The population is booming and the society is in urgent need of housing.
Under the premise of the population booming, the level of basic construction of new houses is relatively low. According to the 2017 Housing Report, less than 15,000 new homes were completed in 2016, which is 65% lower than the average of 65% completed in the past 20 years. Ireland's social housing inventory is relatively low, accounting for only about 9% of the overall inventory. Less than the EU average of 17%. The Housing Department predicts that more than one-third of the population will need housing assistance in the country in the future. It is estimated that 5,000 units of social security housing must be upgraded every year to basically meet the requirements.
2. House prices across the country are rising, and the duration of housing transactions is only 4 months
At this stage, the average house price in Dublin’s housing market is 314,311 euros. Overall, only the first three months of 2017 The average monthly price has increased by 17,500 euros, but in the past five years prices have increased by almost 120,000 euros.
In other areas of Ireland, for example, Cork city house prices increased by 11.2% in the second quarter of 2016, Galway city increased by 14%, Limerick increased by 15.2%, and Waterford increased by 11.2%. That's up 17.4% in 12 months. In addition, according to statistics from the MyHome.ie website, the number of available homes for sale registered on the platform was 21,650 in the first quarter of 2016. Compared with the 23,520 homes available for sale last year, the number of homes available for sale at this stage has declined. 6.7%, close to the lowest point in history. Home transaction time fell to four months, a record low.
3. House prices will still grow at double digits
Real estate analysts predict that "in 2017, Ireland's house prices (growth percentage) will grow at double digits." So now This is a great time to buy a home in Dublin, as the Central Bank of Ireland has also relaxed borrowing requirements, granting 90% loans to first-time buyers.
As a result, the Irish real estate industry is currently in a period of rapid development, with attractive rates of return, low loan interest rates, a strong rental market, objective capital gains, and considerable rental income immediately after leasing.
In addition, the rent price in Ireland ranks second in Europe. After buying a house, renting it with high returns can ensure quick profits. In addition, with the current decline in the exchange rate of the euro against the yuan, it is more affordable and more attractive for wealthy Chinese investors. How to pay taxes on buying a house in Ireland?
1. Assessing your property
You can look at the Residential Property Sales Register published by the Property Services Regulatory Authority (PSRA), propertypriceregister.ie, to consider the use value of your property. The tax payable is based on the value of the national home. LPT is a self-assessed tax, so you calculate the tax payable based on your own assessment of the significance of the property market.
Since 2013, real estate valuation has also gradually passed self-assessment. LPT has developed an online brochure that gives indicative home values. The manual helps you evaluate your property by giving you local average indicators for different asset classes.
2. Payment LPT
Coordinated users: If there are several users, they must unanimously decide who will pay the LPT. If no one pays the tax, the possible cost of LPT can be deducted from all users.
Leasehold Property Management: If the residential property is leased under this short-term lease (no more than 20 years), the owner will pay LPT. For long-term leases (20 years and above), a person who occupies a residential property without paying rent will be said to own the property as an occupier. In such a case, the tenant will pay LPT.
Residents of all residential properties, including rental properties, are required to pay the tax. The following types are also subject to LPT:
Long-term lease (20 years or more)
Having a life interest in the property and long-term residence (life exceeding 20 years)
p>A local government or social housing agency
acts as the estate agent for the deceased owner (for example, as the authorized trustee/administrator of the estate). When a trustee or beneficiary owns residential real estate in the form of a private equity fund, he or she is also legally responsible.
3. Property management fees
The fees will be calculated from the date of handover, and from the date when the buyer’s project acceptance of the house meets the standards. If after the real estate developer issues the move-in notice, the home buyer fails to hand over the property without justifiable reasons, the property management fees can be calculated from one month after the move-in notice is issued. Usually three months are paid in advance. Property management fees must be paid for houses that are not occupied by the tenant for a long time or are vacant houses that are not sold by real estate developers.
4. Since the real estate tax was announced to date, the total tax revenue from China and Ireland has been close to 175 million euros, and the real estate tax filing rate has reached 89%. For many of us who buy houses and properties in Ireland, we need to have a clearer understanding of tax-related knowledge in this country, especially the related aspects of Irish real estate tax payment, which is a more serious matter. Children, and because Ireland’s immigration policies are relatively flexible, this gives everyone a better choice. Correspondingly, everyone should also have a good understanding of the general tax payment aspects.