Home Buyers Guide

Chapter 3: Money, Money, Money

Buying a home is an expensive business, so it’s important to budget for all the costs. There are two main types of costs to consider:

• the upfront costs of buying a home

• the ongoing costs of owning a home.

Upfront Costs:

1. Deposit:

Generally speaking, mortgage lenders will advance a maximum of 80% - 92% of the purchase price, so you’ll have to come up with the balance – either from savings, a gift from a family member or a combination of both.
A €250,000 home, for example, will require a deposit of at least €20,000 (8%).

2. Stamp Duty:

Stamp Duty is a tax the government charges on buying property. The good news for first time buyers is that if you are buying a home to live in you are exempt from paying this tax.

However, if you or your partner either currently or previously owed a property you will be liable to pay this tax. (See the chapter on tax and tax relief for details).

3. Legal Fees:

Traditionally, solicitors charged a fee of 1% of the property purchase price + 21.5% vat + legal outlays.

< Previous Page | Next Page > | Contents Page | Download the Full 127 Page Home Buyers Guide

Search the Home Buyers Guide using Google: