My Home Ireland

Property Tax is not something that Irish home-owners are familiar with – but from 2012 onwards they will have to get used to it.
Home owners who have properties that they don’t live in themselves – are already liable for the NPPR which was introduced in 2009.  This Non Principal Private Residential Tax is €200 a year.
From January 2012 all owners of residential property are now liable for the new Household Charge – which is €100 per property per year.
See more details of the new Household Tax Here
This Household Charge is a temporary measure until the government can work out how to implement a full valuation based property tax system(expected 2014).
Expaected amounts  for this property tax  are 0.25% of the value of a property. The lowest rate could be in the region of €188 a year.

Inheritance Tax in Ireland (Also known as Gift Tax – Capital acquisitions tax CAT)
Updated for Budget 2012 Changes  – Dec 2011

When somebody close to you dies, tax issues are likely to be the last thing on your mind. However, you are required to make a tax return on any inheritance within a relatively short period of the death,

An inheritance is any assets passed by the deceased to beneficiaries at the time of death. These can include cash in bank accounts, stocks, shares, property, land, livestock, jewellery and cars.
A tax return on your inheritance has to be filed within four months of the ‘valuation date’. The valuation date could vary, but it tends to be either four months from the date of death or four months from the date of probate.In Ireland an inheritance of any sort is taxed at 25 per cent, subject to exemption thresholds and reliefs.

Your tax liability as a result of an inheritance will depend on a number of factors.

The first step is establishing the value of the inheritance and the relationship between you and the deceased person.
Whether you inherit a family residence, a cash lump sum or a selection of shares and bonds, the tax treatment is broadly similar. In the case of all asset classes, the current market value of the asset is the first step in determining its taxable value.

When assessing the value of your inheritance, it is important to note that the taxable value may not be the same as the market value. The taxable value of an asset is the market value of the asset on the valuation date, reduced by any applicable reliefs. Relevant liabilities – costs, expenses and consideration – can also be deducted. For gifts, there is an additional deduction of the small gift exemption.For example, outstanding mortgage costs could be set against the market value of the property, to reduce its taxable value.

The tax payable on your inheritance is also affected by your relationship with the person leaving you the bequest. A threshold applies to all gift or inheritances received, with the amount of the threshold varying, depending on the nature of the relationship between the two parties. You will be exempt from CAT on inheritances up to this threshold.
Spouses are exempt from capital gains tax (CGT), CAT and stamp duty, whether alive or dead, when passing assets to the other spouse.

For the 2011 – 2012 tax year, the maximum thresholds were reduced  in the 2012 Budget . The new threshold of  €250,000 (previously 332,084)  applies where the beneficiary is a child – or, in some cases, a parent – of the deceased.

If you receive an inheritance from another close relative, such as a sibling, aunt, uncle or grandparent, a threshold of €33,208 applies. (Unchanged)

The lowest threshold of €16,604 euro applies in all other cases. (Unchanged)

The rate of Inheritance or Capital Acquisition Tax is  30% in respect of gifts or inheritances made from midnight on 7 Dec 2011  (The rate was formerly 25% .) This rate only applies to amounts over the  thresholds.

Falling below the CAT threshold does not necessarily remove the requirement to file a return in relation to your inheritance. If your inheritance was equal to 80 per cent or more of the threshold value, you still have to file a return.

Another important point when dealing with CAT is that the thresholds are cumulative. Prior benefits received by a beneficiary since December 5, 1991 which fall within the same group threshold as the current benefit will be aggregated, to determine whether the threshold has been breached.

Cohabiting couples could only avail of the smallest threshold, currently €20740, under CAT rules. But cohabiting couples might be able to avail of dwelling house relief, whereby a gift or inheritance of a house which has been your main residence may be exempt from CAT, if you do not have an interest in any other house.
In order to qualify for this relief, the person must have occupied the house as their main residence for the three years immediately before the date of the gift or inheritance. A beneficiary who is under 55 must continue to occupy the house as their main residence for the following six years.

A number of other reliefs from CAT are also available, in certain circumstances. If you inherit the family business or family farm, you may also qualify for tax relief provided certain conditions are satisfied.

Business relief and agricultural relief reduces the taxable value of relevant assets by 90 per cent. However, if you sell the assets within a certain period, a clawback of relief may apply.

While stocks, shares and bonds are subject to CAT, certain government securities are exempt. There is an exemption for government securities and unit trusts holding government securities, if neither the beneficiary nor the disponer [deceased] is domiciled or ordinarily resident in Ireland at the date of the inheritance or gift.

There are a number of full exemptions from inheritance tax, irrespective of the value of the inheritance. Bequests to charities and public bodies are exempt from CAT. Also any inheritance of heritage property, such as pictures, prints, works of art or heritage houses and gardens, were exempt from inheritance tax, once certain conditions were met.

Any inheritance of the proceeds of certain insurance policies, where the proceeds are used to pay inheritance tax, and any inheritances left to discharge the medical expenses of a beneficiary, are subject to full exemption also.

The following are exempt from CAT

* Gifts or inheritances from a spouse

* Payments for damages or compensation

* Benefits used only for the medical expenses of a person who is permanently incapacitated due to physical or mental illness

* Benefits taken for charitable purposes or received from a charity

* Winnings from a lottery, sweepstake, game, or betting

* Retirement benefits and pension and redundancy payments are not usually liable to Gift Tax.

Is it a Good Time to Buy a House in Ireland ?
There is no simple formula that will answer for everyone when you  should buy a house. You have to consider variables, such as your income and expenses, the mortgage you can get, rental costs, your attitude to risk and your ability to handle stress.
House prices have dropped – and may drop evenfurther – but if you need somewhere to live long term and you need it now then it’s a good time to buy.
There are some  good bargains out there.

See these 5 bedroomed bungalows  over 200 sq metres priced  under €200k –

The emotional drive to have your  own four walls can be  much stronger than playing the waiting game for the bottom of a crash. Paying out rent to a landlord is just paying the landlord’s mortgage and helping them make a profit.

Can you afford it?
It’s a simple question, but one which is sometimes overlooked by many first time buyers. Assess your income and expenses to see what monthly mortgage payments you could afford without too much stress. Look at cutting out some of your non essential spending in order to buy your home. Don’t forget to factor in Mortgage Interest Relief – which is worth about €10k over 7 years to a first time buyer couple on a mortgage of €180k
Be aware that  Mortgage relief (TRS) is due to be removed from first time buyers who purchase after 2012.

House prices have fallen by as much as 50% from the peak  in some parts of Ireland – and they are not expected to drop too much further.
The “average”  house price drop has been made to look worse because of the glut of unwanted apartments and smaller houses in ghost estates where nobody wants to live.

Good quality new and second hand homes in established residential areas have not lost as much value. Large one off rural houses have also kept some of their value.

Affordability :  For first time buyers in employment – houses are much more affordable now than they were 3 or 4 years ago. Mortgage rates are still low – and the ECB rate  looks like it could be coming down again.
Stamp duty has added an extra cost for first time buyers in 2011 of 1% – but non FTBs have seen a massive drop in stamp duty rates.

Trading Up :Homeowners who want to trade up will have seen the value of their property fall – but the prices of bigger houses have fallen by a larger amount . So , as long as they are not in negative equity ,  they will need to find less money now to upgrade than they did  3 or 4 years ago.  

Do you have a deposit?

You can get better mortgage deals if you have a sizeable deposit.  A buyer with an average-sized mortgage and a 10% deposit might pay roughly €3,500 less over three years than a buyer  with a 20%  deposit. However, if you spend 3 years trying to save up a bigger  deposit while paying rent – you could be struggling during those 3 years .

Can you handle an increase in interest rates?

You need to be able to handle interest rate increases. Even if you’re after a fixed-rate mortgage, if it’s just fixed for a couple of years you may then find that interest rates have risen by, say, 1%. Could you handle that extra €100 or €200 per month?

The main thing to remember is that a house is firstly a home to live in – not  an investment . Past data shows that property has been a good long-term investment and buying when you are younger will probably save you more money in the long run compared to a life time of renting. If  more people are renting – there will be a shortage of good rental homes which will push up rents.

Long term renters will have to find the money to pay rent until they die – and will have nothing to show for it . Homeowners will be usually mortgage free and rent free after 25 years or so and will have a property that will be worth something at the end of it.

Negative equity is only a problem when you want to sell the house – so try and get a house that you can see yourself living in for several years. If you plan on moving within a couple of years – then renting may be the best option.

In the UK the  Energy Saving Trust (EST)  have been doing a  long-running trial of 88 solar hot water systems, also known as solar thermal systems.

Solar thermal panels use the sun to heat water in homes, rather than generate power, as solar photovoltaic (PV) panels do.

The UK trial shows that things like good  installation,  insulation of the pipes and water tank are all key in improving the performance of a solar hot water system, so you can save the most on your heating bills.

The trials found that solar hot water systems on average – normally provide 39 % of  all the hot water a home needs.  Which is probably somewhere between  £60-£90 savings on energy bills per year.

But  if the system is well installed and used correctly , it could provide 60% of the home’s hot water needs.  A badly installed and run solar system could provide as little as 9%.

Users need to make sure they are  insulating their tank and pipes, getting the right system size and setting up pumps and timers correctly.

Solar payback time

With solar thermal systems in the UK costing about £3,000-£5,000,  payback time is still a big issue -  issue and might explain why there aren’t many systems installed in the UK.

Better Energy Scheme

In Ireland – there have been grants available for a while now for homeowners who install insulation in their house
A new scheme called Better Energy was launched in May 2011 as part of the new governments jobs initiative.

Under the new scheme Irish householders can get a grants of up to €4000  towards insulating their house .
With the freezing winters we have been having – anything that reduces the cost of heating has to be a good thing.

Grants towards new boilers are also available from Sustainable Energy Ireland (SEI).
The Better Energy scheme is available to any owner of a dwelling built before 2006. The work must be carried out by a contractor from the SEI’s registered list.
More details below of the amounts of grants available under the Better Energy Homes Scheme .

* All works must be carried out by a contractor registered with Sustainable Energy Ireland for this particular scheme.

The €100 million scheme will, it is expected, employ 4,000 people and benefit some 50,000 homes in 2009. It is estimates that about oOne million of the houses in Ireland require  need some retrofitting to achieve energy savings.

Those nice looking halogen downlighters in your home could be costing you hundreds of euros a year in elecricity. You could reduce your electricity usage by replacing the halogen bulbs with low energy LED bulbs.

The most common fitting for those spotlight type recessed downlights are GU10 fittings. Most halogen Gu10 bulbs are 50 watt bulbs – so a house with 20 of these lights would be using 1000 watts when they are all switched on.

If you had all these lights on for just 5 hours every day they would add €270 a year to your  electricity bill each year according to the ESB.*

You can buy these replacement  LED GU10 bulbs and 20 of those in use for 5 hours a day would use  just €22 worth of electricity a year.  That is a massive saving of 90%. A house with 20 of these halogen 50w Gu10 bulbs could cut their electricity bills by  €248 a year by switching to low energy 4  Watt LED bulbs.

That  is the equivalent (according to ESB) of using a vented tumble dryer 12 times every week (5kg load) all year.

The LED lightbulbs do cost   more than the halogen bulbs -  but in  less than a year you will start seeing a payback.
These LED bulbs last 10 to 15 times longer than ordinary halogen bulbs – so in the long term you will be even better off.
After 2016  Halogen bulbs will not be allowed at all under EU regulations.

You can buy these  LED GU10 bulbs online from Amazon with free delivery to Ireland – they fit straight into existing GU10 sockets and are exactly the same size. They are CE approved too.

These LED Gu10 Bulbs get good reviews too

* (Calculations as per the ESB online energy usage  calculator  based on  rates of 16.00c per Unit (including VAT) )

When you are moving into a new house – or getting one built – one important thing to remember is to sort out the telephone connection.

Eircom is the  company in charge of the telephone system in Ireland . You can choose another provider eventually – but you have to go through Eircom first  for a brand new landline connection.
A Landline connection is  almost essential in many places in Ireland  if you want a good broadband connection speed.
Most landline providers offer bundles where you can get all your calls to landlines and broadband for a set monthly price.

See this article  Comparison of  Broadband and Phone Prices in Ireland – it compares the prices from providers like Vodafone, Eircom,  UTV and UPC .

Moving house or apartment can be a  stressful time with so many things to organise . If you are moving house in Ireland there are several places you need to inform of  your change of address.

Re-directing post:

An Post – the Irish Post Office – offers a postal re-direction service, which will ensure that all your post is forwarded to your new address. There is a fee for this service -

Up to 3 months €50.00 ; Up to 6 months €70.00 ; and up to 12 months €100. The charges are more if you are moving outside Ireland.If you use this redirection service -  you will still have to inform all your important contacts of your address change.

Gas and  Electricity

When you move house – Electricity and  Gas accounts  will need to be either closed or transferred into the name of the new owners. If you are moving from rented accommodation, your landlord may request that you transfer these services into their name to avoid having to pay reconnection fees. Make sure you take final meter readings for gas and electricity services just before you leave.

If you are moving into a home that has been previously occupied, ask the previous owners to transfer the utility accounts into your name. Take meter readings for gas and electricity as soon as you take possession of the premises. If utilities need to be connected, contact your electricity service provider (ESB Customer Supply or other) or Bord Gáis in good time to ensure that everything is working by the time you take possession of the premises.   .

Waste collection
Bin Collection accounts  will need to be either closed or transferred into the name of the new owners. If you are moving from rented accommodation, your landlord may request that you transfer these services into their name. Contact your local authority or Bin Collection company to let them know you are leaving and make sure you have paid all the waste charges that are owed on the property. Make sure there are no outstanding waste changes on your new home as you may be liable for them

Telephone Landline

Telephone accounts can be transferred between old and new addresses like electricity and gas accounts. This will save you paying a reconnection fee and means that you’ll have a working phone as soon as you move in. Likewise, if someone is moving into your old home immediately, you can transfer the account into their name.

Television licence

In Ireland, if you have a television you must hold a Television Licence. If you are moving house, you will need to transfer the address on your TV licence. Bring your existing licence to your nearest post office, together with evidence of your new address (a household utility bill or a bank statement will do). Staff in your post office will then amend the details on your record and your licence will be updated and re-issued to you. This service is free. If  you are movingabroad – there is no refund available on TV licences.

Cable/digital television

If you subscribe to cable or digital television services, you will need to contact your service provider to either cancel your account or arrange for a service in your new home. You may be able to transfer your account from your previous address, depending on where you are moving.  

Electoral register

The Electoral Register is held by your local authority. A new register is compiled each year and you have until 25 November to have your name included or to make any changes (such as a change of address) to your details. If you miss this deadline, you can apply to have your name included in the Supplement to the Electoral Register. To do so, you will need to complete a Change of Address form and return it to your local authority. There is no fee for this service.

Driving licence, car insurance and vehicle registration details

Car Insurance :You must contact your insurance company or broker and let them know your new address so that your insurance policy can be updated.

AA/ RAC - If you are a member of a break-down service, don’t forget to change your address with them also.

Vehicle Registration: Remember to fill in the change of address section on your vehicle registration certificate and return it to the Department of the Environment, Heritage and Local Government. You will find the address on the certificate. They will update your details and send you a new registration certificate. There is no charge for this service.

Driving Licence : You are not obliged to change the address on your driving licence, but it is advisable to do so.

House, health and life insurance

You will need to contact your insurance company to discuss your house insurance as coverage varies from one company to the next. You should also ask if the contents of your house will be covered during the move. Many insurance companies will insure your house contents in transit as long as they will be packed and moved by a professional moving firm. If not, most moving firms provide moving insurance.

Your health insurance company will also require your new address details so information on your policy and renewal can be forwarded to you directly.

Children’s schools

If your children will continue to attend their current school, you just need to make sure that the school has your new address and contact number. If you have enrolled your children in a new school, make sure your child’s school records have been transferred there before they start. Don’t forget to let your children’s current school know when they will be leaving.

Financial institutions

If you are moving to a new area, you may want to move your bank account to a local branch. There is no charge for this service. If you are staying with the same bank branch, make sure they have your new address. You will also need to contact your building society, credit union, credit card company, pension provider, etc.

Revenue Commissioners

You will also need to notify your change of address to the Revenue Commissioners. Make sure you contact the correct tax district; you can get the contact information from any of your tax documents. Always quote your PPS number in correspondence or on the phone.

Employers

Get in touch with the Human Resources (HR) and the payroll departments where you work and give them your new contact details.

Social insurance and social security payments

If you receive any social welfare payments, such as Child Benefit or Jobseeker’s Benefit you will need to contact your local social welfare office to let them know your new address. Failure to do so may result in disruptions to your payments. They will require proof of your new address, such as a utility bill or bank statement.

Health professionals

You will need to notify your change of address to your doctor, dentist, optician and any other health professionals that you deal with. If you are moving to a new area, you can contact your Local Health Office for details of health professionals in your area. Make sure your health records are transferred to your new professionals.

In Ireland entry into the practices of auctioneering and estate agency is currently governed by the Auctioneers and House Agents Acts of 1947, 1967 and 1973. The legislation provides for the licensing of auctioneers and for a fine of up to just €635 for any person convicted of representing himself as an auctioneer without a licence.

Auctioneers obtain licences on an annual basis. The only pre-requisite for holding an auctioneer’ss licence is lodging a bond of €12,700 with a court and satisfying a District Court judge that you are suitable to be an agent. This usually involves merely proving you are neither bankrupt nor a criminal.

There are two professional organisations for Estate Agents or Auctioneers:
The Auctioneers and Valuers Institute (IAVI) :  members must qualify by examination and study valuations, all aspects of relevant law, town planning and other areas essential to the provision of a good estate agency service. Ordinary members of the IAVI require an accredited property degree, while associated membership requires the equivalent of a higher certificate in property studies.
The IAVI fines members who do not adhere to its code and can now fine members up to €20,000 and order them to repay all fees/outlay charged to a client, if the circumstances merit it. It has done so in more than 80 cases since 1993.

Institute of Professional Auctioneers and Valuers (IPAV)  have bonding programmes and consumer protection programmes in place.

Both organisations offer greater protection than the state for deposits paid to member firms, with the IAVI offering the highest level of protection at 15 times the level of the statutory High Court Bond of €12,700 required of all auctioneers.

The new BBC Dragons Den had the investors all queuing up to give money to a company called PloughCroft Solar that installs solar panels to generate electricity.

In the UK – the Government pays householders to feed electricity generated into the national grid.The rate is 43.3p per unit of electricity  – this  Feed-in Tariff is guaranteed until 2035.
A 2kW system, on average, should  result in UK householders being paid  £900 annually as well as saving £140 on their own electicity bill.
WIth typical installation costs of around £11000  – and with electricity prices rising every year – householders could make a profit over 25 years of at least £10000

Solar PV or Photovoltaic cells generate  electricity from  a series of crystalline silicon cells, grouped into a framed panel and encased in toughened glass. The action of light on these cells is to create a direct current, which is then converted to alternating current which can be used in the home or can be  fed into the National Grid.

As with “normal” solar panels  – they are usually fitted onto the existing roof, although there are some which fit flush, and replace the existing tiles or slates.

Here in Ireland – we are not so lucky. ESB Electric Ireland currently offers a “Micro-generation”  payment of just of 9 cents per kWh to residential customers. The UK payments are more than 5 times the Irish levels.

If you are interested – here are the contact details for the ESB :

ESB Electric Ireland Micro-generation Scheme:

General Enquiries 1850 372 372

Registration for payment contact:

Dave Byrne 087 647 1791

Postal address:

Micro-generation Scheme

ESB Electric Ireland

FREEPOST F9

27 Lower Fitzwilliam Street

Dublin 2

email:  microgen@esbelectricireland.ie

Estate Agents and Auctioneers can charge as much as 2% commission in Ireland – plus advertising expenses.  Many of them have a minimum fee . Using an  agent  to sell your house could leave you with a bill for four or five thousand euro.

Do you really need an estate agent to sell a house?

Legally – no.  The perception seems to be that  you must employ the services of an estate agent to sell a house.  Most people do it – and everyone just follows suit.
When a buyer has been found – all the important  legal work is taken care of by solicitors or conveyancers. The estate agent’s job is just to find buyers – but in today’s world of online property websites is the old fashioned estate agent really needed?

If you want to reduce a bit of the hassle of selling a house and get someone else to take a few pictures and write some nice things about your house – and pay them at least €3000 euro – then by all means use an estate agent.
It is not beyond most people with a computer , a digital camera and a couple of spare hours to put their house up for sale in Ireland. Even when you use an agent – they are still (hopefully) going to be calling you to pass on offers etc and arrange viewings. You could easily do that yourself.
The internet is  a powerful tool for house buyers – so getting your property online is vital for anyone trying to sell a house. In larger towns and cities – there will be people looking around for properties for sale – and the usual “For Sale” signs will be another major source of attracting buyers.

There are a few websites in Ireland that cater for “For Sale By Owners”.

The biggest one I could find that deals exclusively with owners selling themselves is SellitYourSelf.ie . For just €195 Euro you can get your property listed online on their site and they also provide quality “For Sale” boards for you to put up outside. The fee of €195 is the only fee you pay – and the listing and photos remain on the site until the house is sold. See more details and register here

Daft.ie is probably the busiest property website in Ireland that allows owners to sell their own house. The majority of houses on the site are put on by estate agents – and there are thousands. For €195 euro you can join them.

Myhome.ie dont take listings from individuals as far as I can see.

With grants available and lots of publicity – there are many companies offering  cavity wall insulation . But – it may not be suitable for all properties because it can cause dampness inside the home incertain conditions.

Damp could occur in properties as a result of cavity wall insulation if there is a combination of these factors:

* your home is exposed to severe levels of wind-driven rain  (exposed or coastal areas or areas on high ground , open rural areas)

* your home is located in an unsheltered position; not protected by trees or other buildings

* the external walls are poorly-built or maintained with, for example, cracks in the brickwork or rendering.

In the UK – the Building Research Establishment says that in these cases there is ‘an increased risk of rain penetration if a cavity is fully filled with insulation’. Rain could penetrate the outer wall, bridge the cavity via the insulation material and transfer moisture to internal walls, causing damp.

An Office in Your Garden

The Irish Government announced as part of The National Recovery Plan  that water meters will be in place by 2014 and water charges will  be introduced. This will probably provide opportunities for utility companies and trained water meter installers.  There will be about 1.2 million homes that will require meters installing.

Up to 6,000 jobs could  be created with the introduction of household water meters.

It is estimated that €600m will be invested in rolling out domestic water meters over the next three years. There should be opportunities for people to gain employment from contractors working for Local Authorities

The IMF EU bailout agreement obliges Ireland to introduce water charges by 2013. Fine Gael are saying that  no water charges would be levied until the meter installation programme was complete, which could take up to three years.

“There will be no flat-rate water charge, but there’ll be a water charge by meter. Over and above a generous allowance for your domestic purposes, you’ll pay a water charge.”

Where to buy Dyson Spare Parts in Ireland

You can find all the Dyson spares you will ever need online at Currys Partmaster - with delivery to Ireland.
They stock all the Dyson parts and accessories – such as  Dyson Filters ,  Dyson Motors, Dyson Brushes, Dyson  Belts, Dyson Hoses , switches, catches, lids, buckets , wheels, cables, fastners, bins  and much more.
Parts for the DC01, DC02, DC03, DC04 , DC05 , DC07 , DC08, DC11 , DC14, DC15, DC16, DC18 DC19, DC20, DC21 , DC,22, DC23 AND MORE

Delivery charges are £6.99  to Ireland (no matter how many items you order) . Delivery to the UK starts at £2.98
Find the spare parts you need – at Currys Partmaster