Buying Property in Ireland

Some Facts

Land prices in Ireland have escalated in recent times and it would make a lot of sense to rent out a place before buying one. A good deal of research to explore your options, prices and terms before you settle on a dream home here is recommended. If you can, ask for advice from other expatriates who own homes here. Artists and writers from all over the world are heading out to Ireland to set up home as their earnings are exempt from tax. Do take in to consideration the pros and cons of buying a new home, purchasing a resale property or building your own home.

The problem of radon (radioactive gas) must be taken in to consideration while buying an Irish home or property. It should not affect you greatly if you will be spending short periods of time in the country. However, if you plan to live there for long periods of time then measures to reduce radon levels are outlined in the guide "Radon in Buildings", available from Government Publications (Tel. 01-679 3515 or 01-661 3111). 

The Real Estate Market in Ireland

Properties for sale are listed in most newspapers, magazines and on the internet. World of Property is a prominent publication where you will find a list of Irish properties for sale. Many Irish agents also advertise in magazines and newspapers targeted at an expatriate audience abroad.  

Most expatriates, particularly those from Germany and Britain, usually have agents in their own countries who work in conjunction with Irish agents. In Ireland, usually prospective buyers see properties through agents and almost never interact directly with the seller. To find an agent look up "Auctioneers" in the local Golden Pages.  

Most agents will help you in the entire process with finding a solicitor, buying insurance, interior decorators and builders. There are no government controls on the fees charged by agents in Ireland and their commission is usually 2-2.5% and is included in the sale price. It must be paid by the buyer.

Costs Likely to Be Incurred

Buying property in Ireland could set you back by an amount entailing:

1. A deposit of around 10% (negotiable) when signing the contract.

2. Stamp duty

3. Survey charges

4. Legal fees

5. Selling agent's fees

6. Deed registration fees

7. VAT applicable to certain commercial properties

8. Utility connection charges for new properties

9. Management fees for apartments

10. Mortgage expenses

DOCUMENTATION

Once you zero in on a property that you like, get your solicitor to draw up the purchase contract underlining the particulars of the purchase and any special conditions which must be included therein. General conditions need not be amended. If you are buying a new property from builder standard, contracts may be used. All contracts are irrevocable once they are signed.

SOLICITORS

Do not even think of getting in to purchase of property in Ireland without using the services of a solicitor. Do shop around and compare charges before you opt for a solicitor though.

PROCEDURE

Once you like a property and have made an offer on it which is accepted you pay a deposit and sign the purchase contract. Completion or signing of the final sale deed comes 5-8 weeks after this. Before "closing" your solicitor will carry out final checks on the property to ensure that title is clear and that there are no litigations or outstanding dues.

Completion involves signing of the deed of purchase by the buyer and seller, transfer of ownership and payment of the balance towards the purchase price together with solicitor's fees, duties and taxes. The deed is then registered.

MORTGAGES

Shop around for mortgages and do not hesitate to ask for waiver of the mortgage application fee. If you intend to borrow more than 70-80% you will have to pay mortgage indemnity fee which amounts to 3% of the difference between the percentage of purchase price and amount borrowed and a 2% government levy. Some institutions don't charge a fee but charge a higher rate of interest for loans in excess of 80%. Property investors are required to pay an indemnity fee of 4%.