Budget 2014 - Ireland

The 2014 Budget was held last Tuesday (15th October). According to The Irish Times report regarding property - €30 million to be allocated to the State’s house building programme which will deliver 500 houses, including new builds and the upgrade of previously uninhabitable units.

They will be seeking public money to fund “stable homes” for families who are long-term homeless.

Further €10 million to be allocated for unfinished estates.

Home renovation tax incentive scheme gives tax credit to homeowners carrying out works on their homes in 2014 and 2015

€10m will be allocated to resolve problems at Priory Hall apartment development  in Donaghmede, Dublin.- It was built in 2007, however according to "The Journal.ie" A flooded car park was the start. Residents stopped parking their vehicles in the underground area in 2007 when, one morning, they discovered their cars floating out of the space. Dampness in the homes was also becoming problematic and there was shoddy workmanship on display in every corner.

The entire complex is a fire hazard. A really, really dangerous one. Back in October 2011 when the residents were evacuated, Justice Nicholas Kearns asked that a fire engine remain at the development in case a blaze took hold as the residents moved out. The homeowners, however, had been living in the same properties for years at that stage. Tom McFeely the builder cannot afford to fix the problems. Read More Here 

The IPOA (Irish Property Owners Association) said “Government has missed a golden opportunity to reinstate the much needed flat in the private rental sector, by not including the pre 63 type property in their scheme for renovation of houses.  Inclusion of these type of properties would generate work, bring up, the standards, energy efficiency and bring back much needed accommodation in the private rental market, where tenants are currently experiencing huge shortages of affordable homes.“ Stephen Faughnan, Chairman of the Irish Property Owners Association 

Irishlandlord.com have summarised "So how will budget 2014 effect you?"

NO CHANGES IN INCOME TAX, USC AND VAT RATES

NO INCREASE IN EXCISE DUTY ON FUEL  

 

 

 

Minister Noonan said "I am introducing a home renovation tax incentive scheme. The Home Renovation Incentive will provide an income tax credit to homeowners who carry out renovation and improvement works on their principal private residences in 2014 and 2015.

"The incentive is payable over the two years following the year in which the work is carried out. The credit will be calculated at a rate of 13.5% on all qualifying expenditure over €5,000 up to a maximum of €30,000."

On the issues of mortgage arrears, Mr Noonan said:“Within the next twelve months I expect that the vast majority of customers who are currently in (mortgage) arrears will have been offered and accepted a sustainable solution.”

Extension of the property regeneration programme, which previously applied only to Limerick and Waterford, to Cork, Galway, Kilkenny and Dublin. 

There was no special VAT rate for the construction sector which several industry groups had been lobbying for. 

€10m to be provided to fix Priory Hall (mentioned earlier on this page)

Investment in social housing to re-commence  

 

 

"NAMA expects to have approved €2bn in funding for Irish projects between 2011 and 2015 

"This level of investment could be increased depending on the pace of economic recovery.

The investment will include the construction of 4,500 new houses and apartments in Dublin, in addition to much-needed office accommodation in the city centre and investment in commercially viable retail projects."

  (Source Irishlandlord.com)