Monday, September 20, 2010

Independent nonsense: It's not an anomaly, it's the law!

Summary: developers who rent an apartment won't get the 0% stamp duty when they go on to sell it. Well duh! It's not a newly built apartment if someone has been living in it.

A perfect case of wanting to eat their cake and still have it.

"The anomaly stems from the fact the stamp duty exemption for new homes is legally only triggered if they're sold immediately after erection, and not if they're sold for the first time."

It's not an anomaly, it's exactly what was intended.

At the end of the article we have

"Many homeowners who will have to move on from properties they can no longer afford have been comforted by the fact that there is a significant build-up of new homes on the market, meaning stamp duty can most likely be avoided.

"That comfort will vanish if the unsold stock is rented first and loses its stamp duty exemption."

What comfort? The price will be exactly the same, the only difference will be that instead of all of it going to the developer, some of it will go to the govt.

If there are 2 apts side by side, one that was rented and one that wasn't, the developer is going to set the prices so that with stamp duty included, both apts cost the same to the buyer (in fact he's probably going to charge a premium for the new one because it's new and shiny).

in reference to:

"The anomaly stems from the fact the stamp duty exemption for new homes is legally only triggered if they're sold immediately after erection, and not if they're sold for the first time."
- http://www.independent.ie/business/irish/developers-renting-new-homes-lose-exemption-2344405.html (view on Google Sidewiki)

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