HIGH LEVELS OF INTEREST IN DONEGAL PROPERTY MARKET
Currently, there are large numbers of people from Northern Ireland buying property in Donegal. There are a couple of reasons for this. There is still very good value to be had, particularly in the traditionally favoured holiday areas such as Downings, Dunfanaghy, Rossnowlagh to name but a few. This fact, combined with the current strength of Sterling is making the purchase of property by people from Northern Ireland attractive and is driving high levels of interest. if you are living in Northern Ireland and buying property in Donegal, there are a couple of key things to consider which are unique to you, buying across the border:
WHAT YOU NEED TO CONSIDER
1. GET A PPS NUMBER : You will need to apply for a PPS number ( social security number) in the Republic of Ireland. if there is more than one person buying, each of you will have to do so. this is not a complicated process and we regularly assist clients with this. However it can take a few weeks, so if you are looking around and intend to buy this summer, apply for your PPS number and tax type for the local Revenue Office in advance and it will avoid any delays when you do go ‘sale agreed’. You wont be able to finalise the sale without it. the tax type is equally important as this is needed to stamp your deed.
2. FIND OUT ABOUT THE TAXES YOU WILL HAVE TO PAY : Make sure you are aware, in advance, of the various taxes which will apply to you (i) on buying your property, (ii) for the duration of ownership and for (iii) when you want to sell it. Each transaction is unique but for example, when you purchase your property, you will pay stamp duty and registration fees to the government. for the duration of ownership you will pay Local Property Tax, water charges amongst others. On sale, you may be liable to Capital Gains tax on any ‘gains’ accrued during ownership.if you are not clear then ask your solicitor so you have this knowledge in advance.
3. GET A GOOD SURVEY: Get a good boundary and structural survey done once you have gone ‘sale agreed’. You are buying a second hand property as it is. this means you are deemed to be on notice of any and all defects, whether obvious to you or not. That’s where a good structural survey comes in . In addition, a boundary survey will show up any discrepancies between the boundaries on the ground and what you are buying ( you would be surprised how often this happens). A good surveyor will also check the services, being the road ( who maintains it, do you need a right of way), water and sewerage ( where are the pipes/septic tank and is there a legal easement to use them). All of this information can help you to decide if this is the right property for you and if anything needs to be rectified prior to your purchase.
4. MAKE A WILL THIS JURISDICTION: Once you purchase your property in Donegal, you should make a will in this jurisdiction as your own will in Northern Ireland may not cover your property in Donegal.*
We act for many people from Northern Ireland who are buying properties in Donegal so we are ideally placed to assist you with your purchase. Contact Catherine A. Kelly, Partner in charge of our Property Department on 0749890190 or firstname.lastname@example.org who will be happy to assist you with any queries you may have in relation to buying a property in Donegal.
*The above article is for general information only and does not constitute legal advice. You should seek legal and tax advice in relation to your own specific needs and circumstances as each situation is unique.