Buying a new home is an exciting time but lets not forget to plan for the costs that come with it:

Mortgage repayments

Unless you're one of the very few people lucky enough to be able to pay cash for a property, then like the rest of us you'll need to take out a mortgage. Essentially a mortgage is a legal agreement between you and a lender, whereby they agree to lend you a sum of money to buy a home, and you agree to pay it back, usually by monthly repayments. The property itself is usually pledged as security for the loan.

Talk to Sherry FitzGerald Mortgages who can tell you in 24 hours how much finance you can raise and what the best deal on the market is for you.

Stamp Duty

Stamp duty is a Government tax payable when you buy a property and is based on the value of the property. It also takes into account whether the property is for use as an investment or whether it will be used as an owner-occupier residence. The money paid to the Government is to ensure that your deeds are stamped, without it your deeds can't be registered.

Purchase price	Up to €1million	Over €1million
First time buyers (new & second hand properties)	1%	2%*
Owner-Occupiers & Investors	1%	2%*

*Only the amount in excess of €1million will be liable to 2% stamp duty

Notes:

• A first time buyer is someone who has never previously either built or purchased a home.
• For non first-time buyers and owner-occupiers, no stamp duty is due if the property is new and does not exceed 125 square metres. They must be the first people to occupy the property and they are required to live there for a period of two years under the new claw-back amendments announced December 5th, 2007. However if the property does exceed 125 square metres, there are two things to consider. If the cost of the site exceeds €127,000 or 25% of the cost of the site plus construction (less VAT) exceeds this amount they are liable to pay stamp duty.
• In certain circumstances divorced or separated people are classed as first-time buyers:
  1. If their former partner still occupies their previously mutual home at the date of separation/divorce.
  2. If their former home was the only property in which they held an interest in prior to separation/divorce.
  3. If they have left their former home and no longer hold an interest in the property.

Mortgage Protection This is really an insurance policy that covers your mortgage repayments if you can't repay them, due to illness or redundancy or any other specified circumstances.

Home Insurance

This is typically sold as one policy (but can be sold as two separate policies) and includes:

• Buildings insurance, which covers anything you cannot take away with you if you move home, such as the roof, walls, windows, doors, floors, bathroom fittings and fitted kitchens.
• Contents insurance, which covers moveable objects in your home such as furniture, electrical equipment, pictures, paintings, clothing and other belongings, that might be damaged or stolen.

Mortgage Interest Relief

As a mortgage holder you are entitled to claim tax relief on the interest that you pay. This tax relief is given at source, by your lender, either in the form of a reduced mortgage payment or a credit to the account you use to make mortgage repayments. Sherry FitzGerald Mortgages can advise you how to go about applying for mortgage interest relief.

Booking deposit

A deposit paid usually to the seller's estate agent, or in the case of New Homes, to the developer. This is to demonstrate that you intend to purchase a property. The deposit remains refundable to you until such time as contracts are signed. It is usually 10% of the purchase price.

Maintenance / Service Charges

An annual charge payable to a Management Company to administer, maintain and repair the communal areas of an apartment complex or a housing development that has not been taken in charge by a Local Authority.

Surveys & snags

You will need to factor into your budget the cost of having a snag list or a survey carried out, to highlight any defects or items that require finishing in advance of closing.

Legal fees

You will need to engage the services of a solicitor to look after all of the legal documents that come with the transferring of ownership from seller to buyer.