‘A real benefit to young people’
Ms Ryng, who is 24 years old and a teacher in Cork, recently bought an apartment on the outskirts of the city and stands to gain up to €66 a month from Mr Cowen’s measures.
“I am thrilled about it, absolutely thrilled. This is a real benefit to young people who are out there working but having to face the cost of a mortgage.
“Even though you are working, you are seeing money going out all the time, so it is nice to see something finally coming back.
“When you hear it, €66 a month might not sound like much, but it is not that small. I will find some use for it.”
Ms Ryng lived with her parents when she first started work and saved money towards a deposit.
Four months ago, she picked up the keys of a two-bedroom apartment in Ballincollig. It is worth in the region of €300,000.
“I bought in August and I have already had two letters from the bank telling me about interest rates going up.
“When you buy a house for the first time, it is a very expensive period; you have bin collection fees, building fees and all these associated costs coming in at once. So anything that helps out at this stage is very, very welcome.”
Ms Ryng’s interest rates are fixed for the first year, but her lending company will still recoup in excess of €11,000 in interest during that time.
Before the Budget, the first €4,000 was subject to tax relief, but from now on she can put €8,000 against her tax bill.
“If you look at the last few months, we have seen the price of gas go up, the price of electricity go up, interest rates go up and everything else getting more expensive. It all adds up.
“You could be cynical and see it as a give-away budget, and everybody will be conscious of what is around the corner, but I can at least enjoy the next few months.”
The tax benefits will run for the first seven years of Ms Ryng’s mortgage and by then she will have paid over €70,000 in interest. “I see a lot of people my age who are looking for 100% mortgages. I was lucky in that I had a permanent job and I am on a salary scale, so I can keep up with the interest rates.
“It all goes in swings and roundabouts, but I can enjoy this for a while. I would not be one to complain about any extra benefit.”
Orla Ryng is a member of the Youth Council of Ireland.
