Budget 2017, a home buyer's story: ‘I really don’t want to end up in negative equity’

Susana Farinha has been looking to buy her first home since the new year. Incredibly, she hasn’t bid on one property yet as every time she rings to inquire about a house or apartment, she inevitably discovers that the property is already 20%-30% over its asking price.

Originally from Portugal and working in a senior position in one of Cork’s multinationals, she isn’t hell-bent on living in any one suburb, but still she is finding the Irish property market a nightmare. Susana was happy to see the budget’s help-to-buy scheme but she thinks it should have been offered on secondhand properties as well.

Under the scheme, first-time buyers can get a maximum of €20,000 (or 5% of a maximum house price of €400,000) back in tax relief that they can offset against their required deposit. To avail of the relief, the buyers will have to put down a 20% deposit. “It will be good to have that help but I wonder if it will make the supply increase? Will builders build more houses because of this as the problem is supply not demand?” she said.