Please send your queries to Dominic Coyle, Q&A, The Irish Times,
D'Olier Street, Dublin 2 or e-mail to dcoyle@irish-times.ie. This column is a reader service and is not intended to replace professional advice. Due to the volume of mail, there may be a delay in answering queries. All suitable queries will be answered through the columns of the newspaper. No personal correspondence will be entered into.
Property
I am from Dublin but living in California for the last 14 years. I am interested in purchasing property in the outer Dublin areas. Could you direct me to a site that would be helpful for inventory and prices?
Mr D.O'R., e-mail
A number of websites have been set up recently to cater for the online community interested in the Irish property market. These include www.iavi.ie, the site of the Institute of Auctioneers and Valuers in Ireland. It provides pages for a sizeable number of its members around the State, together with information and links on finance, insurance and legal matters.
Another new site is www.myhome.ie, which includes some of the largest estate agents in the Dublin region. Others include www.propertyfile.net, www.propertyeverywhere.com and www.ascotfirst.com. All provide a range of information on individual properties and links for further information. Given the speed of change and the size of the Web, it's quite possible there are others.
Principal private residence
I would like to know how one proves that a home is a principal private residence to satisfy the stamp duty exemption. Is there a time period that must be satisfied or documentation that can be provided? Also, I've been looking for a definition for owner-occupier.
Ms S.L., e-mail
Principal private residence does not come down to a matter of time; it is a matter of residence. All the authorities want to know is that the address on which you are claiming stamp duty exemption is, in fact, your home and that you are an owneroccupier - i.e. you live there.
How do you prove this? Normally, a couple of utility bills will suffice along with your statement that you status is indeed that of owner-occupier.
House values
I wish to know the increase of a property value like two-bedroom apartments or houses in the city centre of Dublin every year. Would you be able to predict the percentage it would increase the next year and the chances of depreciation? I wish to know how the Irish market is responding to property values right now. Let's say a £200,000 new or old residential property - how much would it increase each year?
Please guide to articles in the Web if possible.
P., e-mail
You don't want much, do you? If I were in a position to forecast accurately the sort of information you want, I would be playing the property market or property funds rather than writing for a living.
Certainly, the rise in Irish property values in recent years has been spectacular - many would say unsustainable. There have, of course, been variations depending on the type of property and where it is located. Dublin, in general, has seen some of the steepest rises. Gauging the Irish market right now is a matter of whom you believe. Some say the constant demand for homes around and in Dublin, because of the influx of people working in the economy, will ensure continuing strong growth in both the value of property as an asset and the rental value. They point to reports of a slowdown in the rate of new building to bolster their argument.
Others use the recent evidence of a slight slowing in the rate of growth of property prices and mortgage lending as indicators that the market is coming back from untenable highs to a more moderate rate of growth. At this point, very few domestic commentators foresee a dramatic slump in property prices, although some analysts in Britain and Europe are more concerned about such a possibility.
A number of surveys are and and have been carried out on the issue. The most exhaustive survey, although not generally the most up-to-date, is the one the Department of the Environment produces. Others are conducted by mortgage lenders or estate agents. These include Ireland's largest mortgage lender Irish Permanent and Sherry FitzGerald. You may also find information from fund managers and property market analysts at the main Irish stockbroking groups.
Tax
What, if any, are the advantages in making voluntary disclosure of untaxed income to Revenue Commissioners as against awaiting eventual discovery and assessment?
L.S., Dublin
As usual where matters financial are concerned, the driving force for most people in paying tax - on time or later by voluntary disclosure - is self-interest. When it comes to voluntary disclosure, this manifests itself in two ways. First, if you get to the Revenue before it gets to you, you avoid the likelihood of prosecution. Second, there is the not inconsequential matter of having your name as a tax evader published in the quarterly lists produced by the Revenue and picked up by most national media.
There is also the possibility that you may face lesser financial penalties. If the Revenue discovers you have avoided paying tax it uses a formula to assess interest and penalties. If you go to the Revenue, you are still liable for the tax and will probably face interest and some penalties. However, these may be lower.
Look at it this way. If you are going to have to pay anyway you are better off approaching the Revenue before it approaches you. If you fancy your chances of evading discovery, you need to assess the odds of your gamble and the peace of mind foregone in wondering when and if the taxman will call.
