The details from the Revenue Commission office says that less than half the applications for the government’s help-to-buy scheme never reaches the claim phase.
Over 42,000 applications were received since 2016, out of which only 19,000 applications reached the claim stage. According to the scheme, tax rebates to first home buyers will get up to €30,000 or 10% of the cost of the assets.
The Revenue says that the applications will have a progress only if the applicants purchases properties which are applicable or eligible for the scheme.
“Many applications may never progress to the claim stage because the applicant does not purchase a property or purchases a property not eligible for the scheme,” says the Revenue.
According to the sources it is found that the applications are made when the buyers are searching for a home but many will be unable to get to a stage of purchasing and calling for the tax break.
Controlled supply
The root cause of these problem is that people are purchasing properties for a wrong price and at the wrong place. In Ireland the people are sometimes forced to go for this because they create a constrain and the prices rises.
The figures from the ministries says that more than 40% of initial purchasers who have availed of the system already had the essential payment to secure a mortgage.