The latest Residential Property Price Index by the Central Statistics Office reveals a 1.5% increase in house prices over the 12 months leading up to July 2023 in Ireland. However, the dynamics differ within Dublin, experiencing a 1.4% decrease, while prices outside Dublin surged by 3.8%. The average house price now stands at €320,000, underlining the persistent upward trend, compounded by factors like high inflation, low supply, and interest rate hikes.

Apart from the escalating house prices, prospective homebuyers in Ireland face additional hidden costs throughout the buying process. These costs, such as solicitor and conveyancing fees, stamp duty, surveyor fees, and more, significantly contribute to the financial considerations involved in purchasing a property.

Stamp duty, a tax levied by Revenue upon property transfer, amounts to 1% on the first €1 million and 2% on the excess for residential properties. Solicitor fees vary, ranging from flat fees to a percentage of the house price. Hiring a surveyor is advisable to assess the property’s condition thoroughly, typically costing between €300 to €500.

Valuation fees, required by lenders to ensure the property’s value aligns with the purchase price, typically range from €200 to €300. Additionally, mortgage protection and home insurance are mandatory, with costs varying based on individual circumstances.

Beyond these, other expenses include property tax, renovation costs, and moving expenses, each adding to the overall financial outlay of purchasing a home.

Navigating these hidden costs necessitates thorough financial planning and budgeting to avoid unexpected financial strain. At Cregan Kelly, O’Brien we offer various tools and resources to assist homebuyers in planning, budgeting, and saving for their homeownership journey.

Disclaimer: The information provided is based on Cregan Kelly O’Briens understanding of current Revenue practice as of October 1, 2023, subject to potential future changes.