MISSED OPPORTUNITY TO SPUR ACTIVITY IN THE PROPERTY MARKET
IAVI Reaction to Budget April 7 2009

According to Irish Auctioneers & Valuers Institute President, Mr Edward Carey, the April 2009 mini-Budget will have no significant effect on the property market in one way or another. The IAVI view this as a missed opportunity to create more transactions and generate more VAT and Stamp Duty revenues.

”The IAVI welcome the initiative to establish of National Asset Management Agency. The speed with which it starts to act will determine its success. It is important that the assets are transferred at true values in the interest of taxpayers.”

”There has been nothing further to entice first time buyers in to the market. However, we hope that the restoration of normal credit facilities, coupled with correction in property prices that has taken place, will increase activity.”

”The reduction of interest rate relief for investors will be a disincentive to providing rental accommodation for those who are renting not buying. Investors are necessary for the provision of good quality rental properties for those who cannot or do not want to buy property.”

”The IAVI believe that stamp duty ‘trade up’ scheme will have minimal effect as it will arise in very few cases.”

”The withdrawal of tax incentives for the provision of healthcare infrastructure is risky as there is a reliance on the private sector in this area. This will be a challenge with credit thin on the ground. Those likely to suffer are the end-users.”

”The cumulative 25% rate increase (Budgets in December 2008 and April 2009) in Capital Gains Tax will have minimal effect on Exchequer returns without a marked increase activity in the property market, which this Budget has done nothing to encourage,” he said.


Ends

For more information, please contact:
Carina O’Neill on 087 222 8124 or Brendan Bracken on 086 258 6628

Notes to Editor
The Irish Auctioneers & Valuers Institute (IAVI) represents around 2,000 fully qualified auctioneers, estate agents, valuers and property professionals throughout Ireland and abroad.



Carina O'Neill
Bracken Public Relations
Tel: +353 (0)1 677 3277
Mob: + 353 (0) 87 222 8124
Web: www.brackenpr.com

Address:
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