Your first time buyer status is a very valuable asset. It confers benefits in terms of stamp duty, mortgage interest relief, and may make you eligible for specific schemes only open to first time buyers.

You get one shot at buying a property as a first time buyer so you need to make it count.

Getting on the Property Ladder
The thinking behind offering incentives to first time buyers is that it levels the playing field. In a market where house prices are rising, those who already own property are gaining equity, in many cases faster than a typical first time buyer can save.

If a first time buyer can just "get on the ladder" by any means possible, they too can benefit from the increase in property values, and in time purchase the house they really want.

This thinking has led many young people to buy any house they could afford, losing their first time buyer status in the process, even though they never intended living in the house for any longer than it took to be able to afford "a proper home".

When property prices are falling the situation changes. Being out of the property market (off the ladder) is the place to be. Those who own property are losing equity, while first time buyers are saving (creating equity).

In circumstances like these, there is no urgency, and no danger of missing out on your "chance to own a home". It becomes possible to think in terms of waiting and making your first house purchase count.

While you wait, your income (and your borrowing capacity) should increase, and if you are disciplined, your savings should too - giving you a bigger deposit.

Stamp Duty
Your first time buyer's stamp duty exemption is worth:
€5,250 on a €200,000 starter house.
€15,750 on a €350,000 house.
€26,250 on a €500,000 house.

Mortgage Interest Relief
First Time Buyers get Mortgage Interest Relief worth up to €2000 per single person per annum (or €4000 per couple) on the interest portion of your mortgage for seven years from the date of your first purchase. After that it reverts to a much lower rate.