"The biggest consideration for buyers trading up is whether to buy a secondhand property or a new property, " explains Frank Conway, managing director of leading brokers, the Irish Mortgage Corporation.

"There are no stamp duty implications on new property that is less than 125 sq m, (1,345 sq ft) and most properties for sale on the market do not typically exceed this limit. However, on a second-hand property, stamp-duty kicks in at 127,001 (3% stamp duty) rising to 6%, on property valued at 317,501; 7.5% from 381,001 and 9% from 635,001 upwards.

"Therefore, the stamp duty on a property valued at 365,000 (which is the price for an average house in Dublin) would be 21,900.

This sum cannot be borrowed and is generally financed through the proceeds of the sale of an existing property."

In effect, the ability to pay stamp duty will determine whether you can buy in a mature location with all the advantages of established schools, creches, etc, or whether you buy in a newer area, where there is more availability and there are larger properties, but uncertainty over schools and a longer commute.

"The other issue they will have to consider is total borrowing capacity, " Conway says. "Most lenders will lend up to just 90% of the value of the property. Therefore, in addition to the stamp duty, borrowers will have to come up with additional funds for the deposit, which in this case will equal 10% of the purchase price, or 36,500.

"In total, this couple will have to access 58,400 in cash . . . and this is where a large amount of the equity release goes."

In general, most people finance a trade-up through a combination of equity release and an increase in their salaries. But for the most part, according to Conway, while most people would like to buy in a mature location close to family or work, "nancial considerations and a lack of supply mean people have to make compromises.

"In my own experience, there are very few semidetached properties available on the market, " he said. "If someone wants to purchase a nice semi-detached property, or larger, they may be forced to move further a"eld. Older areas typically have better established systems; newer areas do not. In other words, very careful consideration needs to be given to price, accessibility to work, access to creche and schooling facilities."

Although demographics would suggest that the babyboomer generation is about to trade up in large numbers . . .
statistics show most first-time buyers move within the first six years . . . Conway has not noticed any significant rise in mortgage applications.

He does believe this phenomenon will occur, though. "It's inevitable, given human nature and the cycle of buying at around 28/29, then marrying at about 31 and having children at about 33/34, that there will be a greater need for larger housing, but so far we haven't noticed an increase in the numbers trading up."