ray winstone 12:16 Wed Nov 22
The Budget
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Penny on a pint? 5p on a pack of fags? Car tax up a fiver?
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Replies - Newest Posts First ( Show In Chronological Order)
BRANDED
3:29 Thu Nov 23
Re: The Budget
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Yes. Its still a very strong economy. However, here's the thing.
Rich people own everything. They invest or lend their money in things. Ideally offshore or in low tax environments but if there's a conceived stability in a market they will go there too.
Rich people can and will move their money out of anything considered a less good deal.
Britain is teetering at the moment.
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ray winstone
3:22 Thu Nov 23
Re: The Budget
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So when you look at it...
Economic growth has been revised down
Productivity growth has been revised down
Business investment has been revised down
Peoples wages and living standards revised down
Strong economy?
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BRANDED
12:20 Thu Nov 23
Re: The Budget
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You could kill all home owners?
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SurfaceAgentX2Zero
11:56 Thu Nov 23
Re: The Budget
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Willtell 11:48 Thu Nov 23
'So come up with another way of unblocking the jam of deceasing 1st time buyer sales then and astound us all please?'
I can - increase interest rates to 15% for a year or two causing a house price crash and leaving cash/deposit rich first-time buyers dictating the price.
Now that's not going to happen and I'm not advocating it, but you asked the question. It's a matter of getting the balance right and yesterday's measures tilted the balance further towards asset price inflation which benefits existing owners
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SurfaceAgentX2Zero
11:50 Thu Nov 23
Re: The Budget
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Willtell 11:20 Thu Nov 23
'With stamp duty it requires a payment of £2500 that eats into that first deposit so even if prices rise, the 1st time buyer is better off...'
The seller doesn't care if it's a first tome buyer or not. And your scenario is unrealistic. All first time buyers who are unsuccessfully offering say, £300,000 will now immediately up their offer by the amount of stamp duty they will have to pay. So a very few will be perhaps be marginally better off, if they aren't gazumped. However, within days (hours, estate agents were reporting yesterday) sellers will increase their prices to absorb that extra cash, leaving first time buyers as far away from a house as they were previously. That's just the way markets work when there is a shortage of supply.
The cut to stamp duty was accompanied by probably about the ten millionth claim by a government that they will build (or cause to be built in this case) 300,000 houses a year. That's never happened, won't happen this time and is in any case inadequate to eliminate the housing shortage.
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Willtell
11:48 Thu Nov 23
Re: The Budget
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BRANDED 11:33
Blimey mate you really are being a bit simple about this. The total cost is not helpful if a first time buyer is struggling to rustle up a deposit and a tax payment of £2,500.
Of course those with socialist thinking like the Guardian this morning, see it as a way of inflating prices and removing taxation which can always be spun to be a negative.
So come up with another way of unblocking the jam of deceasing 1st time buyer sales then and astound us all please?
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Gavros
11:44 Thu Nov 23
Re: The Budget
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BRANDED 11:37 Thu Nov 23
Re: The Budget
What do you get for £700 grand in Essex? Round here its barely a one bedroom flat.
BOLLOCKS.
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Gavros
11:43 Thu Nov 23
Re: The Budget
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your limit is also based on the amount of cash that you have. as i pointed out, a 2500 cash cut is equivalent to a 25000 price rise at 90% LTV.
Do keep up.
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BRANDED
11:37 Thu Nov 23
Re: The Budget
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What do you get for £700 grand in Essex? Round here its barely a one bedroom flat.
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Willtell
11:36 Thu Nov 23
Re: The Budget
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Except that's not quite how it works though is it Gavros? Most young couples have price limits based on income limitations for their first mortgage.
The thing is that it must be a help in the short term to those that were close to their first purchase. Eventually it will filter through to price increases unless supply is increased which I guess, is why the government are putting several billions into schemes to encourage massive increases in house building.
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BRANDED
11:33 Thu Nov 23
Re: The Budget
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Its still a total cost.
I understand there's an upfront cash cost but if you can get £300,000 together to buy a home that needs to include every immediate cost you will have. So, it depends on the price agreed plus other costs. That will be part of the negotiation. If the seller knows you have two grand more they MIGHT hold out for two grand more. But even that is irrelevant as property prices move all the time.
Up to 250 k you no longer need to add that cost into your spread sheet. Thats the only fucking difference.
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twoleftfeet
11:33 Thu Nov 23
Re: The Budget
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Stop immigration
Stop having kids that you can’t afford
Housing problem solved.
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Gavros
11:31 Thu Nov 23
Re: The Budget
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a 700 grand house in Essex?
hahahaha
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Willtell
11:29 Thu Nov 23
Re: The Budget
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Yes that's right Comma. And home improvements also increases the GDP by creating extra employment and product sales like kitchens, bathrooms, and building materials etc. Most of which should be home produced but probably isn't...
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Gavros
11:28 Thu Nov 23
Re: The Budget
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that's why its great for prices willtell.
wheereas before someone would be struggling to buy say a 250k place with a 90% LTV mortgage and pay £2500 stamp duty upfront, now they pay no stamp duty and can afford a £275,000 property instead with the same initial shell out.
Ta for the £25 grand says the vendor.
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,
11:23 Thu Nov 23
Re: The Budget
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You see now in areas where the average property price is around £6/700K the house owners are choosing to upgrade their home rather than move to a dwelling that meets their specifications. Owners would rather put the stamp duty fee, say £26K, into their building project than into the UK treasury and who can blame them. It’s boom time in Essex for reputable small builders.
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Willtell
11:20 Thu Nov 23
Re: The Budget
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Thanks for that BRANDED but I don't get your point and you add nothing new mate...
My only point was that the tax has to be paid in full at the point of purchase. Most couples in my experience, have trouble begging, borrowing or stealing the deposit let alone an extra tax of up to £5,000.
An extra £2000 on the purchase price of a £250,000 property is an increase of £200 on the deposit of say 10%.
With stamp duty it requires a payment of £2500 that eats into that first deposit so even if prices rise, the 1st time buyer is better off...
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Gavros
11:17 Thu Nov 23
Re: The Budget
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ok.
its certainly gumming up the market but in some respects thats what its designed to do.
the real fucker would be CGT on primary residences.
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BRANDED
11:07 Thu Nov 23
Re: The Budget
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Gav.
I've often thought about this and how it might impact but if you want to move to bigger or more expensive home because you can afford to and are likely to live there a few years why worry? Its again just part of the total cost.
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BRANDED
11:04 Thu Nov 23
Re: The Budget
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Will.
There is a total cost of buying.
That is everything you spend added up. Dropping the tax doesn't immediately correlate with the TCOB dropping. There are other factors involved.
Admittedly its cash that needs to be paid so feels like something separate but in the end there is only one cost and that is everything lumped together.
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Gavros
11:02 Thu Nov 23
Re: The Budget
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the graduated stamp duty bands are certainly fucking up second and third movers in London.
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