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 Crazy Housing Market
Topic Originator: Raymie the Legend  
Date:   Thu 21 Jan 19:13

With houses selling within days and sometimes, hours of going on sale and for way above their valuations, how are young people meant to get on the housing ladder?
Quite rightly, they don`t want to be putting in ridiculous offers to obtain the property and put themselves in a negative equity position

Catch 22

It must be great to be an estate agent this past year. Money for old rope

When are things going to settle down? I think the government need to curb rich folks snapping up properties to rent out




It's bloody tough being a legend
Ron Atkinson - 1983
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 Re: Crazy Housing Market
Topic Originator: jake89  
Date:   Thu 21 Jan 19:36

Only people who benefit are the agents and solicitors.

If you sell you're presumably buying so you don't make anything our of it. Only of any benefit if you're downsizing.
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 Re: Crazy Housing Market
Topic Originator: parsfan  
Date:   Thu 21 Jan 19:59

Quote:

Raymie the Legend, Thu 21 Jan 19:13I think the government need to curb rich folks snapping up properties to rent out


Scottish government introduced a new tax* a couple of years ago with, I think, that in mind. If you buy a property and already own another one** you pay an additional tax, 4%?, of the value of the new one.

I don't know how well it's worked or if the % goes up the more other property you own but it doesn't really seem punitive enough to me for it to have much of an affect.

* Additional Dwelling Supplement, or similar.
** Not the one you're selling in the move.

~~~~~~~~~~~~~~~~~~~~~~~~
The universe is ruled by chance and indifference



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 Re: Crazy Housing Market
Topic Originator: Buspasspar  
Date:   Thu 21 Jan 20:09

Going mad to beat the stamp duty deadline Raymie

We are forever shaped by the Children we once were
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 Re: Crazy Housing Market
Topic Originator: parsmad68  
Date:   Thu 21 Jan 20:11

You would pay the 4% back pretty quickly. Even if you were to take a mortgage out on the property. I estimate in a year. It is the deposits that kill first time buyers and the houses any government scheme is offering people is only for houses that are ridiculously expensive in new builds. My daughter bought her house and left enough deposit to buy a second and rent it out. This is her plan anyway, and it was still a better deal than the government offered for first time buyers.
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 Re: Crazy Housing Market
Topic Originator: DBP  
Date:   Thu 21 Jan 20:26

Remember that unlike any other business where costs are removed from revenue to determine profit... if you take a buy to let mortgage, that cost is not tax deductible anymore
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 Re: Crazy Housing Market
Topic Originator: P  
Date:   Thu 21 Jan 20:47

Reductions in Land and Buildings Transaction Tax (LBTT) which is the Scottish version of stamp duty were introduced in July and will end on 31st March so folk are rushing to take advantage and probably pumping the savings back in anyway. It’s created an artificial bubble

There will be a dip if not a crash as the economy declines and the tax break eventually ends (there is pressure to extend just now)


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 Re: Crazy Housing Market
Topic Originator: Wotsit  
Date:   Fri 22 Jan 00:31

If house prices were to fall to affordable levels, say the prices of 1990, it would crash the economy harder than it has crashed before.

There is so much of our country's value in property that we would, as a nation, be in negative equity quicksmart.

If you told someone with no experience of capitalism that we quite happily deny people somewhere to live because we want to keep the value artificially high they would assume that we were sociopaths.

Then we manipulate the economy to hide the socio-economic cost of rising housing costs with fudges like pretending that housing costs aren't worth counting when we measure inflation.


"Who you are and what you feel comes not just from inside you, but from where you are in the power structure"
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