Friday, Apr 24, 2009
Looks like high earners won't be splashing the cash now Gordon's budget has slapped up the tax
FT.com: Higher taxes set to hit house prices
Estate agents are warning that the higher taxes introduced in this week’s Budget could increase the pressure on house prices, as buyers at the top end of the market decide to live elsewhere.
Many buyers of multi- million pound properties earn enough to be hit by the higher rate of income tax from next year. Agents said this extra levy could lead to fewer people living and working in London and could reduce demand for properties in the prime market.
Posted by dohousescrashinthewoods @ 10:57 PM (732 views) Add Comment
8 Comments
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1. paul said...
Shill economics.
If house prices (continue to) go down further, blame it on the tax hike and maybe get some sympathy from wealthy potential buyers. If it has no effect whatsoever, how will anyone know?
Its sometimes surprising how easily led FT can be be spurious arguments.
2. happy mondays said...
Oh no! not the dreaded Brain drain...What shall we do when this pumped up over priced market collapses, because every one has buggered off to Dubai...?
3. braindeed said...
A world devoid of middle-managers....is it possible?
4. Dr. B said...
article after article after research project find no correlation between your IQ and your salary.. (e.g.).http://www.eurekalert.org/pub_releases/2007-04/osu-ydh042307.php
This ´brain drain´is pants
So if these "high earners" dont have the higest IQ, then how come they get paid so much? Such as board members of RBS without even a qualification in economics?!
.... so how do these jokers get to the top? ....im sure it has more to do with their willingness to step on other people for personal gain, rather than by their brains.
We don´t want these blood suckers living in our country. They can cluck-off...
The real brain drain that we should be worried about are our scientists and engineers leaving the UK for a better life. These people BUILD companies, unlike bankers who just buy, sell, break up, trash and asset strip companies
Dr.
5. Notaguru said...
There are plenty of scientists, mathematicians, etc. working in Finance and IT in the City. The "brain drain" has already happened, as these talented people have been poached from careers were they could have made a real difference to a meaningless (albeit well paid) job in banking, insurance, etc.
The loss to society has already happened, whether they leave the country or not is irrelevant.
6. new user 2007 said...
A pincer movement?
FTBs at the bottom and the rich at the top. The ones in the middle will be hit after forced selling starts, but with greater force because they did not accept the reality of our credit market and the economy in time?
Not a nice way of going past the denial phase?
p.s. the fact is that, no matter what the motivation of EAs, it is too late...what they are saying will help talk down the market (shooting oneself in the foot comes to mind).
AND
In a separate argument: If the "clever money" is going back into BTL is "in it for the long-term", then there should be no concern that they will leave the market because of a few tax rises, as the massive returns the likes of those MR ASSetz offers apparently mean that it is still worth going in. The government still says there is no such thing as a credit cycle so demand is still there (even though it does not know the difference between ability to buy and wishful thinking). Add in that we need tax revenues like never before...
...could someone explain why BTL did not lose at least some of its tax exemption on interest payments?
7. mdmick said...
Opinion on why BTL might fare well:
MPs do BTL and it would be bad if they went bankrupt; and
Pensions are in a mess - BTL is an income which might ease the burden on our future society's potential pensions crisis.
8. new user 2007 said...
md...
BTL may do fine in the long-run in the pension sense and "help" on an aggregate level except for two things...
1) many will now be losing their shirts
2) the people forced to buy at very high multiples because they had to compete with BTL will no longer have enough spare money over the next 25 years to fund their own pensions over that period.