Saturday, Apr 17, 2010
Wealthy less wealthy fear
FT: Parties line up new property taxes
Property experts (Beckettian laugh) warned that hitting wealthy home buyers could derail the recovery in their easy money.
Posted by letthemfall @ 12:16 PM (1272 views) Add Comment
14 Comments
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1. paul said...
Ah this article his full of homeownerist protectionism:
property experts warned that hitting wealthy home buyers could derail the recovery in the housing market
Vested interet lies. The equivalent of "protect our rentier income assets or something bad might happen".
Liam Bailey of Knight Frank said any future government must recognise the new crisis brewing in the housing market: mortgage availability
Ohh that old chestnut. The problem is not that what's for sale doesn't represent value for money but that there's not enough money for buyers to spend. Nice try. No-one falls for that any more.
Apart from the FT, of course.
2. markj69 str05 said...
@ Paul, Although I couldn't agree more with the argument,
'The problem is not that what's for sale doesn't represent value for money but that there's not enough money for buyers to spend. Nice try. No-one falls for that any more.'
...I really don't think that 'No-one' falls for it. There seems to be an awful lot of stupid people out there, prepared to borrow as much as possible, at any cost.
Esprcially as rates are artificially low!
The problem is not that there is not enough debt available, it's that the assets are too expensive - over valued. Most people are coming round to this idea. A bit late, and about time.
EA's better start worrying. Things are going to change dramatically with the new Gov't. I can't wait for the return of the Mwahaaaa haaa's (Confused i think?)
3. powerofnow said...
@markj69 stro5 ...I really don't think that 'No-one' falls for it. There seems to be an awful lot of stupid people out there
Agreed. If we believe that we live on an overcrowded island we'll believe anything.
4. amjidk said...
Hope the new government sorts the mess out, wouldn't hold my breath though..
Do you guys think a hung parliament will be good or bad for property prices?? (Good if they come down)
5. mr g said...
@amjidk "Do you guys think a hung parliament will be good or bad for property prices?? (Good if they come down)"
I don't think it matters whether we have a majority government or a hung parliament.
Both will be so ineffectual when it comes to cutting government debt that the markets will step in, resulting in interest rates rising which will stuff a lot of people who have been enjoying low rates.
This will stall the market, increase repossessions and pull prices down.
6. amjidk said...
I hope you're right Mr G..
7. drewster said...
A hung parliament won't be able to do anything; so natural market forces will run their course. That means either sterling falling, house prices falling, or both. (In my humble opinion.)
8. Notyethomeless said...
An outright Tory win is likely to trigger a very short boost to Sterling, and a longer one to the FTSE.
It will probably delay inevitable Sterling capitulation and make some City funds richer, but it's not looking too good for house prices whomever is in.
Most relevant question: should I have used 'whoever'?
9. amjidk said...
if sterling will most likely fall, is it a good idea to convert some of my cash to gold etc?
10. icarus said...
Why didn't she question tax experts on the effects of property taxes instead of these VI idiots? Taxes on immovable property have less negative impact on the economy than just about any other tax.
11. 3 said...
123
12. mark wadsworth said...
This man comes dangerously close to telling the truth:
"Charles McDowell, a buying agent, said the health of the property market depended on the balance between taxation, regulation and enterprise.."
If we assume by "the health of" he means "the prices being paid in", then this proves my point that house prices are, to a large extent, whatever the wider Home-Owner-Ist coalition (banks, government, rent-seekers, NIMBYs and the economically illiterate) wants them to be. And seeing as high house prices are best case a zero sum game, and worst case hugely damaging to the economy and to society, the government could quite easily keep prices low and stable by liberalising planning laws, ending the bank bail outs and replacing as many taxes as possible with Land Value Tax.
Also, what Paul, powerofnow and icarus say.
13. mr g said...
@MW "the government could quite easily keep prices low and stable by liberalising planning laws, ending the bank bail outs and replacing as many taxes as possible with Land Value Tax."
Our Liebor candidate was round canvassing today and when asked about bank bail outs the answer was "they're too big to fail"
So there you have it folks, the former working man's party in cahoots with the bankers.
After I had stopped laughing , I hit her with the sucker punch, "what would a Labour government do to help the prudent who are being shafted in order to bail out those who have borrowed too much?"
Collapse of stout party, in other words she had no answer to offer.
Be warned, steer clear of these snake oil salesmen.
14. mark wadsworth said...
Mr G, sure, but all the big parties offer the same solutions as they are all chasing the Home-Owner-Ist vote. I accept that the HOists are in a majority, maybe 60% or 70%, but if one party could get the support of the other 30% or 40%, then it would storm into government.