wsutherland

I will buy when average house prices are 3.5 X average earnings. The way it should be. Even if the IR is 10% by then.

And people like you just want house prices to go up for ever and ever so that you can feel rich compared to all the people who come along behind you because they cant afford to buy.

If you sell to rent then this in a way helps the BTL'rs. They will have someone to rent to so they wont be forced to sell. I have to agree that the only STR who is a friend to the FTB is one who sells on the way down and therefore helps to reinforce the fact that the crash is underway.

If they are paying 80% tax rates then their net incomes will be very low. This could start to happen in 10-20 years or so when the baby boomers start to retire and only a small percentage are actually left working. What will happen to the house prices then? They will surely go down in proportion with the incomes, as will the rent prices. So perhaps housing is no longer even safe as a long term investment.