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About Haventaclue

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  1. Mattyboy, youre right!! My apologies all round ....doh!! Ive been surfing around so havent a clue where this small seed for this topic came from ! Reading my own link properly now.....omg, how on earth can you justify giving a further tax break to those who are already sitting on the hundreds and thousands of equity causing the over heating market in the first place! Surely theyre the first people who can afford it?! (This is now a completely different topic to the one I intended.... so will leave it there......thank you for pulling me up on it).
  2. Agree with most, yes decor and maintenance on bungalows have historically been shocking simply due to the demographic living in them. Yes, families do hold out for 'best price', and possibly go to rental if not achieved, but I wonder if this will be squeezed just as the main BTL market is being squeezed too. One thing I disagree on is ability to buy. Remortgaging to buy retirement or holiday homes is nothing new, and is easy enough at 60 if theres enough equity in your main home. Its been the obvious choice for years with hundreds of thousands tied up in equity, but as costs to do that, and added stamp duty increase, (theres a risk you dont sell in the 12 months) Im merely speculating that in asking for a stamp duty exemption, it is indeed having an impact? Today, imminent retirees are still comfortable. Low interest rates on low mortgages, monthly salary still coming in, but what will the world look like in 5 years? Pension annuities are now non existant, are they also the vast majority of 'accidental landlords' currently coming under the cosh? The one area of BTL that will have no buffer, is the retired BTL landlord. A large maintenance bill, tax bill, or significant rise in BTL interest rates and retirees have no monthly disposable income to cover it. Anyway, I digress, but what will the impact of next to no bungalow building be in the next few years? A non existant problem? Or a surge for emergency cheap housing of the elderly?
  3. No, its the surcharge on the 2nd home scenario. Yes you would be right, if they were just selling and buying, but due to the amount of equity in 'family' homes, its been relatively simple previously to buy the forever home first (remortgage on main residence) when you find one that you really want, then sell the main home after that. Under the new stamp duty rules, a 3% surcharge is paid on a 2nd home purchase. Yes you can then claim it back as long as you sell your main home within 12 months. The panic sets in if you dont manage to get a seller for your extortionately overpriced family home. Also, no theyre not asking for a complete removal of stamp duty on retiring purchases, just the 2nd home scenario as described.
  4. Yep, Ive seen that too, but as the squeeze gets tighter and retirees earning capacity flies out the window, the whole downsize thing is to indeed dramatically cut overheads and release equity. Whilst it may seem logical, converting bungalows into bigger property simply to make more on a resale (property developers still at it!), it strikes me that by doing that, there may be an even bigger decreasing circle of 2 bedders available. How many "downsizers" move from a £250k family home to a £200k bungalow? If thats all there is in it, Id guess they stay put. Yes a £200k bungalow is going to significantly appeal to retirees selling a £500k home, but youd also have to look at location too. Buying at that price, surely market towns and seaside areas start to get in on the nice to have list? Im just looking at the average retirees, maybe end of life salary was around the £40/50k mark, lives semi urban, and just had their pension age increased. Just throwing numbers around using my £250k example, but Id imagine that to downsize, the boxes youd need to tick are, significant reduction in monthly overheads (heating, council tax etc) and release a decent £100k say (its all relative) to enjoy for a while, get a decent car and have a buffer to pay your ongoing bills.....for life! I think its the modest 2 bedder that may see the biggest demand. I also never got the point of attic converting a bungalow! Something like 11million people have a limiting disability in the UK, add to that the ageing population, the big pull of a bungalow is single storey living.
  5. Id be interested to know how many agents / landlords comply with this. Whilst I know it became a 'legal' requirement, it isnt in fact criminal, merely civil. And the punitive fines etc for non compliance, only apply if there is a dispute at the other end (end of tenancy) and the tenant reports the situation as such. Even then, as long as the agent/landlord returns the deposit in full, I understand no penalties are charged. So in short, if your landlord hasnt placed your deposit in a deposit scheme, you do in fact have a far better chance of getting it back in full (as any attempt to dispute and withold by the landlord could result in the 3 x deposit fine, so cheaper to return it than argue over £500 carpet issues), that is unless hes done a bunk with it. Even doing a bunk, its still civil, not criminal. My thoughts would be, if a landlord has been avoiding HMRC for a significant time, hes hardly likely to be complying with the deposit scheme rules. Indeed, how many tenants actually check if their deposit has been paid in or not, and if not, what do they then do? Risk a possible eviction for rocking the boat?
  6. So Ive recently noticed, bungalows in the North West, arent selling like they used to. (I know, is anything?! Bear with me) Larger properties in des locations still do well, but the run of the mill, 2 bed downsize options, just arent turning over. So looking a little further, I came across this from the express re stamp duty. http://www.express.co.uk/news/uk/660091/Pensioners-downsize-house-home-smaller-stamp-duty-exempt I think this indeed has a bigger impact on the average joe bloggs than has been anticipated, and bucks the forecast that the lack of bungalow building and availability will bring a higher premium/anomaly for the 'desirable' downsize bungalow. The one thing, end of chain downsizers are buying, is their forever home. Where as, at other stages in a housing chain, if you have a few reservations or compromises on a property, quite often you proceed to buy as indeed the property will follow the housing market and the lifecycle of selling to move on is just part of the options available. Irrespective of market movement, anyone buying then selling, will retain the 'value', whatever that is in a comparable market. Retiring downsizers dont have those options, the buffer as it were regards compromises, isnt there if there is never an intention to sell, so the pressure to find the 'right' home is far higher. My point being, that in removing the flexibility to buy that forever home in advance of selling the large and loved family home, by hitting them with the 2nd home stamp duty surcharge, current downsizers appear to have decreased to a trickle, as theyre not prepared to take the risk, that their forever home is out there once they finally sell. So, 3 questions for you; 1/ Is any one else noticing 2 bed bungalows arent turning over as they used to? Is it a regional thing only? 2/ When forecasts have consistantly said, bungalow building has dramatically dropped in the last 30 years, to a point where some say, no bungalows will be built at all by 2020, causing an anticipated massive undersupply in the future, are we currently seeing the bungalow 'premium'/anomoly at its lowest ever point in history? 3/ How big an impact do you think downsizers not downsizing has on the chain? Is it negligible, i.e. it simply takes a chunk out of the prospective buyers market for 2 bed properties, or is it significant to the point that we may see a change in stamp duty rules re a retirement purchase? Just something for a sunny tuesday to mull over
  7. Stockton, youre actually in a very strong position, considering the scheme youre in! Firstly, just IMO, stop being dazzled by the whole new build thing. Its exactly the same as the new car issue, drive it off the forecourt and drop thousands. Youve already experienced that with your first 'new build' why are you talking yourself up that a second new build is superior to the 'old' house you have now? Youre wrong. Youve experienced drive away forecourt loss once, dont do it again, and if you think Barratts quality is somehow better today than 10 years ago, youre wrong again. Every corner that could have been cut on their building programmes has been. They all nearly went under in 2008 and they learnt their lesson........ make money by building as cheap as possible and sell as high as possible through 'schemes'. You are who they need to make this scam work. Dont be taken twice by them. Indeed I cant believe you write how bitter you are towards them, yet are even considering doing another deal. Are you thinking that somehow, your maths are smarter than theirs and you come off better on a future part ex? You like where you live, and you clearly live where you need to live. Those are 2 strong factors. You have £20k pulled together, thats absolutely fantastic and will be you strongest negotiating tool. The fact the halifax wont remortgage, is only under the current circumstances. Thats absolutely fine and to be expected and dissapears as soon as you buy out the remaining 25%. You indeed have 1 issue only, and thats the purchase of your remaining 25%. You are absolutely in a strong position that Barratts have already offered you a 20% reduction on your 25%, from the numbers youve given here, I would be really be going in hard now with a counter offer of £20k for the 25%. Its cash in their hands and they dont have to do any wheeling and dealing work to get it. I would also imply, that whilst you can guarantee that £20k is available today, due to the current declining market value and your current mortgage providers restrictions, you cant guarantee £20k will be available at the 10year drop dead date. Point out that of course, your mortgage provider takes 1st priority over any other secured debts. Sit back, enjoy the fact that in real terms, you may be able to secure the home you live in for a nett expense of £102k + £20k . (Im sure you would have been over the moon if youd got a discount to £122k when you first bought). Youre 10 years in on your repayment mortgage so should be nudging down to the early £90s now and continuing on the same trajectory, so a nice pot of equity is already building up, and overnight, once youve resolved the 25% equity buy out/loan position, every man and his dog will be offering you decent remortgage deals. You managed to personally save £20k over that period, so with no changes to circumstances, you can continue to save an equivalent going forward. Indeed the future looks very rosy. Good luck.
  8. Oh heavens. Do people who use buses live there? Ignore my recommendation OP.....
  9. Not quite. If there has been a huge increase, your borrowing capacity increases too. Yes you buy 25% at a higher price than 10 years ago, but you bought the other 75% 10 years earlier at the cheaper cost. Your bank should allow a remortgage in those circumstances due to the increase in equity in the property and the main mortgage should have been taken as a repayment mortgage and has therefore been reducing. Also it would be far easier to sell, releasing that increase in equity to move on to the next private purchase. The sting is everyone seems to ignore the fact that theyve tied in to basically a deferred deposit scheme, and then still fail to save for that 'deposit'. Some even took the main mortgage as interest only. The double whammy is they agreed to it being 25% (against private purchases where you may have only had to raise 10% or 15% deposit) caveated with that a 10 year drop dead date, panic sets in that the day of reckoning is fast approaching. But theres no point in bashing anyone over the head as yes, quite rightly, if values had increased, this would not be an issue at all. indeed, it would be seen as being a relatively smart way to have used others money, whilst providing a roof over your heads, to realise an investment increase on 75% of a property, from a starting position of zero. Of course I can see the attraction of that, so the hindsighters bashing those who at least tried, arent worth responding to. But interest only, and ignoring the deposit 'debt' is a recipe for disaster.
  10. Agree with this lot though. Yep, and a massive miscalculation by the government that their continued stealth taxation wont have a major impact...indeed will. The question will always be though, how big and how far?
  11. This is so far off the mark. All boomers have lived through several crashes, the worst being late '80's, but several before that, and can tell you exactly what its like to pay a 15% mortgage rate. Mortgage rates averaged at 10% for decades. I do hate it when posters come up with dubious derogatory anecdotes merely to spin a whole anti christ persona.
  12. No doesnt add up. 3 bed terrace in Bolton "potential" sale price £190k in the one area that has continued to slump whilst everywhere else has seen a rally, not a chance in hell. secondly dont touch an unmortgageable property, ever. Terrace rents circa £450pcm. Renters in the NW will expect 3 bed semis with driveways for £600pcm Edit: Apols, just rightmoved it, and it appears to be a semi....somewhat confused by the terrace description above. Eitherway, still stand by my unmortgageable hurdle. Thats a massive red flag.
  13. Asking prices? Thats a far cry from '25% reduction on previously sold price'. For me, they simply overvalued last year and surprise surprise, didnt sell. But it does make for some great 'sale' marketing!
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