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House Price Crash Forum

Time For Reverse Stamp Duty?


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HOLA441

Since the housing market is the underlying problem with the banks balance sheets, I'm suprised they have cancelled stamp duty across the board now.

I wonder if its worth them introducing reverse stamp duty i.e. they will contribute say 3% of the house price. This is enough to cover all the fees and moving costs but not high enough to encourage widespread abuse by unnecessarily moving.

With high unemployment, this will also encourage workers to move to wherever the work is.

It may even be self funding since they get the VAT on all the new things you buy for the house and the banks balance sheets will improve as asset prices will stop falling.

Cheaper than another bank bailout?

VMR.

(wishful thinking)

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HOLA442
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HOLA443

resrecting MIRAS would help..

http://property.timesonline.co.uk/tol/life...icle5196527.ece

Basically your mortgage interest is tax deductable against your wages/income tax and it was finally removed in 2000. Its a great idea because people with mortgages pay less/no income tax, and get the same tax advantages as BTL landlords! :P Its a final wepon that could be deployed....

Edited by moosetea
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HOLA444
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HOLA445

Move where exactly?

The people in the North cannot move to the South due to the imbalance in house prices, this was one of the main problems of Tebbits get on your bike, it's not as easy as it sounds.

For those people who are single it's easy, however for those with families it would be dead in the water.

If you really want people to be able to move perhaps force sellers in high house prices areas to accept less when someone from a lower house priced area needs to move for work purposes.

That way people can genuinely move where the work is.

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HOLA446
Move where exactly?

I was helping an ex-colleague look for a job recently but only found suitable jobs out of this area (Cambs). There are too many engineers looking for jobs here now. Hoever, there are still jobs around if you are prepared to move, in areas where house prices are not necessarily any different.

VMR.

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HOLA447

With house purchase volumes so low now they should just abolish stamp duty altogether for all purchases (including share trades)... not to get the housing market going mind you; just to avoid paying the salaries of the entire stamp office.

I wonder how low purchase volumes would have to go before the cost of running the stamp office outstripped the revenue it attracts? Is there anyway to get / find this information?

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HOLA448
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HOLA449
Only up to 175K and that is just temporary.

VMR.

Ah yes. I thought you meant completely.

I think that if they want to control the slide, they need to re-vamp it so that you pay SD on the amount in the band, much like Income Tax.

Who is going to pay 510k for a house when that means paying 4% on the whole 510k? You would pay 499,999 surely?

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HOLA4410
Ah yes. I thought you meant completely.

I think that if they want to control the slide, they need to re-vamp it so that you pay SD on the amount in the band, much like Income Tax.

Who is going to pay 510k for a house when that means paying 4% on the whole 510k? You would pay 499,999 surely?

[pedant]or £500,000, which is still charged at 3%[/pedant]

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