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cypher007

Try To Sell Now And Trade Up To Beat The Stamp Duty, Or Wait?

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were still waiting to see much effect of the house price crash here in Boston. it seems to have affected mostly the low end of the market, where we are now, but we want to trade upto a detached which arnt falling in price as fast. now our dilema is do we flog our current house for what we can get, and trade up using a small mortgage and all of our savings, thus beating the stamp duty deadline, or do we wait in the hope the £160k (sold prices) houses we like fall to below £125k.

Edited by cypher007

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your cnfusion could be one of the reasons (in a colletive sense) behind the current price impasse in the market....

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your cnfusion could be one of the reasons (in a colletive sense) behind the current price impasse in the market....

What he means to say is sell your house now, rent for a couple of years, buy 4 houses with the money and start a BTL empire :ph34r:

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What he means to say is sell your house now, rent for a couple of years, buy 4 houses with the money and start a BTL empire :ph34r:

yeah right. im begining to think its going to go like someone on here, i think it was, said that the market will just level out and youll have maybe 40% home owners and 60% renting, kinda like Germany.

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were still waiting to see much effect of the house price crash here in Boston. it seems to have affected mostly the low end of the market, where we are now, but we want to trade upto a detached which arnt falling in price as fast. now our dilema is do we flog our current house for what we can get, and trade up using a small mortgage and all of our savings, thus beating the stamp duty deadline, or do we wait in the hope the £160k (sold prices) houses we like fall to below £125k.

I am a bear of little brain but there does seem to be quite a few factors to consider here:

1. if you do not sell NOW (and to be honest I think the moment has gone, unless you are lucky, for getting anything above 25% from peak), then I assume you will have no option but to wait for the detached houses to fall too.

2. selling and trading up I assume takes you away from your existing mortgage deal , and if that is correct then I suppose another factor is that fixed rate deals are going up and up, one of the reasons I can understand why people are perhaps jumping now. There is the Q about how is better off , someone who had a mortgage on a hugely overvalued property but on a fixed rate deal for 25 years, or someone who now needs a 25% + deposit and perhaps a mortgage deal that would stretch finances ?

3. Stamp duty on £160000 is £1600 is it not? The house now at £160000 was it about £210000 at peak? If the property has already lost 20% I guess you could factor in another 20% fall in the future (your figure £125k) , or £35000, so what you save on Stamp Duty is not really a factor is it? The problem being of course that if we get inflation how much will the £125000 house really be worth in a year or two?

Difficult decisions for buyers and sellers but you are still in a lucky position of having SOME choices whilst many have no choice but to stay put in a 1 bed flat with a family and others are about to lose it all ......

Edited by Sybil13

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I am a bear of little brain but there does seem to be quite a few factors to consider here:

1. if you do not sell NOW (and to be honest I think the moment has gone, unless you are lucky, for getting anything above 25% from peak), then I assume you will have no option but to wait for the detached houses to fall too.

2. selling and trading up I assume takes you away from your existing mortgage deal , and if that is correct then I suppose another factor is that fixed rate deals are going up and up, one of the reasons I can understand why people are perhaps jumping now. There is the Q about how is better off , someone who had a mortgage on a hugely overvalued property but on a fixed rate deal for 25 years, or someone who now needs a 25% + deposit and perhaps a mortgage deal that would stretch finances ?

3. Stamp duty on �160000 is �1600 is it not? The house now at �160000 was it about �210000 at peak? If the property has already lost 20% I guess you could factor in another 20% fall in the future (your figure �125k) , or �35000, so what you save on Stamp Duty is not really a factor is it? The problem being of course that if we get inflation how much will the �125000 house really be worth in a year or two?

Difficult decisions for buyers and sellers but you are still in a lucky position of having SOME choices whilst many have no choice but to stay put in a 1 bed flat with a family and others are about to lose it all ......

were currently mortgage free with about £40k saved. what i dont want to do is step off the ladder and find i spend more in rental than the house prices fall.

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were currently mortgage free with about £40k saved. what i dont want to do is step off the ladder and find i spend more in rental than the house prices fall.

In that case sell if you can and rent.

Big step down coming.

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If you can sell now, do so, but surely the question is do you stay in Sterling; or any other paper currency?

Not easy.

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why do you think sterling will become worthless?

not worthless but certainly worth less.

Everything apart from houses is about to start becoming more expensive in sterling terms.

But what to do? Physical currency is expensive and what would you trust - dollar,yen,euro - all got their own issues and potential for disaster (maybe yen/euro less so than sterling). Electronic digits in a bank cost in fees and also require faith in that bank and the system.

Sell now and take the cash imo but you need a plan to protect it.

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not worthless but certainly worth less.

Everything apart from houses is about to start becoming more expensive in sterling terms.

But what to do? Physical currency is expensive and what would you trust - dollar,yen,euro - all got their own issues and potential for disaster (maybe yen/euro less so than sterling). Electronic digits in a bank cost in fees and also require faith in that bank and the system.

Sell now and take the cash imo but you need a plan to protect it.

Perhaps something like buying a house ! ;)

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I'm also wondering what effect the upcoming reversal of the stamp duty threshold (from £175k to £125k) will have on the market, I STR'd a couple of months ago and managed to just break through the higher barrier with my 3 bed detached as I had 2 buyers competing over it.

My target house (a 3 double bedroom 3 bed, or a 4 bed) are currently asking in the £180k-£230k range, as the market slows over the autumn I would expect these to struggle with the barrier but then it moves down to £125k for anything that completes after 1/1/10, which effectively means the sale must be agreed by early Oct to stand any chance of beating the deadline.

These sort of changes do usually have quite an effect in skewing the market as people rush to agree/complete before deadlines, then all goes dead afterward, I just can't decide what the effect will be this time.

Here's hoping the market turns for the worse in the winter and your target £160k house struggles with the new £125k barrier.

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were still waiting to see much effect of the house price crash here in Boston. it seems to have affected mostly the low end of the market, where we are now, but we want to trade upto a detached which arnt falling in price as fast. now our dilema is do we flog our current house for what we can get, and trade up using a small mortgage and all of our savings, thus beating the stamp duty deadline, or do we wait in the hope the £160k (sold prices) houses we like fall to below £125k.

:lol: Nice one

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why do you think sterling will become worthless?

It is being 'eased' in that direction by a vast creation process.

Food & fuel (& PMs..... no, I didn't say that) will be a truer measure of its (lack of) worth.

The UK messes up your mind, whilst trapping you with group-think. As I said, not easy.

Only one thing is guaranteed. Most will become poorer over the next decade +

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I'm also wondering what effect the upcoming reversal of the stamp duty threshold (from £175k to £125k) will have on the market, I STR'd a couple of months ago and managed to just break through the higher barrier with my 3 bed detached as I had 2 buyers competing over it.

My target house (a 3 double bedroom 3 bed, or a 4 bed) are currently asking in the £180k-£230k range, as the market slows over the autumn I would expect these to struggle with the barrier but then it moves down to £125k for anything that completes after 1/1/10, which effectively means the sale must be agreed by early Oct to stand any chance of beating the deadline.

These sort of changes do usually have quite an effect in skewing the market as people rush to agree/complete before deadlines, then all goes dead afterward, I just can't decide what the effect will be this time.

Here's hoping the market turns for the worse in the winter and your target £160k house struggles with the new £125k barrier.

Strange one the Stamp Duty threshold, I can't quite decide whether it will bring average house prices down or allow a few to actually increase?

I think the 175k threshold has forced a lot of people selling (or hoping to sell!) to accept offers not exceeding this amount. In other words, its acted like an anchor keeping prices for anything around the 185k at bay.

When its gone, might we find seller's holding out for that 'extra' 5 or 10k, or simply finding it easier to market their houses in the first place at a higher price because "It was always worth £ xxxx" (that one particularly grates on me!)?

On the bright side, if its does have that effect at 175k, then the effect at the other end will also be true; houses priced at 125-140k will now face a gravity pull downwards to the 125k threshold as offers come in at these lower amounts and refuse to break the 125k 'barrier'.

I do think the EA's are worried about it though, saw one agent's advert for homes around 175k with the strap line "Save up to £1,750 on this property during September - ask us how!" - twats.

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