pootle Posted March 25, 2010 Share Posted March 25, 2010 Do you think every builder out there is going to work out exactly what the stamp duty would have been on their house and increase their prices by that amount. Don't think so. It thes had of increased the rate it would have put more people off. By removing it, it makes the purchasing of a house that bit more affordable. Builders? Are they the only one's selling houses? This isn't a first-time-bought-house incentive What happens to affordability when the prices increase by another 2%? First time buyers are back in the same position. What happens when prices increase by 10%? First time buyers are in a worse position by the tune of 8%. Should the government step in and give FTB's an 8% grant to buy a house because it makes the house affordable again? What effect would giving them this 8% have on the effect of house prices? Would they fall, stay the same or rise? The answer lies in normal economics - increase the supply of money and the price rises. We can see this to be true for the housing market because as more credit was made available for house purchases the prices went up and when the credit was restricted prices went down. This is an election gimmick. Personally I think the government should butt out of the housing market entirely and let things take their course. Quote Link to comment Share on other sites More sharing options...
HPC hopeful Posted March 25, 2010 Share Posted March 25, 2010 I've no idea what all the fuss is about - the bottom line is that most FTB's can't afford even the old £125k for a house never mind up to £250k! It's unlikely to make a difference to most of them who will, at most, save £2,500 stamp duty. Somehow I don't think saving that amount is suddenly going to enable them to buy a house at today's prices. Prices need to fall further for that, simple. It's all political pre-election spin. Quote Link to comment Share on other sites More sharing options...
Ride_on Posted March 26, 2010 Share Posted March 26, 2010 The problem is that, with a very few exceptions who are already in the process of buying, it doesn't help first time buyers! I explained it 10 or so posts back. I agree, there is a fixed amount of money that FTBs or any buyer can afford/borrow they will simply spend this and the price of the property will go up on average by the amount of the subsidy. You might think that it will be beneficial to FTBs as they will be able to beat offer from non-FTBs more easily, but since property's are mostly sorted by price for FTBs, the amount of extra properties going to FTBs as opposed to others is unlikely to change much. The BTL brigade that was taking these properties before has calmed down and have been trying to stay afloat for the last 2 years. Co-ownership etc are exactly the same, they all just increase prices for the seller and only provide benefits for a very short space of time at the start. Those of us not selling are subsidising those that are. Quote Link to comment Share on other sites More sharing options...
Malthus Posted March 26, 2010 Share Posted March 26, 2010 This is simply the removal of a taxation or Government intervention in the market for first time buyers. We are happy that unlike, the last Stamp Duty holiday this one is reserved for FTB'ers. Can you explain the scam? By allowing / encouraging house prices to rise massively above inflation/ wage inflation the government is responsible for pricing many FTB's out of the market. Historically almost no FTB's would have been in the stamp duty bracket, therefore imo the government is again scamming the population. Very similar to tax credits/ child benefit etc , the government boasts about helping families by giving them some of their own money back less the admin cost of collecting it and then giving it back. Quote Link to comment Share on other sites More sharing options...
SPADER Posted March 26, 2010 Share Posted March 26, 2010 The problem is that, with a very few exceptions who are already in the process of buying, it doesn't help first time buyers! I explained it 10 or so posts back. Do you really think that the glut of houses for sale at the minute will add another 1% on to the asking price just because a small band of first time buyers won't have to pay stamp duty and will have money to spare? What percentage of homes sold in NI are to first time buyers that fit the government definition? I'd guess that it wouldn't be any more than 10%. Surely no seller in their right mind would set a price to try and get a bit more money from a FTBer at the expense of the other 90% of buyers. Quote Link to comment Share on other sites More sharing options...
sophia Posted March 26, 2010 Share Posted March 26, 2010 As someone who is completing on a house purchase soon I'm disgusted at this latest stamp duty exemption. What about me, a 3rd time buyer, I still get a 2k bill for nothing! This is the first time I've had to pay stamp duty as we have been exempt up till now and it's the biggest con. Ban stamp duty! On a side note, was getting a prescription earlier (for my deafness) and pharmacy said prescriptions to be free from next month. Was actually thinking of waiting until April to get it, am I just a stingy lunatic - yes;) Quote Link to comment Share on other sites More sharing options...
pootle Posted March 26, 2010 Share Posted March 26, 2010 (edited) Is this a sign of what sellers think of the stamp duty tax break? http://www.propertynews.com/brochure.php?p=TRBTRB45671 Initially listed on 17/01/2009 for £355, 000 Price dropped on 20/03/2010 to £250, 000 STAMP DUTY CUT ... BACKPEDAL! BACKPEDAL! Price up on 25/032010 to £285, 000 Edited March 26, 2010 by pootle Quote Link to comment Share on other sites More sharing options...
SPADER Posted March 26, 2010 Share Posted March 26, 2010 Is this a sign of what sellers think of the stamp duty tax break? http://www.propertynews.com/brochure.php?p=TRBTRB45671 Initially listed on 17/01/2009 for £355, 000 Price dropped on 20/03/2010 to £250, 000 STAMP DUTY CUT ... BACKPEDAL! BACKPEDAL! Price up on 25/032010 to £285, 000 I dont think the reason the price has increased by 14% is because 10% of potential buyers will save 3% stamp duty. I could be wrong though. Quote Link to comment Share on other sites More sharing options...
pootle Posted March 26, 2010 Share Posted March 26, 2010 (edited) I dont think the reason the price has increased by 14% is because 10% of potential buyers will save 3% stamp duty. I could be wrong though. You'd wonder though ... after all something changed their minds. Perhaps all the talk from politicians and mortgage sellers and estate agents shouting how the stamp duty cut was going to reinvigorate the housing market? Look to be honest with you, I don't think that was the reason - but as doccyboy pointed out, we've witnessed some of the most deluded behaviour ever seen in this part of the world in regards to house prices, so it really wouldn't surprise me (not even a tiny bit) if they did bump the price back up as a result. My point though is that this "initiative" is an election gimmick. In as far as it helps any buyer it is dwarfed by the falls that we can see happening in the market: ADDRESS LATEST % CHANGE PRICE CHANGE CURRENT PREVIOUS TOTAL % CHANGE 47 The Quay, Killyleagh, BT30 -31.0 -65,000 145,000 210,000 -40.8 12b Huntingdale , Ballyclare, Antrim, BT39 9XB -28.6 -84,000 209,950 293,950 -28.6 54 Springhill Manor, Magheralin, Co Armagh, BT67 0UB -18.4 -45,000 200,000 245,000 -40.3 If these price drops don't make houses affordable for FTBs what good is a stamp duty holiday? Edited March 26, 2010 by pootle Quote Link to comment Share on other sites More sharing options...
pootle Posted March 26, 2010 Share Posted March 26, 2010 (edited) Dubbel poast Edited March 26, 2010 by pootle Quote Link to comment Share on other sites More sharing options...
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