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cypher007

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noticed two properties, that were sold recently, now back on the market with presumabably the new owners trying to cash in on higher prices. though the first one has had a fair bit done to it since it was first sold, i still dont think it has had £60k worth done to it.

http://www.rightmove.co.uk/property-for-sale/property-26319094.html £209,995

sold originally for £150k may 2009

http://www.rightmove.co.uk/property-for-sale/property-30673583.html £164,995

sold originally for £153 march 2010

as a friend has just mentioned wont they have to pay capital gains tax on the profit?

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noticed two properties, that were sold recently, now back on the market with presumabably the new owners trying to cash in on higher prices. though the first one has had a fair bit done to it since it was first sold, i still dont think it has had £60k worth done to it.

http://www.rightmove.co.uk/property-for-sale/property-26319094.html £209,995

sold originally for £150k may 2009

http://www.rightmove.co.uk/property-for-sale/property-30673583.html £164,995

sold originally for £153 march 2010

as a friend has just mentioned wont they have to pay capital gains tax on the profit?

In my part of the World they would be at least double if not 3 or 4 times that.

But your point is well made... just trying it on I guess... keep an eye on them and see what they eventually sell for.

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as a friend has just mentioned wont they have to pay capital gains tax on the profit?

Two conditions have to be fulfilled in order for so that the sale of a Principal Private Residence is CGT-free:

1. the property must not have been purchased for the sole reason of making a profit and

2. that to be exempt the property (dwelling house) must be an individual's only or main residence throughout the period of ownership

I thought that HMRC were beginning to chase serial developers as they had got linked up to the land registry properly (at last!)

Edited by koala_bear

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noticed two properties, that were sold recently, now back on the market with presumabably the new owners trying to cash in on higher prices. though the first one has had a fair bit done to it since it was first sold, i still dont think it has had £60k worth done to it.

http://www.rightmove.co.uk/property-for-sale/property-26319094.html £209,995

sold originally for £150k may 2009

http://www.rightmove.co.uk/property-for-sale/property-30673583.html £164,995

sold originally for £153 march 2010

as a friend has just mentioned wont they have to pay capital gains tax on the profit?

The builders are still out there tarting properties up and reselling them. They would have had costs in doing so. They will pay either CGT or income tax if the refurbishment business is their 'game'. They will have buying and selling costs for sols, EA's and stamp duty. The offers they get are likely to be 10-15% less than asking. So, even if the 'added value' can stand it, the £60k won't amount to much profit I suspect.

I saw one house here, sold to a builder and back on after a few months. It backfired because no one will pay the new price and it's been rented and then they tried again, losing money all the time. In normal times, it works quite well, but for now I think it a risky business.

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Two conditions have to be fulfilled in order for so that the sale of a Principal Private Residence is CGT-free:

1. the property must not have been purchased for the sole reason of making a profit and

2. that to be exempt the property (dwelling house) must be an individual's only or main residence throughout the period of ownership

I thought that HMRC were beginning to chase serial developers as they had got linked up to the land registry properly (at last!)

I'm not sure your 2nd point is correct. If you buy a house, move into it for a while as your principle residence, but then rent it for less than 3 years, you come under the rule that the last 3 years are exempt. Then there is the CGT annual allowance to consider even if you are liable to CGT. (£10,100 p.a. at present)

If you NEVER live in it, then you would be subject for CGT.

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I saw one house here, sold to a builder and back on after a few months. It backfired because no one will pay the new price and it's been rented and then they tried again, losing money all the time. In normal times, it works quite well, but for now I think it a risky business.

Spot on, I suspect it won't work for quite a while either...

It was almost idiot proof when the property went up in value by more than the IO (or even repayment!) mortgage payment each month if you did nothing to it.

10-15 years ago (pre -boom) there used to be articles in the property sections of the newspapers every couple of months on what building works really added value to a house. The conclusion then was that most type of works did not repay in a static or slowly inflating housing market.

I recently saw one place being done up (by semi amateur property developer) which already had double glazing, having new double glazing fitted!

This kind of idiocy can't last, these unnecessary building works just fuel any potential for price increases.

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I'm not sure your 2nd point is correct. If you buy a house, move into it for a while as your principle residence, but then rent it for less than 3 years, you come under the rule that the last 3 years are exempt. Then there is the CGT annual allowance to consider even if you are liable to CGT. (£10,100 p.a. at present)

If you NEVER live in it, then you would be subject for CGT.

Indeed point 2 is more complicated that I originally outlined, but that is the broad rule, the last 3 years rule in the property is a sub clause they are allegedly thinking about revising because of rampant abuse, it is there for reluctant landlord purposes.

It would be amusing if HMRC asked for the removal firms dated invoices (and receipts) to show how long they lived there!

A minimum ownership period of 18 or 24 months on any property (inc primary residences) before which CGT would be payable would shut off another source of valuation ramping.

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ok things seem to have run out of steam. i havent noticed many new sold signs going up, and those that are up have been so for some time now. i get the sense people who completed earlier in the year, pre-election, are going to be the last for quite some time.

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I'm not sure your 2nd point is correct. If you buy a house, move into it for a while as your principle residence, but then rent it for less than 3 years, you come under the rule that the last 3 years are exempt. Then there is the CGT annual allowance to consider even if you are liable to CGT. (£10,100 p.a. at present)

If you NEVER live in it, then you would be subject for CGT.

And double that if a couple buy it in joint names.

Or, if initially planning to rent, they can buy it in one name (i.e. for tax purposes the one with lower income) but then transfer it

to joint names if they decide to sell instead.

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Just had my mouseprice report for this area.

Interesting, the first two, and the only ones I might add, I looked at, showed sales in June and April 2010 of £123K and £129K

similar, indeed identical properties are ASKING £150 and £160K...doors away.

So no, House prices ARE crashing here, but asking prices are not.

20% below asking is being acheived in these low end 2 bed terraces.

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Just had my mouseprice report for this area.

Interesting, the first two, and the only ones I might add, I looked at, showed sales in June and April 2010 of £123K and £129K

similar, indeed identical properties are ASKING £150 and £160K...doors away.

So no, House prices ARE crashing here, but asking prices are not.

20% below asking is being acheived in these low end 2 bed terraces.

another detached bungalow just up the road has just gone STC? where the money comming from? i thought the banks wer'nt lending?

Boo Loo, were you mouse pricing my area?

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Just had my mouseprice report for this area.

Interesting, the first two, and the only ones I might add, I looked at, showed sales in June and April 2010 of £123K and £129K

similar, indeed identical properties are ASKING £150 and £160K...doors away.

So no, House prices ARE crashing here, but asking prices are not.

20% below asking is being acheived in these low end 2 bed terraces.

Nice bit of original research there Mr Loo.

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You've been brainwashed

Fun little map though, even though all the predictions are wild scare-mongering by people trying to grab more money from the AGW tax pot.

I'd like a bigger range though, even at 50ft sea level rise it's only really affecting the Somerset Levels, Severn Valley and the Fens. And also a reverse, how far does it need to drop before Lyonesse reappears for example.

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another detached bungalow just up the road has just gone STC? where the money comming from? i thought the banks wer'nt lending?

Boo Loo, were you mouse pricing my area?

Colchester.

STC means nothing till, as you say, the money arrives.

ALthough there a re many hundreds for sale in Colchester, driving round, you would draw the conclusion that just about everything is SOLD, STC...many sold signs, few for sale....yet RM says the opposite.

Im sure FOR Sale signs are in short supply and SOLD ones hang around for months.

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New on forum .. We are looking for properties in / around Exeter (renting at pres)

Noticed a real mixed bag of changes in just last few weeks , a lot of properties being advertised - as 'make us an offer' / open day. Also 10k slices coming off (300k ish properties) in the last month.. More property coming onto market (at least 2 or 3 per day in my saved email alerts - when it was only 1 per week up to July)

New build .. ! http://www.rightmove.co.uk/property-for-sale/property-26667787.html?premiumA=true .

We are looking around 300k tops by the way.

Question : Does the market when falling 'compress' as % from the top first (ie <500k properties ) or at the base (ie FTB's ) ?

or is it fairly linear.. 2 bed end is about 135k in Exeter and a few of these are remaining on market longer now. Absolutely nothing is going up.

Gordon

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snip

Question : Does the market when falling 'compress' as % from the top first (ie <500k properties ) or at the base (ie FTB's ) ?

or is it fairly linear.. 2 bed end is about 135k in Exeter and a few of these are remaining on market longer now. Absolutely nothing is going up.

Gordon

welcome...I assume you will be answering your own question for us, unless you have a cash sum or need a very large mortgage.

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Question : Does the market when falling 'compress' as % from the top first (ie <500k properties ) or at the base (ie FTB's ) ?

or is it fairly linear.. 2 bed end is about 135k in Exeter and a few of these are remaining on market longer now. Absolutely nothing is going up.

Once upon a time it would compress fairly evenly.

Now, FTB end is compressed. The rest is doing okay.

I would point out that this comment only applies to the area where I live.

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Flippers i guess. Seems a risky business in this market.

I saw one sold mid 2008 for £75,000, resold a few months later for £126,000 after being listed at £140k

Yet another just down the road sold for £142k, then resold for £145k. Doubtful any profit was made given all the costs.

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  • 201 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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