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Sipps Shock As Tax Break Is Shelved


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HOLA441

SIPPs was the only reason for the buyer seller stand-off. Any time someone tried to put in a low offer, the seller/EA would bleat SIPPs, especially at the lower end of the market. I'm sure that there are a few people who have taken out bridging loans etc in the belief that SIPPs would save the day (even if it wouldn't have). This really will cause pandemoneon in the 2 bed flat market at a time of year when no one is looking for a home, in the middle of one of the worst consumer slowdowns in the past few decades and with the prospect of big tax rises in 2007/2008 when our economy does not grow at >2% and 10% increases in council tax next year. There is no doubt anout it, EAs will smell blood...their own. They've been saying SIPPS, they now have a good reason to advise the buyer to lower price and blame GB, many know that if they don't they will go out of business by the spring. This whole episode has made the crash much worse than it would have been had it been allowed to continue this autumn as it was on track to do, and only SIPPs has held things back.

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HOLA442
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HOLA443

large,

Agree, look at the facts - the 1/4% rate drop back in the summer - supposed to attract more FTB's, well it did for a couple of months and now, again, the FTB numbers are under 10% again. Who has been in the market at the bottom end - a few desperate FTB's who have once again been panicked into buying and the investment buyers looking to get a short term advantage by squeaking in deals before A-day.

We know damn well that nearly every EA in the country will have been using SIPPS as the spruce juice for spreading the iea of more HPI and a Spring bounce - certainly nothing in the economy, rising costs that wold lead you believe that boom days are foreseeable for a considerable period of time.

It took around 5 years to get to this point, markets liked to be symmetrical, this could take another 5 years to roll out to its inevitable end.

bob monkhouse,

Look at the listing stats on Rightmove and Findaproperty, that will tell you what is happening to supply far ealier.

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HOLA444

I think the discounting will begin in January, so with completion dates etc the March figures (published a few months later) should show a drop that hits the headlines. Of course the Nationwide etc will report drops before then. They must have known what was coming, they are already priming the market for drops with their recent press release, so that they can say 'we told you so' when it comes and point to the fact that they also said prices will increase later in the year once the SIPPs effect has worked through the system. that will be the VI line of attack, but only the most braindead of muppets will buy before they actually see prices stop falling, and since they are the very ones who are needed to get into the market to achieve that it isn't going to happen. Expect to see the BBC and Times etc in full on spin and news suppression mode. I don't watch News24 any more, I watch ITV (in spite of the ads), much more reliable as they aren't a government mouthpiece.

Edited by large
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HOLA445
Expect to see the BBC and Times etc in full on spin and news suppression mode.

I have already tested this.

My father didn't know his SIPPs plan was scuppered until this morning when he read it in the Daily Mail. I knew (from here) since yesterday. I was not about to be the bringer of this news.

EDIT: Webmaster - Why portugese adverts from Google?

Edited by megaflop
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HOLA446

I think the discounting will begin in January, so with completion dates etc the March figures (published a few months later) should show a drop that hits the headlines. Of course the Nationwide etc will report drops before then. They must have known what was coming, they are already priming the market for drops with their recent press release, so that they can say 'we told you so' when it comes and point to the fact that they also said prices will increase later in the year once the SIPPs effect has worked through the system. that will be the VI line of attack, but only the most braindead of muppets will buy before they actually see prices stop falling, and since they are the very ones who are needed to get into the market to achieve that it isn't going to happen. Expect to see the BBC and Times etc in full on spin and news suppression mode. I don't watch News24 any more, I watch ITV (in spite of the ads), much more reliable as they aren't a government mouthpiece.

I always loved the BBC, news 24 etc etc. Over the last year, my opinions have changed. For the worse.

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HOLA447

I think the discounting will begin in January, so with completion dates etc the March figures (published a few months later) should show a drop that hits the headlines.

Cool, so REITS should be a great SIPP investment in April?

Catch the drop and wait for the planning permission tax to kick in. No mending leaky taps and hiring heavies like with ordinary Buy-To-Lets. All the tax advantages and none of the work?

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HOLA448

In that case you can sue them for mis-selling ;)

I don't accept that. You would expect these people to have listened to the CXhancellor's Pre Budget Speech, surely, in case there was anything that affected their sales pitch. How many people might have signed up for the course, based on the SIPP angle?

You can't sue someone for mis-selling who isn't regulated and Inside Track isn't an FSA-regulated firm. Doesn't (didn't!!) have to be.

Their website is still taking bookings for the seminars!!

I doubt it but there is another route. The property was purchased via Inside Track who provided advice on putting it into a Sipp. That is financial advice for which they should be regulated.

Are they regulated?

Are they regulated for the pension advice they gave?

Do they have enough insurance cover to pay the loss. I'd ask a solictor to have a look if I was your Dad. He may well be able to find a source of covering the lost deposit.

No they aren't but who advised on the mortgage? They will be.

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HOLA449

Cool, so REITS should be a great SIPP investment in April?

Catch the drop and wait for the planning permission tax to kick in. No mending leaky taps and hiring heavies like with ordinary Buy-To-Lets. All the tax advantages and none of the work?

REITS are theoretically more attractive to me for that very reason (I'm lazy), but I don't think April is the right time. They're something to think about when the scales tip.

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HOLA4410

A few people have already been along these lines but here I go:

The housing market has been running frantically to stand still.

If we look at the surface factors we have had...

1. Historically low IRs

2. Lower unemployement than the early 90s

3. SIPPS being spun furiously

All the spin in the world plus (1) and (2) have just about kept house prices struggling to stay positive the past couple of months.

There really is nothing else left that can be done to prevent falls - what are they going to do, lower IRs? Create more jobs? U-Turn on the U-turn on SIPPS?

Only one way to go...

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HOLA4411

Cool, so REITS should be a great SIPP investment in April?

Catch the drop and wait for the planning permission tax to kick in. No mending leaky taps and hiring heavies like with ordinary Buy-To-Lets. All the tax advantages and none of the work?

http://www.buildingtalk.com/news/tch/tch117.html

"Property developers, however, warned the Government not to set the tax rate too high, or landowners would sit on their sites and leave them undeveloped."

"The Government has begun a consultation process on the land tax, called a "planning gain supplement" and it will not be introduced until 2008. That may kick-start a rush of developments in the next three years. Mr Caden said, "As the levy is two years away, there may be resulting early pressure to get developments off the ground before the new regime. Planning authorities should prepare for a surge in applications."

http://news.independent.co.uk/uk/politics/article331446.ece

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HOLA4412

http://www.buildingtalk.com/news/tch/tch117.html

"Property developers, however, warned the Government not to set the tax rate too high, or landowners would sit on their sites and leave them undeveloped."

"The Government has begun a consultation process on the land tax, called a "planning gain supplement" and it will not be introduced until 2008. That may kick-start a rush of developments in the next three years. Mr Caden said, "As the levy is two years away, there may be resulting early pressure to get developments off the ground before the new regime. Planning authorities should prepare for a surge in applications."

http://news.independent.co.uk/uk/politics/article331446.ece

Thanks. I guess I'll hold off on the REITS for a while longer.

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HOLA4413

....everybody sing along(frank sinatra stylee!!!!)

and now.......the end is near......and so I've packed......my velour curtains.

regrets...i've got a lot.......I'm so in debt.....of that I'm certain.

and so....i make a home....a cardboard box....beside the highway.

and oh,what's more than this.....i did it........the inside-track way!!!!

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