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fru-gal

Why Is Sol Campbell So Worried About The Mansion Tax?

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He is selling his flat which he apparently bought in 2011 for £4.25 million and it is on the market for £6.75 million so if sold, he will have made a tax free profit of approx £2.5 million. Yet he is apparently selling because he is afraid of paying a few thousand more *if* the mansion tax comes into force. Perhaps this is the kind of negative sentiment we should be hoping for. The actual economic effects don't make much difference but the effects on sentiment are strong.

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Yeah I dont understand this at all. If I had a 6 million pound house I would not be bothered about a few grand a year. If its that's much trouble I would sell the house and live like a king for the rest of my life. Its difficult to garner sympathy for someone with a multi million pound asset.

Unless of course they know its a bubble and are terrified its about to pop

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He is selling his flat which he apparently bought in 2011 for £4.25 million and it is on the market for £6.75 million so if sold, he will have made a tax free profit of approx £2.5 million. Yet he is apparently selling because he is afraid of paying a few thousand more *if* the mansion tax comes into force. Perhaps this is the kind of negative sentiment we should be hoping for. The actual economic effects don't make much difference but the effects on sentiment are strong.

A mansion tax is an ongoing revenue sink. It means the present value of the asset is discounted for all future payments and if he sold the house later, after a mansion tax was introduced, buyers may be willing to pay less for it (old value - sum of future mansion tax payments).

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A mansion tax is an ongoing revenue sink. It means the present value of the asset is discounted for all future payments and if he sold the house later, after a mansion tax was introduced, buyers may be willing to pay less for it (old value - sum of future mansion tax payments).

But he is a multi-millionaire. Why is he so worried about counting pennies? Interesting insight into the minds of the moneygrabbing rich.

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aye ten years of say 5 k a year is still only 50k on a house worth 6 million. Christ I could afford that and I don't even have a mansion. I even imagine a scenario where the status driven will show off they have to pay it like the way some try to get into better postcodes and pay more council tax.

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But he is a multi-millionaire. Why is he so worried about counting pennies? Interesting insight into the minds of the moneygrabbing rich.

It isn't counting pennies, read the post again. If he thinks Labour will win, then it is rational to sell the mansion now, only to buy it back (just as an eg) for £1m less in the future. I would not call that counting pennies. Why do you expect rich people to behave as if money doesn't matter? I'd expect quite the opposite!

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Sol Campbell is aiming to be a Tory MP?

God help us.

Btw, our MP was Andrew Lansley until he retired, soon to be replaced by some kind of airhead. No need for an election in this area. Got an election leaflet yesterday, all it said was `look at me- aren't I pretty".

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A mansion tax is an ongoing revenue sink. It means the present value of the asset is discounted for all future payments and if he sold the house later, after a mansion tax was introduced, buyers may be willing to pay less for it (old value - sum of future mansion tax payments).

Its a couple of grand a year...check out some property tax bills in the US. Some run into six figures annually. Doesnt stop US residents buying multi-million dollar places.

I don't think a 'mansion tax' is the best way to go...a land value tax would be better and encourage more efficient use of land and fairer apportioning of tax inside green belts, but its better than nothing.

If landlords have to pay tax on the rent they receive from houses, why shouldnt owner occupiers on the imputed rent they benefit from.

Set it at 40% for a high value place like this

http://www.rightmove.co.uk/property-to-rent/property-49197790.html

8 grand or so a week. Seems fair.

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It isn't counting pennies, read the post again. If he thinks Labour will win, then it is rational to sell the mansion now, only to buy it back (just as an eg) for £1m less in the future. I would not call that counting pennies. Why do you expect rich people to behave as if money doesn't matter? I'd expect quite the opposite!

Personally, if i had a property worth that much and had "made" £2.5 million tax free, I'd be wanting to enjoy my property, not worry about paying £5k per year extra or how much I would lose if the mansion tax comes in. Not everyone thinks in terms of how much money they would make or lose. Most people just want a home to live in and don't care about the value.

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Personally, if i had a property worth that much and had "made" £2.5 million tax free, I'd be wanting to enjoy my property, not worry about paying £5k per year extra or how much I would lose if the mansion tax comes in. Not everyone thinks in terms of how much money they would make or lose. Most people just want a home to live in and don't care about the value.

So would I. But I am not going to tell Sol that because I feel that way that he should too.

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He is married to the grand daughter of Lawrie Barratt (of Barratt developments). It is no wonder that he thinks that there should be as little tax on property as possible and campaigning against additional taxes.

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He is married to the grand daughter of Lawrie Barratt (of Barratt developments). It is no wonder that he thinks that there should be as little tax on property as possible and campaigning against additional taxes.

I didn't know that. So a big VI, is our Sol....I think the tv and news shows should highlight this when he's interviewed.

I though Sol had been taking property advice from a fellow pro , Ronnie Fowler, who is the footballer's guru for all things property these days....

http://www.property-academy.com/

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But he is a multi-millionaire. Why is he so worried about counting pennies? Interesting insight into the minds of the moneygrabbing rich.

People with loads of money are often as tight as they come. Maybe it's one reason why some of them have plenty in the first place.

Mr B had an aunt with plenty - I used to call her Queen Midas. It really hurt her to part with any of it. Her cleaning lady used to do her shopping for her, and she would get really irate if the poor woman hadn't made a special trip to the Co-op for the butter, where it was 2p cheaper.

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But he is a multi-millionaire. Why is he so worried about counting pennies? Interesting insight into the minds of the moneygrabbing rich.

The higher you are the harder the fall......easy come easy go......doubt once they have lived a certain lifestyle they could live a normal but still very rewarding lifestyle......so out of touch........the biggest fear for many rich and famous people is loss of skills, loss of attention and fame and growing old and ugly.......something others embrace. ;)

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He's worried about price falls, not the payments. Take example of his flat, and let's say it's worth £6m. Assuming 4.5% gross yield means £270k rent p/a. Add £2k council tax is £272k all-in implied annual cost.

Now introduce additional user charge (mansion tax). Don't know what labour's proposing but Libdems said 1% on value over £2m. 1% of £4m for tax of £40k. Same all-in £272k - £42k means implied rental component of £230k (the tax rise means rent falls equivalent amount because economic liability falls on owner - tenant hypothetical or otherwise still has same total budget).

Price (PV) a series of annual £230k net income payments rather than £270k using same yield return gives a price of £5.1m (15% drop). Not exactly sleepless nights for mostly unearned gain. Hopefully it would also have a knock-on effect to property speculation in general, and just perhaps one day houses will be for living in and everybody will be left with more disposable income for other things. It's probably one reason central london prices are falling - with a simple tax avoidance measure available of just dropping prices...

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Campbell bought it in 2011 for £4.25million after he reportedly staged a sit-in at an estate agents’ in the hope of securing it for his family – his wife Fiona Barratt-Campbell and their children Isabella and Ethan.

http://www.dailymail.co.uk/news/article-3047905/Has-fear-mansion-tax-driven-Sol-sell-Former-footballer-puts-6-75m-flat-sale-months-selling-20m-townhouse.html

I'd forgotten he sold his £20M house to his own company (or something)... now this apartment.... guess it's too much to hope for.. InSOLvent Campbell.

My brother has a few millionaires, including footballers, as clients - and they often negotiate delays in paying fees. So maybe there is hope of a surge in sellers, willing to accept lower offers to transact at the margin and bring all house prices down, when the hpc gets notably going. I miss that tsunami picture.. searched all over for it without success... showing the location of the HPCers and the Tin Foil Hats in the far distance.

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He's worried about price falls, not the payments. Take example of his flat, and let's say it's worth £6m. Assuming 4.5% gross yield means £270k rent p/a. Add £2k council tax is £272k all-in implied annual cost.

Now introduce additional user charge (mansion tax). Don't know what labour's proposing but Libdems said 1% on value over £2m. 1% of £4m for tax of £40k. Same all-in £272k - £42k means implied rental component of £230k (the tax rise means rent falls equivalent amount because economic liability falls on owner - tenant hypothetical or otherwise still has same total budget).

Price (PV) a series of annual £230k net income payments rather than £270k using same yield return gives a price of £5.1m (15% drop). Not exactly sleepless nights for mostly unearned gain. Hopefully it would also have a knock-on effect to property speculation in general, and just perhaps one day houses will be for living in and everybody will be left with more disposable income for other things. It's probably one reason central london prices are falling - with a simple tax avoidance measure available of just dropping prices...

This doesn't make sense.

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How many will see his point of view. Maybe the rest of his landlord friends pretending to play footie in England will and probably a few other VIs (including his in-law builder family) but not many more than that.

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Actually surprising for a footballer that came by money so easily, but guess what most millionaires are as tight as s**t, that's how they became millionaires in the first place.

Normally, maybe. But Sol made his money kicking a bag of wind around?

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This doesn't make sense.

i.e. if the tax is such a big worry, the concern could be eliminated by not valuing and selling anything for more than £2m. It was a dig, sort of, because making 100's of K by doing fck all while everyone else funds the windfalls annoys me a bit more than just having a dig.

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Campbell bought it in 2011 for £4.25million after he reportedly staged a sit-in at an estate agents’ in the hope of securing it for his family – his wife Fiona Barratt-Campbell and their children Isabella and Ethan.

http://www.dailymail.co.uk/news/article-3047905/Has-fear-mansion-tax-driven-Sol-sell-Former-footballer-puts-6-75m-flat-sale-months-selling-20m-townhouse.html

Looks like it's already had one asking price cut... Poof! Gone in a flash of aggregated neurons. Where the buyers at?

Guide Price £7,250,000 £6,750,000

John D.Wood http://www.rightmove.co.uk/property-for-sale/property-33365265.html

KF http://www.rightmove.co.uk/property-for-sale/property-50013701.html

Other: http://www.rightmove.co.uk/property-for-sale/property-48393898.html

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His in-laws having builder connections (of Barratt Homes) it's possible that he's been given a tip off about the future direction of house prices.

SELL SELL SELL!!? The sooner the better get out of the property market immediately? - sort of thing maybe.

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He is selling his flat which he apparently bought in 2011 for £4.25 million and it is on the market for £6.75 million so if sold, he will have made a tax free profit of approx £2.5 million. Yet he is apparently selling because he is afraid of paying a few thousand more *if* the mansion tax comes into force. Perhaps this is the kind of negative sentiment we should be hoping for. The actual economic effects don't make much difference but the effects on sentiment are strong.

He's probably mewed the cr#p out of it so owes 95% of the asking price

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