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Suddenly, Stars Can't Shift Their Mansions

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The great celebrity house price slump

For those of us stuck in the mundane world of mortgages and rent, it’s hard to feel sorry for them, but spare a thought for celebrities trying — and failing — to sell their homes. Palatial pads that would once have been snapped up within days are lingering on the market for months at a time, forcing sellers to slash the asking price. So why are stars such as Ricky Gervais and Jamie Oliver struggling to sell? They can blame Chancellor George Osborne, who’s increased stamp duty for high-end houses, which could add more than a million to the price in some cases. For houses over £1.5 million the stamp duty rate is 12 per cent. The changes mean that if you buy a house for £11 million, you’ll pay £1.2 million in stamp duty, or £1.5 million if it’s your second home. According to independent buying agent Henry Pryor: ‘The top end of the market has been severely undermined by the Government’s actions over the past 18 months. It means that properties over £1 million suffer from “transaction friction” — they are harder to sell than they were.

‘Buyers are trying to pass the increased stamp duty bill on to the seller by getting them to drop the price.’

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The great celebrity house price slump

For those of us stuck in the mundane world of mortgages and rent, it’s hard to feel sorry for them, but spare a thought for celebrities trying — and failing — to sell their homes. Palatial pads that would once have been snapped up within days are lingering on the market for months at a time, forcing sellers to slash the asking price. So why are stars such as Ricky Gervais and Jamie Oliver struggling to sell? They can blame Chancellor George Osborne, who’s increased stamp duty for high-end houses, which could add more than a million to the price in some cases. For houses over £1.5 million the stamp duty rate is 12 per cent. The changes mean that if you buy a house for £11 million, you’ll pay £1.2 million in stamp duty, or £1.5 million if it’s your second home. According to independent buying agent Henry Pryor: ‘The top end of the market has been severely undermined by the Government’s actions over the past 18 months. It means that properties over £1 million suffer from “transaction friction” — they are harder to sell than they were.

‘Buyers are trying to pass the increased stamp duty bill on to the seller by getting them to drop the price.’

I think in the vast majority of cases if they put the property up for sale at the price they bought it for they'd sell in an instant. There is always a price at which something will sell - they're just not willing (or motivated) to try to find it.

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do love the massive massive amount of tax the gov is getting from the bigger players in the property market.

Absolute excess property speculation, deserves to finally pay a fraction of what they owe.

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do love the massive massive amount of tax the gov is getting from the bigger players in the property market.

Absolute excess property speculation, deserves to finally pay a fraction of what they owe.

me 'oo!

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15d9ehe.jpg

Who is going to rent it? Who will pay the rents asked?......just looked South East London over 100 pages of just flats of two and below beds for rent, hundreds of them.....most of them empty, stark places with laminate floors, magnolia walls and chipboard kitchen cabinets....the rent prices will have to be reduced, looks like there is a huge supply at the moment out there almost certainly for reasons above.

Edited by winkie

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Who is going to rent it? Who will pay the rents asked?......just looked South East London over 100 pages of just flats of two and below beds for rent, hundreds of them.....most of them empty, stark places with laminate floors, magnolia walls and chipboard kitchen cabinets....the rent prices will have to be reduced, looks like there is a huge supply at the moment out there almost certainly for reasons above.

That`s a lot to be sitting there, even for London? Saw someone on MSE the other day trotting out the "not building any more land" mantra, hard to tell for sure but I think they were serious.

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Where did this meme originate? Is it HPC own-brand or something more widespread?

I think this is belongs to HPC. Never come across it elsewhere.

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I think this is belongs to HPC. Never come across it elsewhere.

Pretty sure its the work of thewig who has worked the joke religiously for some weeks and gradually trained the rest of us into making it compulsively.

He's given away the intellectually property for free, but he should have rented it out, innit.

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Pretty sure its the work of thewig who has worked the joke religiously for some weeks and gradually trained the rest of us into making it compulsively.

He's given away the intellectually property for free, but he should have rented it out, innit.

Repetition is the mother of all learning, innit.

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I think in the vast majority of cases if they put the property up for sale at the price they bought it for they'd sell in an instant. There is always a price at which something will sell - they're just not willing (or motivated) to try to find it.

The formula that works out 'THE PRICE WE BOUGHT IT FOR' is this:

Price paid + 10% per anum, compounded, for the time that the property has been held. That takes you to the point of NO profit, anything less is seen as a loss.. You ask everyone who is selling a house. :)

In fact relatives of ours who bought a house in London in circa 1991 for 120K put it up for sale sometime last year for just under 1Million and sold for over 970k. They really do believe they sold at a 'discount' and even though fully loaded and retired (Gen x aged 51 now) they are still a bit bitter about this 'loss'. That was the car upgrade they 'gave away'.

Edited by steve99

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Who is going to rent it? Who will pay the rents asked?......just looked South East London over 100 pages of just flats of two and below beds for rent, hundreds of them.....most of them empty, stark places with laminate floors, magnolia walls and chipboard kitchen cabinets....the rent prices will have to be reduced, looks like there is a huge supply at the moment out there almost certainly for reasons above.

How many are just offshore 'bitcoins' for foreign money launderers where the rental return is just a bit of icing on the cake?

Where I live now, Melbourne, most of the megga 1000's of modern high rise flats and many new suburban properties are just that, held by Chinese nationals wanting a safe hidey hold for their ill gotten lucre and are never rented out or the advertised rent is silly.

Edited by steve99

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The formula that works out 'THE PRICE WE BOUGHT IT FOR' is this:

Price paid + 10% per anum, compounded, for the time that the property has been held. That takes you to the point of NO profit, anything less is seen as a loss.. You ask everyone who is selling a house. :)

In fact relatives of ours who bought a house in London in circa 1991 for 120K put it up for sale sometime last year for just under 1Million and sold for over 970k. They really do believe they sold at a 'discount' and even though fully loaded and retired (Gen x aged 51 now) they are still a bit bitter about this 'loss'. That was the car upgrade they 'gave away'.

Presumably another mid 20s couple on middling incomes bought their house off them and expect to sell it for 5 million in 25 years time?

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The formula that works out 'THE PRICE WE BOUGHT IT FOR' is this:

Price paid + 10% per anum, compounded, for the time that the property has been held. That takes you to the point of NO profit, anything less is seen as a loss.. You ask everyone who is selling a house. :)

In fact relatives of ours who bought a house in London in circa 1991 for 120K put it up for sale sometime last year for just under 1Million and sold for over 970k. They really do believe they sold at a 'discount' and even though fully loaded and retired (Gen x aged 51 now) they are still a bit bitter about this 'loss'. That was the car upgrade they 'gave away'.

Hang on.

They made 800k tax free from the sale of their house and they can't afford a car?

Wtf? There's more to this then meets the eye.

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