Jump to content
House Price Crash Forum

Trouble in Property Paradise


Recommended Posts

8 hours ago, Venger said:

Yes, but owning one property/home (outright/low-debt) would be a luxury, against these house prices.

Yet in a market with so many equity rich owners/outright owners, BTLers.... some see HPCers as 'think of the buyers who bought in 2009' or 'The BTLers investments'.... and 'misfortune wishing renter-scum hiding behind a computer.'

Sunday Times 19.03.17

WyVAjOBj.jpg

If no one can afford to buy -

1. The normal economic policy is to incentivise buyers....

2. When the fails, normal process is the reduce the stock... 

3. When that fails the next step is a fire sale... 

4. the last step is bankruptcy...

The UK does not have a property shortage, demand was created using cheap credit to avoid a financial collapse.

Now we're on the verge of a financial shift, locals being priced out of the market, the wealthy foreigner does not see value for money... 

If theirs an over supply of flats, maybe they should attempt, buy one get one free ^_^

 

Link to post
Share on other sites
48 minutes ago, maverick73 said:

 

Now we're on the verge of a financial shift, locals being priced out of the market, the wealthy foreigner does not see value for money... 

 

Maybe that was TPTB's thinking behind brexit - tank the pound and lots of foreigners suddenly see 'value' in London property

*takes tinfoil hat off

Link to post
Share on other sites
31 minutes ago, knock out johnny said:

Maybe that was TPTB's thinking behind brexit - tank the pound and lots of foreigners suddenly see 'value' in London property

*takes tinfoil hat off

Hopfully the Pound continues its upward journey to combat inflation. Strange how its rising against a static base rate and an oversupply of credit...

Link to post
Share on other sites
18 hours ago, electrogear said:

Totally ridiculous idea. Yes it would kill the flipper market but it would also put normal working families in dire situations, for example people made redundant and having to move house for a new job or having to STR due to being out of work. 

In Germany you have to hold on to a place for TEN years before it's exempt from capital gains tax but then they're serious about not wanting a speculative housing market.

I like the idea of 100% after 1 year, perhaps scaling down until the 10 years was up, although if it's complex like that the administration costs go up so much probably better just charging 40% ofr whatever our cgt rate is now on the whole lot.

It would have such a dampening effect on price rises that it wouldn't leave people in the lurch - they wouldn't be looking at massive hikes in price every time they needed to move. Everything would be much less crazed, hysterical and extreme, if people needed to move they'd just move, no biggie. We don't have to look very far to see housing markets working more or less like that.

Edited by North London Rent Girl
Link to post
Share on other sites
19 hours ago, electrogear said:

Totally ridiculous idea. Yes it would kill the flipper market but it would also put normal working families in dire situations, for example people made redundant and having to move house for a new job or having to STR due to being out of work. 

Huh. Why should a profit from hpi be a god given right. It isn't. You think it is because you're conditioned to believe it by the media.

If you move within 1 year you need to expect to make no profit. It wouldnt affect movers they just would get their money back. 

Since their would be little or no hpi anyway then you'd just buy your next place for the same money...

Link to post
Share on other sites
2 hours ago, GreenDevil said:

Huh. Why should a profit from hpi be a god given right. It isn't. You think it is because you're conditioned to believe it by the media.

If you move within 1 year you need to expect to make no profit. It wouldnt affect movers they just would get their money back. 

Since their would be little or no hpi anyway then you'd just buy your next place for the same money...

Ok cool it with the character assassination, I got the wrong end of the stick. I thought you meant a tax on the whole sale price, not the profit ?

Link to post
Share on other sites
56 minutes ago, electrogear said:

Ok cool it with the character assassination, I got the wrong end of the stick. I thought you meant a tax on the whole sale price, not the profit ?

It would work just the same as CGT, you pay a % on the profit, so you buy for 100,000, sell it for 150,000. You make 50k. So you have to pay 100% on 50k after 1year, 25k after 2 years, 12.5k after 3 years and nothing after 4 years. CGT in the same way (except the % are different).

That way if you invested in your home over the 4 years duration you would still get your money back.

If you were moving to a new job, intending to stay less than a year in the area ,and bought a house, you should really be renting anyway.

 

Edited by GreenDevil
Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.