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Couple devastated about paying stamp duty


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4 minutes ago, Glental said:

Wonderful puff piece in the sun: https://www.thesun.co.uk/money/12175459/we-bought-house-lockdown-missed-out-stamp-duty-relief/

I’d be more upset about committing to a 37 year help to buy mortgage just before the epic recession

You’ve just caused a significant uptick in my blood pressure. 
 

Perfect example of the national psychosis on owning a house.

i stopped reading at this comment -  “We did our bit to keep the housing market moving and this is the thanks we get”

Pair of utter cretins. Oh and we exploited a loophole but want you all to feel sorry for us because we could be £8k richer if we’d waited a bit longer for another loophole to exploit.

?

 

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"The third bedroom is being turned into a walk-in wardrobe" = The third bedroom is only the size of a cupboard.

I do actually feel sorry for them.  All they wanted was a home.  It shouldn't have to be some kind of epic quest involving borrowed/gifted money from parents/inheritance, doing a "deal" with evil housebuilders and hoping the government doesn't suddenly ****** you over out of the blue.  It's a sad state of affairs that we've got into and these cannon-fodder people aren't the villains here.

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This couple are idiots. From the sounds of it they managed between them to save a whopping 6k and it's only because someone died that they managed to push it up 20k. Even this is a tiny deposit for a couple in the SE. 

My favourite quote is this

Quote

It’s a new build and I’ll be honest, never in my wildest dreams did I think that I would ever be able to own something like this. It’s beautiful. 

How is this house beautiful? It's a hideous lego box overlooked from every side and furnished like a rental. This house is beyond his wildest dreams? What standard of house did he dream of then? 

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Posted (edited)

They have made a bad decision but it’s more worrying that the powers that be are still pushing this shit.
 

The article is an advert for help to buy but not sure how anyone could see £525k and a lifetime of debt as a good deal

Edited by Glental
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They don't seem too devastated at taking on nearly £500,000 in debt to their bank and the government to buy a new build! Their new garden looks tiny and seems to be overlooked by several other homes but they do have a paddling pool.

No idea how old they are - they were paying £1700 a month to rent in Clapham - but they had only managed to save £6,000 between them. They got another £20,000 from their parents and inheritances to boost their deposit.

They must be earning nearly £100k between them to get a £393,000 mortgage so why so little savings even allowing for a £1700 rent? 

Good luck to them - but they now seem totally maxed out. Hope they can cut down their outgoings in Wokingham as opposed to Clapham.

Hopefully they got a bung from the developers to promote Mulberry View in Wokingham to millions of Sun readers?! They also look much older in the doorstep picture than the smiley one at the top of the article - perhaps all that stress has aged them.

Edited by MARTINX9
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In the end, the developer agreed to meet us in the middle at £525,000 and said that they’d cover half of the £16,230 stamp duty cost. 

They also threw in another £1,000 to go towards our final month’s rent if we brought the moving date forward from when our tenancy ended at the end of May to April so they could meet their end of year targets, which we agreed to do. 

They should be devastated about being screwed over by developer.

Developer should be up in court for fraudulently manipulating numpties to get a sale on their project recorded at 525k when they really sold for under 508k. LR should be recording that at 508k

Numpties should kick themselves for not starting offers at 480 and slowly edging up to 499. They could then have taken advantage of the first time buyer SD discount. If that developer didn't want to shift their house, pretty sure they could have found something as "good" given the difference is small. Would still be 10k down on the SD changes but that [timing] was just bad luck.

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£500k borrowed between a young couple on a rabbit hutch. Jesus christ!

They are chuffed with this situation though seemingly. And the Sun, to no surprise, are revelling in developers encouraging all of this ticking time bomb of misery on people.

Mind you, if people are that deluded then you kind of feel like it's their own fault in some respect.

Credit card for all the furniture as well - FFS!

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1 hour ago, Glental said:

The article is an advert for help to buy but not sure how anyone could see £525k and a lifetime of debt as a good deal

It's ok. They have a plan........

 

"How are you planning on paying back the Help to Buy loan? 

We’re pretty confident property prices in this area will increase over the next five years so we’re just planning on paying it back when we come to sell it. "

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Also.....FFS

How are you planning on paying back the Help to Buy loan? 

We’re pretty confident property prices in this area will increase over the next five years so we’re just planning on paying it back when we come to sell it. 

 

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2 minutes ago, Glenn said:

We’re pretty confident

Utterly comical.

I wonder if the developer told them that too. Shame they were not challenged on that statement but this is the Sun.

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Before the pandemic they’d pushed forward their moving date to the end of April rather than May, so the property developers could hit their sales target. 

Why in fk would you do that? How does that help you? Whats the upside/benefits? 50% of the stamp duty is nots when theyd have a lot less to pay under 500k.

Why in fk would you be getting on hock for a ~550k mortgage at what looks to be the start of  very large recession?

 

We’re pretty confident property prices in this area will increase over the next five years so we’re just planning on paying it back when we come to sell it. 

Eh?

They are going to be trapped when the HTB 'free' loan stops, youd need the hosue to have gone up by ~100k to be able to pay back the loan.

In reality theyve overpaid by 150k for a crap new build, which is betwixt the A329M and an industrial estate.

Officially, Wokingham prices have been falling for a few years.

https://www.inyourarea.co.uk/news/house-prices-in-reading-and-wokingham-fall-again/#:~:text=House prices in Reading and Wokingham are continuing to fall,in the year to September.

Blokes got a painfully long and expensive commute to CoL from Wokingham.

 

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1 hour ago, Glenn said:

It's ok. They have a plan........

 

"How are you planning on paying back the Help to Buy loan? 

We’re pretty confident property prices in this area will increase over the next five years so we’re just planning on paying it back when we come to sell it. "

Where will they live?  I don't understand how this works.  

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3 hours ago, stop_the_craziness said:

"The third bedroom is being turned into a walk-in wardrobe" = The third bedroom is only the size of a cupboard.

I do actually feel sorry for them.  All they wanted was a home.  It shouldn't have to be some kind of epic quest involving borrowed/gifted money from parents/inheritance, doing a "deal" with evil housebuilders and hoping the government doesn't suddenly ****** you over out of the blue.  It's a sad state of affairs that we've got into and these cannon-fodder people aren't the villains here.

She'll fill the wlak in wardrobe with shoes and clothes.

And when its, full, start having kids.

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1 minute ago, spyguy said:

And when its, full, start having kids.

+1

Must be a shed load of couples like these two with £500k+ on gvt and bank credit. Also wanting kids in a 3 bed rabbit hutch where the 3rd room is never going to cut it.

Banking their hopes on significant rise in prices. Even HP bulls must see this as a total gamble for them.

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1 hour ago, PaulTW said:

Also.....FFS

How are you planning on paying back the Help to Buy loan? 

We’re pretty confident property prices in this area will increase over the next five years so we’re just planning on paying it back when we come to sell it. 

 

They paid £525,000. What price do they expect their 2.5 bed house on a HTB estate in Wokingham to command in 5 years time? Do they honestly expect it'll be north of £600k?

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1 minute ago, sammersmith said:

They paid £525,000. What price do they expect their 2.5 bed house on a HTB estate in Wokingham to command in 5 years time? Do they honestly expect it'll be north of £600k?

They probably do.

The "we're pretty confident" bit cracked me up. May have missed it in the article but is one of them an estate agent?

That or the estate agent / developer has told them that it will rocket in value. A trap has been laid for people like them and they have been utterly caught in it. Bad move at the best of times but prior to a significant recession is sheer lunacy.

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That's a massive massive debt to take, then to bang the rest on the credit card. I can't see that place putting on 100k in 5 years to cover that loan- 2 year fixed rate won't last long then they need to remortgage with tens of thousands of pounds on the plastic. Considering they only saved 6k themselves I can't imagine they will be in a good financial place in 5 years. 

1 job loss and that's the paddle gone. Half a mil in debt just like that. . . FML

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They managed to save £6k for a deposit? That's basically 1%..... 

I know the town they're in very well indeed. that place is earshot (you can see this development from that road) of a dual carriageway that was meant to link Oxford with the M4 and M3 and is a 25 minute walk into the fairly decent town centre, but still a 2 mile as the road runs walk. 

That said it doesn't bode well for a crash if two feckless muppets are allowed to borrow that much money to buy a house. Imagine what someone with a decent deposit could buy. 

I'd bet my **** that the price of that place will not be significantly higher in 5 years though. New builds depreciate for the first few years all other things being equal. 

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2 minutes ago, Unmoderated said:

They managed to save £6k for a deposit? That's basically 1%..... 

I know the town they're in very well indeed. that place is earshot (you can see this development from that road) of a dual carriageway that was meant to link Oxford with the M4 and M3 and is a 25 minute walk into the fairly decent town centre, but still a 2 mile as the road runs walk. 

That said it doesn't bode well for a crash if two feckless muppets are allowed to borrow that much money to buy a house. Imagine what someone with a decent deposit could buy. 

I'd bet my **** that the price of that place will not be significantly higher in 5 years though. New builds depreciate for the first few years all other things being equal. 

+1 Attempting to buy such overpriced box for £600k with 1% deposit means they're out of their brains. It's beyond madness. Dumb leveraging.

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