Tuesday, February 20, 2007

Times hacks state the obvious

Homebuyers borrow to pay soaring stamp duty

The only actual news seems to be that "lenders are calling on the Chancellor to increase the stamp duty thresholds in next month’s budget".

Posted by rich @ 04:21 PM (814 views)
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3 thoughts on “Times hacks state the obvious

  • well over due moving the thresholds!

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  • Raising the Stamp Duty thresholds will simply drive house prices higher – as the “market” (ie EAs and sellers) will know exactly how much more an FTB would be able to afford.

    HPI will go on for at least another year before the inevitable HPC.

    If Crash Gordon falls for this one then he is even stupidier than I thought.

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  • Oh – and by the way – in The Netherlands the “transaction cost” of buying a home is 10 – 12% (Stamp Duty + EA fees + solicitors fees).

    They have a very slow market where houses do not change hands very quickly and there is definately much less speculation. Dutch buyers are 100% responsible for all costs and hence think very hard about purchases as it is recommended not to buy a house unless you plan on staying in it for more than 3-5 years (preferably 10). Dutch buyers nearly always borrow to cover the “transaction costs”.

    Most people rent in (usually) well designed housing estates runs on behalf of pension firms and the like who are interested in the steady income rather than the increased capital. Rent increases can be challenged though the local courts and hence tend to peg inflation.

    Think on this – a permanently slower market = less house purchases = less EAs. Great news.

    I say put Stamp Duty up and kill off short term speculation. Make houses “homes” again rather than “assets”.

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