Friday, July 29, 2011

Who will shout loudest?

The generation poorer than their parents

"Let's take my own house [which] I bought 16 years ago for £160,000. It's in south-east London. It's now worth about £1.15m. So I've gained a million pound windfall to which I do not feel entitled, and that windfall, at the moment, is tax-free. Were I to sell [the house], there's no tax on that gain. It may appear very lucky for me, but the reality is when I sell, it will probably be to a younger person who'll be getting a mortgage and spending most of their working life paying off that windfall which went to me. I don't think that's fair"

Posted by ontheotherhand @ 01:05 PM (2281 views)
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11 thoughts on “Who will shout loudest?

  • Well, government are actively supporting older people probably as they are more likely to vote. To fully withdraw the funding from further education and continue paying out winter fuel allowance that is not means tested shows where they stand on this. Also, the public sector continue to be eligible for pensions with defined benefits and are often able to retire before the age of 55. The private sector withdrew these years ago. And todays young, public or private sector, are very unlikely to be in receipt of such a luxury.

    Low interest rates do not favour the young person saving to put a deposit down on a flat. It favours the older and more indebted. The economy as it stands certainly does seem to be rigged in favour of the old

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  • It may well not be fair on the buyer, but are you suggesting you pay capital gain tax? Why?
    You have not made a gain. If you sell, you will need the money (plus costs: Stamp Duty + Legal) to buy same house back.

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  • If you don’t feel entitled to the million pound windfall then sell the house for £ 160,000 plus inflation to a young person ! Life isn’t fair.

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  • This is why house prices have to fall. Like any commodity, it’s only worth what someone would be able to pay – or can pay.

    If that guy did put his house on the market – would he actually get 1.15 million for it?

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  • This is what winds me up about the BBC.
    There are over a million people priced out of housing, who are older than thirty.
    Even the BBC report the age of the average FTB as being 37-43.

    Yet according to them now, its only the under thirties who are affected?

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  • “If that guy did put his house on the market – would he actually get 1.15 million for it?”

    Probably not but I bet he coult MEW against it for a good £500k then go on a cruise until he pops his clogs. who’s gonna pay then?

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  • @2

    “I bet he coult MEW against it for a good £500k then go on a cruise until he pops his clogs. who’s gonna pay then?”

    Surely just the same as somebody who takes out an unsecured loan and leaves the country with intention to pay it back. The lender (should hopefully) insure their liabilities and gets the money back that way.

    So our example of the MEW-er the bank simply takes back the £1.15m house which is more than double the £500k he borrowed off the back of it… so it’s in the banks interest for him to do this, it seems??

    When you look at things like that you can see why the VI are so vehemently determined to take insane actions to mitigate against HPC type activity… :-/

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  • Tingentleman says:

    It’s not a Housing Ladder, but a Housing LIFT… The baby boomers rode it to the top floor and are asking young people to run up the stairs and climb aboard, as if it’ll fly out of the roof like Willy Wonka’s glass elevator. There are fools who are still buying their first house though, and I feel desperately sorry for them.

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  • Maybe poorer but will probably live longer.

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  • The BBC seems to be changing its tune on property..

    ..when did they last describe a small uptick in prices as ‘good’ news?

    – a while now, I think..

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  • this guy must be a fanticiser noway you buy a house for 160000 16 years ago and its now worth over a million, must be in his dreams my advise to him get a life.

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