Thursday, Oct 08, 2015

Can the Tories convince the unlanded that they have their backs?

Torygraph: The real ticking time bomb for the Tories is home ownership

This chap seems to narrowly define ownership and private property as only residential housing. Hilarious that he sees France's higher homeownership as a good thing! The most successful parts of the country are dominated by renters - London is under half homeowner. For good labour mobility, you need people to be able to move easily, which you simply don't have if everyone owns. Even without stamp duty and a conveyancing system that almost seems designed to slow things down, you require a much bigger career opportunity to move if you own rather than rent. What is needed is secure, good quality rental accommodation for the young and older people on low incomes, and a norm of buying your first home when you truly settle down, e.g. kids start school.

Posted by mombers @ 01:48 PM (5528 views)
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9 Comments

1. libertas said...

What total BOLLAX. The most successful Londoners ALL OWN HOUSES.

Commercial land ownership, agricultural land ownership are all good, but not optimum UNTIL you divert rent into mortgage where HALF your repayments pay down principle. And renters, as you gleefully forget STILL PAY A MORTGAGE, but only not their own, but the landlords, plus a margin for their freaking profit.

Stamp duty limits mobility, that is wrong, but it still does not outweigh the benefits of home ownership.

Thursday, October 8, 2015 11:42PM Report Comment
 

2. libertas said...

When I earn about as much from my home as I do with income (Property up 50k this year and I paid off 10k this year off the mortgage) About the same as the combined mortgage of both me and my misses, and yet we do not pay tax on that capital gain, so it yields us more plus, we can rent out a room tax free up to a value of 7500 per year.

So logically, both myself and my misses would need 100% pay rises for increased mobility to outweigh the benefits of home ownership, you fool. Yet the small nugget of wisdom from your statement is that stamp duty reduces mobility, reducing the competitiveness of the country as a whole.

Thursday, October 8, 2015 11:45PM Report Comment
 

3. libertas said...

When I earn about as much from my home as I do with income (Property up 50k this year and I paid off 10k this year off the mortgage) About the same as the combined mortgage of both me and my misses, and yet we do not pay tax on that capital gain, so it yields us more plus, we can rent out a room tax free up to a value of 7500 per year.

So logically, both myself and my misses would need 100% pay rises for increased mobility to outweigh the benefits of home ownership, you fool. Yet the small nugget of wisdom from your statement is that stamp duty reduces mobility, reducing the competitiveness of the country as a whole.

Thursday, October 8, 2015 11:45PM Report Comment
 

4. cornishman said...

libertas said..."So logically, both myself and my misses would need 100% pay rises for increased mobility to outweigh the benefits of home ownership, you fool."

In a totally unnecessary personal attack, you have simply proved mombers' point: "For good labour mobility, you need people to be able to move easily, which you simply don't have if everyone owns"

You aren't prepared to move unless you got a very large pay rise because you own a house. Therefore you are not helping labour mobility.

I don't think that there was any 'nugget of wisdom' in your statements.

Friday, October 9, 2015 08:26AM Report Comment
 

5. mombers said...

"The most successful Londoners ALL OWN HOUSES"
Any evidence? More than half of Londoners rent and those of working age are even more likely to rent. Since GDP per capita has increased a lot over time, I would say that younger people are more successful than their older counterparts as they are producing more output than they did. I suppose you conflate success with luck rather than hard work though?
By the way, my flat has gone up by nearly 100k now but it's a step backwards as if we moved, we would have to miracle up another 100k to pay for the 200k that the next 'step' up the ladder has increased by. If prices hadn't gone up, we would only have to hand over a much smaller amount.
Not sure why you're calling me names BTW?

Friday, October 9, 2015 09:01AM Report Comment
 

6. mombers said...

I'd love to hear from tenyearstogetmymoneyback about successfulness and owning a house. Someone who bought in 1989 would have been in a deep hole for 10 years, through no fault of their own, just like those of us who have unearned paper gains through no fault or effort of our own...
I would actually have preferred to have bought in 1989 and moved after ten years. The rungs on the fabled 'ladder' would have been much closer together and it would have been a lot cheaper to move than if we'd been part of a ten year bull market. We wouldn't have had an nequity problems as we put 15% down and after ten years would have paid the mortgage down a bunch so wouldn't need to be bailed out by HPI

Friday, October 9, 2015 09:38AM Report Comment
 

7. cyril said...

I think mombers's point originally was that the availability of rental property is good for the economy as a whole as it allows people to move around more easily.
As a separate point I am sick of Libertas using this site as a platform to show off about his pathetic existence and wish he would refrain from doing so.

Friday, October 9, 2015 10:45AM Report Comment
 

8. Janch said...

Good luck with that 50K gain Libs.....until you sell and have the cash in the bank it's pie in the sky and when the crash happens you may end up with nowt and may have lost your depoit too.

Friday, October 9, 2015 01:04PM Report Comment
 

9. tom101 said...

Obviously the most successful Londoners don't live in London anymore.....

Monday, October 12, 2015 12:07PM Report Comment
 

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