House prices down to at least 115K... Thans FSA! 3X here we come!

Really2

mbga9pgf wrote: »

Better late than never. Important point is this is going to slaughter house prices.

Down until we get to 3x salary!!!!

Keep that fresh in your mind. That is not going to happen on all mortgages perhaps risky 5% deposit only 3X income but for most it is not going to happen.

Cling on to it if you like but I am fairly certain most with good credit and deposit will get over 3.5X salary.

mbga9pgf

Keep that fresh in your mind. That is not going to happen on all mortgages perhaps risky 5% deposit only 3X income but for most it is not going to happen.

I agree. but not fully. I cant imagine it going above 4X salary, even with 40% deposit. Thank christ.

When you say most mortgages I disagree. There are a load of peeps with negative equity that cant move now until they get 5%, either that or panic and get their houses on the market before they lose any more money.

stevetodd

Really2 wrote: »

Keep that fresh in your mind. That is not going to happen on all mortgages perhaps risky 5% deposit only 3X income but for most it is not going to happen.

Cling on to it if you like but I am fairly certain most with good credit and deposit will get over 3.5X salary.

I think you are missing the upside of this, it would be very easy to buy investment property just above the 3x salary level with far less bidding competition

mbga9pgf

Apart from the fact its going to destroy your existing capital values with no hope ever of a return to previous capital values.

stevetodd

mbga9pgf wrote: »

Apart from the fact its going to destroy your existing capital values with no hope ever of a return to previous capital values.

That doesn't matter if I can pick many more properties at lower values and average out. I bought in the 90's anyway and would still have huge growth even if they dropped to the expected levels by such a change. It's not about capital values its about rental values and this rule with mean more people will have to rent rather than buy.

Don't forget CGT is now 18% from 40%, that's 22% accounted for straight away.

mbga9pgf

So you are saying every other BTLer will be in the same position? OR has the fsa just poured them concrete boots?

I would suggest you wont have huge growth, that was in the past. You have failed to realise your profit and are now facing a loss, even if that means you are still in the black...
Oooh, I really hope so... That'll teach 'em!

smartn

I think people may be missing the point. Why would average house prices be capped at 3x salary + 5%. 1st time buyers probably shouldn't be able to afford an average house anyhow. People have always had to work there way up the ladder.

lostinrates

mbga9pgf...thank you for removing the picture. I -and I'm sure its not just me-appreciate its removal

mbga9pgf

Because they are sensible lending criteria that traditionally we had in the UK.

That and it urinates on the BTL brigade who have already sold their grandmothers to pay for their portfolios

stevetodd

mbga9pgf wrote: »

So you are saying every other BTLer will be in the same position? OR has the fsa just poured them concrete boots?

Oooh, I really hope so... That'll teach 'em!

Well according to you I am desperate (although I don't quite understand why?) so presumably the non desperate landlords would buy even more