Vote on 3x salary mortgage cap

GDB2222

Really2 wrote: »

Would that not be historicaly lower than inflation so the deposit would actualy be losing money.

Index-linked savings certificates, possibly? ISAs? But, yes, you'd struggle to make your deposit keep pace with wages for a risk-free investment.

chewmylegoff

Ian_Griffiths_Halifax wrote: »

Do they pay Capital Gains Tax at the same rate as their Corporation Tax, or do they not pay Capital Gains Tax? Have HMRC got their own rules wrong? I bow to your superior knowledge.

they don't pay capital gains tax at all, in the same way that they don't pay income tax, or employee's national insurance, or council tax.

which is exactly what that piece of text you have quoted says.

the HMRC haven't got their own rules wrong, you just don't understand the piece of text you have quoted.

edit: back to my original point anyway, companies do pay tax on gains, it is called corporation tax. individuals pay CGT on gains - which is why wilson saying he would be selling due to favourable changes in the CGT regime (to 18% flat rate) suggests he is running an unincorporated business.

if he was running a company, there would be no difference, as the rate at which it was paying tax on gains has nothing to do with CGT, which is only chargeable on individuals.

the point is in the name of the tax. i never suggested that companies don't pay any tax on gains at all.

Really2

ad9898 wrote: »

If I had a 3x mortgage, was happy where I was living and had £1500-£2000 spare every month, I would be finding new hobbies, finding new interests, going on holidays, buy a new motorbike/car... or if I was living with someone and we had children, I would ask her if she would like to cut her hours, or pack in work and spend more time with the children, or cut back my hours if possible to spend more time with my family.

The possibilities are endless, instead what we have had up to now is "do we have enough money to cover the £1000+ mortgage every month , if not, I wonder if we could could cut back, or do some extra hours at work, after all childcare places are open from 7am until 6pm.... etc", a miserable existance if you ask me, I'd much sooner do what's in my first paragraph.

HPI is "one persons perceived wealth and another persons real debt", I'd almost say it's a cancer of society.

I know what you are saying and agree in part.

All I am saying is we are in a capitalist country.
Personally I see disposable income as the problem not the cap.
So mean as disposable income is fairly high I could not agree on a cap.
In the 60's yes people would have one at work and one at home (but the man would work is !!! off like today) but they still struggled more than what the equivalent people today do.
Take a TV, washing machine etc, they are now less than a weeks wage.

Money is an necessary evil and if there is to much of it always find something evil to do:)

chewmylegoff

Really2 wrote: »

It would be foolish to think a masive amount of cash sloshing around would not cause HPI or inflation in other ways.

the most obvious way is that people would have enough spare cash to be able to borrow quite a lot in unsecured loans, which they would use to raise a deposit.

any regulation would have to stop this happening. quite how, i don't know.

ninky_2

This poll reminds me of election time in Iran.....you can pick any candidate so long as they're.......

Where is the vote for lower than 3xincome or even getting rid of mortgage lending altogether?

Really2

chewmylegoff wrote: »

the most obvious way is that people would have enough spare cash to be able to borrow quite a lot in unsecured loans, which they would use to raise a deposit.

any regulation would have to stop this happening. quite how, i don't know.

I Agree I said that earlier.
We would then have massive deposits securing house purchases.

Deposit led HPI. That realy is a nightmare for any future FTB as they will never compete with some one older than themselves.

ninky_2

Really2 wrote: »

Personally I see disposable income as the problem not the cap.

Money is an necessary evil and if there is to much of it always find something evil to do:)

What a depressing view of humanity you have. Let's all be kept in line by poverty. Great!

Really2

ninky wrote: »

What a depressing view of humanity you have. Let's all be kept in line by poverty. Great!

I agree with capitalism

I am clearly stating if you limit expenditure in one place it will just hemorrhage out some were else.

If you want a 3X salary cap expect the excess cash to find something else to do, most likely increased deposits.

Until housing is in reality not over subscribed it will never be an average price as demand causes HPI.

What is your view of humanity keep every one in line by stating what they can or can't do? Take away responsibility etc.:eek:

chewmylegoff

Really2 wrote: »

I Agree I said that earlier.
We would then have massive deposits securing house purchases.

Deposit led HPI. That realy is a nightmare for any future FTB as they will never compete with some one older than themselves.

but i thought that if we have 3x salary caps, prices will drop by 70% thus destroying most people's equity - leaving older people with no deposit either.

perhaps just have a game show called "who wants a mortgage", salary multiple dependent on how many questions you get right. oh hang on that's self cert isn't it.

Really2

chewmylegoff wrote: »

but i thought that if we have 3x salary caps, prices will drop by 70% thus destroying most people's equity - leaving older people with no deposit either.

What about future generations? or do they not count?

If the next generatin are £50K behind the game when they leve school what chance have they got.

Said it before but see China.