Stamp Duty - Budget 2010

sandraa_2

QUOTING: I feel desperately sorry for those FTBs who are now lured to buy and run the risk of negative equity in two or three years time Those that were buying anyway didn't really need the windfall.

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:rotfl:FTBs don't need you feeling sorry for them. They too have a brain and know what they are doing!

And those that were buying anyway... will surely appreciate the windfall !!! Especially after spending all their savings into a large deposit!

paul_finlay_2

As a FTB, I can tell you I've opened a bottle of champagne this evening as I'm due to exchange in mid April, this has greatly benefited me to the sum of £2,200 cash which I now can use to spend on furniture and kitting the whole flat out. So I can tell you first hand it has been a HUGE benefit - thank you Mr Darling!

I do feel those that are buying where only one of the partners are FTB shouldn't miss out though and hope they can be included.

Enfieldian

Have the sellers started increasing their asking prices yet?

franklee

sandraa wrote: »

:rotfl: FTBs don't need you feeling sorry for them. They too have a brain and know what they are doing

I also feel sorry for recently past FTBs who are now in negative equity who also have a brain and probably thought they knew what they are doing. Neither group need me to do that, I just do especially when I read of the problems they have on the forum.

sandraa wrote: »

And those that were buying anyway... will surely appreciate the windfall !!! Especially after spending all their savings into a large deposit!

There is a difference between appreciating a windfall (who wouldn't welcome a couple of grand?) and needing it in order to purchase. If it doesn't increase the number of transactions it won't help the house market and so why bother making the cut? If the market wasn't in trouble the cut wouldn't be needed, if the market is in trouble then it's a shame to dump more FTBs in it who without the cut would have stayed out.

John_V85

I feel sorry for the people buying properties at £275k - spend £25k more on a house and we'll have £8,250 in tax please (just goes to show the absurdity of these absolute taxes). I guess there's no chance in getting my circa. £10,000 back .

Chris_Yates

I am really annoyed at this move. I am a FTB and I bought a property for c£155K and completed on 12th March. They would have known of this before December, and so they could have extended the holiday for three months.

As it stands, I have had to pay 1.5K just for the privilige of buying a house between January 1st and Today. Does anyone think there is any merit in wasting my time writing to my MP about it?

morg_monster

Chris I think you should write. It's grossly unfair to people like you caught in that 3 month "black hole".

sandraa_2

franklee wrote: »

I also feel sorry for recently past FTBs who are now in negative equity who also have a brain and probably thought they knew what they are doing. Neither group need me to do that, I just do especially when I read of the problems they have on the forum.



There is a difference between appreciating a windfall (who wouldn't welcome a couple of grand?) and needing it in order to purchase. If it doesn't increase the number of transactions it won't help the house market and so why bother making the cut? If the market wasn't in trouble the cut wouldn't be needed, if the market is in trouble then it's a shame to dump more FTBs in it who without the cut would have stayed out.

Don t get me wrong I feel sorry for anyone having financial difficulties.

If people want to buy a house, it is their decision to make. As long as you don't overload yourself with debts I don t see the problem? What is the diference between paying £1000 for rent or £1000 on a mortgage repayment?

Most FTBs are NOW taking mortage that they can afford (AS THE BANK WON T GIVE THE MOBEY OTHEWISE) and have to save for a 15% deposit..

So the risk of negative equity is quite low and they are repaying a mortgage instead of making the pockets of landlord bigger.

mbga9pgf

sandraa wrote: »

So the risk of negative equity is quite low and they are repaying a mortgage instead of making the pockets of landlord bigger.

What most are actually doing is getting a mortgage that on average is around 4% over base, and setting themselves up for a fall once rates go back up. Which they will. I wonder in many cases whether a renter WOULD be better off... For example:

200K purchase price, 10% deposit, mortgage variable at 4.5% (just looked around, although there are better deals, this seems the current average) repayment over 25 years, monthly cost 1K, interest per month £675....

So, in other words, if a FTBer could rent for less than 675, with those fiugures, they arent better off buying. Because of course, you have upkeep costs, future interest rate rises, legal fees etc...

Rent this....

http://www.rightmove.co.uk/property-to-rent/property-7093677.html

or buy this
http://www.rightmove.co.uk/property-for-sale/property-26380517.html

very little difference at the moment... but as soon as rates go up by say 2%, you all of a sudden are paying

£975 a month, interest alone! The maths works for now, but how long till rates go back up? The way the markets are spooked at the moment, if we get a hung parliament, probably not too long after that.

Although I agree on your sentiment that banks are relatively content to lend where there is a 25% deposit, the fact that interest rates jump massively below this level should be a fair indicator to most of the risk premium banks are placing on another 15-20% fall in prices. The extra you pay is their "insurance policy".

Enigma80

Chris_Yates wrote: »

I am really annoyed at this move. I am a FTB and I bought a property for c£155K and completed on 12th March. They would have known of this before December, and so they could have extended the holiday for three months.

As it stands, I have had to pay 1.5K just for the privilige of buying a house between January 1st and Today. Does anyone think there is any merit in wasting my time writing to my MP about it?

+1

I'm in the same boat. We completed on 5th March, and we could really have done with that extra £1300, ok it's not much but we could have used it for furnishings. I've emailed my solicitor to ask if there is any way of claiming it back (although the official paperwork says no), but I reckon all that will do is have the solicitor ROFL.

Agreed like you suggested, they probably knew about before January so why simply not extend the holiday and just increase it today instead of stopping and starting it. Makes no sense really.

I assume others like us will kick up a fuss about it, maybe even some kind of group/mass letter/petition asking for it to be refunded for purchases in this 'black hole' period...