Are People Sad Enough To Fall For The Stamp Duty Con

GSXRCarlos

this will only help couples who are FTBs, and those on high sallaries

so much for no gimmiks in his budget

mitchaa

tara747 wrote: »

LOL. :rotfl: You should have left it as it was, to show how much money you *actually* made on your house.

So, did you buy again or STR? And is that why you're so interested in whether the budget SD measure affects those who have sold but are intending to buy again?

I bought again and was in the 3% band for S.D by quite a margin. Nearly £12k I had to fork out.

Profit wasn't really a profit after all the fees. Bought the house for £215k early 2007 and sold it for £247.5k late 2009 so £32.5k up. (Around 15%)

Add in stamp duty on the new purchase, legal fees and moving costs, there was only £15k left as a profit.

Still, it was better being up, than down.

Thrugelmir

mitchaa wrote: »

I bought again and was in the 3% band for S.D by quite a margin. Nearly £12k I had to fork out.

Profit wasn't really a profit after all the fees. Bought the house for £215k early 2007 and sold it for £247.5k late 2009 so £32.5k up. (Around 15%)

Add in stamp duty on the new purchase, legal fees and moving costs, there was only £15k left as a profit.

Still, it was better being up, than down.

You need to deduct the interest (and mortgage arrangement fees if any) you paid in order to calculate the net profit.

While people talk the value of their houses. Few sit down and work out what it actually cost them.

tara747

mitchaa wrote: »

I bought again and was in the 3% band for S.D by quite a margin. Nearly £12k I had to fork out.

Profit wasn't really a profit after all the fees. Bought the house for £215k early 2007 and sold it for £247.5k late 2009 so £32.5k up. (Around 15%)

Add in stamp duty on the new purchase, legal fees and moving costs, there was only £15k left as a profit.

Still, it was better being up, than down.

Goodness! I saved almost £25,000 in that time.

In your figures, have you subtracted the fees you paid on the initial purchase, plus maintenance, repairs, decor etc? My maintenance/decor costs are zero being a renter (one of the few things I am not looking forward to when I eventually buy!).

mitchaa

tara747 wrote: »

Goodness! I saved almost £25,000 in that time.

In your figures, have you subtracted the fees you paid on the initial purchase, plus maintenance, repairs, decor etc? My maintenance/decor costs are zero being a renter (one of the few things I am not looking forward to when I eventually buy!).

New build homes do not require maintenance so mine were virtually none.

You dont just live for free, had I not been paying into my own mortgage, I most certainly would have been paying into someone elses Mortgage interest therefore is comparable to rental costs and should not be used in the calculations when working out profit. (In my opinion anyway)

You saved £25k in that time, good for you but I 'was up' £32.5k without doing anything. You would have had to have sacrificed and perhaps lived frugally in order to save the £25k, I, well never done anything, it was just market growth.

So it's swings and roundabouts and it depends on what way you look at it. Had I not bought when I did in early 07, I doubt I'd have saved £32.5k in the 2.5yrs I had the property over and above the rental costs I would have been paying for a similar property. (Aberdeen has a very high rental worth market)

It worked out well for me, Recession proofed really, but you have to bare in mind that the Scottish property market never peaked until summer 2008, a whole year after the nationwide UK figures. Had I bought at its peak, I would not have been up anything as Scotland has remained stagnant since Mid 2008. My ups were all in the 17mths or so (Mar 07 to Aug 08) followed then by stagnation, up and down to where they would be now.

Thrugelmir

mitchaa wrote: »

You dont just live for free, had I not been paying into my own mortgage, I most certainly would have been paying into someone elses Mortgage interest therefore is comparable to rental costs and should not be used in the calculations when working out profit. (In my opinion anyway)

Only a like for like basis. What matters is the cash outgoing and how it is used.

Someone who spends less on rent and saves the difference may well be ultimately in a better position financially than someone that is paying interest and moving house frequently.

What you omitted in calculating your £15k "profit" also, was the cost of buying the house for £215k originally.

tara747

Thrugelmir wrote: »

Only a like for like basis. What matters is the cash outgoing and how it is used.

Someone who spends less on rent and saves the difference may well be ultimately in a better position financially than someone that is paying interest and moving house frequently.

What you omitted in calculating your £15k "profit" also, was the cost of buying the house for £215k originally.

Well, quite. And I'd imagine that my rent is a lot less than the interest on mitchaa's mortgage. And my rent includes rates (Council Tax). :beer: