Likely effect of the stamp duty elimination on house prices

nollag2006

Sometimes a picture says a thousand words...

dealsearcher

The Lord giveth and the Lord taketh away. :EasterBun

IveSeenTheLight

dealsearcher wrote: »

The Lord giveth and the Lord taketh away. :EasterBun

Very true.
The stamp duty threashold should have been increased long ago to match the house inflation.
It should not be temporary.
Without this temporary stay of execution, far more FTBer's are affected by stamp duty than previously were

nollag2006

IveSeenTheLight wrote: »

Very true.
The stamp duty threashold should have been increased long ago to match the house inflation.
It should not be temporary.
Without this temporary stay of execution, far more FTBer's are affected by stamp duty than previously were

As far as I know, the Tories' policy is to make this policy permanent, which is wonderful news for FTBs

:T

Graham_Devon

Sorry, but any saving on stamp duty from last month, has pretty much been eaten up by the rise in house prices, according to nationwide this month.

I realise as house prices rose, stamp duty would too, but to try and say houses will now just increase and increase because of the lack of stamp duty is pure stupidity.

HAMISH_MCTAVISH

Graham_Devon wrote: »

Sorry, but any saving on stamp duty from last month, has pretty much been eaten up by the rise in house prices, according to nationwide this month.
.

That extra 2K saved on a 200K house equates to an extra 2K on the deposit, which then gets you between an extra 6K and 18K of borrowing.;)

The stamp duty holiday just increased buying power by as much as £20,000.

IveSeenTheLight

Graham_Devon wrote: »

Sorry, but any saving on stamp duty from last month, has pretty much been eaten up by the rise in house prices, according to nationwide this month.

I realise as house prices rose, stamp duty would too, but to try and say houses will now just increase and increase because of the lack of stamp duty is pure stupidity.

Graham, your right that this stamp duty saving of 1% has virtually been swallowed up by this months HPI, however regardless of prices rising or falling it is still a further savings of 1%

I'm a firm believer in seeing one price and that's it. All costs should be within that one price and makes it far more clearer.

I hate some places abroad where you see a price only for them to add VAT at the till. This is an added cost possibly not factored in.

I recently paid for a budget airline flights. Got the price for the tickets but by the time the taxes, transaction fees, baggage, seat reservation etc etc had completed, the price went up by over 20%.

In my opinion, the buyer should only see one cost for the purchase of the property and all associated stamp duty, solicitor fees, etc should all be deducted from the final price.

This of course make the onus on the seller to understand all the deductions and would probably lead to an increase in house price to compensate, but at least for those buying it would be clear and precise.

Graham_Devon

HAMISH_MCTAVISH wrote: »

That extra 2K saved on a 200K house equates to an extra 2K on the deposit, which then gets you between an extra 6K and 18K of borrowing.;)

The stamp duty holiday just increased buying power by as much as £20,000.

Oh dear.

Since when did you get multiple borrowing figures on the deposit? Simply nothing else to say.

nearlynew

All stamp duty should be abolished.


The government has got no right taxing individuals on house purchases.

It is none of their business.

End of.

IveSeenTheLight

nearlynew wrote: »

All stamp duty should be abolished.


The government has got no right taxing individuals on house purchases.

It is none of their business.

End of.

You could say the same about VAT on many purchases.
How do the government get away with fuel duty and VAT on petrol?

Life would be far more clearer and transparent if there was only one tax deducted from your wage but then again this is to the detriment for those that don't purchase to the same levels as others.

HAMISH_MCTAVISH

Graham_Devon wrote: »

Oh dear.

Since when did you get multiple borrowing figures on the deposit? Simply nothing else to say.

Since forever..... A larger deposit increases the size of loan eligibility, as for most people saving the deposit is a bigger hurdle than the LTI ratio.

Example:
Previously: Savings of £20K for deposit + £2K for stamp duty......
90% LTV, 10% deposit, = £180K mortgage, £20K deposit, and total purchasing power of £200K

Now: Savings of £20K for deposit, + £2K no longer needed for stamp duty, so deposit of £22K. 90% LTV, 10% deposit, = £198K mortgage, £22K deposit, and total purchasing power of £220K.

You can now borrow another 18K, based on an extra 2K deposit at 90% LTV.