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Debate House Prices


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Resentment of this generation

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Comments

  • zagfles
    zagfles Posts: 21,548 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    What about the cash buyer?

    So I put down a deposit (out of taxed income). I pay "purchase tax" on the price paid.

    I pay interest (out of taxed income) on which someone makes a turn/profit (on which they should pay tax).

    I choose to pay for the property, capital repayments, (out of taxed of income).

    I may choose to add value to the property through upkeep, modernisation and an extension (out of fixed income)

    I pay council tax, partly based on value (out of taxed income).

    Oh and then we have inflation over which I have no control which probably equates to 75% every 10 years (probably closer to the cost of food, HL&P that I can't afford to do without rather than flat screen tellies that I can do without).

    Most people don't buy house to make obscene amount s of money(some do I accept but they also take risks along the way) they buy them to provide a roof over their head.

    Price reflects demand and supply so we either exterminate/sterilise people or we provide new affordable housing.

    Rant off.:mad:

    Edit:- And we could employ another bunch of muppets , at our cost, to police it all.

    But a scheme like this could replace the other taxes, rather than be additional. It could eliminate stamp duty, maybe even council tax!

    It would reduce the investment potential of housing, thereby reducing some of the demand, and so reduce prices, and so householder costs (mortgages etc)

    The number of houses in the country has increased at a faster rate than the population over the last 20 years or so, the extra demand has partly been driven by investment potential rather than need for accomodation
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    zagfles wrote: »
    Good idea but you'd have to allow roll-forwards to a new house otherwise you penalise people just for moving. And just have a flat rate eg 40% on profit above inflation.

    Then you only pay if you downsize/move abroad. It might stop people regarding their house as their pension or an investment, but rather simply a place to live, and so should reduce prices and stop the likes of the OP whinging :)


    It certainly would reduce the number of people down sizing.
  • RenovationMan
    RenovationMan Posts: 4,227 Forumite
    I think the government should introduce a property sales tax to be paid by the seller when sold:

    On the first £87,500 - 0%
    Between £87,501 - £160,000 20%
    Over £160,000 40%,

    and the top tax rate would be applied to all second homes, etc to target the buy-to-letters who caused all the grief in the first place. The monies raised could then be used to build more social/cheap accomodation for the poorest and least well off in society.

    People would be more likely to rent out their former homes rather than sell up. A £250k city apartment would cost £15,499 in tax. If you add in the legal bill of about £800 to sell, the estate agent's £5000 (2% fee) you would be looking at £20,800 to sell. Alternatively you keep the apartment and rent it out and have a nice retirement income to look forward to once it is paid off. The property can then be gifted to your kids and as long as you live for 7 years after the gift is given it would be tax free.

    I'm sure our resident bulls would be able to tell us what happens to house prices when the number of houses up for sale is restricted....
  • zagfles
    zagfles Posts: 21,548 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    ukcarper wrote: »
    It certainly would reduce the number of people down sizing.

    It might stop them "upsizing" in the first place. Single bloke across the road from me lives in a 4-bed house. His next door neighbours - couple in a 5 bed house.

    People with money tend to buy a bigger house than they need because of the investment potential. Reduce the investment gain and you reduce the demand for people buying excessive property.
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    zagfles wrote: »
    It might stop them "upsizing" in the first place. Single bloke across the road from me lives in a 4-bed house. His next door neighbours - couple in a 5 bed house.

    People with money tend to buy a bigger house than they need because of the investment potential. Reduce the investment gain and you reduce the demand for people buying excessive property.

    Do you know their circumstances? I live in a 4-bed house just me and other half, had the house for over 25 years. I have considered downsizing but to be honest after the moving fees it’s hardly worth doing it now, let alone with 40% tax.
  • Jennifer_Jane
    Jennifer_Jane Posts: 3,237 Forumite
    1,000 Posts Combo Breaker
    Bought my first house in 2000 for £80,000 (3-bed s/d in the North West of England) with a £20,000 deposit (the sale proceeds from my South African house, plus some endowments that I had. Paid it off 9 years later when I retired at age 62. I'm a proper baby boomer born in 1947. I am now just about (ie barely) able to manage thanks to a secretarial job I had for 9 years with a company pension which I worked (ie adjusted investments as well as I could) to enhance it, as well as going without things to pay in as much as possible.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    zagfles wrote: »
    It might stop them "upsizing" in the first place. Single bloke across the road from me lives in a 4-bed house. His next door neighbours - couple in a 5 bed house.

    People with money tend to buy a bigger house than they need because of the investment potential. Reduce the investment gain and you reduce the demand for people buying excessive property.

    TBH we purchased a bigger house than we need so people can stay over and enjoy the space when people are not.

    Also come in handy when the little one is ill, you can play puke and move rooms. :)
  • zagfles
    zagfles Posts: 21,548 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    ukcarper wrote: »
    Do you know their circumstances? I live in a 4-bed house just me and other half, had the house for over 25 years. I have considered downsizing but to be honest after the moving fees it’s hardly worth doing it now, let alone with 40% tax.

    The single bloke was persuaded by his parents to buy the biggest house he could afford "because it's the best investment you'll ever make", I think they helped with the deposit. Not sure about the couple, think they intended having kids but never did.
  • zagfles
    zagfles Posts: 21,548 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Chutzpah Haggler
    Really2 wrote: »
    TBH we purchased a bigger house than we need so people can stay over and enjoy the space when people are not.

    Also come in handy when the little one is ill, you can play puke and move rooms. :)

    Of course - and some people will have a second car in case the first one breaks down. But if cars tended to go up in price like houses far more people would have a second car and so demand would be greater.
  • ukcarper
    ukcarper Posts: 17,337 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    zagfles wrote: »
    The single bloke was persuaded by his parents to buy the biggest house he could afford "because it's the best investment you'll ever make", I think they helped with the deposit. Not sure about the couple, think they intended having kids but never did.

    Well if he can afford it I can't see that he will do anything apart from reduce the supply of bigger houses if he bought a smaller house he would increase the demand for those.
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