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The budget to change house prices?

dragonfly02
Posts: 748 Forumite
I've heard a rumour from a financial advisor (friend of a friend) that this years budget will see higher taxes for purchasing additional houses (2+ houses)
and the threshold for stamp duty rise to £160k ish in a bid to slow the house prices down.
If these policies were implemented what sort of effect would this really have on house prices? (easy to understand answers for a housing newbie please)
Opinions please
and the threshold for stamp duty rise to £160k ish in a bid to slow the house prices down.
If these policies were implemented what sort of effect would this really have on house prices? (easy to understand answers for a housing newbie please)
Opinions please
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Comments
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I would have thought that would increase prices0
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I cant see how a stamp duty increase will SLOW things, I agree with Nelly it will make prices increase surely as more houses will be sold and therefore less houses on the market so higher demand.....
Like the idea of the extra tax for 2 homes though.0 -
personally when you think of all the developers out there who bought up 20-30 homes at cheaper prices and are now letting them out, if the budget implemented that these people had to pay e.g 20% extra for each home after their first one this would deter these people. I don't think it will only be for people who purchase a second house as of the budget date, I beleive they will look back at all the people who have multiple properties and tax them accordingly, therefore mr jones who bought a second house to rent so he may have a nice little pension when he retires may think twice about keeping that property if he is taxed more.
Also many people who have huge port folio's of houses may need to get rid of some, making an influx of houses on the market at at its current state i think the market looks to be stagnating so the only way they can rid themselves of these houses is to drop the prices, you only need to look in your local estate agents to see them all leaning on the desk and perking up everytime someone looks in the window.
the stamp duty thing I added in as I am not a homeowner I wasn't sure if this would have any impact, thats why I asked.Running total for swagbucks - £270 since Jan
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As someone who owns several properties, i obviously wouldn't like this. I make my living from property, and am already taxed on my rental income on top of stamp duty, 40% capital gains tax, and vat on any costs involved in upkeep of property. My net profit is actually very low (less than my girlfriend's income, and she's a nurse). People think landlords make money hand over fist, and that we are all bullies to be despised. This has been fuelled by several programmes that dont go into any sort of "real cost" details, and make it look like a license to print money. I can assure you it's not.
It has been said on this thread that if large property investors were to sell houses that this would lead to a surge of properties on the market. This is true. This also means that prices would drop like a stone, causing negative equity to a lot of current owners. (i personally dont think it would lead to mass selling, as this would lead to an even higher CG tax bill. We get hit from every angle.
It would be good for FTB's.
Bridiej - I think you misunderstood. Dragonfly said the stamp duty THRESHOLD could go up to £160K, this would mean any property under this would incur no stamp duty. It's not a hike in charges. This would also make things easier for FTB'sAnything I write is based on my opinion only. Before acting upon any advice from anyone on a forum further professional advice should be sought.0 -
gary,
if the stamp duty Threshold went up to 160k as you say it would help 1st time buyers, but then the houses would be snapped up more, thus making it a sellers market again and pushing up the prices. i think maybe that is what people are getting at.0 -
Interesting thread.
Very sensible if they raised the S.D. threshold. properties for 60k don't exist in myb neck of the woods, anymore.
I doubt if the Government would penalise multiple property owners in such a way as this as many politicians own multiple proerties. As do many businessmen. Not exactly a vote winner?
If they passed that one thru they'll be shooting themselves in the foot.
Forcing multiple owners to sell up would inevitably flood the market causing a property crash(something else that will lose votes).
Don't forget that the higher the prices of property the higher the taxation revenue the government receives. :T
Just a thought,
Riz"Unhappiness is not knowing what we want, and killing ourselves to get it."Post Count: 4,111 Thanked 3,111 Times in 1,111 Posts (Actual figures as they once were))Women and cats will do as they please, and men and dogs should relax and get used to the idea.0 -
My net profit is actually very low (less than my girlfriend's income, and she's a nurse).
I don't think raising SD thresholds will cause prices to rise that much - but it definitely won't make them fall. I think there are other more significant market forces.I doubt if the Government would penalise multiple property owners in such a way as this as many politicians own multiple proerties. As do many businessmen. Not exactly a vote winner?
For the most part, this is due to the rise in the number of people who have never owned property at all - however, previous owners whose homes have been repossessed are finding it much harder to get back on the property ladder second time round too.
That said, we aren't getting as many repossessions these days as we were in the early 1990's - but I think that's partly because banks are able to take on higher risks, both in secured and unsecured lending. There's a huge sub-prime market today that didn't exist ten years ago. I'm not sure why they're able to take on higher risks - but maybe it's because credit insurers are able to spread the risk for each individual debt much more thinly, over millions of investors, who don't really care if they only lose the odd penny now and then.Forcing multiple owners to sell up would inevitably flood the market causing a property crash(something else that will lose votes).0 -
as I understand it the governmet have NO power over the intrest rates anymore but they would like to see house prices level out and this was the way they decided to do it, but of course this is all only a rumour and may not happen atall.
Yes you are right in saying i was talking about the stamp duty "threshold", sorry i do not currently own a property so I am very new to all this.
dragonRunning total for swagbucks - £270 since Jan
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Dag,
I have no intention of "losing" my portfolio. As I said in my last message, I dont think investors will sell up as there are other costs involved in doing so that make it more costly.
I also was only mentioning the net profit as a way of showing that landlords arent all big fat cats making fortunes. I wasn't meaning to sound like a moaning minnie. I chose to go down this route as I didnt like getting up in the morning to go to work for someone else. I'm lazy and admit it.
Landlords are an easy target as we are percieved as making loads of money, and undoubtedly some do, and we are not a majority group who will get press headlines like pensioners or single mums etc. that is why I believe we could get hit with extra costs, to pay for the cash giveaways that are likely to be given in a pre-election budget to the media represented groups.
Lets just wait and see what happens.Anything I write is based on my opinion only. Before acting upon any advice from anyone on a forum further professional advice should be sought.0 -
Him Garysletters,
There is one point that I overlooked and that is that you would get a refund on your sales, should it become neccasary to sell up, based on the earlier suggestion of a rise in the CG T level, because you would be able to sell your props for more money since the purchaser will not have to pay CGT on the purchase of your properties. (Assuming that like most investors, your properties are under the £160k mark)
Riz"Unhappiness is not knowing what we want, and killing ourselves to get it."Post Count: 4,111 Thanked 3,111 Times in 1,111 Posts (Actual figures as they once were))Women and cats will do as they please, and men and dogs should relax and get used to the idea.0
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