How protests against inequality could affect the housing market

Realmoney_2

Flight2quality wrote: »

-



-


I'm not saying interest rates will rise in the very near future. But it would be a mistake to base all of your investment decisions on that hope. And when they do start to rise, there's a good chance they'll rise a lot faster than we've become used to since the Bank gained independence.


-

This is a mistake most BTLers are making now, they are basing their decisions on rates not going up that much in the future.

IveSeenTheLight

Realmoney wrote: »

This is a mistake most BTLers are making now, they are basing their decisions on rates not going up that much in the future.

Many economists don't believe rates will increase for some time, however how do BTLers make the mistake when there are opportunities to fix at relatively low rates?

ess0two

FTBFun wrote: »

I walked past the camp this morning at 9am on my way to work. It'll surprise no-one for me to say that everyone appeared to still be asleep.

With the predicted cold weather forecast for later this week,it'll be interesting to see how many are camped next Monday.

lisyloo

but if the government did push through some sort of property tax

It would be unworkeable.
For example forcing pensioners out of their homes would no be a vote winner.
Just because someone has a property doesn't mean they have a lot of income.

sheffield_lad

High inflation may actually be the way out of the debt, maybe the gov have that as plan B lol

Don't forget inflation will fall by a full 1% once we have had 12mths with the vat increase so by Jan

lisyloo

High inflation may actually be the way out of the debt, maybe the gov have that as plan B

err.........I think that's their plan A.
Devalue the currency and make our export cheaper.

Doesn't devalue all debts though. A lot (like some pensions) are index-linked.

I think they are looking at it as the best way out and yes you are right it's a mathematical certainty that the VAT increase will drop out (although I think it's less than 1%).

CLAPTON

howee wrote: »

High inflation may actually be the way out of the debt, maybe the gov have that as plan B lol

Don't forget inflation will fall by a full 1% once we have had 12mths with the vat increase so by Jan

no inflation won't fall at all because of the VAT situation

what will happen is the rate of increase in inflation will be a little less

sheffield_lad

CLAPTON wrote: »

no inflation won't fall at all because of the VAT situation

what will happen is the rate of increase in inflation will be a little less

I don't agree I can see 1% being wiped off

Fidelity’s Multi Asset

funds

, expect year-on-year inflation to fall to between 1% and 3% as early as January next year, once this year’s hike in VAT drops out of the equation.

Read more: http://www.investmentweek.co.uk/investment-week/news/2109736/inflation-edges-strategists-hold-2012-fall-qe#ixzz1b3YFqh3H
Investment Week - News and analysis for investment advisors and wealth managers. Claim your free subscription today.

lisyloo

I don't agree I can see 1% being wiped off

Mathematically I think it's about 0.76% off CPI.
Not all the goods in the CPI basket include VAT.
However some items in the basket will be going up at the same time - for example gas electricity which have quite a high weighting (15% I think).

Realmoney_2

lisyloo wrote: »

It would be unworkeable.
For example forcing pensioners out of their homes would no be a vote winner.
Just because someone has a property doesn't mean they have a lot of income.

Hence a flood of properties onto the market as property owners prefer not to be.