We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Budget 2013 live....
Comments
-
grizzly1911 wrote: »Will this be the fixed amount repaid or a proportion of the then current value/sale price. Will the government get a capital appreciation as well as the annual fees?
Yes, 50% of any HPI on the 20%.
So if your house rose in value by 50k when you sold, the government share would be 5k. Plus any fee's on the loan. Unless you had paid the loan off before selling.0 -
The way I understand it you have to pay it off when house is sold other than that you can only pay in off if mortgage is paid off.Graham_Devon wrote: »Probably the same place as you have your information from as we are both saying the same thing?
I think the loan can be repaid at any time. I don't think the house has to be sold. It just has to be repaid in full. So people could save for instance £100 a month into an account and pay it off in full when they have saved enough.
So basically, unless you can pay it off in full before the 60 months are up, your 20% loan will be attracting what I feel is quite a hefty fee each year. RPI + 1% can't really be ignored. 2 years ago, you'd have had 6.6% whacked onto the outstanding balance that year.
If the house has to physically be sold before paying off it's even worse than I thought!!
If the property price has not fallen over the 5 years in my example you would have 75% equity so would be able to remortgage.
But as you say I suspect most people won't save but for someone who does it's a good deal.0 -
How is the Government meant to pay for that?
Well, whatever shenanigans and tomfoolery they have effected to make this funny money that apparently doesn't count as part of the national debt; they can do the same shenanigans and give the money to some decent honest builders, who will build a lot of houses that won't count as part of the national debt.0 -
grizzly1911 wrote: »Rolling stones don't gather moss, snowballs perhaps.
Maybe hanging millstones gather moss which can then in some way calcify to become more stone. Not sure and Wilipedia is silent on the matter.0 -
How is the Government meant to pay for that?
From not having to pay ever rising HB in rent to private landlords and or receiving rent fron the tenants.
The government can borrow more cheaply that Mr.BTL. Paying for a state asset rather than buying it for the private landlord.
Enough people on her confirm that renting is dead money so why should it be any different for the government to effectively rent accommodation?
The state will always need to house a certain proportion of the population, unless they admit we are more akin to Somalia than Germany.
Hamish has posted enough graphs here to show that the private sector hasn't fulfilled the housing need since council house building stopped at the start of the 80s."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
Graham_Devon wrote: »Yes, 50% of any HPI on the 20%.
So if your house rose in value by 50k when you sold, the government share would be 5k. Plus any fee's on the loan. Unless you had paid the loan off before selling.
Where are you getting this information the way I understand it it is a loan not an equity share.0 -
If someone doesn't want the 20% attracting interest they pay it off in 5 years or save it up instead.
Can't see the big deal myself. If you look at your own calculations then at year 8 £4,384 has been added to a loan of £36,000. That's equivalent to an interest rate of 1.5% i.e. a low priority debt. RPI at 4% each year is deflating the real value of debt too.
Isn't this missing the point somewhat though?
If people can't afford to save a deposit and therefore need this scheme, what makes you think they can pay it off within 5 years!?
Again, if you can't save a deposit, 40k in 8 years is a LOT to save....
Maybe I'm just far too risk adverse. I dunno. Just can't see how if people can't save a deposit we can assume they can pay off a massive loan within 5 years.0 -
George Osborne said this was a budget for "those who want to work and get on" which describes me exactly. So it was with some excitement I entered my details into the BBC budget calculator and discovered I'm going to be about £650 worse off.
Can't the BBC get anything right!0 -
Where are you getting this information the way I understand it it is a loan not an equity share.
It's both. Both a loan attracting fee's with an entitlement to an equity slice too.
The information is on pretty much every budget overview...
This one from the BBC for instance...
They are actually explaining it on the BBC right now, but seem to be saying that if the house price increased by 50k, the government would take 20% of that (on top of any fees incured after year 5), so they would claim 10k at sale. My 5k was wrong earlier.Up to 20% of the cost of the home will be funded by a shared equity loan, which will be interest-free for the first five years.0 -
Maybe hanging millstones gather moss which can then in some way calcify to become more stone. Not sure and Wilipedia is silent on the matter.
Good point about the calcification painfully slow though."If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.2K Work, Benefits & Business
- 600.8K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards