How can FTBs be helped?

keeperbear

Guy_Montag wrote: »

Why exactly should FTBers be "helped"? Keyworkers yes, but FTBers, no way! Furthermore, how would one adequately define a FTB? If I sell my property, bank my equity and rent, I become classified as a FTB by most banks. What about a homeowning couple that get divorced? The one that moves out will be a FTB despite possessing a lot of equity.

1) Capital gains tax at the point of remortgage - makes it harder to build up massive property empires.

This suggestion makes it harder to remortgage which is pure madness. Why shouldn't a consumer be free to move mortgages?

As for the reintroduction of MIRAS, this scheme directly resulted in higher property prices.

Many of the suggestions on this thread sound very much like Gordon Brown-like "tinkering" that will have unintended consequences for the property market. Talk about introducing red tape. I thought we lived in a free market. I guess not. Nothing will be done to help FTBers unless they are keyworkers.

Running_Horse

The best thing the government can do for FTBs is provide a level playing field, then stop bloody interfering.

Guy_Montag

1) Sorry - I realise I'm not making myself clear, rather than remortgage I mean at equity withdrawal:

For example, you buy a house valued at 100k, with an 85% three-year fix so that's an 85k loan.

Three years later when you come to remortgage the house is valued at 200k, you can a) remortgage the 85k loan as a 42.5% loan. No CGT to pay. Or b) remortgage the 85k loan & add 85k to it, bringing it back to an 85% LTV loan - it is at this point you pay the CGT on that second 85k - there are wrinkles to be worked out with respect to allowances.


I don't actually object to becoming a nation of renters, but if that is to be the case I want better security of tenure & higher minimum standards. The reason I don't want to rent long term is that I can be given two months' notice to quit at the whim of the landlord, which means I never feel that my dwelling is my home. But that's another story.

HugoSP

Guy I see what you're on about now.

You see it as a means to discourage investors in re investing their equity. Using your example above I may sell my now £200k house, then buy another similar property taking out a mortgage of £170k on it. Then spend the remaining 85k on a BTL!

I have to say that I don't agree that it is necesary to penalise BTL investors as it is not this sector of the market that is pushing up house prices. In many, for example, that kent couple, they helped the market to recover in times of crises. Many tenants and homeowners were at risk of losing their homes as property owners faced high interest rates and loss of confidence in the market. BTL investors helped to bring stability to the market when it was low.

Now the market is arguably inflated BTL investors are again helping to bring stabiity to the market by selling off stock.