£53k Increase in Stamp Duty For Me

Cheeky_Monkey

tonyinessex wrote: »

Why am I undeserving?
I am putting £153k of my own money into the UK system. I could easily move and buy abroad..

Are you saying that you are getting a £1.83m mortgage?

kinger101

tonyinessex wrote: »

Also I am not debating the fairness of the changes or saying it is unfair, just that it's a shock to be hit with a 53% increase 2 weeks before I was going to buy.

Well, in a way you are debating the fairness, as you think you now ought to be entitled to a price reduction, and in the process, transferring some of the additional liability that has now been incurred to the owner.

Even though I'd love to be in a position where I was buying such as house, I would too feel annoyed by the stamp duty changes.

If your position is as strong as you say (no other potential buyers) then perhaps try your luck, but I suspect you're overestimating the strength of your hand. If the house is now off the market (as a condition of your original offer), any lack of interest would only be a consequence of the property no longer being for sale.

It is morally dubious to lower your offer, but I suspect you'll not lose too much sleep over it. You could potentially sour the relation with the seller though.

tonyinessex

kinger101 wrote: »

Well, in a way you are debating the fairness, as you think you now ought to be entitled to a price reduction, and in the process, transferring some of the additional liability that has now been incurred to the owner.

Well not entitled as such. More of an correction to the true value.

kinger101 wrote: »

Even though I'd love to be in a position where I was buying such as house, I would too feel annoyed by the stamp duty changes.

If your position is as strong as you say (no other potential buyers) then perhaps try your luck, but I suspect you're overestimating the strength of your hand. If the house is now off the market (as a condition of your original offer), any lack of interest would only be a consequence of the property no longer being for sale.

It is morally dubious to lower your offer, but I suspect you'll not lose too much sleep over it. You could potentially sour the relation with the seller though.

The house was never on the market, as I was renting it, although the guy has always wanted to sell it.

Maybe I will lose sleep - I want to be fair, but I don't want to be left with a house that is worth less than what I have paid for it.

Cheeky_Monkey

Doh!!! Silly me

If you haven't already, please feel free to ignore my post no. 22. I've just realised that the £153k is the amount you'll pay in stamp duty not your deposit. That'll teach me not to read it properly

suicidebob

tonyinessex wrote: »

Taken out of where? I am pretty sure I put in more than the average person.
But I'm not debating that, I am asking what the changes are going to do to house prices.

You claim you're putting your own money into the system. I take it you didn't create it out of thin air....

Surprised such simplistic logic appeared to go right over your head...

happylucky

tony, I think you raise a perfectly valid point. Of course asset market values are directly related to total acquisition costs. Your offer was placed on one set of costs, now things have changed.


If I were your vendor, it would be no shock if you raised this issue to me....I personally think that the 1-2M market will be hit significantly at least in the short term. Chains will fall apart if they exist if any participant can't come up with the extra stamp duty in cash at pretty short notice. Plenty of people in that bracket can afford it, but there are also many, many who are relying on massive mortgages and won't be able to find the additional cash in time, however much they want to.


Over 2M, I don't think it will be such a big deal, this buying group are much less likely to care about 50 or 100K here or there...it's the 1-2M band that will be hit hardest and so you may find that you get much more for your budget if you can hold off buying for a bit.


Just my humble opinion. Good luck to you.

kinger101

happylucky wrote: »

tony, I think you raise a perfectly valid point. Of course asset market values are directly related to total acquisition costs. Your offer was placed on one set of costs, now things have changed.

Markets often go up or down between offer and completion. We know gazumping and guzundering occurs, but most find this somewhat questionable.

happylucky wrote: »

Over 2M, I don't think it will be such a big deal, this buying group are much less likely to care about 50 or 100K here or there...it's the 1-2M band that will be hit hardest and so you may find that you get much more for your budget if you can hold off buying for a bit.

True, but in this particular example, the additional duty is only 2.5 % of the value of the property. Which is probably equivalent to the quarterly growth price in many areas.

Cissi

happylucky wrote: »

Over 2M, I don't think it will be such a big deal, this buying group are much less likely to care about 50 or 100K here or there...it's the 1-2M band that will be hit hardest and so you may find that you get much more for your budget if you can hold off buying for a bit.


Just my humble opinion. Good luck to you.

Totally agree! FWIW we bought for 1.25M in 2005 and were seriously at the top of our budget - at the time, if anyone had suggested that we'd need to pay another £50k we'd have had to pull out. I know we're incredibly lucky and am certainly not looking for sympathy - even though our current valuation of 1.99 M puts us in about the worst position of anyone in the country, an increase of 53%.


But yes, people in the £1M-£2M band are likely to care very much about £50k here or there and so I expect to see a lot of deals falling through in the near future... And I'm very happy that we're in our "forever home" and not looking to move...

kinger101

suicidebob wrote: »

You claim you're putting your own money into the system. I take it you didn't create it out of thin air....

Surprised such simplistic logic appeared to go right over your head...

This is a thread about buying, renting and selling houses. It's not a forum for discussion of socioeconomics (or envy dressed up as such). Other fora exist for these purposes.

kidmugsy

tonyinessex wrote: »

Stamp Duty I have to pay has gone from £100,000 to £153,000.

Bad luck, old boy. In your shoes I'd re-open negotiations.