The government will now GIVE you 20% of your deposit

JasonLVC

luckbox wrote: »

Will this cause a slight stagnation in the lower end of the market where people with enough deposit to buy today, thinking, hold on a few more months and we have a chance of 3K more.

I think developers are likely to increase their prices on the basis that the buyer will have additional "free" money to invest in the property.

Whenever government offers a subsidy, it is absued and the benefits lost. For example, warm home grants to insulate your home, government gives you money but restrict you to certain suppliers who whack up their prices. We saw the same with solar panels and FITs where the supplier knew you'd be getting £x per annum back in FIT income and so they just whacked up the price. Strange that as the FIT got reduced, so did the cost of fitting solar panels.

The same happened with child care vouchers, now it costs more to put your kid into care for the day than it is to fly to Italy for a weekend. Why, becuase the providers know your not paying the whole bill.

I see the same with property developers, someone earning the £3k extra from the government. Developer can put up their sale price by £3k but as the customer only needs 10% deposit, the customer can still afford the more expensive house as its only reqally an extra £300 deposit from the buyers perspective, but the developer gets £3k more for the property.

JasonLVC

New Flexible ISA


What do you call an ISA where you can put money in and take money out as often as you like.....a savings account.

stator

JasonLVC wrote: »

I think developers are likely to increase their prices on the basis that the buyer will have additional "free" money to invest in the property.
...
.

The car scrappage scheme also massively increased the prices of old used cars. Law of unintended consequences

ziggycj

fc123 wrote: »

...so am I understanding this correctly...you can't just move 12k already saved into this account and get the 3k?
You can only save £200 pcm?




You save, say, £500pcm but would only get £50 pcm added?


I must be fick as I don't see how it works.
Does that mean you have to hold it for 5 years to get the full 3k?

Yes. You can't do lump sums. The max per month is £200. The max bonus per moth is £50. It will take 5 years to get the full bonus.


TBH, it's not really that good. But I see it a 25% interest rate on a monthly saving account. From that perspective, this is great.


It is aimed at late teens/early twenty's. It isn't worth waiting for it if you are planning on buying within the next year or two. I'm not sure what impact £3000 (or even £15000) is going to really make in 5 years though.

setmefree2

ziggycj wrote: »

It is aimed at late teens/early twenty's. It isn't worth waiting for it if you are planning on buying within the next year or two. I'm not sure what impact £3000 (or even £15000) is going to really make in 5 years though.

It could be a great way to help your kids.

The limits might well go up over the years if they're popular.

You have to be 16 to have one.

stator

setmefree2 wrote: »

It could be a great way[STRIKE] to help[/STRIKE]for the taxpayer to help your kids.

Fixed it

setmefree2

stator wrote: »

Fixed it

Hey. I don't make the rules.:)

Graham_Devon

cells wrote: »

anyone who waits for this max £3k 'gift' will probably find that the house has gone up by more than the gift

Exactly, hence why I said probably not worth it.

Alright if you are saving a deposit anyway, might aswell get some free cash (so long as you are not then confined to a HTB product when buying). But doubt many will benefit from the full 3k.

Sounded good initially though (if you ignore the absurdity of it). Guess that was the point.

Killerseven

So what has the title got to do with this £3000 after 5 years of saving £200mnth?

How is the gov giving you your 20% deposit? Are you talking about buying a house for £60K in 5years time? That would make the gov giving you £3K the 20% deposit if an average house will be £60K by then.

setmefree2

Graham_Devon wrote: »

Sounded good initially though (if you ignore the absurdity of it). Guess that was the point.

I don't think it'll make the young forget about student loans. They still won't get their vote is my guess.