Suggestions for Osborne's July budget

padington

Doubling the lodger allowance and limiting the BTL tax advantages will allow homeowners to compete with professional landlords.

I do applaud the move, it re-sets a more level playing field.

I will however have to reconsider my new purchase offer quite substantially. This will certainly take the wind out of the sails of the property market in the short term.

It needed it though, it's no bad thing.

UK property is now more a safe hedge against head winds that can earn homeowners a nice side income, rather than a roaring speculative investment.

Electorally very clever.

I now expect property to rise much more in line with wages from here on in.

chucknorris

padington wrote: »

Doubling the lodger allowance and limiting the BTL tax advantages will allow homeowners to compete with professional landlords.

I do applaud the move, it re-sets a more level playing field.

I will however have to reconsider my new purchase offer quite substantially. This will certainly take the wind out of the sails of the property market in the short term.

It needed it though, it's no bad thing.

UK property is now more a safe hedge against head winds that can earn homeowners a nice side income, rather than a roaring speculative investment.

Electorally very clever.

I now expect property to rise much more in line with wages from here on in.

I think you have read this wrong, he hasn't made it easier for owner occupiers (not many buyers want to rent (let) a room, although I accept it might start a sub-culture of those that actually do it). Also it is going to put upward pressure on rents, and therefore harder to save a deposit for the FTB. I'm seriously thinking that very soon might be the time to sell up, all of my properties are in London, where I think there is probably a higher % of investment properties (does anyone know?). I think the changes are going to dampen investment and therefore dampen HPI, not so much now, but when rates get higher.I think in real terms we are near the top anyway. It might be the time to look at selling up (at least partially). Dampening house prices will of course make it easier for those wanting to buy or trade up.

Where to put the equity though? Unfortunately dividend income has just been hit as well. It is maybe time to look harder at something that I have often thought about, building a reasonably expensive house every 4-5 years, so live in it for up to 4 years and then do it again.

The other side of this is that it is going to increase rents, as remaining landlords look to recover (maybe only partially) additional costs, and also some landlords selling, and less landlords entering the market.

padington

It's going to encourage Britain to become innovatative and invest in its own ideas and own innovations.

That really is a very welcome move.

Any dampening of the market will be immediate I imagine, I for one shall be cutting my BTL offer now and happy to work towards a web idea I've been sitting on should the offer fall through instead.

However going forward a couple of years, increases in wages will keep the market buoyant ( and temper the BTL depression ) as homeownership will increase across the board. Workers will increasingly look at buying value property as the wages increase & the benefit of getting a lodger side income looks better.

I agree about renting, those that get stuck having to play that game are going to get royally shafted.

If you are currently renting and have any wherewithal, move to a place you can afford and buy a roof over your head before it's too late. Now is the best time to do that as the BTL properties are getting off loaded and before the homeownership franchise increases much more, as it now will.

Also Britain should now start to develop more solid businesses ( as those with wealth stop playing just monopoly and start actually making their own games to sell) , placing UK in a stronger position.

Lots to play for now and suddenly more than one game to play.

Generali

Wild_Rover wrote: »

Oh, sorry, I hadn't realised that I was only allowed to post ideas for CUTTING tax on a thread about "options" for the budget.

WR

I just found it interesting that so many people would like others to pay more tax. Not themselves of course, other people should pay.

I suppose that is quite MSE.