Harder now for 1st time buyers?

ukcarper

Boler1985 wrote: »

It's cant go on like this then. Something has to change. Why for example is a house you live in exempt from capital gains tax. I know the argument against is that people wouldn't sell because thay'd have to pay huge tax payments but I'm not sure hats true. Just thinking out the box here.

Maybe I'm wrong and the younger generations always get screwed over by the older.

You are, consider someone downsizing. I've been in my house 30years in that time the price has increased £300k so if I sold I would have to pay £56k in tax so what would be the point of downsizing that plus moving fees would mean I'd need a mortgage if I downsized.

ukcarper

I'd say in London it's probably the hardest it's been, but it's been hard in the past I couldn't afford to buy in London in the early 70s but prices were high then not as high as now but a lot higher than 20 years ago.

Bluebirdman_of_Alcathays

ukcarper wrote: »

You are, consider someone downsizing. I've been in my house 30years in that time the price has increased £300k so if I sold I would have to pay £56k in tax so what would be the point of downsizing that plus moving fees would mean I'd need a mortgage if I downsized.

Why would you have to pay £56k in tax?

littlegreenfrog_2

always_sunny wrote: »

A professional couple in London should be able to bring home £100k combined, there are plenty of 1bed that are less than 4x this amount. Not in Zone 2 but surely in Zone 4+ within 30 min of central London....

First of all, that still requires both people to be earning almost twice the average wage. Sure, it's do-able if you're both professionals, but unless you are exceptionally lucky and talented and go into a very well-paid career, you're likely to be a good few years out of uni before you start earning that kind of money. And if you're earning quite a lot less than that AND paying off your student loan AND renting in London, you won't have that much disposable income from which to save a deposit.

So perhaps if you're in a couple and both of you have high salaries, you might be able to buy a one bed flat for £400k by the time you're 30. And then what? Have a child? But you live in a one bed flat. Whoops.

And that's before you consider the fact that not everyone is in a relationship or able to buy jointly with someone else. So single people are effectively doomed to be renters forever, and people in unhappy relationships who have bought a place together will effectively not be able to afford to break up.

I come from quite a middle class background and my mum worked part-time on a very low salary. My dad's salary effectively supported the whole family. He was just a normal, reasonably well-paid office worker, not a CEO. That would never happen now.

littlegreenfrog_2

ukcarper wrote: »

You are, consider someone downsizing. I've been in my house 30years in that time the price has increased £300k so if I sold I would have to pay £56k in tax so what would be the point of downsizing that plus moving fees would mean I'd need a mortgage if I downsized.

What tax? You don't pay capital gains tax when you sell your primary residence.

[Deleted User]

My wife and I are mid-30s, we get by on 1.5 income, but when we bought our first home 9 years ago we needed a double salary.

House prices where we bought are almost 50% higher than when we first bought; and I doubt salaries have gone up like that - so I'm rather sure things have got considerably harder.

All these government schemes only go to fuel prices. They've not stimulated house building like they were meant to. London and the South East needs to either expand, or build upwards.

greensalad

littlegreenfrog wrote: »

What tax? You don't pay capital gains tax when you sell your primary residence.

That's the point they're making. If they had to pay CGT they wouldn't move.

ScorpiondeRooftrouser

littlegreenfrog wrote: »

What tax? You don't pay capital gains tax when you sell your primary residence.

He is replying to someone suggesting that you should.

ScorpiondeRooftrouser

ringo_24601 wrote: »

All these government schemes only go to fuel prices. They've not stimulated house building like they were meant to. London and the South East needs to either expand, or build upwards.

Like all these Tory schemes, they do precisely what they were meant to. Fuel house prices and result in increased profits for big house builders.

ukcarper

Bluebirdman_of_Alcathays wrote: »

Why would you have to pay £56k in tax?

As far as I understand capital gains tax is 18% for a standard rate tax payer but I'm not 100% sure.