Debate House Prices
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The Next Nail in the Coffin
Comments
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chucknorris wrote: »TBH I'm not sure who is right between you and cells, ATM I now slightly on the side of cells, in that it is merely a tax grab.
Everyone seems to overlook the loss of the wear and tear allowance, believe me, that was significant.
But I don't think that many existing landlords will suffer, those that do, well it is unfortunate for them, but that is the risk that they decided to take on (or overlooked). But I don't think the picture is all that bleak for most existing landlords, but as a soon to get out landlord, I don't include myself in that group (although my wife is).
Another factor missed I think is that prices could go down (or not rise as much as they would have) but instead of that leading to landlords selling to owners it could just lead to landlords selling to landlords at lower prices.
During the crash on 2008-2011 in hackney there was no increase in owner buying. Landlords bought off other lanords as they did before the crash during the crash and after the crash.
So even if the tax changes cause prices to be lower I think that's just going to be for the advantage of future labords and the government at the disadvantage of current landlords.
For the mix of rentals to owners to change we need under building for rentals to grow and overbuilding for rentals to shrink. For the mkx to rentals to owners to change we need easy lending for owners to increase or right lending for rentals to increase.0 -
Depending on your local market and the type of property you may have to sell to a landlord. Or maybe I should say that in some parts landlords are the market. In Hackney I would guess some 80% of transactions are between landlords and depending on the exact part of Hackney and type of property it probably increases towards 99%. If landlords were taken out of the market the clearing price would almost certainly be lower.
I think this applies to most of zone 2.
Of course there would be quite a big impact on the composition of the households on such areas were tenants living 4 wage earners to a property displaced by owner couples living 1.5 wage earners to a property.
So of it happens expect the trains and busses to be a lot more full as the 4 workers on z2 and 1.5 workers in z4 trade places
The properties that I will be selling will be flats in Battersea, the current values vary between £460k and £500k, I think they are ideal for first/second time buyers to purchase.
I have set my criteria for selling, and that is based on income, not capital values. Unless my circumstances change, I will sell up when the base rate gets to somewhere between 2 and 2.5%. The circumstances that would change my mind would be if my health or life expectancy deteriorated, or the base rate stayed lower for more than 5 years, or if I become aware of a new profitable opportunity for the equity.Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop0 -
Crashy_Time wrote: »Which just reduces the quality of life for people like Paddington as London becomes ever more flooded with migrants. The boomers who own outright and the young who can`t get a job are going to vote for a Brexit leaving the over-leveraged bubble borrowers high and dry I`m afraid. :rotfl: Only a total moron would applaud ever higher houses prices as their city becomes a holding area for ever more desperate economic migrants.
Your benefits loving Scottish living a*se was saved by free market London after the oil crash. You should be kissing London's backside for saving yours, not whining.
London is the worlds most popular capital city.
Anyone that invested in London property, which includes many, many Londoners are now in a position to fund innovation or travel the world or simply enjoy themselves more than ever in the whole history of the United Kingdom
Could it get any better ?
I don't think it could. There are downsides of inequality caused from new found riches.
I think it's fair to say it's an inevitable problem to this new economic situation.
I don't disagree, that we need to build houses, change planning laws and generally allow new land to compete with old land.
However from where we were, it's a nice problem to have.Proudly voted remain. A global union of countries is the only way to commit global capital to the rule of law.0 -
yeh screw it, im buying. need a place to live and i can see myself living in highgate for a very very long time.0
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If you think its as simple as a landlord selling to their tenant at whatever the tenant has in their bank account you've a long time waiting
This is of course not what I said at all. you have (probably rightly) picked up on the idea that there is a mismatch between how potential owner occupiers can fund purchases relative to how potential BTL purchasers, and that this mismatch is driving the move from owners to renters.
However, you appear to take the view that the only way to solve this mismatch is to loosen lending for owner occupiers until the gap disappears. This is simply not the case. You can equally address the mismatch by effectively dampening BTL demand through tax and regulation. The last three budgets have all announced measures that could be seen as a start on this journey, and the idea of more regulation of BTL mortgages continues the process.
Whether the above will dampen BTL demand enough to level the playing field is doubtful, and imho there is likely be a limit to how far Government and regulators will go to do so. But to suggest that it isn't at least possible to reduce the attractiveness of BTL to the point where landlords are effectively dissuaded from entering the market is simply wrong.0 -
Your benefits loving Scottish living a*se was saved by free market London after the oil crash. You should be kissing London's backside for saving yours, not whining.
London is the worlds most popular capital city.
Anyone that invested in London property, which includes many, many Londoners are now in a position to fund innovation or travel the world or simply enjoy themselves more than ever in the whole history of the United Kingdom
Could it get any better ?
I don't think it could. There are downsides of inequality caused from new found riches.
I think it's fair to say it's an inevitable problem to this new economic situation.
I don't disagree, that we need to build houses, change planning laws and generally allow new land to compete with old land.
However from where we were, it's a nice problem to have.
:rotfl:Too funny, London is benefits city bar none. Take HB out of the picture and London is toast. Even many of the Londoners that manage without tapping the tax payer have to commute and work all day long just to stay ahead of the debt monster. They would have as much quality of life signing on with a free council house in Fife or somewhere, at least they could breathe clean air once in a while :rotfl:And FYI the last time I claimed any benefits was in the 1980`s, how many of your fellow commuters in London can you say that about?0 -
chucknorris wrote: »The properties that I will be selling will be flats in Battersea, the current values vary between £460k and £500k, I think they are ideal for first/second time buyers to purchase.
I have set my criteria for selling, and that is based on income, not capital values. Unless my circumstances change, I will sell up when the base rate gets to somewhere between 2 and 2.5%. The circumstances that would change my mind would be if my health or life expectancy deteriorated, or the base rate stayed lower for more than 5 years, or if I become aware of a new profitable opportunity for the equity.
When the base rate gets to 2.5% no FTB will be giving you half a mil for a flat in Battersea. With every day that passes your chances of netting a mug punter diminish.0 -
Crashy_Time wrote: »When the base rate gets to 2.5% no FTB will be giving you half a mil for a flat in Battersea. With every day that passes your chances of netting a mug punter diminish.
You may be right, but to be fair to Chuck his record on doing well from the market stands up well (probably a tad better than yours if we're being honest . . . .or indeed mine for that matter!). I think I'd expect him to make a better job of timing his departure well than you or I would0 -
i think theres a lot of luck involved with what Chuck did. nothing smart about buying properties to let at the start and during the biggest real estate boom in uk modern history.0
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You may be right, but to be fair to Chuck his record on doing well from the market stands up well (probably a tad better than yours if we're being honest . . . .or indeed mine for that matter!). I think I'd expect him to make a better job of timing his departure well than you or I would
Not so sure about that, he seems to have bought some BTL`s in the 90`s and rode the recent credit boom to the point where he can`t really decide what to do from one day to the next, stay in, cash out, stay in, cash out, depends on this depends on that etc. Hardly Warren Buffet like timing skills IMO (No offence Chuck) My opinion is that he hit the Mother lode kind of by accident but somewhere along the way got gold fever, he thinks the mine might keep producing, but I think he should get out before all the other little "market timers" start to doubt their own financial genius.
Of course if there is some posted evidence of his real market timing genius that I have missed I will take all that back...:rotfl:0
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