You are stupid if you buy a house now and you're under 40 (or wait for £60k - £100k)

moneyistooshorttomention

First thought = the builders will find a way to make sure they are the ones getting any subsidy going (eg by charging more for the house in the first place).

marksoton

Eye2013 wrote: »

Where are you suggesting my OP is wrong ?

Try reading the link properly.

tomtontom

Eye2013 wrote: »

Where are you suggesting my OP is wrong ?

The market price is set by the builder, so any discount is based on their overinflated price. In fact I'd say doubly inflated, new build prices are already inflated compared to older properties, and then the builder is free to set an even higher price to massage their profits/ market trends further. Added to which the builder has already benefitted from discounts in their actual cost of building the property.

Would you seriously recommend this as a good deal to someone?

[Deleted User]

Ok OP, lets say you're right and the scheme is as you say it is (which it's not). Where exactly do you think the government going to get all the money for these subsidies?

Eye2013

Deleted_User wrote: »

Ok OP, lets say you're right and the scheme is as you say it is (which it's not). Where exactly do you think the government going to get all the money for these subsidies?

It will usually be paid for by the developer/landowner through the planning consent process, but there is additional government (ie taxpayers) funding of over £1.2bn (yes that's right!) going to local authorities to help delivery. See https://www.gov.uk/government/publications/starter-homes-unlocking-the-land-fund
And a further £1bn is also proposed.
George Osborne is spending billions on inflating the housing market in a time of austerity because he thinks high house prices are a sign of economic virility, and to pass on subsidies to house buying voters !
This is one reason why the Bill had a tough time going through the House of Lords.

Eye2013

tomtontom wrote: »

The market price is set by the builder, so any discount is based on their overinflated price. In fact I'd say doubly inflated, new build prices are already inflated compared to older properties, and then the builder is free to set an even higher price to massage their profits/ market trends further. Added to which the builder has already benefitted from discounts in their actual cost of building the property.

Would you seriously recommend this as a good deal to someone?

To be eligible the market valuation will usually be set by an appropriately qualified surveyor not the builder, but yes as said above some new builds do already have inflated prices.
Yes I would recommend this !
But I feel I am failing to convince a cynical audience !

[Deleted User]

Eye2013 wrote: »

It will usually be paid for by the developer/landowner through the planning consent process, but there is additional government (ie taxpayers) funding of over £1.2bn (yes that's right!) going to local authorities to help delivery. See https://www.gov.uk/government/publications/starter-homes-unlocking-the-land-fund
And a further £1bn is also proposed.
George Osborne is spending billions on inflating the housing market in a time of austerity because he thinks high house prices are a sign of economic virility, and to pass on subsidies to house buying voters !
This is one reason why the Bill had a tough time going through the House of Lords.

So you think its fair that taxpayers money should be used for people to, in your words - "Sell the house and use the profit to trade up, or sell and buy a Lamborghini !"

tomtontom

Eye2013 wrote: »

To be eligible the market valuation will usually be set by an appropriately qualified surveyor not the builder, but yes as said above some new builds do already have inflated prices.
Yes I would recommend this !
But I feel I am failing to convince a cynical audience !

Will it, where does it say that? The property will need to be valued for mortgage purposes, but that will be based on the "discounted" price not the full value - this is not a deposit replacement scheme.

If you think it's such a great idea then go ahead and buy one for someone. We'll be happy to hear your update in five years time

Eye2013

Deleted_User wrote: »

So you think its fair that taxpayers money should be used for people to, in your words - "Sell the house and use the profit to trade up, or sell and buy a Lamborghini !"

No, I don't think its fair. But its happening. Its government policy.

kelpie35

Deleted_User wrote: »

Ok OP, lets say you're right and the scheme is as you say it is (which it's not). Where exactly do you think the government going to get all the money for these subsidies?

Maybe from the money they will save if we leave the EU :rotfl: