Buy now or wait till BREXIT

steampowered

PhilE wrote: »

Have a look at their Inheritance Tax. Its going to affect lower income people. Work hard to pay of your mortgage all you life, paying bank interest rates. You want to leave your house to your kids and unless they have thousands of pounds you can't.

So Labour will be increasing tax for lower income people, and forcing young people to get more into debt, paying of mortgages on houses they can't leave to their kids.

I'm sorry but what are you on about?

The current government increased the inheritance tax threshold to £325,000 per person or £650,000 for a married couple (while offsetting that by increasing VAT and national insurance).

There was a suggestion that Labour might want to reverse that increase, i.e. back to where it was, a maximum of £425,000 for a couple. Though that didn't make it into the manifesto so it is difficult to know whether it would have been implemented or not.

I'm not sure what universe you are living in where £425,000 of tax free cash with amounts above that being subject to IHT is a tax on "lower income people". VAT and NI on the other hand ...

Lurkingtoposting17

As someone who has a lot of friends in rental, saving for a deposit I can honestly say that with first time buyer properties, if property prices dropped 10-15% demand would increase very quickly and the deposit contribution needed for FTB which is onerous, especially in the south, would come down.

I also think most buyers are factoring in Brexit to their plans when offering and making offers lower than asking price. In my area in the south east prices are stagnant or 1 or 2 % lower.

The truth is, desirable properties won’t come on to the market in a down turn in many cases. People will hold onto them unless they need to sale. People who don’t need to sell, but need more space will extend and stay put, my father who is in the building trade sees a lot of this at times of uncertainty.

I personally am putting down a larger deposit, keeping more in surplus and negotiated hard in an area with a regeneration plan in place for the next 5 years. I see this as a 5-10 year property depending on how life pans out. I got 3% off what similar properties have sold for in the last 2 years so I feel I have put myself in a good position with a low interest rate mortgage fixed for five years.

I don’t really understand what people expect to happen on 30th March?! Are you expecting thunderclaps and all properties on Rightmove miraculously being lowered 10-15% overnight because the “thing” we have known for two years will happened, and have planned and prepared for has happened?? The logic seems flawed to me.

diggingdude

Lurkingtoposting17 wrote: »

As someone who has a lot of friends in rental, saving for a deposit I can honestly say that with first time buyer properties, if property prices dropped 10-15% demand would increase very quickly and the deposit contribution needed for FTB which is onerous, especially in the south, would come down. .

sadly with dropping house prices, the availability of cheap mortgages i would predict would drop

middleclassbutpoor

steampowered wrote: »

I'm sorry but what are you on about?

The current government increased the inheritance tax threshold to £325,000 per person or £650,000 for a married couple (while offsetting that by increasing VAT and national insurance).

There was a suggestion that Labour might want to reverse that increase, i.e. back to where it was, a maximum of £425,000 for a couple. Though that didn't make it into the manifesto so it is difficult to know whether it would have been implemented or not.

I'm not sure what universe you are living in where £425,000 of tax free cash with amounts above that being subject to IHT is a tax on "lower income people". VAT and NI on the other hand ...

There is a residential nil rate band on top of this.

By 2021 a married couple could have £1m estate before they pay inheritance tax...

martin1959

People seem to think that Prices may fall after brexit, but the opposite could well happen.

One of the reasons there is uncertainty in today’s market is not knowing what kind of Brexit we will get, and house prices have dropped or stayed stagnant because of this. Most people appear to be fearful of the worst happening with rationing being reintroduced!

So those putting off buying in case prices drop could be in for a shock....

If the Brexit deal improves pre March, or when we exit the Planet does not stop revolving, then there could be a surge of purchasers making up for lost time, which may see prices increase......

.......so actually NOW could be the best time to buy......

Homersimpson

20 years ago some people were saying house prices would crash, I looked at one for 65K and chickened out (would now be worth around 140K.

10 years ago they said the same I bought one for 130K which I spent 50K doing up (new roof etc.). Its now worth 270K according to what others in the road have sold for.

My advise is buy when you want/need to and don't worry about massive crashes that will almost certainly never come and if they do the prices will eventually climb back up again.

As long as your looking for somewhere to live and not a quick buck it doesn't really matter and you will find next year that people are predicting prices will drop for some other reason.

All I can say is if I had listened to that advice I couldn't afford to live in the house I live in now.

The reality is that if my house halfed in value overnight its no skin off my nose, I can't sell it as I need somewhere to live, if I did need to sell it to buy a bigger one it would also have dropped so its all relative.

I can see why your concerned but no one can predict what the future will hold but if this time next years prices have gone up 5k won't you be kicking yourself whereas if they drop 5k you might be a bit cross but will have a nice house that you don't need to sell (the 5K loss only becomes real if you sell).

Crashy_Time

Homersimpson wrote: »

20 years ago some people were saying house prices would crash, I looked at one for 65K and chickened out (would now be worth around 140K.

10 years ago they said the same I bought one for 130K which I spent 50K doing up (new roof etc.). Its now worth 270K according to what others in the road have sold for.

My advise is buy when you want/need to and don't worry about massive crashes that will almost certainly never come and if they do the prices will eventually climb back up again.

As long as your looking for somewhere to live and not a quick buck it doesn't really matter and you will find next year that people are predicting prices will drop for some other reason.

All I can say is if I had listened to that advice I couldn't afford to live in the house I live in now.

The reality is that if my house halfed in value overnight its no skin off my nose, I can't sell it as I need somewhere to live, if I did need to sell it to buy a bigger one it would also have dropped so its all relative.

I can see why your concerned but no one can predict what the future will hold but if this time next years prices have gone up 5k won't you be kicking yourself whereas if they drop 5k you might be a bit cross but will have a nice house that you don't need to sell (the 5K loss only becomes real if you sell).

20 years ago was the START of the bubble, 10 years ago was the START of the bailouts to try and prop up the global debt bubble (property was a beneficiary of this global bailout program, if that is the right term for something that has become so socially/politically damaging) To compare then with now isn`t really a great idea if you are thinking of borrowing large sums of money IMO, especially when one of the main CB`s seems hell bent on raising rates.

Crashy_Time

martin1959 wrote: »

People seem to think that Prices may fall after brexit, but the opposite could well happen.

One of the reasons there is uncertainty in today’s market is not knowing what kind of Brexit we will get, and house prices have dropped or stayed stagnant because of this. Most people appear to be fearful of the worst happening with rationing being reintroduced!

So those putting off buying in case prices drop could be in for a shock....

If the Brexit deal improves pre March, or when we exit the Planet does not stop revolving, then there could be a surge of purchasers making up for lost time, which may see prices increase......

.......so actually NOW could be the best time to buy......

The property market has stalled with tumbling transaction figures because house prices are too high, not because of Brexit which has had very little real effect so far IMO. Politicians will of course blame all bad economic/property news ON Brexit, but this doesn`t mean it is so, the property market runs mainly on the availability and price of credit.

AnotherJoe

sevenhills wrote: »

The UK stock market was higher in April 2015 than it is today, that is a very poorly performing stock market, they said a lower value of Sterling would increase it.

"They" may have said that a lower value of sterling would lift some UK shares. And "they" would be right. However that lift happens on top of whatever the market is doing and worldwide markets have crashed in the past few weeks. Its like saying that if you throw ballast out of a hot air balloon basket it will rise. True in isolation, but if theres a whacking big hole in the balloon canopy, then it will just fall slower.



If Sterling had performed better, the UK stock market would be even worse than it is now.

AnotherJoe

Crashy_Time wrote: »

The property market has stalled with tumbling transaction figures because house prices are too high, not because of Brex which has had very little real effect so far IMO. Politicians will of course blame all bad economic/property news ON Brexit, but this doesn`t mean it is so, the property market runs mainly on the availability and price of credit.

Rubbish. Brexit has had a massive effect on sentiment. And sentiment and credit availability both drive house prices. Credit hasnt suddenly dried up in the last few months. But the uncertainty around Brexit has ramped up to 11.