Boris pledge to offer 30% discount to local first time buyers?

MobileSaver

The-Joker wrote: »

The big question is how long do you have to wait until your allowed to put it back on the market andpocket the 30% profit?????

You wait forever as you never get to pocket the discount.

As has been explained on several occasions, the proposal was for the discount to remain "in perpetuity" so when you come to sell you have to offer the next local keyworker buyer the same "30% discount."

AG47

MobileSaver wrote: »

You wait forever as you never get to pocket the discount.

As has been explained on several occasions, the proposal was for the discount to remain "in perpetuity" so when you come to sell you have to offer the next local keyworker buyer the same "30% discount."

The government will keys own 30% of all these properties

But the people who live can still live in all the property without having to pay rent on that 30%

Some people do part ownership with a company and still have to pay rent on the percentage that they don’t own

So this is a great scheme

MobileSaver

AG47 wrote: »

The government will keys own 30% of all these properties

Do you have any evidence of that or did you just make it up? I have not seen any suggestion that this proposal was about shared ownership.

AG47 wrote: »

So this is a great scheme

If it ever happens I suspect it will be only be available to a very small number of people in a limited number of areas with the least desireable properties.

While the headline "30% discount" sounds great I further suspect that these houses will have somewhat inflated prices to begin with so that no-one ever gets a real 30% discount on a similar property they could buy outside the scheme.

Apart from the obvious only being able to sell to another local keyworker in the future (and giving them a 30% discount), I also think there may be other onerous terms and conditions involved such as not being able to rent the property out to a tenant.

So while this will allow some people to get on the property ladder rather than pay rent for the rest of their lives like Crashy Time, I don't think it will be quite the nirvana that the HPC crowd have been hoping for.

lisyloo

I am am currently interested in the IR35 news.
For those unaware (and it’s not mainstream news) this is new legislation to stop freelancers having ltd companies and make them pay tax & NI.
The morality of that is another discussion but some have expenses like accommodation and don’t get employment rights in return,

The budget is not now until March 11th and the exact implementation is unclear giving companies and contractors very little time to sort our employment contracts and in some cases rental contracts (by next tax year in April).
As a result some people are losing their contracts and some companies are offshoring jobs rather than take the risk of getting complex tax decisions wrong. The is in many cases resulting in less tax take for HMRC.

The government promised a review.
What we are getting is a consultation of the implementation and not a proper review of the legislation.

Many freelancers feel let down by the promise for a review.

The relevance I would hope is obvious but if not it’s about the tories failing to keep election promises by paying Lip service.
This is a widely held view you can find by searching #ir35 not only my opinion.

Sapphire

lisyloo wrote: »

I am am currently interested in the IR35 news.
For those unaware (and it’s not mainstream news) this is new legislation to stop freelancers having ltd companies and make them pay tax & NI.
The morality of that is another discussion but some have expenses like accommodation and don’t get employment rights in return,

Not sure what is meant by this. I am freelance and pay tax, though some freelancers' expenses are deductible from earnings. Seems like a fair enough system.

I'm not a limited company, though – I understood that some people were getting limited company status to avoid paying tax?

lisyloo

Sapphire wrote: »

Not sure what is meant by this. I am freelance and pay tax, though some freelancers' expenses are deductible from earnings. Seems like a fair enough system.

I'm not a limited company, though – I understood that some people were getting limited company status to avoid paying tax?

The main point was tories not keeping election promises at least not how most people expected (most expected a review of legislation and are getting a consultation of the implementation).

This is a very basic summary
Contractors using a limited companies can pay themselves (and other directors e.g. spouse) via dividends which have an additional 0% tax band and basic rate of 7.5%
I.e. there are significant tax breaks.
HMRC (to some extent justifiably) want those who work 9-5, take no significant risk and do what their employers tell them to do, to stop having these tax breaks (very simplified as the determination is legally complex and depends on the legal contract and working practices).
All good so far.
The complaints are
1) there are no employment rights e.g. sick pay, paid holidays, in return for paying employee taxes
2) some contractors are economically mobile and have significant expenses e.g. accomodation away from home. In general expenses are not deductible (again this is a massive simplification).
3) the biggest complaint is that the budget is Mar 11 and the changes are going through April 6th so currently there is no sight of the legislation which makes it very difficult for employers to make a determination. The big change is that employers now have to make the legal determination of status rather than individuals and are proving to be much more risk averse especially when dealing with hundreds of contracts e,g, making blanket determinations,

Consequently a lot of companies are not using contractors at all or not using the type with ltd companies.. Consequently some contractors are leaving the U.K, taking early retirement, or going permanent and paying a lot less tax on a much lower salary. Some jobs have been offshore which is not good for UK plc. Others will end up unemployed.

Personally My main objection is 3) the very delayed and unclear implementation and not the nature of the changes.
We have a rental contract coming up whilst the work contract situation is uncertain. It would be a real pain to have to move out For a period but this is the impact on people’s lives of legislation going through less than a month before the actual implementation.

Again the main point in the context of this thread is that the tories are not doing what most people thought they were promising. I’ve been careful how I worded that because there is an issue of interpretation/expectation.
You might think “30% discount” is crystal clear, but we all know what RRP means right? A price that hardly anyone ever pays being used as a benchmark.

snowqueen555

It certainly shows the mentality of the general public when the discussion is when/whether they can make 30% profit on the house like with right to buy.

A lot of people are just looking for a home, I would get a flat on a discount and not expect to keep profit on that 30% discount.

lisyloo

snowqueen555 wrote: »

A lot of people are just looking for a home, I would get a flat on a discount and not expect to keep profit on that 30% discount.

Would you be prepared to have an inflatedly priced new build and lose any negotiating power in order to get on the market?

I can see the appeal, but it’s never been the cheapest way to go.
The cheapest way has always been to buy something a bit run down and do it up over time.

snowqueen555

Depends where you are, but 30% off a new build 1/2 bed flat would make it a very decent deal compared to the cheapest 1/2 beds here. New builds are probably around 25% premium.

Would you be prepared to have an inflatedly priced new build and lose any negotiating power in order to get on the market?

It isn't ideal but I imagine there would always be a demand for discounted housing.

The shared ownership scheme is flawed, I would see that above option as a better prospect.

lisyloo

Ok, yes I’m sure it would benefit some if it happens.
Personally I am sceptical that it might not happen at a all, could be very low supply or not fully as described e.g. off inflated asking prices not the usual sale prices or have extensive criteria.
There are loads of examples of this with election promises.
I wouldn’t want to be pinning my hopes on this exclusively and I’d like to think I’d have another plan of action.