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

DannyGold

Crashy_Time wrote: »

Brexit will be an additional driver (down) of prices and rents IMO.

Absolutely

The 30% discount will be off the already lower prices due to brexit chaos

The-Joker

epinjy wrote: »

it would push house prices up as the affordability baseline now gets closer to 70% instead of full value.

It’s amazing how some perma prop bulls can spin this😂😂😂😂

There is no way that 30% discount would have n effect of actually pushing prices up???

snowqueen555

The-Joker wrote: »

It’s amazing how some perma prop bulls can spin this��������

There is no way that 30% discount would have n effect of actually pushing prices up???

Any scheme that makes unaffordable houses more affordable is propping up prices. We need market prices to fall but that is never going to happen, so all these schemes are only hurting us in the long run.

The-Joker

snowqueen555 wrote: »

Any scheme that makes unaffordable houses more affordable is propping up prices. We need market prices to fall but that is never going to happen, so all these schemes are only hurting us in the long run.

Not all schemes are keeping the bubble inflated

This 30% discount can be used in conjunction with the 40% HTB interest free loan which means 70% you don’t have to pay yourself.

With a 5% deposit you only need a small mortgage for 25% of the rest

This is not propping up the housing markets this is going to make it very difficult for someone next door trying to sell their property even if they keep lowering the asking prices

prowla

Offering one group a 30% leg-up means that everybody else will now be competing against people who have a 30% bigger budget than they do.

snowqueen555

prowla wrote: »

Offering one group a 30% leg-up means that everybody else will now be competing against people who have a 30% bigger budget than they do.

Exactly this

I am also not in favour of right to buy to buy, the highest discounts ranged from 30% for houses and up to 50% for flats. Not sure what it is now, I believe it is capped lower?

Linton

The-Joker wrote: »

Not all schemes are keeping the bubble inflated

This 30% discount can be used in conjunction with the 40% HTB interest free loan which means 70% you don’t have to pay yourself.

With a 5% deposit you only need a small mortgage for 25% of the rest

This is not propping up the housing markets this is going to make it very difficult for someone next door trying to sell their property even if they keep lowering the asking prices

You getting a house cheap which you previously could not afford automatically pushes up the price of all other houses.


Its all very simple. If houses were free everyone in the country would want one or more but there wouldnt be enough houses available. If all houses were priceed at £1M or more there would be insufficient people able to buy to ensure that all of the houses available could be sold. Somewhere between those two extremes there is a price at which the number of people who can afford to buy matches the number of houses available. That is why houses cost what they do.


So you being subsidised to buy a house pushes you up the list of people who can afford it and therefore pushes many other people down the list by 1 place. Therefore prices will need to rise sufficiently to make buying a house unaffordable to one person.

The-Joker

What are the exact details

The devil is in the details

How long do you have to have lived in London to be called a local and be able to buy a new house for 30% off?

Can you you the 40% HTB loan a well so that 70% you don’t need a mortgage for?

John_Smith_2019

The-Joker wrote: »

The question is what affect will this 30% discount have on prices in general?

I wouldn’t like to be a desperate seller near by where others are buying for 30% discount.......

What affect will this have on surrounding properties?????

Will it not lower the average sold prices all round?

I think it would depend on whether the 'desperate seller' was trying to sell a (nearly) new build house or an older house.

In my experience, the new build houses sold by the developers sell for more than the older houses, as the govt is giving the buyer money for the new build.

In the long term, this is about increasing overall housing supply.
In the short term it is boosting house builder profits (though they are still quite cheap on PE ratio and offer high div yield).
But longer term house prices will fall. That may affect the banks to some extent. But they'll probably adapt to to other activities by then.

John_Smith_2019

ruperts wrote: »

Boris' forest of magic money trees just keeps on growing and growing and growing doesn't it.

The irony being, that they don't even need to use paper this time around.