Stamp Duty Ending

SpiderLegs

Crashy_Time said:

SpiderLegs said:

Crashy_Time said:

SpiderLegs said:

Crashy_Time said:

Angela_D_3 said:

Crashy_Time said:

jimmyjammy001 said:

What I find disconcerting is that something like 50% of people have said  they will have to abort their house sale if it goes pass the March deadline, people have spent what they have saved in stamp duty on a house and have absolutely no emergency savings in place to deal with emergency expenses like just in case they don't complete by the deadline, crazy!

But if the seller puts it back on the market again it's unlikely they will get what they wanted pre stamp duty holiday as people will now have less to spend on the house they want and will need to factor in paying the stamp duty. So it could work out buyers haggling with sellers to get the stamp duty equivalent knocked off the price or they pull out. 

Wow, just shows how stretched people really are?

Or how lovely itll be to be able to buy nice things gor the house instead of paying tax with it. 

Im buying a house because i need somewhere to live.  If i pay SD which i can but if i dont thsts £3000 ill send on decor and on lical trades people who in turn will psy tax on that income.  I dont wish to be unkind or rude.  

But inflation is predicted... if thats the case buying was a great idea.  If theres a crash id need more than a 20% deposit so i couldnt benefit anyway.  Theres no risk here.  Id imagine lots of people are in the same situation.  

General inflation will raise interest rates, and that along with other rising costs will make it harder to service mortgage debt, and if there is a crash lending won`t stop (all they have done is try to keep lending since the 2008 crisis!) and it is unlikely that 20% deposits will be required when property prices are coming down?

When do you think interest rates will rise?

When do you think general inflation will rise?

February.

Your turn. When do you think interest rates will rise?

After general inflation rises.

That’ll be February then.
sounds like the Great Depression is upon us.

MobileSaver

mrlegend123 said:

MobileSaver said:

mrlegend123 said:

MobileSaver said:

mrlegend123 said:

1% increase in IRs = 20% drop in asset prices.

Firstly and most importantly the Bank of England report is talking about medium-term real interest rates not the short-term nominal interest rates that the Bank sets.

If mortgage interest rates increase by 1% do you think house prices will drop by 20%?

I do know the difference about 'real' interest rates. My answer is no

Good, I am glad we have cleared up that you were in fact talking nonsense when you said "1% increase in IRs means 20% drop in asset prices."

MobileSaver

Crashy_Time said:

MobileSaver said:

Only a few days ago you were saying BTL was already not worth it [as a business] so how could taxing it more be remotely sustainable for anyone?

Because there are large numbers of people already locked into it.

How are they "locked in to it"? BTL is a business; if they're already making little or no profit then additional taxes will simply cause owners to sell up meaning even less rentals on the market.

Crashy_Time said:

My pension plans are the same,

Presumably your "pension plan" is based on you continuing to pay off your landlord's mortgage while you retire in your bedsit in an undesirable part of town; all the time hoping your landlord isn't forced to sell up causing you to have to move to somewhere new whether you want to or not?

Crashy_Time

MobileSaver said:

mrlegend123 said:

MobileSaver said:

mrlegend123 said:

MobileSaver said:

mrlegend123 said:

1% increase in IRs = 20% drop in asset prices.

Firstly and most importantly the Bank of England report is talking about medium-term real interest rates not the short-term nominal interest rates that the Bank sets.

If mortgage interest rates increase by 1% do you think house prices will drop by 20%?

I do know the difference about 'real' interest rates. My answer is no

Good, I am glad we have cleared up that you were in fact talking nonsense when you said "1% increase in IRs means 20% drop in asset prices."

It would probably result in a 20% drop in transactions which amounts to basically the same?

Crashy_Time

MobileSaver said:

Crashy_Time said:

MobileSaver said:

Only a few days ago you were saying BTL was already not worth it [as a business] so how could taxing it more be remotely sustainable for anyone?

Because there are large numbers of people already locked into it.

How are they "locked in to it"? BTL is a business; if they're already making little or no profit then additional taxes will simply cause owners to sell up meaning even less rentals on the market.

Crashy_Time said:

My pension plans are the same,

Presumably your "pension plan" is based on you continuing to pay off your landlord's mortgage while you retire in your bedsit in an undesirable part of town; all the time hoping your landlord isn't forced to sell up causing you to have to move to somewhere new whether you want to or not?

Who would buy them, and at what price, by your assessment it wouldn`t be other landlords, and certainly not at a premium? And of course a house is still a house even when it stops being a rental house, houses don`t disappear when the landlord disappears?

MobileSaver

Crashy_Time said:

MobileSaver said:

mrlegend123 said:

MobileSaver said:

mrlegend123 said:

MobileSaver said:

mrlegend123 said:

1% increase in IRs = 20% drop in asset prices.

Firstly and most importantly the Bank of England report is talking about medium-term real interest rates not the short-term nominal interest rates that the Bank sets.

If mortgage interest rates increase by 1% do you think house prices will drop by 20%?

I do know the difference about 'real' interest rates. My answer is no

Good, I am glad we have cleared up that you were in fact talking nonsense when you said "1% increase in IRs means 20% drop in asset prices."

It would probably result in a 20% drop in transactions which amounts to basically the same?

I can only assume you were drunk when you wrote that! To suggest transactions will drop by 20% every time mortgage interest rates increase by 1% is absurd even by your standards.

To then suggest that a 20% drop in transactions is basically the same as a 20% drop in prices... hilarious! Do I even need to mention that you are the one who keeps banging on about transactions being almost 50% less than they were a decade ago and yet house prices are around 25% higher! I think this is called being hoisted by your own petard.

MobileSaver

Crashy_Time said:

Who would buy them, and at what price, by your assessment it wouldn`t be other landlords, and certainly not at a premium? And of course a house is still a house even when it stops being a rental house, houses don`t disappear when the landlord disappears?

Agreed, they'd obviously be bought by people wanting to live in them.

Yes, a house is still a house but it's not a rental house any more, the population is ever increasing but the supply of rental properties will naturally decrease; what effect do you think that will have on your monthly rental and for all those other people who either don't want or can't afford to buy a property?

As has been pointed out to you on numerous occasions over the years, be careful what you wish for...

mrlegend123

MobileSaver said:

Crashy_Time said:

MobileSaver said:

mrlegend123 said:

MobileSaver said:

mrlegend123 said:

MobileSaver said:

mrlegend123 said:

1% increase in IRs = 20% drop in asset prices.

Firstly and most importantly the Bank of England report is talking about medium-term real interest rates not the short-term nominal interest rates that the Bank sets.

If mortgage interest rates increase by 1% do you think house prices will drop by 20%?

I do know the difference about 'real' interest rates. My answer is no

Good, I am glad we have cleared up that you were in fact talking nonsense when you said "1% increase in IRs means 20% drop in asset prices."

It would probably result in a 20% drop in transactions which amounts to basically the same?

I can only assume you were drunk when you wrote that! To suggest transactions will drop by 20% every time mortgage interest rates increase by 1% is absurd even by your standards.

To then suggest that a 20% drop in transactions is basically the same as a 20% drop in prices... hilarious! Do I even need to mention that you are the one who keeps banging on about transactions being almost 50% less than they were a decade ago and yet house prices are around 25% higher! I think this is called being hoisted by your own petard.

house prices (area dependent) could drop by 20% over the long term if interest rates went up by 1%. For example on the average mortgage, borrowers would need to find at least 100 pounds a month.. Bigger the mortgage in London and south east for example 200-300 per month. 

I can't see mortgage rates going up but only down hence pushing up prices with limited supply. Property tax is a brill idea to extract money from southerners!!!  they will feel the pain.

Crashy_Time

MobileSaver said:

Crashy_Time said:

MobileSaver said:

mrlegend123 said:

MobileSaver said:

mrlegend123 said:

MobileSaver said:

mrlegend123 said:

1% increase in IRs = 20% drop in asset prices.

Firstly and most importantly the Bank of England report is talking about medium-term real interest rates not the short-term nominal interest rates that the Bank sets.

If mortgage interest rates increase by 1% do you think house prices will drop by 20%?

I do know the difference about 'real' interest rates. My answer is no

Good, I am glad we have cleared up that you were in fact talking nonsense when you said "1% increase in IRs means 20% drop in asset prices."

It would probably result in a 20% drop in transactions which amounts to basically the same?

I can only assume you were drunk when you wrote that! To suggest transactions will drop by 20% every time mortgage interest rates increase by 1% is absurd even by your standards.

To then suggest that a 20% drop in transactions is basically the same as a 20% drop in prices... hilarious! Do I even need to mention that you are the one who keeps banging on about transactions being almost 50% less than they were a decade ago and yet house prices are around 25% higher! I think this is called being hoisted by your own petard.

Basically it is about affordability, transactions dropped 50% with falling interest rates, are you saying transactions can`t drop any further if rates start rising!

Crashy_Time

mrlegend123 said:

MobileSaver said:

Crashy_Time said:

MobileSaver said:

mrlegend123 said:

MobileSaver said:

mrlegend123 said:

MobileSaver said:

mrlegend123 said:

1% increase in IRs = 20% drop in asset prices.

Firstly and most importantly the Bank of England report is talking about medium-term real interest rates not the short-term nominal interest rates that the Bank sets.

If mortgage interest rates increase by 1% do you think house prices will drop by 20%?

I do know the difference about 'real' interest rates. My answer is no

Good, I am glad we have cleared up that you were in fact talking nonsense when you said "1% increase in IRs means 20% drop in asset prices."

It would probably result in a 20% drop in transactions which amounts to basically the same?

I can only assume you were drunk when you wrote that! To suggest transactions will drop by 20% every time mortgage interest rates increase by 1% is absurd even by your standards.

To then suggest that a 20% drop in transactions is basically the same as a 20% drop in prices... hilarious! Do I even need to mention that you are the one who keeps banging on about transactions being almost 50% less than they were a decade ago and yet house prices are around 25% higher! I think this is called being hoisted by your own petard.

house prices (area dependent) could drop by 20% over the long term if interest rates went up by 1%. For example on the average mortgage, borrowers would need to find at least 100 pounds a month.. Bigger the mortgage in London and south east for example 200-300 per month. 

I can't see mortgage rates going up but only down hence pushing up prices with limited supply. Property tax is a brill idea to extract money from southerners!!!  they will feel the pain.

I can.
https://www.forbes.com/sites/leonlabrecque/2021/01/27/mortgage-rates-are-probably-going-up-so-get-a-30-year/?sh=4bd0c6372549