Stamp Duty Ending

mrlegend123

mrlegend123 said:

Bonniepurple said:

mrlegend123 said:

MobileSaver said:

mrlegend123 said:

The housing market is rigged and mobilesaver is blind to it.

Hang on a minute! You have been repeatedly telling everyone that "a 1% mortgage rate increase will result in a 20% drop in prices"... how can that happen if the housing market is rigged?!?!

Either your initial "20% price drop" claim is nonsense or your "market is rigged" claim is nonsense or both are; they can't both be true so which is it?

mrlegend123 said:

however, plenty of room for mortgage rates to go further down (plenty of years in the rigged system). 

So even if this was true you are presumably recommending everyone get on the property ladder right now and make hay while the sun shines?

like I said before l, I referenced BOE report regarding 1% increase in real interest rates may reduce house prices by 20% over the long term (assets). Let's add 3% to mortgage rates and see if borrowers can afford it still?  extra few grand a year to the lender. 

I give up, I don't care mobilesaver. you don't understand and talking nonsense just open your eyes. The housing market post GFC is not the same hence the props. I would love to see the props go and watch the housing market collapse.

I feel sorry for the younger generation and hope they don't extend stamp duty. Property tax is the way to go to make it fair with additional BTL tax on landlords. 

Only thing is, Stamp Duty is only payable when you buy a property.  How many elderly people are still in family homes because by the time they’ve paid for solicitors, movers, stamp duty, estate agents and a new property there’s not enough left to make it a viable option?  Perhaps building fewer townhouses (therefore lots of stairs) and more bungalows or even just more versatile accommodation (bedroom/study with en-suite downstairs, more bedrooms and bathrooms upstairs)?

I agree with you regarding different types of property being required. However, older generation are asset rich cash poor/good which is more than the young generation majority being asset poor cash poor. It is time for the older generation to pay their taxes as they have benefited the most from Gov/CB policies over the years (yes, I know they didn't have a say). Stamp duty is bad, but a property tax at 0.4% a year of the property value is fair. You can't have houses earning more a year than your average then moan you can't afford the property tax! 

* sorry rich instead good and salary after average *

MobileSaver

mrlegend123 said:

like I said before l, I referenced BOE report regarding 1% increase in real interest rates may reduce house prices by 20% over the long term (assets). Let's add 3% to mortgage rates ... I don't care mobilesaver. you don't understand and talking nonsense

Ironically it is you that does not understand despite claiming you did; real interest rates and mortgage interest rates are two different things and yet you keep conflating the two.

mrlegend123 said:

Let's add 3% to mortgage rates and see if borrowers can afford it still?  The housing market post GFC is not the same

The only thing you have got right is that the housing market post GFC is not the same!

As a direct consequence of the GFC the vast majority of borrowers will easily be able to afford it because affordability tests introduced since 2014 mean that lenders assess affordability at 3% above the Standard Variable Rate! So every single mortgage approved in the last six years already assumes that interest rates might increase by 3%, 4% or even 5% (because affordability is based on SVR+3% and not the discounted-fixed-rate.)

For example, anyone applying today for a HSBC two year fixed at 1.54% (when HSBC's SVR is 3.54%) will have to pass an affordability test confirming they can afford the payments if interest rates rise to SVR+3% = 6.54%. In other words even if interest rates increased by 5%, practically every borrower will be able to afford it...

MobileSaver

mrlegend123 said:

However, older generation are asset rich cash poor/good which is more than the young generation majority being asset poor cash poor. It is time for the older generation to pay their taxes

That's just the politics of envy; you do realise that the vast majority of asset rich older generation were asset poor younger generation at one time?!?!

As for paying taxes... if you are an average person earning an average income then in the past I've paid more income tax in a single year than you will pay in your entire working life so demands I pay even more taxes will simply be laughed off the stage.

mrlegend123

MobileSaver said:

mrlegend123 said:

like I said before l, I referenced BOE report regarding 1% increase in real interest rates may reduce house prices by 20% over the long term (assets). Let's add 3% to mortgage rates ... I don't care mobilesaver. you don't understand and talking nonsense

Ironically it is you that does not understand despite claiming you did; real interest rates and mortgage interest rates are two different things and yet you keep conflating the two.

mrlegend123 said:

Let's add 3% to mortgage rates and see if borrowers can afford it still?  The housing market post GFC is not the same

The only thing you have got right is that the housing market post GFC is not the same!

As a direct consequence of the GFC the vast majority of borrowers will easily be able to afford it because affordability tests introduced since 2014 mean that lenders assess affordability at 3% above the Standard Variable Rate! So every single mortgage approved in the last six years already assumes that interest rates might increase by 3%, 4% or even 5% (because affordability is based on SVR+3% and not the discounted-fixed-rate.)

For example, anyone applying today for a HSBC two year fixed at 1.54% (when HSBC's SVR is 3.54%) will have to pass an affordability test confirming they can afford the payments if interest rates rise to SVR+3% = 6.54%. In other words even if interest rates increased by 5%, practically every borrower will be able to afford it...

can you personally stop replying to my posts as you are mixing things up and it's annoying. I referenced the BOE report then I mentioned mortgage rates and lastly transactions are down like crashy said because the younger generation may not be able afford to buy with the affordability checks. Please, stop replying to my posts thank you 

MobileSaver

mrlegend123 said:

can you personally stop replying to my posts as you are mixing things up and it's annoying. I referenced the BOE report then I mentioned mortgage rates and lastly transactions are down

This is a public forum where anyone can reply and people will reply when you keep making false and misleading statements.

"transactions are down" Well no, actually transactions are up (significantly) compared to 2008, 2009, 2010, 2011, 2012 and 2013 and from 2014 onwards transactions have remained roughly stable at around 100,000 every single month.

mrlegend123 said:

I referenced the BOE report

Just to be clear, that was the report that concluded "it does not suggest that house prices are likely to move lower" and yet you keep referencing it as you hope to "watch the housing market collapse"?

It's more than a little strange that you are doing the exact same thing as Crashy does when he links to articles that actually contradict his arguments...

SpiderLegs

mrlegend123 said:

MobileSaver said:

mrlegend123 said:

The housing market is rigged and mobilesaver is blind to it.

Hang on a minute! You have been repeatedly telling everyone that "a 1% mortgage rate increase will result in a 20% drop in prices"... how can that happen if the housing market is rigged?!?!

Either your initial "20% price drop" claim is nonsense or your "market is rigged" claim is nonsense or both are; they can't both be true so which is it?

mrlegend123 said:

however, plenty of room for mortgage rates to go further down (plenty of years in the rigged system). 

So even if this was true you are presumably recommending everyone get on the property ladder right now and make hay while the sun shines?

like I said before l, I referenced BOE report regarding 1% increase in real interest rates may reduce house prices by 20% over the long term (assets). Let's add 3% to mortgage rates and see if borrowers can afford it still?  extra few grand a year to the lender. 

I give up, I don't care mobilesaver. you don't understand and talking nonsense just open your eyes. The housing market post GFC is not the same hence the props. I would love to see the props go and watch the housing market collapse.

I feel sorry for the younger generation and hope they don't extend stamp duty. Property tax is the way to go to make it fair with additional BTL tax on landlords. 

When you say the housing market post GFC is not the same, how is that statement then compatible with a report that analyses 35 years of historical data, of which over 70% is pre GFC?

mrlegend123

MobileSaver said:

mrlegend123 said:

can you personally stop replying to my posts as you are mixing things up and it's annoying. I referenced the BOE report then I mentioned mortgage rates and lastly transactions are down

This is a public forum where anyone can reply and people will reply when you keep making false and misleading statements.

"transactions are down" Well no, actually transactions are up (significantly) compared to 2008, 2009, 2010, 2011, 2012 and 2013 and from 2014 onwards transactions have remained roughly stable at around 100,000 every single month.

mrlegend123 said:

I referenced the BOE report

Just to be clear, that was the report that concluded "it does not suggest that house prices are likely to move lower" and yet you keep referencing it as you hope to "watch the housing market collapse"?

It's more than a little strange that you are doing the exact same thing as Crashy does when he links to articles that actually contradict his arguments...

I am not replying to your posts after this one, you talk nonsense. those dates are after post GFC.....

I don't care if the housing market collapses or not..... you made that up. I've got no invested interest. I will stop replying to your posts from now on.

This thread is about stamp duty anyways and not talking about the whole housing market!

MobileSaver

mrlegend123 said:

I don't care if the housing market collapses or not..... you made that up.

That is just bizarre! You accuse me of making something up when the evidence is there in black and white!

mrlegend123 said : [Today at 3:52PM]

I would love to see the props go and watch the housing market collapse.

In the space of just four hours you have gone from "I would love to ... watch the housing market collapse" to "I don't care if the housing market collapses."

Mickey666

mrlegend123 said:

MobileSaver said:

mrlegend123 said:

like I said before l, I referenced BOE report regarding 1% increase in real interest rates may reduce house prices by 20% over the long term (assets). Let's add 3% to mortgage rates ... I don't care mobilesaver. you don't understand and talking nonsense

Ironically it is you that does not understand despite claiming you did; real interest rates and mortgage interest rates are two different things and yet you keep conflating the two.

mrlegend123 said:

Let's add 3% to mortgage rates and see if borrowers can afford it still?  The housing market post GFC is not the same

The only thing you have got right is that the housing market post GFC is not the same!

As a direct consequence of the GFC the vast majority of borrowers will easily be able to afford it because affordability tests introduced since 2014 mean that lenders assess affordability at 3% above the Standard Variable Rate! So every single mortgage approved in the last six years already assumes that interest rates might increase by 3%, 4% or even 5% (because affordability is based on SVR+3% and not the discounted-fixed-rate.)

For example, anyone applying today for a HSBC two year fixed at 1.54% (when HSBC's SVR is 3.54%) will have to pass an affordability test confirming they can afford the payments if interest rates rise to SVR+3% = 6.54%. In other words even if interest rates increased by 5%, practically every borrower will be able to afford it...

can you personally stop replying to my posts as you are mixing things up and it's annoying. I referenced the BOE report then I mentioned mortgage rates and lastly transactions are down like crashy said because the younger generation may not be able afford to buy with the affordability checks. Please, stop replying to my posts thank you 

The only way that is going to happen is if you stop posting.  This is a discussion forum and its bad form to join the discussion but try to shut down any replies.

Mickey666

mrlegend123 said:

MobileSaver said:

mrlegend123 said:

The housing market is rigged and mobilesaver is blind to it.

Hang on a minute! You have been repeatedly telling everyone that "a 1% mortgage rate increase will result in a 20% drop in prices"... how can that happen if the housing market is rigged?!?!

Either your initial "20% price drop" claim is nonsense or your "market is rigged" claim is nonsense or both are; they can't both be true so which is it?

mrlegend123 said:

however, plenty of room for mortgage rates to go further down (plenty of years in the rigged system). 

So even if this was true you are presumably recommending everyone get on the property ladder right now and make hay while the sun shines?

like I said before l, I referenced BOE report regarding 1% increase in real interest rates may reduce house prices by 20% over the long term (assets). Let's add 3% to mortgage rates and see if borrowers can afford it still?  extra few grand a year to the lender. 

Writing as someone who has had mortgages with interest rates up to 15% I'd say that of course borrowers will afford it.
Firstly, no one sensibly takes out a mortgage without factoring in a rate increase and secondly lenders also factor rate increases in their lending criteria.
But most importantly, what is the alternative?  People need somewhere to live and last time I checked the options were to buy a property or to rent a property and interest rate increasing are going to push up the costs of both.
So, maybe a few less foreign holidays but increased rate will most certainly be affordable.