STAMP DUTY - IS IT WORTH THE MOVE?

Bizzywizard

https://forums.moneysavingexpert.com/discussion/comment/82100738#Comment_82100738

Yes the house has 4/5 beds and a small annex type attached and 3 receptions and 2 small kitchens, that need reworking. We can afford the extra expenditure on bills..

Bizzywizard

https://forums.moneysavingexpert.com/discussion/comment/82100798#Comment_82100798

My kids are savers…so already have good deposits, for their own places…..they want to buy and not waste money on uni rent. My MIL is horrified that they live at home and commute, but this is their choice. Their friends are all rather skint, whereas my kids still have money to go out and enjoy themselves…..they also have a large group of commuter friends and hasn't missed out on anything. My Mum and MIL may also end up living with us, as FIL is very ill!!

Bizzywizard

Thanks for posting Everyone!

I'm still no further forward…think I'm going for a drive-by, so see if I like the area (about 40 minutes from us) and then make a decision….Its just not an easy choice. Stamp duty is the biggest issue for us, think its comes down to not knowing what this Government or the next Government will do with stamp duty. If it gets cancelled and something else takes its place….will we then be royally screwed over again, to just pay the Government just to move house!

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82100848#Comment_82100848

If your preference is for a doer upper but it is 15 years since you did so yourself, stamp duty maybe secondary to the potentially very large cost of a builder handling the renovation project.

The son of a friend of mind bought a modest three bed terraced house in London needing the complete works by way of new kitchen , bathroom, rewiring, new boiler etc. His renovation budget was £55k.

I did warn him that following the pandemic, Ukraine war and departure of the vast number of Eastern European construction workers post 2020 brexit, general building costs and materials have spiralled upwards very steeply.

The upshot for him were builders quotes of between £100k to £150k, which were out of the question.

In the end he has had to save costs by undertaking project management and a lot of labouring himself, all the while holding down a fulltime job. Fortunately he still lives with supportive parents, and works from home, so the refurb will simply take a lot longer than he initially anticipated.

You might want to consider getting a builder along once you find a possible prospect, to determine if your overall budget will actually accommodate a builder giving you a 'turnkey' end result, and whether it is viable for you all to live in the property whilst works are underway.

horsewithnoname

so have you not maintained your home at all? Why not?

Sorry, I misunderstood. I blame the heat 🥵

lfc321

I’m not sure it makes sense to think of stamp duty as a big barrier to buying a new house (assuming you can afford it, of course - if you literally can’t afford it then of course it’s a barrier).
Just think of stamp duty as part of the total cost of purchase. You pay VAT on almost everything you buy: the only difference is that the tax isn’t separated out on the price label, so most of the time we tend not to notice it and just focus on the total purchase price.

mlz1413

Have you got quotes for builders doing up your current bungalow? That may give you a flavour of what needs to spend on a bigger house.

Have you priced doing a loft /garage conversion (if possible) or a pod style building in the garden?

If next move is forever then Stamp Duty needs to be part of the cost calculation and not thought of as an extra.

If you feel £17k is too much to add to the move then you need to look at cheaper houses or a different area that is generally cheaper.

I find it odd you want to move from one house that needs work to another that needs work. Why not just wait and keep looking for a house that is finished to a standard you want? it will be more money but then you don't have to pay builders and deal with dust and inconvenience once you have moved.

Slinky

https://forums.moneysavingexpert.com/discussion/comment/82100933#Comment_82100933

I think they are referring to the state their present home was in when they bought it, not now, and the state of the places they are looking at to buy as being doer uppers which they are reluctant to do again.

horsewithnoname

https://forums.moneysavingexpert.com/discussion/comment/82101058#Comment_82101058

oh right, thanks; I read it wrong.

RelievedSheff

Yes stamp duty is a cost that no one likes. We moved in March and our stamp duty bill was over £10k. But it will be a drop in the ocean compared to the costs of renovating a property.