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Oh Dear House prices set to fall next year
- Thread starter Chicken Run
- Start date
Barnet Seagull
Luxury Player
Smart Mart said:
So now there's also no incentive to sell. Hmmm... not ideal.
beorhthelm
A. Virgo, Football Genius
- Jul 21, 2003
- 35,834
pevenseagull said:
eh? rental income is treated as taxable income. As there's no mortgage relief anymore, interest payments arnt deductable. when you sell any second home you'll get a CGT bill on the profit made.
I dont know what the answer is, but taxation isnt it.
Wozza
Shite Supporter
An unavoidable tax upfront would deter property 'collectors'.
Say, 15% tax on purchase price of 2nd/3rd/etc property - money straight into goverment fund for affordable housing.
Sorted.
Say, 15% tax on purchase price of 2nd/3rd/etc property - money straight into goverment fund for affordable housing.
Sorted.
Uncle Spielberg
Well-known member
Rental income , say 600 pounds a month
- mortgage interest , say 400 a month
- agents fees, say 10% = 60 a month
- upkeep of property
tax paid on net amount.
- mortgage interest , say 400 a month
- agents fees, say 10% = 60 a month
- upkeep of property
tax paid on net amount.
Uncle Spielberg
Well-known member
Someone said you couldn't offset mortgage interest and you can.
Bluejuice
Lazy as a rug on Valium
What do you mean 'oh dear'?
If prices were to fall it would be great news but unfortunately this is not the case. Prices aren't going to drop rapidly, more likely they are just going to stop rising to ridiculously quickly. All we are experiencing is a period where the housing market slows down to let the rest of the country catch up with it
The day we start seeing sharp drops in house prices making them affordable to todays 20-somethings I will eat my computer
If prices were to fall it would be great news but unfortunately this is not the case. Prices aren't going to drop rapidly, more likely they are just going to stop rising to ridiculously quickly. All we are experiencing is a period where the housing market slows down to let the rest of the country catch up with it
The day we start seeing sharp drops in house prices making them affordable to todays 20-somethings I will eat my computer
Shropshire Seagull
Well-known member
Wozza said:An unavoidable tax upfront would deter property 'collectors'.
Say, 15% tax on purchase price of 2nd/3rd/etc property - money straight into goverment fund for affordable housing.
Sorted.
The government has colected £6,870 in stamp duty in the last 3 years from properties I've bought and sold - I don't think they'd want to do anything to discourage this "easy money".
Shropshire Seagull
Well-known member
The real problem I fear with the rise of the buy-to-let market is the 3-4 bed sales 10 years down the road.
3 and 4 bed are usually sold to couples that have a young family and have outgrown their 1 or 2-bed place. But if these couples have been forced into the rental market, they will not have built up any equity so will be even further away from getting on the property ladder - the problem is made worse when Mum has to give up work (loss of income) or child care costs arise.
There are far fewer 3 and 4-beds to rent - so what are these young families to do?
And who will be able to sell their 3 and 4 bed homes when they want to downsize?
3 and 4 bed are usually sold to couples that have a young family and have outgrown their 1 or 2-bed place. But if these couples have been forced into the rental market, they will not have built up any equity so will be even further away from getting on the property ladder - the problem is made worse when Mum has to give up work (loss of income) or child care costs arise.
There are far fewer 3 and 4-beds to rent - so what are these young families to do?
And who will be able to sell their 3 and 4 bed homes when they want to downsize?
Wozza
Shite Supporter
Shropshire Seagull said:
Maybe, but only because governments rarely worry about the long-term effects of policies.
Shropshire Seagull
Well-known member
The capital gains tax (CGT) avoidance technique.
Your 1st main (primary) residence is CGT exepmt so:
When the kids are grown up and left home, sell your 4-bed family home and move into one of your buy-to-let investments. After 2 years(?) this is deemed to be your primary residence. Sell and move into your next B-T-L - continue until B-T-L portfolio is liquidated.
Unfortunately, each time you do this, you force you tenant to move out.
Your 1st main (primary) residence is CGT exepmt so:
When the kids are grown up and left home, sell your 4-bed family home and move into one of your buy-to-let investments. After 2 years(?) this is deemed to be your primary residence. Sell and move into your next B-T-L - continue until B-T-L portfolio is liquidated.
Unfortunately, each time you do this, you force you tenant to move out.
Shropshire Seagull
Well-known member
Wozza said:
agreed ....
m20gull
Well-known member
I bought a house last year and am moving again. I've done nothing to the house and it's gone up 10%. Do I feel guilty? noLammy said:
I ended up with loads of negative equity in 1990 by buying at the wrong time. Didn't have any choice though as I was relocated. Still I don't want your sympathy.
And what people buy with their spare money is their choice. Shares, house's, beer, football tickets, ciggies.