General Discussion: Property thread


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ismvil
ismvil avatar

1319 posts since 16/9/11

9 Jul 2020 12:49
We are fucked. 350 billion. 2 generations wiped out.
Rirawin
Rirawin avatar

9375 posts since 17/7/05

9 Jul 2020 12:59
Mortgage rates are in the gutter, and even if you're looking at BTL and/or second property ownership, you still need a minimum of 25% deposit.

If you can, deffo a good time to buy.

Out of interest, people still keen to buy in London? or now with WFH a norm, are people looking beyond London?
m15try
m15try avatar

1234 posts since 18/8/09

9 Jul 2020 13:14
themistake wrote:
m15try wrote: Quite bleak when you break it down.

The main beneficiaries of this change will be second-home buyers, buy-to-letters, overseas buyers - people that previously weren't buying because of the punitive stamp duty regime. Prices will now likely adjust upwards as demand spikes and sellers factor in the extra £15k in buyers' pocket.

If you're renting with aspirations of eventually owning you're fucked - the previous advantage you had re stamp duty is virtually eroded; you're going to be competing with a new army of buy-to-letters; price-to-income ratios will increase.

Horrible stuff and just when/because prices looked like correcting.


Right.

How about the people that had mortgage in principle With 10% deposit before corona virus but now need 15% deposit for the same mortgage?
They now have the stamp duty to add to their deposit.
I think that’s who it is going to help mate.


Prices weren’t correcting in London at all either.
Check the price index, December, January and March all saw 2-3% increases. That’s huge.

You've missed the bigger point here mate. I'm not saying it wont help the niche subset of people you've outlined. Clearly it will.

My point is about the longer term implications for first-time buyers. Competition in their likely price bracket is about to increase and this can only increase prices. The last stamp duty holiday in '08 resulted in an 8% increase in transaction volumes and sellers were able to capture 40% of the tax break through higher prices (IFS). Add to this that most first-time buyers rely on these high-LTV mortgage products that are disappearing.

I say this as someone about a month away from completing in London and saving £15k from this change (FTB, high-LTV mortgage which fortunately wasn't pulled). This is going to screw the young.



themistake
themistake avatar

10704 posts since 20/2/06

9 Jul 2020 13:18
Rirawin wrote: Mortgage rates are in the gutter, and even if you're looking at BTL and/or second property ownership, you still need a minimum of 25% deposit.

If you can, deffo a good time to buy.

Out of interest, people still keen to buy in London? or now with WFH a norm, are people looking beyond London?

There’s too much invested in real estate in central London/cities to allow WFH to become the ‘norm’.

All you have to do is walk around central London now to see it’s a ghost town.
If people didn’t return to work then there would be street after street of businesses that would go bust.
I would imagine just like you saw yesterday with Rishi encouraging people to get out the house and back into restaurants, the next step would be to encourage people to get back to their work premises.
Murakami
Murakami avatar

13324 posts since 9/5/05

9 Jul 2020 13:21
I had to wait until I was 41 before I got my mortgage , my brother who is 14 years younger than me still can’t afford to get one . Young people don’t stand a chance unless they are left an inheritance
m15try
m15try avatar

1234 posts since 18/8/09

9 Jul 2020 13:24
Yesterday's SDLT cut marks a substantial reversal in housing policy.The previous focus on first-time buyers and home-ownership has been set aside and the priority now appears to be supporting transactions irrespective of who is buying. https://t.co/DBMcI3zaMn—; Neal Hudson (@resi_analyst) July 9, 2020
MrW
MrW avatar

2742 posts since 1/8/11

9 Jul 2020 13:32
Rirawin wrote: Out of interest, people still keen to buy in London? or now with WFH a norm, are people looking beyond London?

My sister's an estate agent down here (east Kent coast), while there have been DFL influxes over the last 10-15 years - Whitstable, Deal, Ramsgate, Margate etc. - she's saying interest's gone through the roof in the last month or two. She's sold places during lockdown based solely on video viewings.
Murakami
Murakami avatar

13324 posts since 9/5/05

9 Jul 2020 13:42
Same in Sussex
Rdes1974
Rdes1974 avatar

232 posts since 29/1/14

9 Jul 2020 14:24
MrW wrote:
Rirawin wrote: Out of interest, people still keen to buy in London? or now with WFH a norm, are people looking beyond London?

My sister's an estate agent down here (east Kent coast), while there have been DFL influxes over the last 10-15 years - Whitstable, Deal, Ramsgate, Margate etc. - she's saying interest's gone through the roof in the last month or two. She's sold places during lockdown based solely on video viewings.

i know somoene selling in bermondsey and looking at margate…..couple of other friends moving out of london
swede
swede avatar

8930 posts since 21/3/09

9 Jul 2020 14:29
m15try wrote: I say this as someone about a month away from completing in London and saving £15k from this change (FTB, high-LTV mortgage which fortunately wasn't pulled). This is going to screw the young.

If you're FTB you're only saving £10k as you would have been eligible for the initial reduced FTB rate. still better than a kick in the balls though Cool

know a couple of others who have had offers accepted during lockdown and things are moving along ok - perfect timing for this to come in. basically being handed free money as they'd already budgeted for it
Rirawin
Rirawin avatar

9375 posts since 17/7/05

9 Jul 2020 16:07
Time to buy that Porsche Cool
m15try
m15try avatar

1234 posts since 18/8/09

9 Jul 2020 16:16
We wouldn't have got the benefit of the previous FTB rate as the one we're after is over the threshold.

What you said earlier is bang on though - tories being tories. Sunak has 12 houses. Yesterday just emphasised what they'll do to keep prices high.
swede
swede avatar

8930 posts since 21/3/09

9 Jul 2020 16:30
doesnt matter if it's over the threshold. FTB (used to) be exempt on paying stamp on the first £300k of a property vs £125k for non-FTB
m15try
m15try avatar

1234 posts since 18/8/09

9 Jul 2020 16:57
Nah the FTB exemption disappeared as soon as you are over £500k purchase price e.g. right hand side of the below. If you're FTB buying over £500k you were treated the same as someone buying their second place (and selling their first)
Hello World
Hello World avatar

12142 posts since 7/3/05

9 Jul 2020 17:49
Timing is good for me as been waiting for a year plus. working from home allows rethinking of where we want to live long term, rather than close to the office which I haven’t needed for months. Can now think about maximizing property size type for price and cost of living of the area.. Probably head back deep into the south west.

Stamp duty saving can just be used for more deposit or doing a place up.

Wrong to cancel it for second properties.
MattC
MattC avatar

783 posts since 20/3/12

posted 9 Jul 2020 18:08, edited 9 Jul 2020 18:08
Fuck the SNP government. Max saving of £2.1k.

Hardly going to spur on many sales with that.

And we are already worse off in terms of land and buildings tax / stamp duty compared to England - 500k house in Scotland will cost £21k more in tax lol
Dee
Dee avatar

11665 posts since 22/11/07

9 Jul 2020 19:43
Never trust a woman with thin lips.
MattC
MattC avatar

783 posts since 20/3/12

9 Jul 2020 19:56
There’s a “clap for Nicola” on Sunday

Laughing out loud
swede
swede avatar

8930 posts since 21/3/09

9 Jul 2020 20:54
m15try wrote: Nah the FTB exemption disappeared as soon as you are over £500k purchase price e.g. right hand side of the below. If you're FTB buying over £500k you were treated the same as someone buying their second place (and selling their first)

fair play didnt know that Cool
swede
swede avatar

8930 posts since 21/3/09

9 Jul 2020 20:55
MattC wrote: Fuck the SNP government. Max saving of £2.1k.

Hardly going to spur on many sales with that.

And we are already worse off in terms of land and buildings tax / stamp duty compared to England - 500k house in Scotland will cost £21k more in tax lol

yeah but what does a £500k gaff in scotland get you vs down south?