We are fucked. 350 billion. 2 generations wiped out.
General Discussion: Property thread
Show original post
9 Jul 2020 12:59
9 Jul 2020 13:14
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.
9 Jul 2020 13:18
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.
9 Jul 2020 13:24
9 Jul 2020 13:32
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.
9 Jul 2020 14:24
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
9 Jul 2020 14:29
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
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
9 Jul 2020 17:49
9 Jul 2020 20:55
yeah but what does a £500k gaff in scotland get you vs down south?
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?
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?
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.
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.
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?
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.
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
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.
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
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
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
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.
Stamp duty saving can just be used for more deposit or doing a place up.
Wrong to cancel it for second properties.
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
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?
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