Estate Agents have just added on the Stamp Duty savings onto the list price of most properties. I think a big crash is coming when the furlough scheme ends and people realise their job doesn’t exist anymore, frightening. Bog standard 3 bedroom semi’s now a quarter of a million pound. Bricks and mortar costs can’t be more than 30-40K.
Eh? The labour alone would be around that to build a 3 bed semi, let alone the land and materials etc.
Pretty obvious watching whats happening with my in laws that we will be pretty unlikely to inherit anything once care costs have eaten into it- which is obviously fine, I hasten to add.
Very optimistic expecting our kids to get anything out of us in (hopefully) 30-40 years time for the same reason.
Nearing the end of selling our flat we bought 16 years ago at £80k for £105k . Had it on for £110k with the hope of getting £100k for it.
Its was first person to look at it and thankfully hes a first time buyer which was my preference. EA says there was a list of people if the deal falls through so not too worried. £55k to pay off the mortgage.
Had an incredible 2019/2020 year business wise which allowed me to buy our current home outright, so the first time in my adult life at the age of 49 i will be totally debt free.
The £50k from the flat sale will go into premium bonds until the kids (7 and 14) are looking to buy / rent to use as deposits for them.
Bricks and mortar costs can’t be more than 30-40K.
Have you seen what it costs these days to build a shed in the garden.....
I’ve been house hunting recently in Badenoch/Strathspey. Houses are mostly going to closing dates and that creates some big bids with people not wanting to miss out. I put a bid in for a house in Aviemore a few months ago which was 12% above the asking price. I was 5th lowest out of 10 bidders.
Not sure if the market is hot everywhere though. I think you could pick up a big house in Fort William quite easily. I see a lot of B&Bs for sale.
The estate I live on had seen prices stall for around 10 years until a few weeks ago when a builder did a renovation on a house 10 doors away over the course of the last 6 months and put it up for £250k it sold inside 3 weeks for the asking price. Up until that point all 3 bed semis with good gardens, garage & drive were no more than £199k.
Now they are going up for anything between £220-250k and are gone in a week, blink and you miss it. Absolutely ridiculous.
My neighbours kid and her boyfriend just bought their first house for £325k, plenty help from the parents and a 40yr term. I'd be in tears paying that
Aberdeenlune, I saw a lot of guest houses going up for sale in Keswick over the last 3 months
I’ve been house hunting recently in Badenoch/Strathspey. Houses are mostly going to closing dates and that creates some big bids with people not wanting to miss out. I put a bid in for a house in Aviemore a few months ago which was 12% above the asking price. I was 5th lowest out of 10 bidders
We have friends who work in the community over there. They bought their current house by basically canvassing with letters in houses suitable in areas they wanted to buy in explaining them being priced out the market by by holiday homers......
It worked better than continually offering on houses that were always going to closing
Wee 2 bed mid terrace round the corner sold for 60k above asking price, right at height of pandemic.
Madness.
makes no sense, to me anyway. There will always be people with money, who want to buy property in desirable areas, even if it’s just as investments or 2nd/holiday homes. Obviously doesn’t help local families or their children or other first time buyers but I really cannot see a substantial fall in property prices at least here in the SE. Maybe a slight dip once (if!) the COVID madness ends & the stamp duty holiday finishes.If nobody can afford to buy then prices come down.
I wonder how a CGT amnesty on the increase in value on second homes would affect things.
I guess it's harder to sell a second home, especially for accidental landlords if you have to pay a chunk of the increase in CGT. I'm not saying it's not right that they should pay CGT, but I'd be interested to hear if folk think an amnesty would help by increasing supply, especially at the first time buyer end of the market.
Anyone on here complaining about care costs eating into their inheritence is bloody silly.
Pay for proper retirement planning. Actually pay for it. Don't be a cheapskate and balk at paying five hundred quid that will protect hundreds of thousands of pounds.
The only reason I'm ****ed is that my mum is in sheltered accomodation that can't be ring-fenced in the way that private property can. Propertly can be put in a trust long before death and protected from the state.
Don't ask on a forum or try to do it on the cheap. If your in-laws won't pay for it - pay for them.
Jeebuz people.
It might have the opposite effect with many more people thinking buying a second home would be tax efficient. Though it could work if it was just for 12 months or so.
Property can be put in trust to protect it, then you have a parent terminally ill and the council will pay £500 a week so they end their days in a dump or your pay a £1000 a week to put them somewhere nice and sell to pay for it anyway.
I wonder how a CGT amnesty on the increase in value on second homes would affect things.
I guess it’s harder to sell a second home, especially for accidental landlords if you have to pay a chunk of the increase in CGT. I’m not saying it’s not right that they should pay CGT, but I’d be interested to hear if folk think an amnesty would help by increasing supply, especially at the first time buyer end of the market.
Interesting idea. Me and my wife are accidental landlords, because we’d both bought houses in our early 20’s. So kept one when we moved in together quite quickly. We still have it and think we’re fair landlords. Have pondered selling it but for what we’d “get” after CGT and EA fees, and solicitor fees it doesn’t seem worth it. As selfish as it seems now, I’ll hold onto it as part of my pension plan. If selling it released a better immediate return, I’d consider it. But it doesn’t so we’ll sit in it.
Pay for proper retirement planning. Actually pay for it. Don’t be a cheapskate and balk at paying five hundred quid that will protect hundreds of thousands of pounds.
Roughly edited as take a punt on hiding your assets, hope.your LA doesn't challenge and prove you put it in trust to hide it and take your chances dying in a dump.
A blanket cgt amnesty would just be a tax giveaway, like the sdlt.
If it were targeted to give long term tenants the right to buy it would be more a vote winner and fair.
Ianaa but I believe cgt dies with you, so there comes a point where you just let the investments tick on.
Absolutely reminds me of the late 80s early 90s crash.
My parents’ house they bought at the tail end of that - a “project” that had overstretched the owners and was still in a pretty poor state.
They’ve spent quite a bit in the decades since to get it nice but recently sold it for more than 12x what they bought it for in 1991. Bonkers. Goods/services inflation in that time would only double the 91 price.
I bought last year. I thought this all looked quite bubbly then, I think it looks even worse now. The "race for space" is very real, plus many FTBs have been living at home with parents since the GFC to save for deposits, and now are taking the plunge.
I don't know what will happen, nobody does, but I think flats/apartments will trail behind house prices for the foreseable future, as Working From Home is being cemented as a long term trend.
There are two big gaps in the market - suitable houses for FTBs, and suitable houses/bungalows for downsizing retirees. Housing policy has tried to cover both trends by building flats. But the truth is, people increasingly don't want to live in flats, and they may no longer function as the first step onto the housing market due to things like the cladding scandals.
Eh, in what way is it good for your kids. Do they both own multiple houses?
My kids are young teenagers so don’t own any houses no, they will inherit ours. It didn’t take a lot to work that out.
That's what I assumed. It makes no sense. Each kid will inherit half a house ( a third?). They'll probably need a full house to live in each. So they still need another half or two thirds, which is going to cost them loads more due to price increase.
In what way is that a good thing?
House price increases are only a benefit to people who have an excess of houses.
It doesn't take a lot to work that out...
A blanket cgt amnesty would just be a tax giveaway, like the sdlt.
If it were targeted to give long term tenants the right to buy it would be more a vote winner and fair.
Logical but how many tenants want to buy, I guess is the question with that proposal.
Estate Agents have just added on the Stamp Duty savings onto the list price of most properties.
It's not estate agents, it's just what happens when you have demand >> supply. Prices rise to maximum people can afford. Remove a cost in the process or reduce interest rates and prices automatically rise to reflect that cost. It's economics 101.
My tenants want to buy.
Between furlough and having a baby the mortgage companies decided they wouldn't lend them a (relatively modest these days) £115k to buy it. The repayments would have been £50-80 a month less than the rent I charge, and they've paid rent reliably to me for two years and 10 years before that was individuals not a couple.
They have a small deposit. They can afford it. They had a property they were living in to buy. But bank said no...
You say property goes up
I've just bought a house in sw Scotland for the same price price it was sold 10yrs ago.
Work that out...
My tenant would like to buy too, higher rate taxpayer and cant buy a 1 bed flat in current market, c 325k sw London.
Market needs fixing before all the current renters retire.
Problem is people can just keep buying property they don't need, just because they can. Property based wealth tax would sort it.
There's not a lot of big, nicely finished houses with only a couple of bedrooms. Would be attractive to downsizers or childless couples with dual incomes.
I guess we define houses with #bedrooms as opposed to M2.
I'd like to buy a new house, but I don't want a "family" home or flat...
In what way is that a good thing?
I have 2 kids. They will get a considerable sum for them to use on what they want, it may not be a house. The more it’s worth the more they get, not sure how it couldn’t be anything but a bonus to get more. I’m sure you can work that out.
there’s either something wrong with it, or it’s just not a desirable area at all (for a lot of people, may well be perfect for you of course)You say property goes upI’ve just bought a house in sw Scotland for the same price price it was sold 10yrs ago.
Work that out…
@RDL-82 certainly used to, hsbc turned us down for a mortgage in 2008 as the valuation was 15% under the agreed price, they said put that down on top of the deposit and you can have a mortgage (even though it was a low multiple), we pulled out
We moved last year, sold ours in February for £170k (3 bed semi in a slightly low rent area near Cannock chase) thought we did ok, paid £127k for it in 2004.
The couple next door but one put theirs up for sale a couple of weeks ago for £195k in slightly worse condition than ours and it sold in less than a week. It’s just mental. We’ve had an outlet village open just down the road but other than that I’ve got no idea why it’s suddenly worth an extra 25 grand.
That said, we bought our new house in September for £265k and I thought we overpaid, but then over the road went up for £275k just after Christmas and sold within 2 days for over the asking price. To first time buyers too!
They will get a considerable sum for them to use on what they want, it may not be a house. The more it’s worth the more they get, not sure how it couldn’t be anything but a bonus to get more.
I'm not sure why you're finding this so difficult to understand. They need a house to live in. They'll inherit half a house from you but still need to buy the rest of a house at vastly increased cost. You've been completely duped by the richest portion of society who do actually gain by having multiple houses....
Oh never mind. Yes you're right. It's brilliant that the houses we live in are worth so much. It's totally transforming our lives.
Hurrah..
I have 2 kids. They will get a considerable sum for them to use on what they want, it may not be a house. The more it’s worth the more they get, not sure how it couldn’t be anything but a bonus to get more. I’m sure you can work that out.
But presumably they will be middle aged by then.
And in the meantime, the higher house prices go, the more likely they will be priced out in the intervening decades
But regardless of what they spend the money on when they come to sell the house. The fact that it's been rising is still good for them. How is that so hard to understand?
But where are they living in the meantime?
I'm starting to get a glimpse of why the Tories are still in power TBH.
Very enlightening.
+1 for not understanding how massively increasing house prices helps anyone with young kids, unless you already have a spare house for each of them in the portfolio?
First time buyers don’t stand a chance in this area.
Other areas are available and most people are working from home. I think that if anything, this is what might finally upset the applecart when it comes to housing market prices.
think that if anything, this is what might finally upset the applecart when it comes to housing market prices.
Or drive them up across the board.
But regardless of what they spend the money on when they come to sell the house. The fact that it’s been rising is still good for them. How is that so hard to understand?
The argument goes that although they will get a lump sum its offset by over inflated living costs prior to (and after) gaining that inheritance. Individually you may not feel like you can influence things, but collectively we are making that happen.
we sold our house in bristol last year during lockdown. Paid 185k and sold for 390 7 years later! (all offers over asking price)
Moved to wales in a new build which has seen huge demand. The 3 other houses on this plot got sold in 1 hour after ppl queuing up the night before outside the estate agents
The demand seems huge at the moment.
.
Lots of inheritances plus huge mortgages on super long terms with mega low interest rates. Just keeps stoking the fire. Not sure where it will end to be honest. Maybe when the next generation without significant pensions reach retirement without enough provision. Who knows.
maybe on STW, in the real world, not so much. At least out of the people I know! But more people are, sure.most people are working from home
Oh never mind. Yes you’re right. It’s brilliant that the houses we live in are worth so much. It’s totally transforming our lives.
Which is nothing like I claimed. I’ll try to keep it simple.
The house is theirs when I’m gone. Whatever it’s worth it’s theirs the more they get the better for them. Yes, they may have a house of their own by then, they may have just bought it, they might have their mortgage paid off. Regardless if I’d rented they’d got nothing from the home I live in.
It’ll be tough for them to get on the property ladder unless something changes, no doubt they’ll need a hand to get on from us. That cash will probably come from me inheritance from my parents house, which has also gone up considerably in recent years so I’ll be able to give them more than I could.
My house value going up is not a massive benefit for me
@trail_rat - on what you said about "hiding your assets" - rubbish.
It's about choice. If you protect inheritence assets then it's up to you to choose what to do with them. If you don't do it - it's up to the council/government.
Fool and his money is easily parted I guess.
Chevy.
Read up on Deprivation of Assets. It's not as simple as you seem to think.
Or are you planning to have another kid when you're in your eighties 😝
