Buy to let stamp duty surcharge and other related news

[Zero Liability]

You'll truly feel that you were when Osborne is finished with the likes of you... should have gone to Eton!!!

I thought he got picked on by all the Eton brats. You see, he only went to the third most exclusive school in the country. He's practically a man of the people.

The problem with bubbles is they do not deflate. They burst....

True, and the more they're inflated, the more cataclysmic the burst might be. Central bankers are hoping for some kind of controlled demolition scenario, but things do have a tendency of defying their rather stupid little neo-Keynesian models.

[centurian]

So primary residence is zero rated CGT, and make investment property rated based on how long you've owned the property. The longer it is held, the lower the rate.

Currently it's the opposite is true. CGT punishes those who hold investments for longer.

If you hold an asset for 20 years and then sell it, but it has only kept pace with inflation, no more - you still get a whacking CGT bill at the end of the 20 years - unused CGT allowance isn't carried over to the next year.

But if you buy and sell at the end of every year, assuming the annual gain is under 11K - no CGT to pay - not a penny.

[AtW]

Currently it's the opposite is true. CGT punishes those who hold investments for longer.

CGT right now favours short term speculators - why risk keeping something long term when lots of bad things could happen when you can buy and sell same tulip many times over in that period and make money even when price is dropping??? Previously taper relief made a lot of sense - long term holding is good, one would have thought the City would want investors to hold for longer, be less prone to panic... if they were not a casino operation which makes money on transactions.

[Martin@AS Financial]

Thousands of London flats to come back on to the market, estate agent says:


Thousands of London flats to come back on to the market, estate agent says | Business | The Guardian

[SueEllen]

Thousands of London flats to come back on to the market, estate agent says:


Thousands of London flats to come back on to the market, estate agent says | Business | The Guardian

They aren't all flats that owners would want though.

I know people who couldn't get rid of bedsits and one bedroom flats but had absolutely no problems finding tenants.

[Martin@AS Financial]

They aren't all flats that owners would want though.

I know people who couldn't get rid of bedsits and one bedroom flats but had absolutely no problems finding tenants.

It will be interesting to see how this pans out as securing finance would be difficult. With new build it is normal practise to exchange within 28 days. The process of then selling on before completion is known as a sub sale which most lenders generally run a mile from. The lenders that do lend will only do so on the original purchase price. This will limit any sell off to mainly cash buyers or other overseas investors.

[jamesbrown]

It will be interesting to see how this pans out as securing finance would be difficult. With new build it is normal practise to exchange within 28 days. The process of then selling on before completion is known as a sub sale which most lenders generally run a mile from. The lenders that do lend will only do so on the original purchase price. This will limit any sell off to mainly cash buyers or other overseas investors.

I think it's pretty clear how it's going to pan out. It will be carnage for those developments that were relying in selling high-valued flats to foreign investors, because the costs just increased massively and supply isn't a problem in this sector (I forget the exact statistics on developments in progress, but it's tens of thousands in the next few years). How it impacts the broader market is TBD, but probably not that much (unless they really tank), as these flats have limited appeal.

[AtW]

these flats have limited appeal.

Oh really?

If they are half price, then nobody will consider buying them?

London crash is coming - soon it will be buy one flat get another free!

[SueEllen]

Oh really?

If they are half price, then nobody will consider buying them?

London crash is coming - soon it will be buy one flat get another free!

You forget if flats are half price most people won't have a job so can't pay for them.

In the last crash that actually had a dramatic impact on London people living in one beds and studios couldn't sell their properties for love or money.

Those in 2+ bedrooms could sell them if they were in a decent area, though at a loss.

The only issue now is because new builds tend to be smaller, is will people refuse to buy them?

[jamesbrown]

Oh really?

If they are half price, then nobody will consider buying them?

London crash is coming - soon it will be buy one flat get another free!

Yes, really.

It's quite common for an otherwise fast moving market to have pockets of properties of a certain type that don't sell, particularly when the market is saturated. That certainly applies to a large fraction of these "luxury" developments, because they are being sold as appreciating assets, rather than places to live. Flats, in general, only appeal to a particular segment of the local market, and these flats, in particular. Young families typically don't want to live in flats and they certainly don't want to pay the sky-high annual service charges.