How far will house prices fall [volume 5]

How far will house prices fall [volume 5]

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MG CHRIS

9,084 posts

167 months

Wednesday 8th July 2020
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Currently looking for my first property in wales. Phoned around for various viewings 80% wont allow viewings because people are living in them the other 20% is either empty houses or the estate agent has told the home owner to leave the house for the time of the viewing.
Also have one viewing for next week where I was told you must wear a face mask think I might cancel that one tbh.

The smaller independents seem to be more sensible in viewings where the large chains are playing it by the book from the nut jobs in the welsh assembly.

SteadyAsSheGoes

5,983 posts

213 months

Wednesday 8th July 2020
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anonymous said:
[redacted]
That's interesting, I guess these must have their market but it does look pricey. It doesn't seem close enough by rail to London to justify the price to me. I live in Bedford and a direct train to and from London seems to take a similar amount of time (45 mins-ish), but you can buy a new build 2 bed flat from about 170k. For 265k you can get a 3 bed detached with garage, etc.

anonymous-user

54 months

Wednesday 8th July 2020
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SteadyAsSheGoes said:
That's interesting, I guess these must have their market but it does look pricey. It doesn't seem close enough by rail to London to justify the price to me. I live in Bedford and a direct train to and from London seems to take a similar amount of time (45 mins-ish), but you can buy a new build 2 bed flat from about 170k. For 265k you can get a 3 bed detached with garage, etc.
They are oddly priced and this is why I think they'll get battered https://www.rightmove.co.uk/property-for-sale/prop...


Same town but a longer walk to the station

In all of the Medway towns any land near a station has had these thrown up, I guess some HTB and people wanting to be right by the station and newness

If people aren't going to the station 5 days a week anymore then they'd buy the house probably

spreadsheet monkey

4,545 posts

227 months

Wednesday 8th July 2020
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SteadyAsSheGoes said:
anonymous said:
[redacted]
That's interesting, I guess these must have their market but it does look pricey. It doesn't seem close enough by rail to London to justify the price to me. I live in Bedford and a direct train to and from London seems to take a similar amount of time (45 mins-ish), but you can buy a new build 2 bed flat from about 170k. For 265k you can get a 3 bed detached with garage, etc.
Rochester makes more sense if you work in Canary Wharf (i.e. not going all the way into Central London). You can get from Rochester to Stratford International station in less than 30 mins.

matrignano

4,370 posts

210 months

Wednesday 8th July 2020
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anonymous said:
[redacted]
Yeah but...if you bought that flat, you would have money left over to buy (finance) a brown R8 just like in the picture!
Lifestyle!

NickCQ

5,392 posts

96 months

Wednesday 8th July 2020
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Has anyone figured out exactly what the stamp duty cut is?
Specifically, how much is the FTB buying my flat for £520 saving / what's the "split the difference" ask?

Could be up to £15k total?

DaveCWK

1,990 posts

174 months

Wednesday 8th July 2020
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NickCQ said:
Has anyone figured out exactly what the stamp duty cut is?
Specifically, how much is the FTB buying my flat for £520 saving / what's the "split the difference" ask?

Could be up to £15k total?
Would you actually want to renegotiate/ request more money from your buyer off the back of this? Their tax affairs are theirs surely.

spreadsheet monkey

4,545 posts

227 months

Wednesday 8th July 2020
quotequote all
NickCQ said:
Has anyone figured out exactly what the stamp duty cut is?
Specifically, how much is the FTB buying my flat for £520 saving / what's the "split the difference" ask?

Could be up to £15k total?
2% on 125k + 5% on £250k = £14.5k saving, if my maths is right...

number2

4,310 posts

187 months

Wednesday 8th July 2020
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spreadsheet monkey said:
NickCQ said:
Has anyone figured out exactly what the stamp duty cut is?
Specifically, how much is the FTB buying my flat for £520 saving / what's the "split the difference" ask?

Could be up to £15k total?
2% on 125k + 5% on £250k = £14.5k saving, if my maths is right...
FTB was 0% up to £300k I think, so a bit less than that. Not sure what's happening above £500k yet, haven't see anything.

Shnozz

27,477 posts

271 months

Wednesday 8th July 2020
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Be interesting to see whether it applies on second properties in addition to main residences.

Jobbo

12,972 posts

264 months

Wednesday 8th July 2020
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spreadsheet monkey said:
NickCQ said:
Has anyone figured out exactly what the stamp duty cut is?
Specifically, how much is the FTB buying my flat for £520 saving / what's the "split the difference" ask?

Could be up to £15k total?
2% on 125k + 5% on £250k = £14.5k saving, if my maths is right...
The nil rate band is increasing from £125k to £500k, so the SDLT will be 2% on £20k, i.e. £400. Previously it would have been £16k. So £15,600 saving.

That is, assuming the legislation reflects what the policy paper says (para 3.9, https://www.gov.uk/government/publications/a-plan-... )

number2

4,310 posts

187 months

Wednesday 8th July 2020
quotequote all
Jobbo said:
spreadsheet monkey said:
NickCQ said:
Has anyone figured out exactly what the stamp duty cut is?
Specifically, how much is the FTB buying my flat for £520 saving / what's the "split the difference" ask?

Could be up to £15k total?
2% on 125k + 5% on £250k = £14.5k saving, if my maths is right...
The nil rate band is increasing from £125k to £500k, so the SDLT will be 2% on £20k, i.e. £400. Previously it would have been £16k. So £15,600 saving.

That is, assuming the legislation reflects what the policy paper says (para 3.9, https://www.gov.uk/government/publications/a-plan-... )
FTB no SDLT to £300k so saving 2.5% x £200k = £5k, as paying whatever the >£500k rate was on the remaining £20k still.

Jobbo

12,972 posts

264 months

Wednesday 8th July 2020
quotequote all
number2 said:
Jobbo said:
spreadsheet monkey said:
NickCQ said:
Has anyone figured out exactly what the stamp duty cut is?
Specifically, how much is the FTB buying my flat for £520 saving / what's the "split the difference" ask?

Could be up to £15k total?
2% on 125k + 5% on £250k = £14.5k saving, if my maths is right...
The nil rate band is increasing from £125k to £500k, so the SDLT will be 2% on £20k, i.e. £400. Previously it would have been £16k. So £15,600 saving.

That is, assuming the legislation reflects what the policy paper says (para 3.9, https://www.gov.uk/government/publications/a-plan-... )
FTB no SDLT to £300k so saving 2.5% x £200k = £5k, as paying whatever the >£500k rate was on the remaining £20k still.
The FTB relief didn't apply if the price is over £500k.

Sheepshanks

32,769 posts

119 months

Wednesday 8th July 2020
quotequote all
NickCQ said:
Has anyone figured out exactly what the stamp duty cut is?
Specifically, how much is the FTB buying my flat for £520 saving / what's the "split the difference" ask?

Could be up to £15k total?
It would be £15K (FTB reduction doesn't apply over £500K) if £500K became the new starting point.

It could be that anything over £500K will be unaffected. So your buyer may well be looking for a £20K reduction, saving themselves £16K in stamp duty. Good luck! Be amazing if they plough on and ignore those numbers.

Edited by Sheepshanks on Wednesday 8th July 13:31

Jobbo

12,972 posts

264 months

Wednesday 8th July 2020
quotequote all
Sheepshanks said:
It could be that anything over £500K will be unaffected. So your buyer may well be looking for a £20K reduction, saving themselves £16K in stamp duty. Good luck! Be amazing if they plough on and ignore those numbers.
Not according to the policy paper:
3.9 Policy decisions
Temporary Stamp Duty Land Tax (SDLT) cut – The government will temporarily increase the Nil Rate Band of Residential SDLT, in England and Northern Ireland, from £125,000 to £500,000. This will apply from 8 July 2020 until 31 March 2021 and cut the tax due for everyone who would have paid SDLT. Nearly nine out of ten people getting on or moving up the property ladder will pay no SDLT at all.

Sheepshanks

32,769 posts

119 months

Wednesday 8th July 2020
quotequote all
Jobbo said:
Not according to the policy paper:
3.9 Policy decisions
Temporary Stamp Duty Land Tax (SDLT) cut – The government will temporarily increase the Nil Rate Band of Residential SDLT, in England and Northern Ireland, from £125,000 to £500,000. This will apply from 8 July 2020 until 31 March 2021 and cut the tax due for everyone who would have paid SDLT. Nearly nine out of ten people getting on or moving up the property ladder will pay no SDLT at all.
Yes - just seen that.

So NickCQ's buyer saves £15K.

Helicopter123

8,831 posts

156 months

Wednesday 8th July 2020
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Jobbo said:
Sheepshanks said:
It could be that anything over £500K will be unaffected. So your buyer may well be looking for a £20K reduction, saving themselves £16K in stamp duty. Good luck! Be amazing if they plough on and ignore those numbers.
Not according to the policy paper:
3.9 Policy decisions
Temporary Stamp Duty Land Tax (SDLT) cut – The government will temporarily increase the Nil Rate Band of Residential SDLT, in England and Northern Ireland, from £125,000 to £500,000. This will apply from 8 July 2020 until 31 March 2021 and cut the tax due for everyone who would have paid SDLT. Nearly nine out of ten people getting on or moving up the property ladder will pay no SDLT at all.
That's how I read it.


menousername

2,108 posts

142 months

Wednesday 8th July 2020
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What are the rules around BTLs? i read something like the monthly mortgage cannot be more than 60% of the monthly rent?

If the Govt are determined that people pay 500k for something that was once 190k and should only now be 250k/290k, with 35 year mortgages, maybe even some intergenerational mortgages, rather than see even a moderate calming down, then i may as well jump on this bandwagon too


NickCQ

5,392 posts

96 months

Wednesday 8th July 2020
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DaveCWK said:
Would you actually want to renegotiate/ request more money from your buyer off the back of this? Their tax affairs are theirs surely.
Impact of tax on market price is independent of which side of the deal the tax is levied on.

The value of the flat (which I still own 100% of with no binding contract to sell) just went up £15k, 50/50 split is more than fair.

Especially as the buyer is already getting a £15k discount versus an agreed offer pre-lockdown and was moaning about stamp (i.e. trying to make it my problem) all the way through the price negotiations.


NickCQ

5,392 posts

96 months

Wednesday 8th July 2020
quotequote all
Sheepshanks said:
So your buyer may well be looking for a £20K reduction, saving themselves £16K in stamp duty. Good luck! Be amazing if they plough on and ignore those numbers.
I'm wearing a nice dress shirt at the moment that I could throw in as well? biggrin

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