OV9

Broccers wrote: ↑Wed Jul 08, 2020 4:03 pm Trouble, with this apparent saving on duty, is your new house might go down and down if this really is the worst recession eva.

Are you saying it’s not a saving in duty?

Alex_ wrote: ↑Wed Jul 08, 2020 1:46 pm Do you think sellers will just lump the money saved from stamp duty onto the asking price?

Possibly, and/or buyers will haggle less because their budget has effectively just gone up.

Rich B wrote: ↑Wed Jul 08, 2020 4:33 pm

Broccers wrote: ↑Wed Jul 08, 2020 4:03 pm Trouble, with this apparent saving on duty, is your new house might go down and down if this really is the worst recession eva.

Are you saying it’s not a saving in duty?

Am I saying you save money if your 500k house goes down 10 percent?

Broccers wrote: ↑Wed Jul 08, 2020 5:19 pm

Rich B wrote: ↑Wed Jul 08, 2020 4:33 pm

Broccers wrote: ↑Wed Jul 08, 2020 4:03 pm Trouble, with this apparent saving on duty, is your new house might go down and down if this really is the worst recession eva.

Are you saying it’s not a saving in duty?

Am I saying you save money if your 500k house goes down 10 percent?

...and you make money if your house goes up 10%.

Either way you get to buy your house and pay less SDLT, because it is a saving on SDLT.

How much has your house gone up or down by over the last 5 years Broccers?

Rich B wrote: ↑Wed Jul 08, 2020 5:28 pm

Broccers wrote: ↑Wed Jul 08, 2020 5:19 pm

Rich B wrote: ↑Wed Jul 08, 2020 4:33 pm Are you saying it’s not a saving in duty?

Am I saying you save money if your 500k house goes down 10 percent?

...and you make money if your house goes up 10%.

Either way you get to buy your house and pay less SDLT, because it is a saving on SDLT.

How much has your house gone up or down by over the last 5 years Broccers?

I dont recall any massive recession do you? And we are talking about a window in the future are we not?

Broccers wrote: ↑Wed Jul 08, 2020 5:45 pm

Rich B wrote: ↑Wed Jul 08, 2020 5:28 pm

Broccers wrote: ↑Wed Jul 08, 2020 5:19 pm

Am I saying you save money if your 500k house goes down 10 percent?

...and you make money if your house goes up 10%.

Either way you get to buy your house and pay less SDLT, because it is a saving on SDLT.

How much has your house gone up or down by over the last 5 years Broccers?

I dont recall any massive recession do you? And we are talking about a window in the future are we not?

we are talking about whether or not this is a saving in SDLT, which it is.

If you want to talk about whether houses go up in value, they do. Even with recessions, they still go up over the long term, and typically houses are bought to keep long term.

Rich B wrote: ↑Wed Jul 08, 2020 5:59 pmwe are talking about whether or not this is a saving in SDLT, which it is.

If you want to talk about whether houses go up in value, they do. Even with recessions, they still go up over the long term, and typically houses are bought to keep long term.

Ok in simple terms - its an insentive to save money - yes - but if that saving is wiped out by a housing slump its not worth it. Hopefully that explains what I am saying.

Any who knows how soon the recovery comes especially where in London for instance the demand may reduce as people realise its not essential to be in an office. Just saying

Broccers wrote: ↑Wed Jul 08, 2020 6:04 pm

Rich B wrote: ↑Wed Jul 08, 2020 5:59 pmwe are talking about whether or not this is a saving in SDLT, which it is.

If you want to talk about whether houses go up in value, they do. Even with recessions, they still go up over the long term, and typically houses are bought to keep long term.

Ok in simple terms - its an insentive to save money - yes - but if that saving is wiped out by a housing slump its not worth it. Hopefully that explains what I am saying.

Any who knows how soon the recovery comes especially where in London for instance the demand may reduce as people realise its not essential to be in an office. Just saying

And the demand may increase as people need more space to have an office in their home. There’s a million factors that will affect it. who knows?

I do expect a downturn is coming, but A temp saving in SDLT can be pretty dramatic for people who have been saving to buy, because it’s all saved cash and not money they can borrow like the Actual mortgage.

Saving for deposits and SDLT is the biggest hurdle to buying for most people in expensive areas. Removing £15k of SDLT basically means someone who can happily pay the monthly mortgage costs can buy a £500k house today when yesterday they’d have only stretched to £400k. it’s a pretty big incentive.

£500k : 10% deposit + £0 SDLT = £50k savings

£500k : 10% deposit + £15k SDLT = £65k savings
£450k : 10% deposit + £12.5k SDLT = £57.5k savings
£400k : 10% deposit + £10k SDLT = £50k savings

This is a bit short term thinking, but Houses eventually go back up, and you’re paying off capital the whole time, so if it suddenly makes buying possible when it wasn’t before, then I’d be taking advantage.

I don't disagree - if we all knew the future it would be very lucrative

I'm looking at houses on Friday and Monday so I'm glad I waited. They've dropped £5k in the last few weeks and this will save me another few quid.