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+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 😝
Jimmy Carr said something similar about offshoring his tax right up until it wasn't
It's a game but even in trust it's no guarantee it's safe from care fees.
Fwiw my inheritance is tied up in a gite in central France.
I expect to see not a penny of it and I'm glad my parents are getting to enjoy their money.
maybe on STW, in the real world, not so much. At least out of the people I know! But more people are, sure.
Well, OK, maybe not 'most,' I don't know. But many are who weren't before.
I expect to see not a penny of it and I’m glad my parents are getting to enjoy their money.
I keep telling mine to spend it that I don’t want it but they really aren’t bothered. That said they’ve spent a lot on my eldest later my helping her with a car and for her 18th. They tell me it’s what they want to do.
Jeremy Grantham rightly says that rationality has little to do with investment decisions - rather people follow the herd, create manias, the old animal spirits are the reason we boom then bust.
I think we may be at the mania stage of the current bull market.
Big problem from my perspective is that I can’t really afford to move house. I’d like to move out of town a bit to a slightly smaller house but those out of town places have gone nuts in price and the costs of moving are too great now my house price has risen so much.
People I know can’t get bigger houses for growing families as the price difference between say, a 2 bed terrace and a 3 bed semi - a traditional upgrade you would say - is massive. I remember when we bought our first house at 53k and a 3 bed semi was about £65-£70k. You didn’t need a massive increase in wage to get a slightly bigger house.
I bought my £53k house when my wife and I worked in pretty lowly retail jobs, me as a supervisor and my wife as a sales assistant, but I don’t think a bank would lend us the money to buy the same house again as first time buyers again. It’d be £140k now but wages haven’t risen loads to match.
It wouldn’t be so bad if the rental market was good and you could get houses for reasonable money in nice condition but it blows my mind how much it is to rent a house nowadays, my mortgage is dirt cheap in comparison, I think to rent my current house would be 2.5x what my mortgage is!!! Bonkers.
There's a guy down our street who paid £420k in 2017, he's just put his up at £550K. Tbh I thought he was taking a punt but reading this, it seems that might be realistic.
Re: mortgage vs renting costs. My mortgage is £360 a month. I don't know exactly what I could rent my house out for, but I'm confident it would be £2k+ a month. Great for me, crap for people who have / want to rent. My kids both want to live round here after uni, I think it very unlikely they'll be able to, even if they live with us for a while to save some cash.
Has anything actually changed? Maybe a slight post covid blip. When we bought 12 years ago there were houses selling in days, some not taking more viewings. Houses doubling in value every 10 years has been going on in popular areas for decades.
It is hard for first time buyers but consistently low interest rates and steady rises in value mean it's moderately low risk. 30 years ago you could easily get screwed by rising interest rates and falling prices. There's always something although some periods are better than others.
Has anything actually changed?
In the 12 years since you bought we have been through some slowing, even a dip in some areas.
Currently it is feeling like a very 'superheated' market. Again.
In the 12 years since you bought we have been through some slowing, even a dip in some areas.
Currently it is feeling like a very ‘superheated’ market. Again.
I only gave that as an example. I've been involved in property since then. Plenty of action over the last 5 years around here (SW England and south wales). Crowded auction rooms, busy viewing days, prices going up and up. I appreciate there's a lot of regional variations but it doesn't sound like anything new, it's been crazy for ages
maybe on STW, in the real world, not so much. At least out of the people I know! But more people are, sure.
Even then most won't be able to just up sticks and move somewhere cheaper unless they start a new job which is 100% remote.
My employment contract says my place of work is the office, and even though there's been a large shift in the way we work and the majority of my team has been 100% remote for the last year, that's not going to always be the way. So I'd need to find a place within 1.5hrs of the office to make the 1/2 days a week in the office I'm likely to have to do (which I'm actually already doing) workable. That doesn't take you out of a particular area, just expands it a bit.
Houses prices and rental prices down here in the SE are just mental - I'd love nothing more to be have the option to move somewhere hundreds of miles away, right on a mountain with riding out the door, but that's just not an option. I'm stuck with £1000 a month for anything decent 2 bed, or shared ownership 2 bed places being reserved off plan for next year, at £300-350k, and you can't buy a 'normal' house for much under £200k.
@thegeneralist - yep, I know all about that. It's why you should be talking to your in-laws and parents in their 50's and 60's, not their 80's.
That's why it's called "financial planning", not "financial reacting to the fact you're about to croak".
Also, I don't and will never have kids. Horrible things. I'll be extracting the maximum wealth possible from my gaff and spending it on hookers and coke in my dotage. But it still boggles my mind that people don't have these conversations early on.
We made our wills when we were 40. Most people don't do it until they're 57 years old. By that time people start croaking (especially men). And all it takes is a tiny amount of effort and foresight.
If you've got kids, and expect to die at some point, then get on it today. Or lose out through inaction tbh.
The agent we bought our house 4.5 years ago called me on Friday and asked if we’d be prepared to sell as he had several really desperate buyers. He sounded really crest fallen when I said no. It did cross my mind for about 30 seconds after the call knowing that our neighbours have just sold for about £60k more than we bought for. But for us too move to areas we’d consider worth moving from here, we’d end up with another chunk of mortgage I don’t want.
I don’t and will never have kids. Horrible things.
Other peoples yes, your own, not so much.
I’ll be extracting the maximum wealth possible from my gaff and spending it on hookers and coke in my dotage. But it still boggles my mind that people don’t have these conversations early on.
I am trying to have that conversation with my wife now, however I'm having trouble getting her on board. She's not keen on the whole coke and hookers thing. I said I'd share but apparently still a problem.
Has anything actually changed? Maybe a slight post covid blip
Yes, prices have gone right up due to stamp duty change. Around here houses are being sold within days, some aren’t even making on the estate agents Windows or websites. It has not been that quick for a very long time.
Broke my tradition of being a perennial renter (moved around a lot) as i wanted a garden and an Asgard Shed. Moved in 2 weeks ago and someone offered to buy it off me for 20K more than i paid.
@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.
Just to be clear, what you're saying is that rather than use the assets they have, to pay for their care, you'd rather the already massively cut and overstretched councils care budget is used to pay for their care? Which obviously means that those people without such assets who can't afford to pay for their care will get a lower standard of care as a result. But on the upside their kids get more money which they've not in any way earned.
That's a pretty terrible and morally reprehensible thing to do.
Just to be clear, what you’re saying is that rather than use the assets they have, to pay for their care, you’d rather the already massively cut and overstretched councils care budget is used to pay for their care? Which obviously means that those people without such assets who can’t afford to pay for their care will get a lower standard of care as a result. But on the upside their kids get more money which they’ve not in any way earned.
That’s a pretty terrible and morally reprehensible thing to do.
You get the standard of care you pay for.
This topic both fascinates and worries me. Like most on here I can't really understand how it is sustainable for prices to continue rising. But I'd really like to better understand the actual economics of it.
My knowledge of economics is virtually none existant, but I know enough to know we keep interest rates artificially low to stimulate growth. Which naturally increases interest rates. Which leads to some kind of fine balancing act, which sooner or later somebody messes up and the entire system goes bang.
So can we keep interest rates low forever, as what appears we are attempting to do now? What kind of impact are huge Covid bailout packages going to have in the long term? Would be fascinating to hear from somebody who understands the mechanics of these things.
And a bit of a left field question, but let's say decentralised currencies take off (which is entirely possible over the next few decades, or average mortgage term). Without governments and central banks having the power to manipulate currencies, what happens then?
It all feels like a dangerous recipe, but again, I don't actually understand any of it, so I don't know whether it is or not.
You get the standard of care you pay for.
But those who can't afford to pay will get a worse standard if those who can afford it, dodge it. I don't really understand how anyone can square that away.
there’s been a large shift in the way we work and the majority of my team has been 100% remote for the last year, that’s not going to always be the way.
Why not?
I’d love nothing more to be have the option to move somewhere hundreds of miles away, right on a mountain with riding out the door, but that’s just not an option.
Why not?
Why are you paying twice the cost of living for half the lifestyle to do a job that you've demonstrably been doing at home quite ably for the last year? That's madness.
A required (why?) half day in the office per week from the North to London is three hours on the train, three hours in work and three hours home again. And if you book far enough in advance costs buttons.
That’s a pretty terrible and morally reprehensible thing to do.
Unconvinced that a lack of investment into social care by councils or government is an individual responsibility.
State pensions, remember those? Halcyon days. Jumpers for goalposts, brexit, free herring for all.
@ewan - the vast majority of people aren't rich and may have a single home to rely on to assist with end-of-life care (should you actually end up there, rather than kark it outside of an old people's home). In that case it's *more* important to protect your assets - because aside from the shocking standard of care your loved ones would get in these places - you'll also be without the necessary funds to make their lives better whilst they're there - because it will be in the coffers of the council.
Maybe it's laudable that you're deluding yourself with the fantasy that voluntarily handing over the fruits of your parent's lifes' work to the council in an effort to "spread the wealth" and raise living standards for all. But it doesn't really happen.
Better to take that cash and use it to directly benefit your family. They worked for it after all. And then maybe you can campaign for the necessary systemic change to our economic system that is required for proper end of life care to have a chance of becoming a reality.
Throwing away the little you have won't fix the world - that takes hard economic reorganisation. Your suggestion is just bending yourself over a barrel of your own making.
How about this @Ewan - you campaign to stop the Queen/Royal family automatically receiving 25% of all energy exploitation rights on British seabeds?
Yep. The Royal Family is on the line for about 4 billion over ten years from money made auctioning wind farm rights off - just because one of their great great granndaddy's killed a load of people and called himself "king".
Throw your house away if it means that much for you. Or maybe realise there's *shedloads* of money for quality end of life care - it's just going into the pockets of the already stinking rich.
Why are you paying twice the cost of living for half the lifestyle to do a job that you’ve demonstrably been doing at home quite ably for the last year? That’s madness.
A required (why?) half day in the office per week from the North to London is three hours on the train, three hours in work and three hours home again. And if you book far enough in advance costs buttons.
Because most businesses still have offices with long leases on them, with a handful of people in them currently. My company has 1600 employees and has shown that it can work as well as, if not better, with around 90% of the workforce working from home. But, as soon as things get back to 'normal' a good portion of that workforce will be back in the office. Some by choice, others required by the company.
I may have the option to work 100% remotely, I may not. That's not up to me - therefore the option to move somewhere miles away isn't on the table at the moment. There's surveys going around work now about the future and how people would like to work, but ultimately it's going to be down to the company to decide, not individual people.
The same thing my company is going through, I can guaranteed thousands of other companies are also thinking about. Yes, some may decide that their employees can work 100% from home if they want but others will probably go to a middle ground with 1/2 days in the office and the rest at home. Bear in mind we've gone from having 50 people WFH on a Friday, to 1550 people WFH every day.
The other question is, would I WANT to work from home 100% of the time? I don't think I would. I've adjusted to it over the past year but I need a day or so a week with a different scenery, seeing people face to face etc.
So it's as simple as that, it's not down to me. The realistic scenario for me (and I think many people) will be 1/2 days a week in the office, and with the office being North Kent, that's hours away from anywhere I'd like to relocate to.
Prices are rising in line with demand which is far outstripping supply. It will slow but will continue in the usual parts of the UK/3 bed+ houses, is my guess. Stamp duty making a massive impact? Probably not as big as we’d think. The London market is starting to recover the same growth levels.
Locally, Agents are running out of stock.
Because most businesses still have offices with long leases on them, with a handful of people in them currently.
So? How is this your problem?
My company has 1600 employees and has shown that it can work as well as, if not better, with around 90% of the workforce working from home. But, as soon as things get back to ‘normal’ a good portion of that workforce will be back in the office.
Why? That's moronic. If people are working "as well if not better" from home, why would you make them less efficient at a greater expense?
Some by choice, others required by the company.
Stop you right there because:
ultimately it’s going to be down to the company to decide, not individual people.
No it isn't, it's quite the opposite.
(Assuming more than two years' of employment) you have a legal right to flexible working. If you are able to work from home and you want to then you can, and it's down to the business to justify why they need you to come into an office. "We want you to" isn't sufficient.
So it’s as simple as that, it’s not down to me.
No. It's as simple as that, it is absolutely down to you. If you want to go into an office then that's different, but if you don't then the onus is on your employer to demonstrate otherwise.
The realistic scenario for me (and I think many people) will be 1/2 days a week in the office, and with the office being North Kent, that’s hours away from anywhere I’d like to relocate to.
What does your regular commute look like, vs a round trip to Kent one day a week? A round trip to Kent from Kendal is like 10 hours, is that wildly different from an hour to work and back every day?
And what are you doing in that half day that you can't do over video conferencing?
"We want you to” isn’t sufficient.
There will be a ton of places which believe that, if you don't done do what they want in this respect, that is sufficient to make your working life less pleasant that it could be though.
There will be a ton of places which believe that, if you don’t done do what they want in this respect, that is sufficient to make your working life less pleasant that it could be though.
Sadly, this is true. Less enlightened employers will demand presenteeism. The Civil Service will be interesting, senior managers making all the right noises, with government policy to get people back into city centres pulling the other way.
Hybrid working will be the future for many with the ability to work from home effectively, but that is actually a minority of the national workforce.
How about this @Ewan – you campaign to stop the Queen/Royal family automatically receiving 25% of all energy exploitation rights on British seabeds?
Yep. The Royal Family is on the line for about 4 billion over ten years from money made auctioning wind farm rights off – just because one of their great great granndaddy’s killed a load of people and called himself “king”.
Throw your house away if it means that much for you. Or maybe realise there’s *shedloads* of money for quality end of life care – it’s just going into the pockets of the already stinking rich.
That is a bunch of whataboutery to be honest. The fact that one part of the system is corrupt doesn't mean that you should effectively steal from another part of the system (hiding your funds is deprivation of assets). It will have a direct effect - the council care budget is finite, so if it's spread between more people, those others will get less. You can argue that's the fault of government and the monarchy all you want, but the dishonesty you're advocating isn't much better to be honest.
In that case it’s *more* important to protect your assets – because aside from the shocking standard of care your loved ones would get in these places – you’ll also be without the necessary funds to make their lives better whilst they’re there – because it will be in the coffers of the council.
That isn't how it works. The council will only come after your assets if you ask them to pay for your care - essentially they'll ask you to make a contribution. If you don't ask them to come after your assets and are spending the money on your own care, that is no problem. As far as I can see the only reason to put your property in a trust is to give a bunch of money to a bunch of people that have not earned it in anyway whatsoever other than an accident of birth - at the expense of collectively spending it on those less well off. Which is almost identical to the issue you're complaining about with the monarchy.
I can’t begin to understand how people can afford these sorts of house prices.
I could buy a £500 000 house with the equity I have. My partner and I each bought a flat - one for £38000 one for 48 000 back in 92. they are now worth £350 000 and £200 000.
So we re now in the position to buy at a huge sum - but not because we earned the mnoney but because the UKs housing market is so stupid. We could not afford to buy those flats from sctrach in recent years because they have gone up 500%+ x but salaries only up 25%
Also to the above If I was stating now on the best salaries either of us have earned would could buy nothing anywhere near us aaprt from perhaps and ex council flat in a horrid estate
So we re now in the position to buy at a huge sum – but not because we earned the mnoney but because the UKs housing market is so stupid. We could not afford to buy those flats from sctrach in recent years because they have gone up 500%+ x but salaries only up 25%
Hopefully an independent Scotland can implement some effective wealth taxes, reclaim some of that unearned wealth.
The Covid house price increases isn't just a UK thing, it's happened globally in richer countries.
Don't know how it will pan out. If longer term people can work more from home and prioritise space then there could be sustainable increases in places that were previously pleasant but too out of the way. Or it could all go pop.
Renting in the UK is horrendous. We moved earlier this year and considered renting but folk were wanting £1200/month for absolute dumps that would cost ~£800/month to get a mortgage on. I don't want to overpay for a house but renting is not good either.
£1200/month for absolute dumps that would cost ~£800/month
£800 plus of course maintenance, buildings insurance, carpet replacement etc etc.
Really a fairer comparison would be the interest component of the 800 a month + the cost of maintenance, rather than the full 800 (as the rest of it is still yours, it's just in a less liquid form).
That makes it about 230 + other costs (let's say 1% of the value of the property, so 2k on a 220k house - 160 quid a month) quid a month for the mortgage.
So 1200/month for absolute dumps that would cost ~£390/month.
Had to find out the rough price of my old man's place last year. Went to look again, but found nothing similar in the area, but did find this.
One bed apartment. Chav and fake tan central.
https://www.rightmove.co.uk/properties/90878098#/
Had to find out the rough price of my old man’s place last year. Went to look again, but found nothing similar in the area, but did find this.
One bed apartment. Chav and fake tan central.
https://www.rightmove.co.uk/properties/90878098#//blockquote >
That is 5x 1 bed flats plus a shop in the sale, not just a singular 1 bed flat.
Really a fairer comparison would be the interest component of the 800 a month + the cost of maintenance, rather than the full 800 (as the rest of it is still yours, it’s just in a less liquid form).
Apart from comparing apples (repayment for you) with pears (interest only for landlord).
By your suggestion the leveraging through interest only is what landlords should be doing. This though in my view is exactly how some of the price increases are coming about - landlords who keep leveraging and pushing for price increases because on paper they have more to borrow against, pushing up rents because of 'increases' in house 'value', so borrowing more, so buying more at higher prices, so putting up rents... (and repeat).
What if we did away with interest only mortgages for all people - BTL, residential, commercial? What if people had to be making headway on repaying what the bank loans them? This over a few yeas might have a tempering of costs.
@ewan - if you think it's reasonable (and can afford) to not protect your assets - in a perfectly legal manner - for dubious "moral" reasons then all power to you. Especially since most of the care is provided by 3rd party providers that provide dividends to shareholders.
If you want the little guy to fund shareholders with what may very well be their only residual asset then fair enough.
In the meantime, I suggest your outrage against tax avoidance would be better focussed in this sort of industrial direction:
https://www.bbc.co.uk/news/uk-57021128
more whataboutery + i'm the just the little guy</quote>
Plenty of things are immoral but legal. At least you're owning it I suppose.
By your suggestion the leveraging through interest only is what landlords should be doing.
I wasn't suggesting this. I was pointing out that when you consider that you get an asset at the end of a mortgage so the total 'cost' of the mortgage isn't the sticker price. This makes renting even less fair.
You can't really directly compare rent and finance costs, a renter can walk away from the property with no further obligation. He, or she, can move into a 250k property for c2k commitment.
Landlord takes responsibility for cladding issues, lift refurb, one of mine cost me 6k in lift refurb last year.
Landlords are taxed on purchase, taxed on income and taxed on sale.
@Ewan - your accusations of whattaboutery are misplaced. I stand to inherit *nothing*. Zip. Nada. Not a thing.
I don't have an interest in the game other than principled objection. So you can dismiss it as whattaboutery - but frankly, I think you need to re-examine your own position. I think you're mistaken on where the moral imperative lies in the care system as a whole.
Wholesale systemic reform is needed - not demonisation of poor people who have to give up passing their only asset on to their children whilst the well off have already sorted themselves out (and may well be extracting the wealth of the poor anyway).
Frankly, I'd abolish *all* inheritence. There are a lot of very very good reasons to do that. But in the meantime, getting average joe to work the system in a totally legal manner so he doesn't get *more* buggered than he already is is the only pragmatic - and moral - tactical solution.
Well we agree on that at least, i've long advocated a 100% inheritance tax, would fix a lot of the issues in this country.
Frankly, I’d abolish *all* inheritence
How the heck would you do that?
We live in a town that doesnt tend to be as effected by value fluctuations as others. It increases but its quite predictable and steady. Anything overpriced sits and is pretty obvious.
Only reason to reply here was that i have just recently cleared my mortgage. I am completely debt free. And then my daughter started kicking off about the size of her bedroom (3 bed semi) and i now have a 4 bedroom detached 'executive' house being built for August and a nice mortgage to match. I will be paying much less per month on the new mortgage even though its value is double my old one. I have enough money in the bank to almost clear 50% of the new mortgage if we need to. Mortgage will take me to 65 as we were not offered any terms that would take us beyond.
My old house was traded in and was put on the market at 9am. We were told 4 people would come to look at that night and 2 a couple of days later. By 9am the next day 2 offers of full asking price had been received and one accepted. This was £5k more than the trade in value we had been given.
Finally, the main reason, other than my daughter making noise about needing a bigger bedroom is that i have two young adults as kids. The future looks like i will have two young adults living under my roof for the foreseeable and i am good with that. If that is to be the case, well the 3 bed semi wasnt big enough. This new one will make that a much more civil experience.
Must be a big house if a modern 4 bed competes with an older 3. I haven't seen an "executive" house yet that is any bigger, room for room, than my ex-council house.
We’re in a two bed end terrace and need to move to a three at some point in the near future. Realistically Mrs F and I will be sleeping in the living room on a sofa bed as we simply can’t afford the huge jump in price from a two to three bed property. I honestly can’t fathom how people afford to buy anything above a two bed terrace in most towns nowadays. Unless they bought when houses were still reasonably priced, earn a huge salary or are willing to be in debt til they’re ninety.
Well we agree on that at least, i’ve long advocated a 100% inheritance tax, would fix a lot of the issues in this country.
For farmers as well?
Part of the reason I started this thread is I've been putting our buy to let on the market. I had been looking at house prices and speaking to estate agents.
On the market Wednesday. One viewing on Friday. Cash asking price offer by Monday.
(Before anyone says it, I've just worked out annual profits after tax plus capital value increase per year. It's worked out a little under £2k per annum. FFS. Anyway, no more giving up sunny riding days to paint windows, re-tile, let carpet fitters in, replace dicky locks or show new tenants around. No worrying every time there's a storm that I'm getting a phone call in the morning. No more saving up for a new bike only to get the phone call to say the boiler just sh*t it's guts out and spending Santa Cruz prices on a Baxi. Yay )
@matt_outandabout:
On the market Wednesday. One viewing on Friday. Cash asking price offer by Monday.
Don't sell the fekker. Wait until someone comes with something *silly* tbh.
Yes, there's all sorts of "moral wrongness" with it - but, by design, buying and selling our homes works as a market. That's not your fault.
Personally, I'm an anti-capitalist. But I work in banking and live in a capitalist world. You've got to do the best for yourself that you can, in the system that you live in.
For farmers as well?
I'm sure it's possible to figure something out. E.g. Random idea: farm land could become a state asset and farmers just rent it, that way their offspring don't need to buy the farm they could take over the lease. Sons / daughters have automatic right to the lease etc.
Farm land is currently used by the rich to avoid Inheritence tax, which is why James Dyson has been buying up so much recently (and moved to Singapore). This means 'real farmers' have to compete with billionaire tax avoiders when buying farm land.
Random idea: farm land could become a state asset and farmers just rent it
Chevychase - not only is your position morally reprehensible but you could find yourself in huge legal bother - basically you cannot hide your assets in the way you seem to think.
@tjagain - it's a question of timing.
It's hiding assets if you think you're about to become unwell to dodge having to pony up your property. If you sort your affairs out early - as I've advocated in this very thread - then it is completely legal and above board.
I've already defended why it is both the sensible and moral thing to do. I don't really have the appetite to do it again - I've already stated I stand to inherit nothing.
If other people want to guarantee they'll inherit nothing, through nothing more than their own inaction and (misplaced) sense of morality, and would rather hand their parents hard-earned over to the state (and then on to private shareholders in the form of extracted profit), then knock yourselves out 🙂
I honestly can’t fathom how people afford to buy anything above a two bed terrace in most towns nowadays.
Again: location. PM me and I'll tell you what I just bought and what it cost.
I’ve just worked out annual profits after tax plus capital value increase per year. It’s worked out a little under £2k per annum. FFS.
Is that taking into account someone else paying off your mortgage or no?
Also to the above If I was stating now on the best salaries either of us have earned would could buy nothing anywhere near us aaprt from perhaps and ex council flat in a horrid estate
next time you are ranting about people who commute long distances and own cars to make that possible you might want to remind yourself of this post!
Is that taking into account someone else paying off your mortgage or no?
A good point - but no, we've been mainly interest only and paid off a little each year when we could out of net profit.
Its about double the square footage of our current house Squirrelking. So definately bigger
pay a £1000 a week to put them somewhere nice
You won't get that in the South, trust me.
House up for sale Monday for 150,000 now been offered 155,000 and about 8 viewings to go. 3 bed semi ok area drive and garden. North West innit but 5 minutes to the beach, 40 mins to North Wales. Down South prices are just crazy.
TJ’s moral policing is a bit dubious as weren’t you planning to Air B and B your flat to maximise profit to fund you’re travelling? Your moral compass must be too close to a magnet.
Things continue crazily here.
Seems most things are going 15%+ above asking price, and the asking prices are raised too.
There are some stories of houses being bought before any viewings, others of 20+ offers being made and generally some huge prices being paid.
Is this about to be the bubble that goes pop?
I can’t begin to understand how people can afford these sorts of house prices.
20 years of living like a student, living with my parents for a few years in late 20s, buying several wreaks, doing a job I don't like but pays ok but not amazing by any stretch.
Thing is I do live in a house beyond where I would be if I didn't make these choices but if I hadn't made theses choices I would have not been able to get started on the ladder originally. I think it's too hard to get going now without taking some quite extreme choices early and having some good luck (I did / had both). You can't just do your job unless it's very well paid or you live in a cheap part of the country.
Is this about to be the bubble that goes pop?
I think it all depends on the recovery from Covid, someone will be along in a moment to explain how we're looking at a super great depression that will have us all in the queue for the soup kitchen at moment, but whilst that won't happen, things will get bumpy when the Government decide we're on our own and some people are going to have a really rough time of it.
You'd hope at least, none of the 11.5m people on furlough as of mid-April are actually looking to move up, but Brits and houses...
At the moment, in some sectors at least there is a bit of a recruitment problem, it seems that so many people who were furloughed from their usual jobs, took casual work, delivering food from super markets and takeaways are now returning to their usual work, they can't recruit enough people to replace them, or indeed in the Pubs etc, Economically this is a good sign.
When May furlough figures are released, tomorrow I think, it would be very positive to see a decent drop in numbers and this to be a trend up to it ending in September.
You'd hope, give employers have to pay a meaningful % to keep people on the scheme it's not 11.5m 'zombie jobs'.
As of dangerous financial bubbles there are two I can think of, 1) Bitcoin, down 40% in 6 weeks wiping $307,063,448,400 out of existence 2) Motor Industry, especially VW. They're massive in the PCP world. Their model is based around controlling the value of vehicles by controlling manufacture, sales and financing, but it only works if they keep customers on the wheel, buying new or nearly new cars every 2-3 years with WFH being a growing trend only accelerated by Covid, they're going to find a lot of customers not replacing cars when they reach the end of their leases.
Is this about to be the bubble that goes pop?
I think there is a way to go yet. One of the biggest employers in Edinburgh area (RBS/NatWest) have just told many staff that they only need to go to an office twice a month. That has a pretty major influence on how people arrange their lives.
Devon's gone mad price-wise...
When this thread first started I checked our estimated sale price on Zoopla, and it was £395k.
That's up from us buying it for £300k in 2015.
I just checked it now (3 weeks later is it?) and it's now allegedly worth £420k. Wtaf?
Not that we're thinking of selling but that's insane!
I honestly can’t fathom how people afford to buy anything above a two bed terrace in most towns nowadays.
I agree - I bought a two-bed terrace in the mid-90s when I was in my late twenties as a single mortgage applicant (£42k). I couldn't afford to buy that property now (asking price of around £250k) even taking into account my wife's salary.
With the massive uncertainty in the job market I suspect Alot of the mania is getting the house you want or need to be in while you have a job that gets you the mortgage.
Much easier to retain that house on a lower income than to get it.
There are many other contributory factors at play for sure but almost all of it boils down to FOMO
Sure as hell wouldn't like to try and enter the market these day.
Getting more crazy by the day, on the Northumberland coast.
A tiny 2 bedroom cottage, offers over £295k. Listed on right move, sold stc the next day. Does have beautiful views though.
FOMO?