barleycorn Posted November 8, 2013 Share Posted November 8, 2013 What are the advantages of high rents and high house prices? Well, the banks get to make more money off larger mortgages, estate agents make a larger commission, more money gets paid in inheritance tax and a few property dealers get to make a wad of money. On the flip side vast amounts of money gets tied up in housing when it could be being spent on other things to boost the economy, first time buyers are getting priced out of the market, rents go up, housing benefit goes up, repossessions go up and the cost of moving up the ladder goes up. jb ---------- Post added 08-11-2013 at 11:16 ---------- All-ready have one.Not much point in buying your own, if it's not going to gain in value .Something to pass on to the kid's. What's the point of it rising in value if you're just going to pass it onto the kids? You're not getting any benefit and they would still get the house even if prices didn't go up. Also remember that the higher the value when you die the more inheritance tax they may have to pay (currently 40% on anything over £325000). Also what atlus said if they decide to sell it. jb Link to comment Share on other sites More sharing options...
Manlinose Posted November 8, 2013 Share Posted November 8, 2013 Well, the banks get to make more money off larger mortgages, estate agents make a larger commission, more money gets paid in inheritance tax and a few property dealers get to make a wad of money. On the flip side vast amounts of money gets tied up in housing when it could be being spent on other things to boost the economy, first time buyers are getting priced out of the market, rents go up, housing benefit goes up, repossessions go up and the cost of moving up the ladder goes up. good points the provision of affordable (i.e. cheap) housing should be this government's number one priority - if we have £50-60billion to spare for HS2 we should be using some of this money to fund the building of houses - it would provide a much bigger boost to the economy Link to comment Share on other sites More sharing options...
I1L2T3 Posted November 8, 2013 Share Posted November 8, 2013 All-ready have one.Not much point in buying your own, if it's not going to gain in value .Something to pass on to the kid's. The primary point is to have somewhere to live that suits your needs, meets your budget and is secure in that it gives you a long-term home if that's what you want. If you think speculation is the primary reason for owning a family home you have completely and utterly lost the plot. Seriously. Link to comment Share on other sites More sharing options...
Mr Gobby Posted November 8, 2013 Share Posted November 8, 2013 If it's the only house you ever buy maybe but most people don't do that. Most people still climbing the property ladder don't realise that rising house prices makes it harder for them to move up to the next stage. If you have a house worth £100,000 and want to buy one worth £200,000 you'd have to find an extra £100,000 after selling yours. If the prices go up by 10% you'd be able to sell yours for £110,000 but the one you want to buy would be £220,000 - you'd have to find an extra £110,000. If instead the prices fall by 10%, you would only get £90,000 for yours but the one you wanted to buy would be £180,000 and you'd only have to find an extra £90,000. When you get to the end of the property ladder and finally die, you might have a bigger legacy to leave for your kids, which won't go as far as property prices for them would be higher, but would they have preferred you to spend a greater proportion of your income on big mortgages or more on toys, holidays, trips to the zoo, etc. when they were kids? My mortgage was paid up years ago. As it was an endowment, I also got a very nice fat cheque back ,which I gave to the kids. Did they miss out on holidays etc not on your life. They probably did better than most.Business was and still is good thank you ,my dad taught me you reap the seeds you sow. Incidently i bought my kid's houses for them . Link to comment Share on other sites More sharing options...
poppet2 Posted November 8, 2013 Share Posted November 8, 2013 Incidently i bought my kid's houses for them . Why, did your dad buy you your house? Link to comment Share on other sites More sharing options...
chem1st Posted November 8, 2013 Share Posted November 8, 2013 As a home owner .I'm delighted my investment is rising in value. You bought a house as an investment instead of a 'home'? You don't even own it, your merely a tenant. Link to comment Share on other sites More sharing options...
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