Why do people think they are entitled to home ownership?

[ez8004]

I'm sticking to ny guns on this topic.

Granted "parasites" may be the wrong term... Can you think of a better one?

I'm lucky in that we too purchased our house in 1999/2000 just before the boom. At the time we paid £75k which was unheard of within my circle of friends. But we both loved the house and spent the next 7yrs completely ripping out and converting from 4 - 3bedroom which balanced the house out and made the rooms much bigger, brighter.

 

Our friends back then were enjoying themselves and completely missed out....now they simply cannot afford to buy a house, partly because of the massive increase and partly because of the sheer cost of renting. Bitter is not the word as to how they feel. And, I share their bitterness too. I think it is wrong, that individuals should be allowed to monopolise their property portfolio for nothing other than financial gain. It traps people into a cycle they can see no way out of.

I read earlier on the BBC news website that private landlords are milking the housing benefit system... Are we suprised??

 

This whole buy to let mentality needs to be brought to book and overhauled to ensure that landlords cannot profit in the way they are obviously doing so at present.

We all deserve the chance to be a home owner, but because of the greed of those who see it as a means to a relatively lucrative way to earn vast amounts of extra money it now needs to be reigned in and ALL loopholes closed.

 

The government has already closed a lot of so called loopholes such as interest payments not being allowed to count as a cost and the 3% increase in stamp duty on more than one property. So we just bought property mortgage free and made sure we beat the deadline before the stamp duty increase came in. It is not our problem that we have decided to invest our money in property for our future pension income. It is called forward thinking. Anyone can do it. We still have to pay income tax on the rental income. We pay our taxes and to be honest I probably contribute more in taxes than you ever will. I don't get any form of benefit from the government. I am therefore actually a positive contributor unlike a lot of others.

[andrejuan]

But a house does not cost 100% of its value to build, and the discount is often much lower than 70%.

The figure could be somewhere in the middle, so buyers get a 50% discount, and house cost around 50% of the value to build.

Also, if we are talking about social housing; houses have often been lived in for 20 years plus, so for all those years the landlord should have been making a small profit.

If that is not the case, that landlord will be pleased to see the house sold.

 

The house that I want to buy will be valued at £100,000 - 35% discount =£65,000, that house would have cost less than £20,000 to build; in the 1960s

 

Yes all true, and building new "replacement" housing creates jobs which is one of the biggest benefits.

[Cyclone]

The government has already closed a lot of so called loopholes such as interest payments not being allowed to count as a cost and the 3% increase in stamp duty on more than one property. So we just bought property mortgage free and made sure we beat the deadline before the stamp duty increase came in. It is not our problem that we have decided to invest our money in property for our future pension income. It is called forward thinking. Anyone can do it. We still have to pay income tax on the rental income. We pay our taxes and to be honest I probably contribute more in taxes than you ever will. I don't get any form of benefit from the government. I am therefore actually a positive contributor unlike a lot of others.

 

That's not a loophole, it's something that every other business could count as a cost. It's the opposite of a loophole, something designed purely to make this particular type of business more expensive.

 

---------- Post added 22-08-2016 at 07:50 ----------

 

I'm sticking to ny guns on this topic.

Granted "parasites" may be the wrong term... Can you think of a better one?

I'm lucky in that we too purchased our house in 1999/2000 just before the boom. At the time we paid £75k which was unheard of within my circle of friends. But we both loved the house and spent the next 7yrs completely ripping out and converting from 4 - 3bedroom which balanced the house out and made the rooms much bigger, brighter.

 

Our friends back then were enjoying themselves and completely missed out....now they simply cannot afford to buy a house, partly because of the massive increase and partly because of the sheer cost of renting. Bitter is not the word as to how they feel. And, I share their bitterness too. I think it is wrong, that individuals should be allowed to monopolise their property portfolio for nothing other than financial gain. It traps people into a cycle they can see no way out of.

I read earlier on the BBC news website that private landlords are milking the housing benefit system... Are we suprised??

 

This whole buy to let mentality needs to be brought to book and overhauled to ensure that landlords cannot profit in the way they are obviously doing so at present.

We all deserve the chance to be a home owner, but because of the greed of those who see it as a means to a relatively lucrative way to earn vast amounts of extra money it now needs to be reigned in and ALL loopholes closed.

 

You've convinced yourself that current house prices are down to BTL, they aren't.

A private rental market needs to exist and it should be possible for individuals to be the service providers. They are no more parasites than the guy who cuts my grass.

[lil-minx92]

But a house does not cost 100% of its value to build, and the discount is often much lower than 70%.

The figure could be somewhere in the middle, so buyers get a 50% discount, and house cost around 50% of the value to build.

Also, if we are talking about social housing; houses have often been lived in for 20 years plus, so for all those years the landlord should have been making a small profit.

If that is not the case, that landlord will be pleased to see the house sold.

 

The house that I want to buy will be valued at £100,000 - 35% discount =£65,000, that house would have cost less than £20,000 to build; in the 1960s

 

Let's not suggest that selling houses at a discount to full market value does not cost the owner -ie the tax payer in this case- money. Whether it's a new build or old housing stock.

Yes give occupiers the right to buy but why give them a discount?? In the heady days of the eighties fine but the country these days is bust and we can't afford it now:o

[Guest sibon]

You've convinced yourself that current house prices are down to BTL, they aren't.

A private rental market needs to exist and it should be possible for individuals to be the service providers. They are no more parasites than the guy who cuts my grass.

 

Does the guy who cuts your grass get some of his money paid by the Government in the form of Grass Cutting Benefit? Therefore raising the cost of grass cutting for all.

 

If not, your analogy fails, as that is precisely how the rental market is shored up by our dishonest Government.

[ez8004]

Does the guy who cuts your grass get some of his money paid by the Government in the form of Grass Cutting Benefit? Therefore raising the cost of grass cutting for all.

 

If not, your analogy fails, as that is precisely how the rental market is shored up by our dishonest Government.

 

What government benefit are you getting at exactly?

[Guest sibon]

What government benefit are landlords getting exactly?

 

Hmmm .. let's think.

 

Which government benefit could suppliers of housing benefit from, either directly or indirectly?

 

ETA: Nice edit, but just not quick enough.

[ez8004]

Hmmm .. let's think.

 

Which government benefit could suppliers of housing benefit from, either directly or indirectly?

 

ETA: Nice edit, but just not quick enough.

 

Well I wasn't sure exactly what you are on about and still don't have a clue.

 

How is housing benefit affected? You really need to explain. I genuinely have no idea.

 

---------- Post added 23-08-2016 at 00:17 ----------

 

By the way, the government has taken an axe to the rental market by how interest on a buy to let mortgage is considered and the 3% increase in stamp duty.

 

It all comes back to affordability. If you can't afford a certain type of accommodation then get something else. No one is forcing you to pay a certain rental price. You are supposed to live within your means.

 

No one is entitled to a specific standard of home ownership or living. The state is their to give you the essentials. Everything else is effectively a luxury is my opinion.

Edited August 22, 2016 by ez8004

[Cyclone]

Does the guy who cuts your grass get some of his money paid by the Government in the form of Grass Cutting Benefit? Therefore raising the cost of grass cutting for all.

 

If not, your analogy fails, as that is precisely how the rental market is shored up by our dishonest Government.

 

You've heard of the minimum wage?

[Guest sibon]

You've heard of the minimum wage?

 

The Government pay the minimum wage to gardeners now?