Corona property prices

[Estoril-5]

A house near me went on for sale for £350k well before corona, it dropped after a short while to £340k which was slightly overpriced but I guess there was some fat in there for negotiating etc. It was a fixer upper done to a good contemporary standard, no chain etc. Was reduced this week for £320k. At that price I think its priced to sell, must be a desperate seller.

I think well see some prices that will return to acceptable and some that believe their asking is what it is worth.

If house prices fall that doesn't bother me as my house will drop in value and the house I move up should be cheaper, its all about the level of debt ill have rather than what I think my house is worth.

I am surprised at the number of houses popping up on Rightmove etc this week.

question to those in the know, could a 45 year old get a 30 year mortgage so potentially paying off the mortgage when they are 75?

[tleefox]

question to those in the know, could a 45 year old get a 30 year mortgage so potentially paying off the mortgage when they are 75?

Couldn't comment on those numbers particularly, but lending on terms past "normal" retirement age i.e. 65 is increasingly common, as it is widely accepted that in years to come, 65 will not be the "normal" retirement age.

[Vanguard]

I recently got a new mortgage with Halifax and they won't lend beyond 70 but obviously will beyond 65

[Captaincook]

From what I have seen, new houses are coming on to the market at pre-Covid asking prices. I suspect prices will drop in the coming 3-6 months, deals are there to be had with sellers who need to sell and similarly there will be buyers that need to move.

If I was looking to buy a BTL, I would be waiting to see what comes up and would still move if the deal was right.

[thestore]

From what I have seen, new houses are coming on to the market at pre-Covid asking prices. I suspect prices will drop in the coming 3-6 months, deals are there to be had with sellers who need to sell and similarly there will be buyers that need to move.

If I was looking to buy a BTL, I would be waiting to see what comes up and would still move if the deal was right.

I spoke to another friend of joins looking to buy in the same boat, again said they would pay the current value for the right house and ride it out as they expect to own it for 5+ years.

I’m contradicting what I have said before; but I think the drop might me lower then I first thought and transactions just won’t happen. There will of course be some bargains, right place right time and all that.

[Boss13]

Are the changes to the CGT allowance prompting any landlords here to change their plans?

I can't imagine any landlords will change their plans based on this.
From 2024, the allowance is going to be 3k from the current 12.3k. (6k in 2023, so below numbers are 1/3 less if doing a transaction in 2023)
Even for a 45% tax payer that is an additional tax due of £4k. (at 20% rate it is £1800)
Can't imagine any landlord would change their portfolio decisions based on this alone. Also, only matters if they sell a property of course.

(Done in haste, so hopefully my sums are correct)

[Montello]

I can't imagine any landlords will change their plans based on this.
From 2024, the allowance is going to be 3k from the current 12.3k. (6k in 2023, so below numbers are 1/3 less if doing a transaction in 2023)
Even for a 45% tax payer that is an additional tax due of £4k. (at 20% rate it is £1800)
Can't imagine any landlord would change their portfolio decisions based on this alone. Also, only matters if they sell a property of course.

(Done in haste, so hopefully my sums are correct)

I didn’t see this in the news and I can’t find any coverage. Links?

Edits. Found it now. That slipped through the net.

https://www.ii.co.uk/analysis-commen...anges-ii526051

[Montello]

That CGT tax change is going to push a load of people into CGT complications that don’t currently have to complete a tax return.

Another blow to landlords who seem to be subject to death by 1000 cuts … when the PRS continues to shrink and rents keep going up as a result life will get continually harder for renters.

[Passenger]

I can't imagine any landlords will change their plans based on this.
From 2024, the allowance is going to be 3k from the current 12.3k. (6k in 2023, so below numbers are 1/3 less if doing a transaction in 2023)
Even for a 45% tax payer that is an additional tax due of £4k. (at 20% rate it is £1800)
Can't imagine any landlord would change their portfolio decisions based on this alone. Also, only matters if they sell a property of course.

(Done in haste, so hopefully my sums are correct)

This, you don't let the tax tail wag the investment dog., That said the CGT changes are another Govt. action which'll deter would be entrepreneurs and investors...genius!


Isn't unemployment predicted to double next year...also aren't the figures, quite uhm 'massaged' anyway...

[wotsthecrack]

Are the changes to the CGT allowance prompting any landlords here to change their plans?

I'm not selling, stopped working 18 months ago so keeping under the 40% tax band. The current CGT allowance would save me just over 2K not worth changing my plans for.

[thestore]

I am surprised at the number of houses popping up on Rightmove etc this week.

question to those in the know, could a 45 year old get a 30 year mortgage so potentially paying off the mortgage when they are 75?

It all depends on the lender. My offer in principle is with First Direct, it is a 40 year mortgage which assumes I retire in my 70s. I am looking at a 5 year fixed with unlimited overpayments, so my plan is to bring the term down as and when I can but fix to a lower monthly payment in the first instance by taking a 40 year term.

[Estoril-5]

It all depends on the lender. My offer in principle is with First Direct, it is a 40 year mortgage which assumes I retire in my 70s. I am looking at a 5 year fixed with unlimited overpayments, so my plan is to bring the term down as and when I can but fix to a lower monthly payment in the first instance by taking a 40 year term.

Wow, didn't know they did 40 year mortgages. Thought 25 years was the norm, times have changed I guess. If a 40 year mortgage means the monthly payment is affordable then that would keep house prices inflated.

[thestore]

Wow, didn't know they did 40 year mortgages. Thought 25 years was the norm, times have changed I guess. If a 40 year mortgage means the monthly payment is affordable then that would keep house prices inflated.

I’m not sure how many lenders do it, was a surprise to me too. It’s perfect for me though as ~50% of my income is bonus based so nice to have the certainty of lower payments but ability to overpay.

[davida]

question to those in the know, could a 45 year old get a 30 year mortgage so potentially paying off the mortgage when they are 75?

You maybe required to show you have some sort of savings plan in place in case you need to pay your mortgage past retirement age.