Inheritance tax in its current form hits working and middle class people, and completely ignores dynastic wealth which is registered overseas in tax heavens. You're smart enough to know this, so don't pretend like you don't.
House prices rose 7.3% this year, average now almost £250k
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Inheritance tax in its current form hits working and middle class people, and completely ignores dynastic wealth which is registered overseas in tax heavens. You're smart enough to know this, so don't pretend like you don't.
Caporegime
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I'd like to see these houses making £50k a year.
They get talked about daily but yet to see a link to one.
Caporegime
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I'm also smart enough to know if you want to become resident in Gibraltar for instance you need to cut all ties to the UK to avoid it.
Tax advantages of gaining Gibraltar Residency
Gibraltar has some very generous tax advantages, for example there Gibraltar residents are not subject to:
Taxes on savings
Capital gains tax
Wealth taxes
VAT
There is also no inheritance tax either although that will not exempt British people from their inheritance tax responsibilities in the UK. This is due to British people being likely retain their UK domicile which means that worldwide assets will still be liable to UK IHT despite moving to the territory.
Again it's not as simple as you state it to be.
Newham, Waltham Forest, Hillingdon and several other London boroughs have a 2015-2020 growth of over 70%, e.g. 350k property in 2015 is now 600k.
That was an example for foxeye who claims everything local to him is a million billion pounds - ok, I lied, i think he said 150k+ - but actually my point was addressing a broader spectrum, if someone in a similar position, broadened their horizons and looked slightly further afield there will be 50+ similar properties, sure the area they are in isn't as desirable but beggars can't be choosers.
The phrase 'methinks he doth protest too much' seems rather pertinent here.
Inheritance tax raises only £5b per year. Net private wealth in the UK is £45 trillion. Our death rate is about 0.9% per year. If we even assumed that people who die have average wealth (it's much much more, older people are richer), it means inheritance tax is just at 1.1%.
Clearly, those with all the wealth don't pay UK inheritance tax when they die. They either transfer assets throughout theirs lives, or have complex tax-avoidance mechanism in place which they can afford. Your (and my) grandpa however, has to pay it up because they can't afford to spend £1 million to set up a mechanism that protects the other £99 million.
Again, you already know this. If you seriously want to defend people with £100mn+ net worth and say they're paying all their taxes, including inheritance tax at full rate, please be my guest.
That's generally true in more remote areas, not really true in or around London, e.g. broadening spectrum usually increases prices, not decrease
Unless you just go completely out, then there's the issue of 1hr+ commutes and £12-13k a year season tickets for two working people.
Associate
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it's a good start but quickly outgrown. Fine for one person in your 20's but if you have any kind of long term relationship/ family planned you're going to want to sell and upgrade before you turn 30.
That's generally true in more remote areas, not really true in or around London, e.g. broadening spectrum usually increases prices, not decrease
I don't honestly believe you are correct in what you are saying, I reckon you can have your cake and eat it in the majority of areas in and around the capital.
The key thing to remember is London has an amazing transport system so distance isn't a major factor like it could arguably be further afield. As it happens I spent most of my 20s on the tube, more specifically the jubilee line, so if we look at that as a rough example you go from silly money housing in canary wharf, green park etc.. but then a bit further out you have west ham and at the other end of the line Willesden etc..
So Mayfair, is £1-2m for a 2 bed flat, and 10 miles away in west ham it's £70-150k, and that's just me having a quick look, and that's a 20 minute commute to pretty much anywhere in zone 1 and definitely not at a cost of 12k a year for a season ticket. Also this is assuming you have to work in zone one in the first place, or indeed the capital itself. As a good example I also used to live in Surrey and the same is true there, million pound houses and cheap and cheerful houses all within throwing distance of each other.
I don't believe there isn't a house for everyone, it just involves some lifestyle changes and maybe digging deep for x years to achieve your first step onto the property ladder.
That's precisely my point and you summarise it perfectly, 'it's a good start'. This or a vast number of properties like it can provide the catalyst people need to build a nest egg that will allow them to stop paying 'the man' and get them their own mortgage - but then they might become the very thing they have learned to hate
Shared ownership can sometimes (though obviously not always) be more difficult to get out of when you want to take that next step though. It opens up an opportunity to build a bit of equity as you say but you're essentially still renting (well, you literally are renting the other 50%), sometimes can't even decorate without permission, may come with restrictions on increasing your ownership share, often need to give first refusal to the shared owner when selling, if you can go to market potential buyers have to meet the shared owners criteria etc.That's precisely my point and you summarise it perfectly, 'it's a good start'. This or a vast number of properties like it can provide the catalyst people need to build a nest egg that will allow them to stop paying 'the man' and get them their own mortgage - but then they might become the very thing they have learned to hate
It's a small improvement in some senses but definitely comes with it's own drawbacks.
You're way, way off in your numbers.
Average property price in West Ham is £375k. Yes, not £2mn like Mayfair, but also not £70-150k.
In fact if you search for properties in West Ham under £200k, you see only 3 properties, one is a shared ownership, another is a lifetime lease for 60+ people, and the third is a minimum price for an auction. The first two are 1-bed flats, as well.
For a 2-bed flat in West Ham you're looking at the £275-350k range. If you want a nicer one, it's closer to £400k.
I'm guessing you haven't been living in London for a good while if you seriously thought a 2-bed flat in West Ham is £70k
You're way, way off in your numbers.
Average property price in West Ham is £375k. Yes, not £2mn like Mayfair, but also not £70-150k.
In fact if you search for properties in West Ham under £200k, you see only 3 properties, one is a shared ownership, another is a lifetime lease for 60+ people, and the third is a minimum price for an auction. The first two are 1-bed flats, as well.
For a 2-bed flat in West Ham you're looking at the £275-350k range. If you want a nicer one, it's closer to £400k.
I'm guessing you haven't been living in London for a good while if you seriously thought a 2-bed flat in West Ham is £70k
Your issue is clear my old fruit, and it proves the point I was making very well, you are hell bent on a specific area, try the same 'West Ham' search but increase the range to 10m
there's 103 results (excluding the parking) between £70k and £100k... So by West Ham you meant anywhere from Croydon to Romford to Enfield?try the same 'West Ham' search but increase the range to 10m
Was just a tube line example, but yep if the shoe fits, I think my point stands up perfectly. There is a great deal of moaning about stupidly high prices and an inability to get on the property ladder, I say expand your catchment area and find a property that fits those limited needs.
Sure I get shared ownership is restrictive, but there is a huge amount of moaning about begrudgingly paying rent, surely some of said rent going back in your pocket nullifies that gripe?
Your issue is clear my old fruit, and it proves the point I was making very well, you are hell bent on a specific area, try the same 'West Ham' search but increase the range to 10m
I'm hell bent on a specific area? YOU said West Ham is £70k-150k, I looked at West Ham. If you had another area in mind, you shouldn't have said West Ham.
Who says Croydon or Fulham aren't part of West Ham?
Also even by his own criteria, there isn't a SINGLE flat within 10 miles of West Ham at £70k. Almost everything under £150k (his own pricing range) in that 10m distance is either shared ownership or starting auction price.
Completely clueless about property prices of London. I've seen his type, they say why don't you put together £20k to buy a £150k 2-bed flat in Finsbury Park? And by Finsbury Park they actually meant Luton.
I'm hell bent on a specific area? YOU said West Ham is £70k-150k, I looked at West Ham. If you had another area in mind, you shouldn't have said West Ham.
Who says Croydon or Fulham aren't part of West Ham?
Also even by his own criteria, there isn't a SINGLE flat within 10 miles of West Ham at £70k. Almost everything under £150k (his own pricing range) in that 10m distance is either shared ownership or starting auction price.
Completely clueless about property prices of London.
Ok I hadn't had my coffee, and please watch your mouth
My point I was trying to make still stands, expand that search by 10 miles and there are hundreds of viable cost effective properties, I appreciate this ruins your hyperbole, soz.
I think having to move the goal posts from West Ham to half of Greater London somewhat nullifies the point personally. To me it seems clear you were perhaps caught out by just how much values had inflated somewhere you thought was cheap.
Bin off shared ownership from the search and most of what's left are boats and caravan houses, which I think even the most ardent proponents of compromise could agree are not really 'home ownership' as we're discussing.
Shared ownership is a substantial compromise and I don't think is really a solution to people not being able to to afford housing properly. "oh you can't afford a house, here I'll sell you half a house then charge you to live in it on my terms" isn't really the silver bullet I think it's being presented as.
Half a house or a boat is a long from the opening "you can have your cake and eat it" idea.
You're moving the goalposts my friend.
Expand by 10 miles = half of London and your commute may go from either 1 minute (middle of the City) or over 2 hours (change lines 4 times). Your commute costs may go from 0 (walk) all the way to £5k a year in season ticket.
Precisely. It's totally fine, somebody who last saw prices in 2005 might think 2-bed flats in West Ham go for £70k, but they also should see our point when the actual price in 2021 is £275-350k.
My point was London has a fantastic transport network, so distance is largely irrelevant, as such the usable or searchable area is vast. I view shared ownership as necessary evil for less well off people who have a strong desire to build a deposit up.
Leasehold.
You still pay land/ground rent to the freeholder.
You're still liable for x,y,z bills from the freeholder.
Leasehold is a complete waste of time, and shared ownership schemes are a really bad idea (as people have said again and again).
Reason one: you can't even sell your ownership fraction without permission from the freeholder...
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