TrentVilla Posted July 4, 2017 Moderator Share Posted July 4, 2017 9 hours ago, Rob182 said: I've found the last few pages of this thread to be a really interesting read I'm looking to move house soon, but I know diddlysquat about all this house market economic hoo haa. I'm going to do a bit of reading up, but can one of you clever chaps give me a pointer? I've got a house right now, which I want to sell and get a new, bigger, better, FASTER house. I'm planning to sell mine next year, probably March/April-ish and then buy my new house shortly after. Is this a bad idea, with prices expected to rise? Or is it basically a gamble whenever you look to move, and no-one knows for certain what will happen? My fiancée's brother has just sold his house, but is now planning to rent it from the buyer for 6 months before they buy their new house. I don't really understand this, and I think they're doing it because they needed to get an Ex-partner off the mortgage quickly, but I feel like I'm fairly clueless as to whether this is a good or bad thing to do, generally. Selling before buying can be a good option. For instance selling first, assuming you've somewhere to live in between, then buying effectively makes you a first time buyer with no chain. That can be attractive to a vendor. However it's a gamble. Because you need to find and complete on a place in whatever time is available while I. Your temporary place. Which depending on the circumstances could de difficult. Plus if there is rent involved it's dead money, plus prices could well go up (or down) while you are trying to buy. It isn't something I'd do personally. 1 Link to comment Share on other sites More sharing options...
TrentVilla Posted July 4, 2017 Moderator Share Posted July 4, 2017 8 hours ago, Stevo985 said: It's crazy that I left secondary school knowing things like how to solve quadratic equations and formulae for thermal physics, but I didn't have a clue about how mortgages worked or how to write a cheque. Definitely a huge opportunity to teach kids "life skills" or whatever you want to call it. The majority of people with mortgages wouldn't be able to calculate what their daily or monthly interest charge is. The financial illiteracy of our nation is staggering but if you are a little cynical like me not really surprising. Link to comment Share on other sites More sharing options...
Xela Posted July 4, 2017 Share Posted July 4, 2017 1 hour ago, ender4 said: In South Birmingham (Solihull to be exact), the housing market is crazy over the past couple of months. Pretty much every decent house is going for above asking price, and houses selling in the first week on the market. Surely has to end with a crash? Though i've been saying that for 10 years now! My boss said the same... looking to buy in Shirley/Solihull or Hall Green at a push and everything is being snapped up for £10k - £15k above asking price. Link to comment Share on other sites More sharing options...
itdoesntmatterwhatthissay Posted July 4, 2017 Share Posted July 4, 2017 (edited) With the price of housing I urge people to look at self-build registers. https://www.birmingham.gov.uk/info/20054/planning_strategies_and_policies/1052/apply_to_be_on_the_self-build_and_custom_housebuilding_register/4 http://www.solihull.gov.uk/selfbuild The cost of land is ludicrous and when you add that to service, planning, contributions etc. it's no surprise that smaller developers aren't delivering the homes that once kept the market competitive. Self build has always been genuinely affordable and certain changes that have already happened - and others hopefully happening over the next few years - may help many people who can't access social housing, afford a home of their own. Edited July 4, 2017 by itdoesntmatterwhatthissay Link to comment Share on other sites More sharing options...
mikeyp102 Posted July 4, 2017 Share Posted July 4, 2017 Anyone ever brought off parents? Seems a lot of rules about inheritance tax... Link to comment Share on other sites More sharing options...
ender4 Posted July 5, 2017 Share Posted July 5, 2017 11 hours ago, mikeyp102 said: Anyone ever brought off parents? Seems a lot of rules about inheritance tax... as long as they don't die within 7 years... Link to comment Share on other sites More sharing options...
omariqy Posted July 5, 2017 Share Posted July 5, 2017 16 hours ago, TrentVilla said: Selling before buying can be a good option. For instance selling first, assuming you've somewhere to live in between, then buying effectively makes you a first time buyer with no chain. That can be attractive to a vendor. However it's a gamble. Because you need to find and complete on a place in whatever time is available while I. Your temporary place. Which depending on the circumstances could de difficult. Plus if there is rent involved it's dead money, plus prices could well go up (or down) while you are trying to buy. It isn't something I'd do personally. Yeah don't do what I did and buy before you sell (had to). Have to go through the hassle of getting a refund of my stamp duty now. Link to comment Share on other sites More sharing options...
zak Posted July 5, 2017 Share Posted July 5, 2017 20 minutes ago, ender4 said: as long as they don't die within 7 years... Such a weird rule. thought it was 5 but either way. However you arnt taxed on anything below £325,000 if one parent and £650,000 if both parents. So for example if your buying it off both your parents, and god forbid they both passed away in the next 7 years, you would only be taxed on any values over £650,000 so if the house is less than that you woulndnt be taxed on it. I think this is right anyway, happy to be corrected 1 Link to comment Share on other sites More sharing options...
Rugeley Villa Posted July 5, 2017 Share Posted July 5, 2017 I don't agree with this inheritance tax. Link to comment Share on other sites More sharing options...
omariqy Posted July 5, 2017 Share Posted July 5, 2017 3 hours ago, ender4 said: as long as they don't die within 7 years... Well if he is buying for full market value then inheritance tax doesn't come into it. 1 Link to comment Share on other sites More sharing options...
Rodders Posted July 5, 2017 Share Posted July 5, 2017 so how does it work? forgive my ignorance. If parents bequeathed a fully owned house to their kid, what do the children have to pay tax on? Is the house valued independently and then they have to pay a tax at a certain threshold? 1 Link to comment Share on other sites More sharing options...
zak Posted July 5, 2017 Share Posted July 5, 2017 22 minutes ago, omariqy said: Well if he is buying for full market value then inheritance tax doesn't come into it. Of course, sorry, you are right. If you buy a house for market price, should be no issues with tax or anything like that, just your mortgage provider may not allow it, they often don't like sales between related people. If they give you the house ("gift") what i said above is true. If you buy for below market value, i.e 50% it is considered the difference (50%) is gifted to you and that is eligible to inheritance tax in the same manor as above Link to comment Share on other sites More sharing options...
zak Posted July 5, 2017 Share Posted July 5, 2017 22 minutes ago, Rodders said: so how does it work? forgive my ignorance. If parents bequeathed a fully owned house to their kid, what do the children have to pay tax on? Is the house valued independently and then they have to pay a tax at a certain threshold? No Tax to pay if parents no longer live in it and child is going to live in it and parents live for more than 7 years afterwards. Inheritance Tax comes in if Parents dont live for another 7 years. Maket rate rent would need to be paid by parents if staying in property or it would be designated as still part of parents estate. Children would have to pay tax on the rental income If the child does not live in the property and sells it at a later date, they will need to pay capital gains tax on profits 2 Link to comment Share on other sites More sharing options...
Xela Posted July 5, 2017 Share Posted July 5, 2017 5 hours ago, omariqy said: Well if he is buying for full market value then inheritance tax doesn't come into it. I was thinking that. If its a transaction based on commercial market value then surely it is no different to buying it off anyone? Link to comment Share on other sites More sharing options...
Rodders Posted July 5, 2017 Share Posted July 5, 2017 5 hours ago, zak said: No Tax to pay if parents no longer live in it and child is going to live in it and parents live for more than 7 years afterwards. Inheritance Tax comes in if Parents dont live for another 7 years. Maket rate rent would need to be paid by parents if staying in property or it would be designated as still part of parents estate. Children would have to pay tax on the rental income If the child does not live in the property and sells it at a later date, they will need to pay capital gains tax on profits cheers. Link to comment Share on other sites More sharing options...
omariqy Posted July 5, 2017 Share Posted July 5, 2017 3 hours ago, Rodders said: cheers. IHT is very complicated when multiple gifts are involved so need to be careful. Seek legal advice if not sure. Link to comment Share on other sites More sharing options...
Risso Posted July 5, 2017 Share Posted July 5, 2017 On 7/4/2017 at 17:46, TrentVilla said: Selling before buying can be a good option. For instance selling first, assuming you've somewhere to live in between, then buying effectively makes you a first time buyer with no chain. That can be attractive to a vendor. However it's a gamble. Because you need to find and complete on a place in whatever time is available while I. Your temporary place. Which depending on the circumstances could de difficult. Plus if there is rent involved it's dead money, plus prices could well go up (or down) while you are trying to buy. It isn't something I'd do personally. That's what we've just done, more or less. Sold up in February, rented for 6 months, and am hopefully exchanging contracts on Friday. Being a chain-free, 'first time buyer' with mostly cash to spend made for a good position to be in. Link to comment Share on other sites More sharing options...
zak Posted July 6, 2017 Share Posted July 6, 2017 11 hours ago, omariqy said: IHT is very complicated when multiple gifts are involved so need to be careful. Seek legal advice if not sure. Yeah, if going down this route you should seek legal advice. 16 hours ago, Xela said: I was thinking that. If its a transaction based on commercial market value then surely it is no different to buying it off anyone? Yeah, there shouldnt be an issue if buying at market value, although i dont know what you would have to do to confirm it is market value, I presume just get a valuation from a surveyor and pay that price. However, again seek legal advice as you never know what laws will be in place for this, probably something stupid like you have to have the property up for sale with a local estate at that price for 2 weeks before you can sell it to a relative or who knows what. Link to comment Share on other sites More sharing options...
Rugeley Villa Posted July 10, 2017 Share Posted July 10, 2017 We've had a bit of good news today and in all fairness a bit of a life changer. We've been gifted 20k from a family member of my wife. We live in a three bed council house, but it's a small three bed. One main bedroom and two box rooms. There are five of us altogether and as the years go by the more cramped it's going to get. We can buy our council house for 50k, bit we have to live in it for five years after buying before we can sell on or rent it out. The actual house is worth around 110k today. Are we best taking advantage of our council house and sticking it out for another five years before thinking of getting somewhere bigger, or would we be best just putting the money on a bigger house now. Any advice would be great. Link to comment Share on other sites More sharing options...
Kingman Posted July 10, 2017 Share Posted July 10, 2017 53 minutes ago, Rugeley Villa said: We've had a bit of good news today and in all fairness a bit of a life changer. We've been gifted 20k from a family member of my wife. We live in a three bed council house, but it's a small three bed. One main bedroom and two box rooms. There are five of us altogether and as the years go by the more cramped it's going to get. We can buy our council house for 50k, bit we have to live in it for five years after buying before we can sell on or rent it out. The actual house is worth around 110k today. Are we best taking advantage of our council house and sticking it out for another five years before thinking of getting somewhere bigger, or would we be best just putting the money on a bigger house now. Any advice would be great. Newmarket starts on Thursday, Stick the £20k on Caravaggio and buy your house on Monday morning! . 2 Link to comment Share on other sites More sharing options...
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