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AIBU?

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Original poster

to me worried that labours non Dom will crash the housing market

77 replies

medona · 13/04/2015 08:16

Apparently even just announcing it has affected the prime London housing market. Its not just this area that is affected as it ripples down, so if they were to abolish it then it could start a housing crash for at least London if not the UK.

OP posts:
BarbarianMum · 13/04/2015 11:58

The thought of all those multi million pound properties standing empty just breaks my heart Hmm

Tutteredboast · 13/04/2015 12:00

Err, a lot of them are blocks of smaller flats that people should be living in. The blocks are multi million pound. What's wrong with thinking that is offensive?

dangerrabbit · 13/04/2015 12:02

Stop. All this talk of oligarchs losing their cash is making me cry.

Bluestocking · 13/04/2015 12:07

I am at a loss to understand what you are worrying about, OP. Could you explain in words of one syllable please?

FragileBrittleStar · 13/04/2015 12:07

i would have thought that a lot of the superrich are also non-resident either for tax purposes -
For non-doms - they couldn't use their foreign income to buy houses anyway directly - so don't think it would have a direct effect - some may leave the country but that is (per non dom status) ultimately their plan anyway.
Getting rid of non-dom status is a good move- the scare monegring is just ridiculous

the real concern is that the proposed IHT change by the tories will just exacerbate the housing problem- more money will pile into property, less incentive to downsize - increasing inability of young to access the market

OfaFrenchMind · 13/04/2015 12:08

Let it crash. It needs to crash, the situation is completely unhealthy.

expatinscotland · 13/04/2015 12:10

I have much greater worries in my life.

keepitsimple0 · 13/04/2015 12:11

Yeah, it's labelled as bad news if housing because more affordable. Bad news for whom?

iniac · 13/04/2015 12:21

Scaremongering nonsense.

cruikshank · 13/04/2015 12:22

only on the TV do you get 12% return on BTL. Normal figures are 4% or less IF you don't get trouble.

And a house. Don't forget that you also get to own a house, paid for by other people.

I wish that the non-dom thing really would lead to an end to the current housing crisis in the form of housing becoming affordable again.

The negative equity thing is a red herring too - even at the lowest point of the 90s crash, fewer than 10% of mortgaged households (ie not all households by any stretch) were in NE, and even fewer of them had to sell and lost money. For those that did, there were ways of walking away debt-free. If the same situation occurred again, surely we could just bail people out anyway. Think on it this way - even if there were a million people who were in negative equity and also had to sell, if we gave their mortgage providers £100,000 for each of them as a way of going towards cancelling their debt, that would still only be less than A TENTH of what we are paying private landlords, each and every year, in the form of Housing Benefit, the majority of which goes to people who are in employment, due to housing being so unaffordable.

Reddragon116 · 13/04/2015 12:25

It wont crash just normalise it - there will be no ripple effect either as its such an elitest niche market any way

Icimoi · 13/04/2015 12:29

If this comes from the Mail, that explains a lot given the non dom status of their proprietors.

I agree that the IHT thing is more damaging. In essence it saves money for those already firmly on the property ladder whilst wholly failing to deal with the fact that it is near-impossible for young people to get on to it without a lot of family money behind them.

gamerwidow · 13/04/2015 12:39

A crash or at the very least a long stagnation of house prices would be the best thing for the housing market. I would feel very sorry for anyone caught in negative equity who had to sell or borrow against the value of they're house but I think it would be best for the majority. I say that as a home owner with another 15 years to go on a mortgage too.

ratspeaker · 13/04/2015 12:49

Can someone explain this to me please?
As I understand it the proposal is to close a loophole that allows some UK residents to avoid paying tax on income earned abroad due to their father ( not mother, note ) being born abroad, or that they intend to be buried abroad.
How many people can this affect?
And how does this cause a collapse in the housing market?

Original poster
medona · 13/04/2015 12:57

Rat the worlds superich invest in london property as it is so attractive with various loopholes.

As the world's super rich can only offrd to live in k&c the normal people that used to live there are pushed into H&f and so on pushing people out.

Now lots of us have bought property at this increased prices and have high debts. If the government makes the UK unatriactive there will be mass exodus and prices will crash in k&c, the rippeles would probably affect the whole UK as sentiment is everything.

OP posts:
ElectraCute · 13/04/2015 13:16

There will not be a 'mass exodus'.

A few parasites very rich people who don't pay any bloody tax here anyway may decide to flounce off and scam some other poor buggers instead. What a tragedy for us all, eh?

And tbh, I find it hard to have a massive amount of sympathy for people who have got themselves into potentially completely unmanageable amounts of debt to buy a house at vastly inflated rates. I do understand that for a very small minority it's unavoidable but for most of us it would be really stupid to leave yourself so open to a) even the tiniest rise in interest rates or b) the slightest fall in house prices.

And I speak as someone who would love to stop renting and buy a place of my own, but am definitely not going to contribute to this bubble of pure panic/madness in order to do so.

ratspeaker · 13/04/2015 13:22

But I still don't see how being asked to pay tax on earning from abroad would make masses of people want to move, are they really all claiming non dom status?
Why would it be this policy affecting the housing market rather than say loads of diamonds being nicked from safety deposits, or uncertainty about who will be in the next government, Russian sanctions, rising fuel costs etc etc

Original poster
medona · 13/04/2015 13:23

You don't know that, there has been a mass exodus before in central London in the 90s

OP posts:
FreudiansSlipper · 13/04/2015 13:34

well according to much of our media it will have a detrimental impact nothing to do with the connections to those who have this status of course oh no Hmm

it is criminal what has happened to the London housing market, so many properties are empty for much of the year it has spiralled out of control and much of this has to do with properties being bought up be foreign investors driving the costs up

why are we allowing people greed to make us fearful of what may happen. a few years ago it was all the best city brains would leave if their bonus were heavily taxed now it is if we take away non dom stautus what about what is best for everyone in this country not a few to get richer and richer

Philip Green an incredibly wealthy man himself, has non dom status was a business advisor to this government says it all about this government

suzannecanthecan · 13/04/2015 13:34

the longer we postpone the crash the bigger and more painful it will be

the knives are out for the rich so anyone who wants to crack down on non doms will be popular

although not with the rich, because turkeys dont vote for christmas Wink

keepitsimple0 · 13/04/2015 13:42

How many people can this affect?

I read somewhere (don't quote me though), it's around 110,000 people. You can be exempt from all foreign earnings by paying a penalty (basic is 30,000, and can be higher). I think around 50,000 or so non-doms opt for this.

Keep in mind all of these people are high earners. Literally all from what I read.

Anniegetyourgun · 13/04/2015 14:02

116,000 or so I think. I doubt very much they all live in London. And I'd be very, very surprised if they all left the country.

Thing is, if you have bought a home somewhere you want to live, and then the housing market crashes, what have you lost? If you weren't planning on selling up and moving somewhere cheaper any time soon, it makes no practical difference to you. At the end of the day you still have a house. The only thing you've "lost" is the warm fuzzy feeling that your property is worth more than you paid for it.

Mistigri · 13/04/2015 14:10

There are an estimated 113,000 people claiming non-dom status out of a population of 64 million.

If this is enough to screw up the housing market then Tory mismanagement of the economy had been far worse than anyone thought!

Original poster
medona · 13/04/2015 14:17

Yes it has affected the whole housing market as its all about sentiment.

Help to buy has only been taken up by 71'000 but has had a massive affect on sentiment.

Anyway lots of these non Dom's have a portfolio not just one property.

OP posts:
suzannecanthecan · 13/04/2015 14:19

why are you worried OP, do you have a property portfolio?

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