To think no one has a right to make money off their house

[Laughingstock1991]

The general consensus among financial commentators this week has been that the housing market has turned. Interest rates are still going up and are unlikely to come down for a few years. The low interest rate financial experiment that has been in place since 2008 has ended and it’s unwinding is going to be painful. The housing boom was based on cheap credit.

My mortgage is likely to go up about 400 a month. Lots of commentators reckon we are in for a big fall in house prices. Good thread here:
https://twitter.com/EdConwaySky/status/1668987423643119623

What pisses me off is the absolute assumption made by some people (like my friend today) that the government should use public money to bail out mortgage holders. Most people were stress tested on their mortgage- I was- and yes it’s going to be tough but do I think public Money (renters money) should be used to bail out mortgage holders- fuck no! The Lib Dems have raised this also today.

House equity is unearned wealth. There are no guarantees. We have been through a boom and now it’s going bust. Hopefully sanity will return & housing will be seen as a home again- not an investment. Its not a ‘market’.

And I say all of this as a homeowner who is going to have to pay a lot more. I want everyone to be able to afford a decent home- not just those with money.

I don’t think that’s unreasonable!

The most stated problem is that of recent buyers fair concerns.
Here's how to do it without penalising them:
1- Make council tax really proportionate to value of property.
Bigger house's owners should pay up or sell up.
2- Increase 2nd home ownership tax gradually over next 10 years.
Not a paltry 2x normal council tax, but something like 10x.
3- Deter buy-to-let mortgages over time so rich capital-rich people
don't buy up all the homes to subsidise their pension.
4- Ban overseas purchases or rich equity developers of properties
and land (who then rent) to free up supply.
5- Bring unearned tax (Capital Gain) and earned income (salary)
into convergence over 10 years so they are equal.
6- Use this re-distributive tax then to build social housing.
7- Aim policies to hold property prices steady, so recent buyers
won't face a sudden cliff-edge loss of value and repossession.
8- Change bank rules so they can't over-lend.
Home-ownership must come before investment and holiday
homes in a healthy society.

@Blossomtoes I understand all that. We aren't talking about future HC spending though but current. The previous poster could have substituted 68 for 80 but the point is essentially the same.
The chief point, however, is that the current and recent tax system is very much skewed towards hammering mainly younger people who work for a living despite the > 60s now being the wealthiest generation, a change from the prior pattern which has not been reflected in taxation.

When people voted leave they voted to make our economy smaller and more expensive because we are not part of a bigger market. Eventually, families will have to move into shared houses. The banks will continue to put up interest rates, which will affect the rental market as the knock-on effect is rents have to go up.

There is not enough council housing to house people and anyone who does get a council house hands back the keys because the rent is too expensive. My partner is capping empty council houses every week. Council rent is now market rent. Cheap clothes, food and rent were a lie to get people to vote to leave and now it's done people don't want to say anything because they don't want to look stupid. What will it take to make people stand up and end it? How much was the Kings birthday party and do we have the money to pay for that????

To the rest of the world, we look stupid and the more we allow it to go on the more we look stupid. No other country in Europe is going through what we are going through and yet we say nothing.

You seem to think “wealthy” older people don’t pay tax @Rainyrunway. They pay tax on their pensions, on the income from savings and investments, council tax, VAT, the only “tax” from which they’re exempt is NI.

“Wealth” is accrued from taxed income accumulated over half a century in most cases. How do you tax it anyway?

The government is begging the over 60's to return back to work because their young doesn't want to work.

@Rainyrunway is not saying that at all (read the posts). She/he is saying that they don't pay a large enough proportion relative to their means. Plenty of ways to change the tax system if there was a will to do so (there clearly isn't in the Tory camp)!

3BSHKATS that’s a bit of an assumption to think, most people are going to inherit, parents properties.Parents are living longer, my mum sold her house, downsized, then went travelling, doing things she always wanted to do.The equity, in her flat now, will be used for any care she may need in the future.You really could do with a reality check, there are more renters in the UK than homeowners, that’s only going to rise.People who rent, aren’t a burden on taxpayers, they are the taxpayers.This assumption, that renters, claim benefits, which is so ill informed, in most cases the rents are so high, housing benefit wouldn’t cover it.Like many, l have friends and family who rent, incidentally work too and get to see what they have to go through.I have a mortgage and no l don’t expect to be bailed out, however l can empathise with people who rent, just to find somewhere suitable, is a battle and the worry of their rent being increased excessively, they have no security.Your comments show a complete lack of understanding of the current situation.

My parents downsized from a four bed detached to a two up-two down terrace, and I’m pretty sure the equity is mainly going the way of the cruise lines 😂 Good for them too, I don’t ask for anything and don’t expect anything.

People with mortgages don't expect to be bailed out but the people didn't expect money to go missing during COVID or the mps having parties at our expense while we were in lockdown. Boris has bought a 3 million pound house in Oxfordshire and he was only earning just over a hundred grand a year. They want us to quarrel with each other while they run off with the sack of money on their backs. You don't want to be old and go into hospital now. We are being run down there is an increase in people taking anti-depressants. There is an increase in people taking drugs and alcohol because there are more people begging than previously. We are becoming a depressed nation of people.

House prices rise and fall.

Some people make money, some people don't.

Aside from people who sold in thr aftermath of the financial crisis, in recent memory people have generally all made money, therefore they see it as a given.

It's not.

I often see people on here banging on about their house being "an asset" or their "biggest asset". It's not. It doesn't generate a return (unless it's a rental property). Technically it's a liability. It's dangerous to look at it as an asset or an investment for precisely the reasons we are experiencing now.

You are absolutely right that the government should not bail people out.

It's swings and roundabouts. People in social housing / private lets get appliances fixed for them if they break etc. owner occupiers do not. Owners sometimes stand to make huge capital gains if the market goes in there favour, which renters can't ever benefit from. Likewise, if the market dips they may have to sell at a loss / be in negative equity.

You make your choice based on your own circumstances, but you have to take the rough with the smooth. That's life.

@Julesoo i came from very humble beginnings and have worked since i was 13 to ensure my children never face the situation you describe because I’ve navigated ever crisis you can even imagine in my short life. And I’ve survived it, im damned if inflation is going to be my downfall given it’s entirely out of every individuals control.

If your mother didnt care enough to plan her retirement and leave provision for her children thats sad.

3BSHKATS Ok, you say you came from humble beginnings, therefore you’ve been there, you’ve seen firsthand how hard it is.
With my mum, She has planned for her retirement, however when my dad passed away, she just needed to make a new life her herself, which l fully respect.I just don’t feel l’m entitled, to the provisions my parents made.

And there’s conspiracy theories going around saying how they don’t want people to own their own homes and want a private company ( black Rock) to own all our properties!
Hence why they keep putting up rates! To price everyone out of ownership!

Is there any truth in that does anyone think ?

But surely the Bof E putting up interest rates isn’t working to lower inflation. The plan isn’t working is it?
And surely everyone would rather pay more for their food shops and goods rather than paying more in rent and mortgages?

10000000000000000000000000%

Rates have been going up for less than two years. It’s far too soon to judge whether or not it’s a successful strategy. It always was in the past.

Well no @Paul2023 not everyone because a lot of people have paid off their mortgages. Obviously those people would prefer rent and mortgage payments to rise because it doesn't affect them. (Often they're also the nimbys who object to any new housing development)

Nah… daft conspiracy theory (imo)

There was a man on the radio in his 50's talking about it he is worried about being homeless.

Definitely, because before the rates started to go up buying a house was really easy and accessible to just about everyone. You can also see their agenda in stuff like “Help to Buy”, which is a classic double bluff.

I’ve just read the title of this thread, that “no one has a right be able to make from their homes”.

So if I buy a house for £100, and then move a few years later, do I then sell it for £100? Therefore, if I’ve paid interest on a loan, I Would actually be loosing money, as I would have paid more than the house value.

(slightly tongue in cheek question!).

Interest only mortgages

You wouldn't be losing money because you’d have lived in it thereby not paying rent.

They may have had to "over-stretch" to buy their first home but after that they need to find property that they they can afford. Or stay put.
The rate of mortgage interest rates is nothing compared with the 1980's, I know that people have bigger mortgages because houses cost more now, but they are earning more.

Many of us had a hard time paying our mortgages then, single income households were more common and mortgages were rarely over 25 years. I do feel sympathy for people who are in trouble, but they have been paying exceptionally low rates for quite a few years now and it was inevitable that rates would rise eventually.
I don't see why the government should bail people out, this would involve a lot of funding and there are much more pressing needs such as providing more social housing.

This doesn't really fit with what you said before about arriving in the UK in 2015 with 4 children and 4 suitcases and living off benefits in a rented property.
It doesn't fit that someone who has allegedly struggled and rented would express such inaccurate and judgemental views about renters all claiming HB.
It doesn't fit that someone who has apparently worked since they were 13 and appears to prize self reliance also has an entitled attitude and expects other tax payers to pay their mortgage. Nor that they feel another poster's mum should support her financially as a matter of course.

Your posts are, being polite, more than a bit inconsistent.