To think that the new tax on £2m will eventually be harmful to ordinary folk?

[IwishIcouldski]

I'm concerned that the new tax on properties over £2 million will push more buyers toward homes below that threshold. Increased demand at lower price points could intensify competition at £1.5 million, £1 million, £500,000, £300,000, and so on, as buyers adjust their expectations downward in response to pressure higher up the market but still below the £2 million mark.

It also raises the question of who will actually buy the £2 million-plus homes. I can imagine many sellers pricing their properties just under £2 million to attract buyers, which could drive prices down at each prove level across the market. Meanwhile, some of the remaining £2 million homes may end up being purchased by the very wealthy or by landlords who convert them into multiple flats. There may need to be big drops in prices because when you buy, you would not want to be dragged into the £2m mark after a couple of years because of inflation.

I feel it will eventually harm ordinary people over time but the wealthy will be able to weather the storm.

Parents need educating to care for their kids properly and not expect the government and tax payers to do their parenting for them. Maybe they need to consider whether they can actually afford them before they have them.

Not either - both.

You're nice.

Ha ha yup. I replied to that.

HOMES FOR FATCATS.

In fact, I remember the fatcat stuff back in the day. The media vilified them. In their million pound houses while the newly privitised utility companies they ran were run into the ground.

How times have changed.

I'm very glad we pulled out of our house purchase. Not the country I want to own a house in.

And not wrong.

Well that point went flying well over your head didn't it?

It doesn't matter how much i tell a child in poverty they could become a millionaire when the opportunities don't exist for them to do that, and they never will. Because if everyone is a millionaire, who will do the low paid jobs that the millionaires build their hoards of wealth on the back of? Supermarket workers, cleaners, binmen etc. Millionaires need working class children to grow up to be working class adults to keep their fortunes growing. We see this in the "if you tax me, I'm off" tantrum mindset. They don't want to see people lifted out of poverty or given opportunity because their whole life requires lower paid people to continue slogging their guts out for very little reward so they can skim off the top. Also over 93% of children have no option but to go to mainstream schools, the majority of which are failing children. Look at the numbers of children leaving school without basic literacy and numeracy skills. You can't tell me that all of those children just have parents who want them to fail. You can't dream your way out of a substandard education when your parents are working all hours just to make ends meet in low paid jobs just to make their millionaire bosses even richer.

Well said.
The old fashioned demonising attitude to the "poor" is starting to creep back in to attitudes today.
The idea that if you are poor it's your own fault & that if you just work that bit harder you too could be living in that £2m house.

Wonder how long before workhouses seem like a good idea again?

Oh give over. Sick of people tying themselves in knots to justify why they shouldn’t be the ones shouldering any extra tax burden. People with money will definitely still be buying £2m homes, they can pay the tax, end of story.

Who knows / it might start to slowly push house prices slightly down and stop the fast growth in house prices meaning that over time homes become more affordable

It’s still an asset. They’re in a much healthier position than someone with no money who is living in a fetid bedsit. They can sell it, or borrow against it.

Exactly, they just need to make the effort instead of aspiring to have hundreds of kids so they can get a council house and lounge around in their kappa leisurewear their whole lives, sponging off the state and smoking spice.

I don’t believe any CGT is paid on the sale of a primary residence - only on second homes and rental properties.

As it stands they will not track the tax unless greater than £2M in value per property.

A landlord could have 5 x £0.5m properties and therefore have significant property wealth, but they would not be taxed.

Gulp. Those are your words, not mine.

My response to the specific scenario that poster raised was nonsense?

I’m giving you the benefit of the doubt and assuming this is satire.

But flip that, and how would working classes survive without the wealthy building businesses for them to work in? I'm working Class and the ceo of my company is a millionaire, but I dont feel bitter. You need layers of workers with someone at the top or there'd be nothing. Some people seem to want their families to be equal financially to the person at the top but thats never going to work out is it?

The disparity could be reduced though. It’s essentially a codependence.

Ah, I didn't realise. Thank you for correcting my thinking.

(If anyone wants to report this post, the sarcasm level was mild)

I’m not sure it’ll make things easier for buyers lower down either, anything that shifts demand around tends to ripple through the whole market. Hard to know yet though,these things often don’t play out the way people expect.

They haven’t decided how to do the valuations yet.
I predict some very interesting threads when they do!

Ah, yes. This is where people who paid £2,000,000 suddenly try to show it's only worth £10,000.

Very simple answer: It;s worth what you insured it for.

People don’t expect equality. They want the person at the top to pay their workers fairly, and pay their tax dues without crying poverty.

It’s when the person at the top makes makes their fortunes by working their staff into the ground, paying them peanuts, and then expects their downtrodden workforce to feel sorry for them for having to pay tax that we feel quite nauseated.

In England, maybe. Other places and other times have found different approaches.

Note to self. Make sure that we do not encourage the next generation to be self sufficient. Let’s make sure that they have no aspiration or self belief. Remind them that they can just live off someone else’s taxes instead. Keep telling them ‘rich’ people will provide for them because they started off life in a different place and they are therefore disadvantaged and deserve / are entitled to be supported and ‘rich’ people should be happy to do this.

That sounds like a great place to live to me.