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Stock Market 2021

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^^^ I wonder how many buyers actually think a decade into the future.

The chances of interest rates rising over the term of their mortgage must be nearly 100%. It's matter of when/how much.

Anyone that does think they'll increase, must assume it will inflate away. Will their salaries inflate ??

I remember fixing our mortgage at 4% in 2002 and feeling like I'd won the Lotto. Era of high interest rates my parents had to deal with was still recent history for me. I got to work paying it off early as figured things will only go up. I suspect many now have the opposite mindset that 'money's never been cheaper'. Central Banks/governments sure are reinforcing that narrative.
 
andyoz said:
^^^ I wonder how many buyers actually think a decade into the future.

The chances of interest rates rising over the term of their mortgage must be nearly 100%. It's matter of when/how much.

Anyone that does think they'll increase, must assume it will inflate away. Will their salaries inflate ??

I remember fixing our mortgage at 4% in 2002 and feeling like I'd won the Lotto. Era of high interest rates my parents had to deal with was still recent history for me. I got to work paying it off early as figured things will only go up. I suspect many now have the opposite mindset that 'money's never been cheaper'. Central Banks/governments sure are reinforcing that narrative.
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There was a C4 Dispatches program on Monday about how we repay the covid debt. Chancellor Darling was on there talking about the QE in 2008 to bail out RBS etc. £50BN I think he said, but was deeply concerned at what’s going on now in terms of QE. Quite like the bloke really.
 
Tony L said:
Direct via the Fundsmith.co.uk site. Bit scary as it has gone out from my bank account but isn’t showing on my Fundsmith user account yet!
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You’ll probably execute at the price at close of business today, so may take a day or 2 to appear.
 
Ponty said:
There was a C4 Dispatches program on Monday about how we repay the covid debt. Chancellor Darling was on there talking about the QE in 2008 to bail out RBS etc. £50BN I think he said, but was deeply concerned at what’s going on now in terms of QE. Quite like the bloke really.
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People seem to be forgetting about the principle they are signing up to pay back with the banks. If you've signed up to a £500k mortgage you still have to pay back £500k (or your kids do)!!!
The interest rate should be the secondary consideration...

Stamp Duty holiday was the biggest con going, most are worse off because of it. The future buyers of our inflated properties are our kids generation remember...Zero Sum Game.
 
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Ponty said:
You’ll probably execute at the price at close of business today, so may take a day or 2 to appear.
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I made an 'in specie' transfer to another ISA platform a couple of years ago and it took well over a month! I understand that they have to execute the sell/buy orders but I'd have thought huge funds like Vanguard are very liquid - I never really understood why it doesn't take a few minutes.
 
paulfromcamden said:
I made an 'in specie' transfer to another ISA platform a couple of years ago and it took well over a month! I understand that they have to execute the sell/buy orders but I'd have thought huge funds like Vanguard are very liquid - I never really understood why it doesn't take a few minutes.
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Making money for them while it is in some kind of holding account?
 
Ponty said:
Word is, this will be extended until the end of June. There is no free lunch. It seems the only thing that matters is monthly payment (at artificially low IR’s). Houses, cars, phones, everything. It’s the financialization of our whole existence.

https://www.telegraph.co.uk/propert...-stamp-duty-deadline-pushed-house-prices-58k/
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It's fact now.

https://news.sky.com/story/stamp-du...KeMT5cs4kH8JJ7HkZjN7cPnHvoedubPGPLDAglR7WHdiE

"The holiday appears to have had a positive impact on the housing market, with right-leaning think tank the Centre for Policy Studies reporting house sales had increased to their highest level since before the 2007 financial crisis."

No shit Sherlock. Not sure quoting 'booming' sales figures not seen since 2007 exactly fills everyone with confidence about what the future might hold LOL. Serious Government intervention into Free Markets rarely ends well.
 
The possibility of the stamp duty “holiday” being extended past the end of March, has not been finalised yet.

Just lots of ifs/ buts /maybes in the media.

At least I cant find anything definitive. But I would welcome a link.

I still have my doubts that the government will extend it. We shall see soon.
 
How much is stamp duty? on the overall cost of a house move is it even worth all the hype to get in before the holiday is done if the result is a bumped up house price anyway due to the demand?
 
matt j said:
How much is stamp duty? on the overall cost of a house move is it even worth all the hype to get in before the holiday is done if the result is a bumped up house price anyway due to the demand?
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Depends on the property value but this latest prop saves people up to £15K. The thing is, it’s paid up front with real money which someone has to earn and save, as opposed to no stamp duty and another £50 a month on the mortgage to cover increased house prices and debt. This artificial stimulus effectively penalises those who try to do the right thing. The winners are estate agents (increased commissions) and banks.
 
Ponty said:
Depends on the property value but this latest prop saves people up to £15K. The thing is, it’s paid up front with real money which someone has to earn and save, as opposed to no stamp duty and another £50 a month on the mortgage to cover increased house prices and debt. This artificial stimulus effectively penalises those who try to do the right thing. The winners are estate agents (increased commissions) and banks.
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Hasn't it always punished the frugal?

Even though my credit score is good, apparently I'm a bad/not great lending option as I have no debt/credit, which in my simple way of thinking makes me less risk than someone living on the bubble every month eating into an overdraft to cover all the never never payments.
 
matt j said:
Hasn't it always punished the frugal?

Even though my credit score is good, apparently I'm a bad/not great lending option as I have no debt/credit, which in my simple way of thinking makes me less risk than someone living on the bubble every month eating into an overdraft to cover all the never never payments.
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It’s a dreadful tax really as it reduces the mobility of labour. Trouble is, the govt would have to raise the tax revenue somewhere else and if it was scrapped house prices would rise.

Unfortunately we live in a world of debt and credit scores. Debt is a drug. The pushers want you to enjoy it but not over indulge to the point of killing yourself. Why not get a credit card and just clear it every month. Won’t cost you anything and will improve the credit score.
 
Stapm duty should be scrapped and an annual property wealth tax should be implemented in its place. That would be much fairer way to operate.
 
^^ except that’s not fair on Mrs Smith at No 5 who bought her run down terrace in a war zone 40 years ago because that’s what she could afford. It now happens to be worth £2M (in Notting Hill).
 
Ponty said:
^^ except that’s not fair on Mrs Smith at No 5 who bought her run down terrace in a war zone 40 years ago because that’s what she could afford. It now happens to be worth £2M (in Notting Hill).
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if this kind of taxation had been implemented decades ago, then perhaps the property market wouldn’t have got so ridiculously distorted and your example would not exist

britain desperately needs to start taxing wealth instead of ever increasing taxation on income
 
NeilR said:
if this kind of taxation had been implemented decades ago, then perhaps the property market wouldn’t have got so ridiculously distorted and your example would not exist

britain desperately needs to start taxing wealth instead of ever increasing taxation on income
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Mrs Smith would still have bought her terrace house, except at some point, she’d have been forced to move from her home because she didn’t have sufficient income to cover the wealth tax since the city boys decided to move in.

I realise this is an extreme example. Out of interest, what do they do in CH?
 
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