If you’re looking to upsize then the more expensive house has got even further away. You’re also likely to be deeper into the inheritance tax band, assuming there is anything to pass on after paying for care home fees.
Rising prices only help if you sell up & downsize, for most it’s not really money but just a pile of bricks you live in.
That has to be the most incorrect use of “pocketing” I could ever imagine.
My house could suddenly be worth double, but that’s fucking usless to me unless I sell it or borrow against it (In which case, I have to pay it back)
Conflating unrealised wealth with cash. Doesn’t really make any sense.
“Pocketing”? I don’t think they thought about what that means. It’s not in their bank account – never mind their pocket – unless they sell the house.
My house has gone up in value by 30% in 5 years of ownership.
Is mad.
My house “made” more money in the 5 years since I bought it then I have from working 40 hours a week.
Sweet, they can just sell their houses and be the richest people sleeping in a doorway
My house might be gaining more than I earn, but unless I sell up and move to Albania or West Africa or something, I’m not going to see that cash. Granted my kids might see a bit but it’s f/a good to me trying to pay my electric bill.
>People living in a property worth £289,099 – which is the current UK average – can expect to have seen their value increase by at least £19,842 over the past 12 months.
The vast majority of people who have mortgages on ~£300k houses are earning *significantly* more than ~£20kpa
People on national minimum wage do not own £300k houses.
Bullshit sensationalism.
This just shafts renters and first time buyers more and more as time goes on.
That is if you allow residential property to be an investment vehicle and a storage of value. If it gets better return than a bank deposit, then you’ll have institutions and individuals looking to park their money in the homes and they don’t care if they pay above asking price – first of all they’ll still get the return they are looking for, but also they’ll prop up the prices even more.
They make money without even letting anything – there is plenty of empty properties owned by offshore corporation and they are happy with the returns they have and that they don’t have to bother with tenants.
Residential market needs serious reforms.
What an idiotic take. It is the Mirror though.
You can’t pocket money from your home until you sell it. Most people then trap that money into property again as the deposit on their new home.
The only people who pocket money by selling a house for more than they paid for it are property investors who trade houses as if they were stocks and shares.
The obvious solution is to tax capital gains at point of sale. It would remove a lot of the speculation. Perhaps taper it down depending length of residence to encourage downsizing once the kids have left home. Or at least make flipping property a heavily taxed activity with the proceeds going to social housing. Radical problems demand radical solutions. I say this as a home owner. I would like the generation below to afford their own home to raise their family. The market is broken and not serving society well at all. It is crazy that a run down dump can be worth many multiples of a good salary. Simply insane.
Bullshit.
My theoretical house value doesn’t pay my bills.
I’m not convinced that I believe that house prices rise that quickly anywhere.
Investments such as real estate have their cycles, but generally speaking, it seems to be a truism in late capitalism that money earning money is the way to go. Even if it’s a tiny bit at at first.
So they can sell their home, pay a bunch of tax and then buy another over inflated house?
I spoke to someone at a party last Saturday. He had bought a one bed flat with a mortgage over 10 years ago, then received some inheritance, so was able to pay it off early. He’s now looking to sell and the price he paid is between 50% and 33% of the current price i.e. the price has doubled, almost trebled. OK, so it’s in one of the most overheated areas in the country but he’s going to net potentially £200K profit. He’ll still need somewhere to live but it shows you how the right “investment” in the right place can really pay off.
Investors see this and they pile in. Something’s going to have to change if houses are to once again be places to live and not investments. Something to make the investors pile out as quickly as they came. I don’t believe this will happen because politicians are landlords and investment buyers too.
65% of the country are homeowners and are either unaffected by the price increases due to living in their sole property, or are actively benefitting from the price increases by trading, investment, or earning from the industry in one way or another. 35% are social tenants, renters, first time buyers or other plebs who don’t matter, politically, socially, or otherwise.
Ahh yeah all that money I can easily access, my house could have went up in value by 10x – means nothing. It’s only available if I sell, but guess what I also like the idea of living somewhere.
Nonsense headline.
Very misleading headline. This is not money in your pocket, so you actually aren’t earning anything. If you sell you have to buy somewhere else. What a nonsense story
21 comments
If you’re looking to upsize then the more expensive house has got even further away. You’re also likely to be deeper into the inheritance tax band, assuming there is anything to pass on after paying for care home fees.
Rising prices only help if you sell up & downsize, for most it’s not really money but just a pile of bricks you live in.
That has to be the most incorrect use of “pocketing” I could ever imagine.
My house could suddenly be worth double, but that’s fucking usless to me unless I sell it or borrow against it (In which case, I have to pay it back)
Conflating unrealised wealth with cash. Doesn’t really make any sense.
“Pocketing”? I don’t think they thought about what that means. It’s not in their bank account – never mind their pocket – unless they sell the house.
My house has gone up in value by 30% in 5 years of ownership.
Is mad.
My house “made” more money in the 5 years since I bought it then I have from working 40 hours a week.
Sweet, they can just sell their houses and be the richest people sleeping in a doorway
My house might be gaining more than I earn, but unless I sell up and move to Albania or West Africa or something, I’m not going to see that cash. Granted my kids might see a bit but it’s f/a good to me trying to pay my electric bill.
>People living in a property worth £289,099 – which is the current UK average – can expect to have seen their value increase by at least £19,842 over the past 12 months.
The vast majority of people who have mortgages on ~£300k houses are earning *significantly* more than ~£20kpa
People on national minimum wage do not own £300k houses.
Bullshit sensationalism.
This just shafts renters and first time buyers more and more as time goes on.
That is if you allow residential property to be an investment vehicle and a storage of value. If it gets better return than a bank deposit, then you’ll have institutions and individuals looking to park their money in the homes and they don’t care if they pay above asking price – first of all they’ll still get the return they are looking for, but also they’ll prop up the prices even more.
They make money without even letting anything – there is plenty of empty properties owned by offshore corporation and they are happy with the returns they have and that they don’t have to bother with tenants.
Residential market needs serious reforms.
What an idiotic take. It is the Mirror though.
You can’t pocket money from your home until you sell it. Most people then trap that money into property again as the deposit on their new home.
The only people who pocket money by selling a house for more than they paid for it are property investors who trade houses as if they were stocks and shares.
The obvious solution is to tax capital gains at point of sale. It would remove a lot of the speculation. Perhaps taper it down depending length of residence to encourage downsizing once the kids have left home. Or at least make flipping property a heavily taxed activity with the proceeds going to social housing. Radical problems demand radical solutions. I say this as a home owner. I would like the generation below to afford their own home to raise their family. The market is broken and not serving society well at all. It is crazy that a run down dump can be worth many multiples of a good salary. Simply insane.
Bullshit.
My theoretical house value doesn’t pay my bills.
I’m not convinced that I believe that house prices rise that quickly anywhere.
Investments such as real estate have their cycles, but generally speaking, it seems to be a truism in late capitalism that money earning money is the way to go. Even if it’s a tiny bit at at first.
So they can sell their home, pay a bunch of tax and then buy another over inflated house?
I spoke to someone at a party last Saturday. He had bought a one bed flat with a mortgage over 10 years ago, then received some inheritance, so was able to pay it off early. He’s now looking to sell and the price he paid is between 50% and 33% of the current price i.e. the price has doubled, almost trebled. OK, so it’s in one of the most overheated areas in the country but he’s going to net potentially £200K profit. He’ll still need somewhere to live but it shows you how the right “investment” in the right place can really pay off.
Investors see this and they pile in. Something’s going to have to change if houses are to once again be places to live and not investments. Something to make the investors pile out as quickly as they came. I don’t believe this will happen because politicians are landlords and investment buyers too.
65% of the country are homeowners and are either unaffected by the price increases due to living in their sole property, or are actively benefitting from the price increases by trading, investment, or earning from the industry in one way or another. 35% are social tenants, renters, first time buyers or other plebs who don’t matter, politically, socially, or otherwise.
Ahh yeah all that money I can easily access, my house could have went up in value by 10x – means nothing. It’s only available if I sell, but guess what I also like the idea of living somewhere.
Nonsense headline.
Very misleading headline. This is not money in your pocket, so you actually aren’t earning anything. If you sell you have to buy somewhere else. What a nonsense story