Property Swop Shop
I see there was a property related article on the BBC site, which had an estate agent who offered house swop where you can trade your home for another one and ‘match make’ buyers to sellers like a property dating agency. A few months ago developers were potential housebyers to try new build houses for a weekend to see whether they were suitable or not. Both of these are preferable to the governments announcement of this week that they were going to spend billions of taxpayers money in raising the minimum level of 1% Stamp Duty to £175 rather than the previous £125.
See the whole clip at the BBC site
From the stats we have the average price in England is £230,000, which is the same as last year. The recent government action will give an average sale an extra £550 but average prices should have risen by from £10,000 to over £20,000 during the last year so this a drop in the ocean.
Last year - £230,000 - £125,000= £105,000×1%=£1050
This year - £230,000 - £175,000= £55,000×1%=£550
£550 is not enough to get the property market going, but by the governments figures will cost us billions. By my figures (and bear with me here):
There are an average 100,000 sales in the whole of the UK per month so 100,000×12 monthsx£550 Stamp Duty=£660,000,000 (£0.66 Billion) to give a tiny £500 help! How many council houses could you build for that Gordon?
Is this straight swop? or swop plus cash? Dont know if the Tax and Inheritance Tax people would like this though, you would have to nominate a price for exchange. Why not nominate a really low price to lower any taxes and fees that will be due. Needs to be thought about…looks like the government will be losing a packet on their Stamp Duty pledge so this could be nasty loophole. What is the law on family members selling properties?
Comment by Mike Peterson — 5 September 2008 @ 4:38 pm