Harringay, Haringey - So Good they Spelt it Twice!
House prices
Speak to the estate agents, something unprecedented it's happening with the cost of home ownership, especially between wood green tube and ally pally.
It's possible this government may become known as seeing through the largest distribution of wealth from the poor to the rich ever ....
Replies to This Discussion
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Permalink Reply by JJ B on
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We need a property tax (i.e. an ownership tax) to partially replace some of the council tax and business rates (i.e an occupancy taxes). It means that landlords - residential and commercial - as well as land owners - local and foreign- would also contribute to local finances if they own property in an area. At the moment loads of landlords, both 'good' and rogue ones, buy property on interest-only loans so that they can write off the cost to tax, then they rent them out carrying out minimal maintenance and let the tenants pay the council tax. And speculative foreign buyers too, letting their property sit empty, since they can earn more through the market value increases than the interest they would get if the price of the asset = cash was placed in the bank and with no further outgoings. So they are creaming off the system by owning property that is not being used, but not really contributing to financing of public services. Of course they are providing housing to the rental market, but at what cost? And it isn't illegal but causes misallocation of that vital commodity that is housing!
I wonder whether we'll have to wait for the 'middle classes' to revolt before we see the politicians really tackle this situation?
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Reduce council tax and increase the percentage values the higher the property value. In London there is also the question of changing the weight of the taxes across the boroughs so that the burden is spread more evenly. Wandsworth, Westminster = very low. Hackney, Haringey = quite high. So it can't just be done in isolation. And there is a case for removing responsibility for some services e.g social services, education, etc, from these small boroughs and giving them over to the Mayors office. That way tax revenues from Canary Wharf, Oxford street, etc, could help finance services in less well off areas of the capital city. The likes of Google, etc setting up in Kings Cross but paying low taxes in Ireland, would contribute more too!
The changes couldn't be done in isolation. The present system does not work. Why are we different neighbourhoods in Haringey fighting just to get decent streets and access to basic services?
But of course we don't really stand a chance of seeing any of this because the political parties are stuck in a rut and we electors like it so...!
It is amazing that he UK does not have property tax! You can own property and land but not contribute anything.
Unless I am mistaken and there is land tax.
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Permalink Reply by Alan Stanton on
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It's similar to the system known as selling indulgences. The sins of the rich are condoned and pardoned provided they pay enough tax to church/state. Nothing changes.
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FPR. Ownership rights as the solution? That's what they did in the former Soviet Union. As I recall workers' certificates of ownership were sold on; and later made fortunes for oligarchs and some former communists.
A similar approach was Mrs Thatcher's "Right to Buy" - leading to many publicly owned homes ending up with exploitative landlords.
If you haven't met him, Milo Minderbinder in Catch-22 has been seen as the embodiment of amoral capitalism.
You may also be interested to hear a radio discussion with Germaine Greer and Christos Tsiolkas - including Australian Aboriginal leader Pat Dodson explaining the dangers of selling land rights.
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Permalink Reply by John D on
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I have a bedroom which doesn't have a bed in it but is used as a video/audio edit room. Do I have to pay tax on that ?
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Permalink Reply by Justin Guest on
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FPR, not being funny but your promotion of some sort of social idle where we all share in the nation's property stock is somewhat at odds with the recent discussion you began on how to get rich quick using Bit Coin investments ("Bit coin on fire today again", etc)…
How does owning property and an investor making money out of it and owning bit coins and making money out of it differ? And yes I get the 'human' component, but explain it to me from an economic perspective, especially when you use phrases like 'redistribution'...
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FPR, do you ever reread your own postings and imagine how your readers might take them? And whether you might use more persuasive and relevant examples to make your case?
Just out of curiosity, Do please let me know if you ever read and reflect on the points other people make? Or read links which they suggest?
If so, did you see this new article on housing by Danny Dorling? If you haven't done so, you might want to explore his website. In which, incidentally, he tries to meet people halfway "who are put off by long lists" .
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FPR why would it "annoy" me if you choose not to read stuff? It's up to you. But now I know, I'll stop making suggestions.
For me, exploring new - and old - knowledge and different ideas isn't "compulsory". It's fascinating and also fun. Like enjoying different music or food or sport, or arts. This is a marvellous time when the internet makes it cheaper and easier to "plug-in" to what's happening. Discovering in seconds who is writing and researching, broadcasting and videoing about issues and ideas and discoveries.
By the way, why do you think I'm "trying to solicit votes" ? Because I'm a councillor? Actually you couldn't have voted for me because you don't live in my ward. Anyway I'm not standing. So if I'm "soliciting" anything it's that you think for yourself and vote only for candidates you've actually met and talked to and judged worth voting for. That way you'll probably discover that many of the people who are standing for election across Haringey aren't worth the walk to the polling station.
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Permalink Reply by John McMullan on
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They have been held down for so long by a poor administration... perhaps that is unfair of me. The competition at the "bottom" of the market is intense with large parties being taken around £250,000 flats in one day and sealed bids being asked for the next but further up the ladder you can make offers under the asking (we're still on 2 bed flats here though). Haringey holds a lot of "the bottom of the market".
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One way or another we are heading for crisis....
http://www.theguardian.com/society/2014/may/18/-sp-truth-about-gent...
Respect
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A higher % of cash buyers means fewer properties are being bought by owner occupiers who mostly need a mortgage.
Since paying off a mortgage has historically (say since the 40s) been one of the best ways to build wealth for retirement* I don't think this is a positive trend for society.
The trap many people are in is that because they cannot raise the capital and/or have the income to get a mortgage to buy a property, they have to rent. Their rent is then used by the landlord to service a mortgage even though the occupiers are denied access to that mortgage! End result is the landlord benefits from any capital gain on the property even though the tenants actually paid most of the costs.
I have nothing against landlords or rental accommodation - there are times in people's lives its exactly what they need and as long as someone is able to provide for their future there is no need to buy ever. But a situation where many many people who would like to buy and traditionally would have been able to are now locked out of the market is not good for London in the long term.
* This is true whether or not house prices rise in real terms as long as they rise with inflation. Compared to renting, a repayment mortgage enforces saving**, insulates housing costs from inflation, and assuming the mortgage is paid off before retirement, removes the need to fund housing costs from a pension. therefore the owner occupier benefits even in conditions where an investor would not.
** If you save you end up with a pot of cash, if you pay off a mortgage you end up with an asset in the form of a house which you can use to either directly meet your own accommodation needs or rent out/sell and use the proceeds to fund your accommodation.
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