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The Tax That Could Kill The NHS!

[vc_row][vc_column width="1/1"][vc_single_image image="872" alignment="center" border_color="grey" img_link_large="" img_link_target="_self" img_size="full"][/vc_column][/vc_row][vc_row][vc_column width="1/1"][vc_column_text]Bit of a dramatic headline, but these are dramatic days ahead of us - a general election looming, David Cameron effectively handing in his notice at the palace, UKIP expected to gain even more ground than they already have… None of this is exactly apocalyptic, but homeowners and first time buyers should probably be concerned. Election day is fast approaching, and promises to be the closest run race in history. Again. With another hung parliament a very real possibility, there is still a lot to play for with votes and seats up for grabs all over the country. The sharp eye is going to be on the property market too, but why? The very threat of a hung parliament, generally, but the air of uncertainty in particular means that markets are going to be more than a little nervous - and this includes the property market. Not since 1974 has Britain gone to the polls under a coalition government, and the strain is already starting to show. Have you ever wondered why economy analysts always look to the property market?[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width="1/1"][vc_single_image image="874" alignment="center" border_color="grey" img_link_large="" img_link_target="_self" img_size="full"][/vc_column][/vc_row][vc_row][vc_column width="1/1"][vc_column_text]Wonder no more. The property market holds up a mirror to the property owning population, showing us how secure, or not, they feel at any given moment. Because a home has so much riding on it financially, beyond the mere cost of the property itself, it can act as a barometer for the economy as a whole. Property price increases can be indicative of an optimistic population/economy, and declining house prices can mean the opposite. For an example, you only have to look to Scotland and the recent vote for independence. An unexpected number of ‘Yes’ votes shocked the market, and saw company valuations plummet.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width="1/1"][vc_column_text]

Labour Parasites, and the double pronged tax attack

The so-called mansion tax

Those owning large homes, or homes in affluent areas, are likely going to feel the unease even more than most - albeit, after the fact. Labour has pledged, should they win the general election, to increase tax on those who own homes that are worth more than £2m. How will this work? Well, it is said that it is going to be a tiered system and will be applied to the annual tax on ‘enveloped dwellings’. The brackets affected are:
  • £2-5m
  • £5-10m
  • £5-10m
  • £5-10m
What the actual rates are going to be for each band is, as yet, unknown but Ed Balls has said that people with properties worth between £2 and £3 million will pay an additional £250… A month. That is no small increase, regardless of how much you might earn - £3k a year is still £3k a year, an amount that many people in the UK are expected to live on![/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width="1/1"][vc_single_image image="876" alignment="center" border_color="grey" img_link_large="" img_link_target="_self" img_size="full"][/vc_column][/vc_row][vc_row][vc_column width="1/1"][vc_column_text]Labour has said that they expect the additional £1.2bn this tax will bring each year, is going to help fund the NHS. Essentially, the guilt card here is ‘support the tax, say yes to the NHS… Oppose the tax, and you oppose the NHS - pick one buddy!’. Of course, Labour were not the first to board this particularly rocky boat - the Liberal Democrats 2010 manifesto said pretty much the same thing. There you have it. The two main parties, both in favour of a tax on the higher end of the housing market. This is something that voters will need to factor into their decision making process.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width="1/1"][vc_column_text]

The Help to Buy scheme

You have probably heard of the Help to Buy scheme by now, especially if you are entering the property market for the first time as a buyer, and this popular scheme has already helped over 71 thousand first time buyers - which, in turn, has increased new-build sales by around 40%, providing a much needed boost.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width="1/1"][vc_single_image image="879" alignment="center" border_color="grey" img_link_large="" img_link_target="_self" img_size="full"][/vc_column][/vc_row][vc_row][vc_column width="1/1"][vc_column_text]The Help to Buy scheme is:
  • Available on new-build properties, up to a value of £600,000.
  • The Government lends you up to 20% of the value, via an equity loan which you are able to pay back at any time during the term of the loan or on the successful sale of your home.
  • You won’t be charged any fees on the loan for the first 5 years that you own your home. And there are no fees in Scotland at all.
  • You will only have to secure, up to, a 75% mortgage loan from the bank or building society.
All in all, it’s not a bad scheme to get on board with, but the thing to consider is what effect the outcome of the general election is going to have on this scheme, and whether or not it could actually kill it off. If the scheme is scrapped, it is going to have a massive impact as that 40% increase suddenly goes away and any ground that may have been gained, lost. Interest rates, at the moment of writing, are at an all time low of 0.5% but if this increases because of market uncertainty, then so will the cost of borrowing - again, affecting home buyers across the country. Make sure that you vote this May 7th, but make sure you vote with all of the facts at hand. How do you think this election will affect the economy? Will affect you?[/vc_column_text][/vc_column][/vc_row]

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