yump - Capital gain on empty shops ?!?!
Either you are having another one of your laughs or have no clue.
No-one wants them.
Empty properties still have to pay rates - "you do not have to pay business rates on your empty property for 3 months. The relief starts from when the property becomes empty. After this time, most businesses must pay full business rates."
They often cannot be repurposed - or who wants to live on the High Street ?
Offices left empty with no takers thanks to WFH
There is NO capital gain on the expensive noose around the neck !
Councils that bought shopping centres - idiots trying to get commercial - are sitting on huge paper losses
but there is no market to take them off their hands.
Charity shops paying little or no rent but covering the insurance and rates - is nirvana to some landlords. |
You only have to walk around any neighbourhood to see empty properties. Some are empty offices for years or just dead high street businesses. That is a national scandal. If compulsory purchase can be used for infrastructure progress, why the heck not for releasing property that is being kept just for capital gain. I believe Gordon Brown reduced CGT for businesses holding property for 2 years, so that kick started the empty property as an investment trend. |
All the reasons contribute. Supply and demand is never going to be about just one thing.
But whilst we can acknowledge the failings in the economy because so much is used up
on rents and interest its not like the govt hasn't an interest in the matter too.
Higher and higher property values add to the tax take - higher stamp duty, higher taxes on
rental income from landlords, higher take from IHT - eventually everyone in London will be
paying it if they own a home. Higher funds from the eventual sale of houses to trap people
into paying for their own social care.
Govt is as addicted to their share. |
So the fact that housing stock to buy is greatly reduced because people buy as an investment, and will only let the property has nothing to do with it? Then to make matters worse long term let rental stock is depleted because of the growth in Airbnb. We will just have to agree to disagree I am afraid. |
Not sure I entirely agree Gary, economics 101, supply and demand. According to migration watch the UK population has risen by 8m from the year 2000, driven mainly by net immigration. House prices in the past 2 decades have increased fastest in London and the South East of England over the same period. According to the ONS, 47% of immigrants arriving in the UK, nearly 2.3m people, settled in London or South East England, these people need to live somewhere. I think this is driving house prices upwards rather than the population no longer making memories.
wllm :) |
Thanks NSB |
 Housing prices have always been a product of supply and demand.
Whilst I agree that higher interest rates earlier would have reduced some of that demand ,
the fact that the population has increased several million over the past just a few years
means that the excess demand would still have been there, so the house prices would still
have risen.
Demands on small time landlords mean less returns , tax deduction for the major cost
of mortgage interest removed and additional bureaucracy have led to lower supply , especially after
property values rose so making gains possible and then interest rates rising giving a worry/risk free
real rate of return meaning landlords exited the sector.
So you get reduced supply and increased demand fuelling rent rises.
I have argued on TW board that through the "cost of living crisis" (if there really was one) that house prices would not crash and they barely moved.
But I do think house prices and rents so high are a waste of the economy, Everyone paying interest instead of buying things.
Maybe the coming recession will actually cut house prices - but population will have to stop rising so fast
first.... |
Shortly after the election in July, UK 5 year government bond yields felt below 3.5%. Currently at 4.5%. It's not just the stupid inflationary and anti jobs budget that's to blame. Bank of England kept interest rates at 0.1% for too long. When it became blatantly obvious to everybody inflation was on the rise they only increased to 0.25%. Followed by 18 small consecutive quarter point Increases and a final belated 0.5% increase. Quantitative easing and extended stamp duty holidays also fueled housing prices. If the Bank of England acted sooner with initial rise to 0.5 percent followed by around 6 consecutive 0.5% increases to 3.5%. The inflationary spiral may have been avoided or curtailed. Instead rents and mortgage payments became unaffordable there by forcing workers to demand hire and higher pay increases leading to further inflation and more pay demands. Previous minimum pay increases also Accelerated inflation. Even a recession in the second half of 2023 did little to help. Now Bank of England are making things worse again with this accelerated unnecessarily large quantitative tightening increasing borrowing costs which will have to be passed on. |
Rather than just tell you the answer. Google MNG results, also check dividendmax.Anyone who jumps in and tells you will be just as lazy as you. |
Is the next (final) dividend due on March 2025? Does any one know if there is an increase from the 13.2p paid for in March 2024? |
Labour has always been the tax and spend party. Her budget delivers that very mantra with perfection. Personally, I think they are toast, particularly when they will be unable to deliver ANY of their promises. It's how much damage is done in the interim sadly. |
I gave you a tick up for this post fenners66, but I really wanted to give you at least 100 ticks for this. You're absolutely spot on. NSB |
Yes I had some limit orders in play that got taken out and I don't plan on adding right now.
I guess just like in the autumn of 2022 we have to wait it out again.
Good luck all 👍🏻 |
Plenty of shares that are on my shopping list hit my targets today - but I seem to have lost my appetite. |
It took hours after the budget to come to the conclusion she will have to raise taxes again.
The £25bn she was trying to raise from NI - was going to lead to more unemployment for individuals, especially the young lower paid who will now not have a route into work, no experience and too expensive.
Then the near zombie businesses going under.
Then the large profitable businesses which offset the cost increases against their previous profits thus ensuring less corporation tax paid (4-5 £bn?)
So she created her own new hole - I don't believe the "black hole" story as their public sector wage settlements create that.
Then because it would inevitably lead to recession after they spent 4 months talking us into recession the £ would fall and bond yields rise thus increasing the Public sector interest bill.
Rachel from Customer services clearly has forgotten anything she ever learned about economics and will plunge the UK into a debt spiral with falling tax receipts and ever rising taxes to compound the error. |
Reeves is going to have to do an emergency budget, the borrowing costs for the Government feel like they are spiralling out of control. What is most worrying is this lot are in power for another 4.5 years and they had 14 years in opposition to prepare and plan for government. All the high yield stocks that I own are getting hammered and the losses will only stop when bond yields start to fall.
wllm :) |
The Gov bond sales yesterday/today have gone well.. :o(, look at the rates they are having to offer to get any buyers to take them away.. |
On another board someone just said
"Jitters about anything bond yield related is hardly a UK specific problem"
However -
Bloomberg just told us that US bond yields highest for 1 year
UK bond yields depending on the 10 year or 30 years - the highest since 2008 (16 years +)
or since 1998 (26 years +)
That IS a UK specific problem |
Thanks Skinny, I was being lazy, I don't hold enough to be too concerned. |
gbh2 - if you look at the 'Historic Rns', there was nothing of a financial nature released last year until the Full Year Results on 21 Mar 2024 - so unlikely, but not impossible? |
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