I must admit i normally follow politics quite well but despite delving into I’m still none the wiser.
What I can gather is that by making these tax cuts it will encourage eco money to grow and interest rates to fall.
As it makes the interest rates fall its therefore cheaper to borrow more & have more debt with lower interest than less debt with higher interest…& then I get lost.
From what I read it’s against conventional wisdom (which always unsettles people) & is the equivalent of going “all in” & putting everything on black.
That would be silly for ordinary people but governments who actually can influence the interest rates might be able to do weird stuff.
If you hold off, prices could increase.
If you buy, prices could crash.
I personally massively advocate property purchase as a form of investment though. It massively beats sitting in an account and you’ll get something tangible at the end of it.
The LISA is per year rather than per month. (£4k per tax year) If you can, reach the annual cap ASAP, as you gain the 25% straight away, and then earn interest on that 25%!
I think the logic is to persuade those owning first time buyer style homes to move up the ladder and make space for the first time buyers trying to get on the ladder.
I honestly don’t know. I genuinely know nothing about it to be honest. My house is currently rented out whilst I live in SFA, and I was only able to afford the deposit with the blood money from my motorcycle crash.
Mortgage advisor said 90% of people my age who come in looking for deposits either have a pay out and using it, bank of mum and dad or dead relative…saving every penny isnt the norm anymore
I wouldn’t have been able to get on the ladder in London if my mother hadn’t had a damn good life insurance policy (and set it up so I couldn’t access it until I was 25 - 19 year old me would have blown it within a few months).
We wouldn’t be able to rent the place we’re living in now, let alone save up a deposit. Anyone who does it without help has my utmost respect.
As a northerner living in exile down south (only 16 more years till the youngest goes to uni/gets kicked out for work and I can move back) I would say the North is much more civilised.
