Housing ' Time Bomb' Clicking

[Slim]

It's not unsurprising that more expensive houses have increased faster in price though is it. In general a percentage rise will only increase that gap between 'steps' on the ladder.

 

The lending situations skewing things a bit too, lenders are back to requiring a large deposit or charging big fees, meaning first time buyers are struggling. If you've a lot of equity, you don't have that problem.

[Stu Peters]

(Dreaming) A balconied and spacious apartment on Douglas Head SHALL be mine for a hundred grand...one day...oh yes...

[thebees]

Hurrah for greed society!! at least we'll have our churches to pray for better times in, eh?

[mikekinvig]

i dont thing heritage homes can build any faster. the new prefab homes in peel are going up at an alarming rate. but im sure that pile of wood and two hundred blocks are worth every penny of the £375-500,000 they are asking for them. and they dont waste any space either, enough room for a small wheelie bin between each one and no more, and enough garden for a medium rotary washing line, and 6ft trampoline. i can only say its a good job the cats here dont have a tail because they have a smaller swinging circle for measuring the third and forth bedrooms. keep up the good work

[cheeky boy]

As Gladys points out, allowing tenants to buy their council homes and the council then using that revenue to build more public housing would have gone a long way to help the lower paid onto the housing ladder

 

Unfortunately it would not be nearly a lucrative for the building companies as selling government subsidised homes to first time buyers

 

I think that the cosy relationship between certain elected members and their department executives have with the building firms may explain why such a common sense policy as "Right to buy" was never adopted

 

As an example, the corpy owned the former bin wagon depot at the bottom of Lake Road, an absolute peach of a site with river frontage which could have made a fine residentiial development bringing in in income for generations to come

 

Instead they sold the site to DD and the bin depot was moved to a yard/office in Springham Park, this time rented from, of course DD again

 

Could somebody at the corpy pleas explain to me how this was a good idea ?

[Celt]

It's pretty simple really, if you do your homework.

 

The highest contributer to the NI and Tax system, atm, is the Finance sector. Which the IOM could not do without.

 

The second highest, atm, is the Construction Industry. Who, becuase of the hrs the individual can work, pay a vast amount into the NI and Tax pot. Also you have the VAT return the IOM gets back from the UK for things like, materials, labour, profit and such. The IOM can't do without that either.

 

The same Construction Companies will also have to pay the same, ie: VAT Registerd, Tax on Profit and such.

 

The Estate Agents should come into a similar bracket but for not as much profit and payments to the Government.

 

So if anyone here thinks that the IOM Government are going to decrease the Housing Market Prices by building low cost housing and put a curb on prices, really needs their head examining and their bumps felt.

[thebees]

Companies do not pay tax. VAT on commercial properties is up to the owner, if you want to claim back your VAT you have to pay it (added on for sales & rental alike) I presume private rentals are classed as commercial property. I'm not an expert but that is how it reads, correct me if I'm wrong.

[Celt]

Companies do not pay tax. VAT on commercial properties is up to the owner, if you want to claim back your VAT you have to pay it

 

I'll use Heritage Homes as an example.

 

Heritage Home do not employ enough trades to do, Cards In, to do the work needed, so they Sub Contract work to other Companies. Brew and Corkill for example.

 

If these Sub Contract Companies turnover is above , i think it's 56k, they have to charge VAT. That's on labour and materials supplied. Then of course they're taxed on their profit. These Companies then also have to pay NI and Tax through the wage packet or if they use Self Employed people, pass on the details to the tax and NI offices.

 

Don't forget we're talking about first time buyers and only then affordable housing.

 

So therefore the my statement of the Government getting Vat, NI and Tax out of it still stands.

 

VAT on commercial properties is up to the owner

 

You might be right on that one but i wasn't quoting on that. Sorry if i mislead.

[Sebrof]

Companies do not pay tax. VAT on commercial properties is up to the owner, if you want to claim back your VAT you have to pay it

 

I'll use Heritage Homes as an example.

 

Heritage Home do not employ enough trades to do, Cards In, to do the work needed, so they Sub Contract work to other Companies. Brew and Corkill for example.

 

If these Sub Contract Companies turnover is above , i think it's 56k, they have to charge VAT. That's on labour and materials supplied. Then of course they're taxed on their profit. These Companies then also have to pay NI and Tax through the wage packet or if they use Self Employed people, pass on the details to the tax and NI offices.

 

Don't forget we're talking about first time buyers and only then affordable housing.

 

So therefore the my statement of the Government getting Vat, NI and Tax out of it still stands.

 

No, it doesn't. Residential property is zero rated for VAT purposes. So the constructor CLAIMS BACK all the VAT he has to shell out on materials, and then sells the house/flat/des res FREE of VAT.

 

Result: no VAT income to government.

 

As has been pointed out, companies pay NO income/corporation tax in the IOM (except in a few specialised cases, which do not include construction companies). So nothing there.

 

But yes, there is some NI and income tax. With modern construction methods, where labour costs are minimised, that doesn't amount to a great deal of money.

 

Might I suggest you check your facts before posting?

 

VAT on commercial properties is up to the owner

 

Not exactly. VAT is chargeable on commercial properties.

[cheeky boy]

Around 70% of government revenue come from VAT and whilst we get a substantial rebate from the UK, most of that money comes from all of us spending our earnings on petrol, beer, ciggies, clothes, eating out etc. In fact pretty much everything apart from basic food, kids clothes & books.

 

So government revenue relies for a large part on the spending of disposable income, therefore cheaper housing would result in more money going to government and less money to banks, mortgage lenders and developers

[Celt]

Might I suggest you check your facts before posting?

 

Sure I will becuase if you're right , i'm owed thousands.

 

I've been in the Trade and run my own Company for over 36 yrs, so if you can give me " The Facts " to get some money back, please tell.

 

If you had taken the time to read my post, it was about First Time Buyers, New Property and such. Not Re-furbes and such but trying to get people on the property ladder with what the Government has to offer.

 

So if you read what i posted, you will see that, i stated the Sub Contracters have to pay Vat < Before the property goes for sale >. So you explain to me how no Vat is involved?

 

FREE of VAT.

 

OK, maybe free off Vat. Have you ever done Vat returns? You pay out and wait for ages to get them and reailise you would get a better interest rate from a Bank. !

 

The Government also have to wait for their VAT payback from the UK.

 

companies pay NO income/corporation tax in the IOM

 

My Company pays no Income Tax ? You seem to be mistaken between Corprate Tax, which the Finance Sector pay and the normall Tax us PunkaWahlla's pay, you dafty

 

Maybe you can give me your name and address and when my Bill comes through, you can either sort it out or pay it ?

 

So the constructor CLAIMS BACK all the VAT he has to shell out on materials

 

Please refer to the above.

 

Yet you still miss the point , as i gather your a Office Waller, that is that if the Main Contractor puts on, say, 20% to cover overheads, then passes on the work to Subbies, who then put on 20% for the same, , you are at least 40% over charged before the Subbies, subbies could put ther 20 % on.

 

I've built houses and know what it cost to build them. Do you?

 

Apart from the Land Buy, it cost less, the more you build.

 

Imo, the Estate Agents look at pricing. As do the Developers and set a price to get the most out off it. The Estate Agents make more, the Developers get their price and everyone else has to pay for greed.

 

The Government make big bucks but who suffers?

 

 

For example is we just had our house revalued for insurance. It was valued at 686K.

 

I know for a fact that even after buying the land , i could have built it , with all the mod cons, for at least half the price stated, wtf?

 

Sorry to anyone offended to the price off my house but i'm nearly 50 and bought my first house for 18k at 22 yrs old. Through bloody hard work i might add.

 

If ever a Co-Operative cound be set up on the IOM, i would offer me sevices free off charge, to get people on the ladder. However, approuch a Bank and or Building Socierty, they go spare and don't won't to know.

 

Finnaly, there are a many VAT systems.

 

#1 You buy and pay full VAT. ie; clothes, milk, spuds, beer.

 

#2 You buy Windows for your house. You buy them yourself, you could pay the full wack, you get them as a home improvement, you should pay 5%. No-matter who sells or fits it.

 

#3 I'm not to sure on this but if you buy a window, you should'nt pay Vat on the glass but only the window. Or the other way round or it might have been changed? Can't remember.

 

Either way, there's alot off people getting robbed imo and it's not just buy the developers.

 

Please do your Homework people, as i might not be totally right, i hope i've given you an insight to what happens and please knock on the right doors to get what you deserve.

[Gladys]

For example is we just had our house revalued for insurance. It was valued at 686K.

 

I know for a fact that even after buying the land , i could have built it , with all the mod cons, for at least half the price stated, wtf?

 

Sorry to anyone offended to the price off my house but i'm nearly 50 and bought my first house for 18k at 22 yrs old. Through bloody hard work i might add.

 

Celt, if that was a valuation for insurance purposes and included the land it is wrong. A valuation for insurance should be at the re-build, not market value, and should not include the land. In the event of a total loss, you will still have the land which has an inherent value. Re-build is almost always cheaper than market value, so you may want to have it double checked as your premiums will be calculated on that value.

 

BTW, you should not feel that you have to apologise for the value of your home, as you say you got it thorugh dint of hard work and quite some pain, I am sure, in the early days, like the rest of us.

[ai_Droid]

My Company pays no Income Tax ? You seem to be mistaken between Corprate Tax, which the Finance Sector pay and the normall Tax us PunkaWahlla's pay, you dafty

Maybe you can give me your name and address and when my Bill comes through, you can either sort it out or pay it ?

 

Your company is zero rated. You might personally pay income tax, but your company shouldn't. I'm not sure how you think the finance sector differs from construction companies in this regard?

 

One thing I don't think has been mentioned is the registry fee. The government make a percentage of every sale, so when values go up, they do very well. It's also not in the public interest to have a stagnant market with no sales, because there's no recordal fees. The main area the governmnet has over controlling prices is releasing land from planning, not anything you've mentioned.

 

Imo, the Estate Agents look at pricing. As do the Developers and set a price to get the most out off it. The Estate Agents make more, the Developers get their price and everyone else has to pay for greed.

 

Making a profit is not greed, and the estate agent and developer may well set the price, but they don't set the value. The market sets the value.

 

Do your homework

[Sebrof]

Might I suggest you check your facts before posting?

 

 

So if you read what i posted, you will see that, i stated the Sub Contracters have to pay Vat < Before the property goes for sale >. So you explain to me how no Vat is involved?

 

No problem. The VAT paid by every supplier is claimed back by the developer.

 

No VAT is ever KEPT by Treasury until the last sale to a non-VAT registered person.

 

VAT goes in and out, in and out, in and out until the last transaction.

 

So in the case of a new-build residential property, all the VAT paid over by suppliers, subbies, etc., is reclaimed by the company they sell to. And the last sale is taxed at 0%, so Treasury get nothing.

 

I am assuming here that everybody in the supply chain is VAT-registered. If a supplier is not registered, then Treasury will get the (small) amount they have paid out. But since these people are likely to be selling their services, and to have paid little VAT themselves, the impact will be very small.

 

Trading companies in the Isle of Man do not pay Income/Corporation Tax (because the rate is 0%). However, developers are an exception. They DO pay, at 10%. So I was wrong on that. Apologies.

 

 

 

And I have found that Treasury normally pays a VAT reclaim within a fortnight of getting it.

[Albert Tatlock]

I thought time bombs ticked - and only clicked when they went off. Who ever heard of a clock going click clock?