Jason Cook Explains Why Anyone Thinking Of Investing Should Act Now
Have you ever considered becoming a landlord? It is no secret that buying into property is viewed as one of the smartest ways to invest your cash and generate a decent return, but now more than ever is one of the best times to do it.
Currently in every region of Great Britain, rental prices are higher than monthly mortgage payments, as revealed in a recent Telegraph article, so in addition to making a concrete investment with a monthly income, landlords who take out a mortgage could still gain a monthly profit.
However, an even more pressing factor is the impending stamp duty surcharge on additional residential properties which comes into effect in April. With the average property sale transaction currently taking 10-12 weeks from the date the sale is agreed to completion, now is the time to act.
As announced in the Autumn statement, purchasers of buy to let and second homes will have to pay 3% above the standing average stamp duty tax. This will mean any purchases that are not completed by 1st of April 2016 will be liable for this increased tax, which is a substantial difference when previously homes under £125,000 weren’t subject to a charge whatsoever.
However, taking the initial step to buy an investment property can be incredibly daunting, especially when there is a timeline attached, which is why it’s essential to seek not only expert advice, but local knowledge. Our agents specialise in specific areas of Nottingham, so they can advise on where the best locations are for your desired investment and give you insights into where rental incomes make the highest returns.
There’s good reason why property is one of the most popular ways to invest your money. We would be delighted to help you towards achieving your sustainable financial investment.
For more information about new Stamp Duty Land Tax (SDLT) on additional properties, visit the Government’s website, or refer to their table below:
|Band||Existing Residential SDLT rates||New additional property SDLT rates|
|£125k – £150k||2%||5%|
|£250k – £925k||5%||8%|
|£925k – £1.5m||10%||13%|