Buy to Let Investors Get a Boost
Buy to Let Investors Get a Boost
Investors with buy to let UK properties are the unexpected
winners of the government's plan to invigorate the
uncertain property market. Originally targeted to
first-time homebuyers, the scheme turns out to have more
benefits for buy to let investors. Coupled with
considerable property price declines, the setting is just
right for the buy to let investor in the current market
Stamp duty plan
With the intention of improving the property market, the
government has decided to create a stamp duty holiday to
lure first time buyers back to the housing market.
Cash-rich property investors particularly emerged as the
victors in the proposal. The plan allows buyers to purchase
properties worth up to £175,000 minus stamp duty for the
next 12 months - allowing buyers to save up to £1,750 for
every property they buy. In the previous setup, properties
of £125,000 and above were required to pay the tax.
Benefits of stamp duty waiver to buy to let investors
Buy to let investors who buy a lot of properties stand to
gain from the plan because first-time homebuyers are bound
by more stringent mortgage standards. Some professional
landlords are best situated to take advantage of it: Aside
from acquiring properties for substantial discounts from
distressed property sellers, they can take an extra 1% from
the one-year waiver of stamp duties. In addition, the
reprieve has prompted some sellers to decrease asking
prices to nearer the £175,000 mark, so a £200,000 property
would drop by £25,000.
Sophisticated property investors have been vigorously
picking up properties on the cheap. With the abolition of
stamp duties, investors haven't been in a better position.
It is anticipated that more property investors will
continue bagging cheaper properties and turn them into
rental accommodations. This will in turn trigger a rise in
rental yields in many areas with supply continuing to lag
behind demand in many parts of the UK.
Smart property investors are aware that the secret to a
good investment is obtaining a buy to let uk property at
the lowest possible price. This is possible if you can
effectively seek out distressed sellers who are willing to
sell their properties up to 20% below market value.
With the demand for rental homes in Britain growing at the
fastest rate in at least ten years and potential homebuyers
setting aside purchase plans, buy to let investors are at a
superior advantage. As long as you're an investor who knows
where to make a property purchase and how to buy it cheap,
your buy to let UK property could be your key to a
financially secure future.
About the Author:
Parmdeep Vadesha is a property investment expert and
founder of the largest community of property entrepreneurs
on the web who buy below market value properties from
distressed homeowners facing repossession, divorce and
bankruptcy. He writes a monthly newsletter for over 70,000
property investors worldwide -
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