Last chance to beat buy-to-let stamp duty deadline
Property investors have less than a month to beat the new buy-to-let stamp duty deadline or face a hike in fees when the new charges come into force this April.
The Chancellor made the announcement in the last Autumn statement and means those looking to buy a second property will have to pay new stamp duty charges.
The proposed higher rates will be three percentage points above the current residential rates, including the zero per cent band and means anyone looking to invest in property will need to act now to avoid paying the higher rates.
So for example, anyone buying a £250,000 second home or buy to let before April pays stamp duty of £2,500. This is based on paying zero per cent on the first £125,000 of the property value and two per cent on the portion between £125,001 and £250,000.
But from April, landlords will have to pay three per cent for the first £125,000 and five per cent on the amount between £125,001 and £250,000 and would give any investor a total bill of £10,000.
Those in a position to buy are now being advised to act immediately to save themselves thousands of pounds in tax charges.
Mary Timlin, sales and marketing director at Crest Nicholson believes developments like Bath Riverside present the perfect vehicle for would-be investors.
Not only are there a number of properties ready for an immediate purchase - including some stylish penthouse apartment - but because they are brand new, are much more attractive to possible tenants.
Mary said: “Being able to complete before the end of March means these penthouses present the perfect vehicle to get in before the new stamp duty rules take hold.
“Bath has also enjoyed some impressive rent rises and means yields have attracted those wanting a decent return.
“The prospect of good rental income, capital growth and to have the deal done before April is therefore an opportunity not to be missed.”
Mary is also keen to highlight why investing in a new property is much more attractive than something that is older, the most obvious being there to be virtually no initial maintenance costs.
The potential to present an immaculate new property is also likely to pull in potential punters.
Mary added: “With Bath Riverside being the most significant property development in the city it is not surprising it has attracted investors who are looking at new build for letting opportunities right in the centre of town.
“The Riverside location offers the advantage of being within easy walking distance of the shops, restaurants, theatres and bars as well the railway station, adding to its appeal to potential tenants.”
For further information please call 01225 463517or visit http://www.crestnicholson.com/bathriverside
The sales and marketing suite on Victoria Bridge Road is open daily from 10 am to 5pm.